Slide 1: Q1 2019
Q1 2019 Jon André Løkke Chief Executive Officer
Slide 2: Forward-looking information
Forward-looking information Nel ASA Q1 2019 This Presentation includes and is based, inter alia, on forward-looking expectations will be achieved or that the actual results will be as set information and statements that are subject to risks and uncertainties out in the Presentation. Nel ASA is makin
Slide 3: Agenda
• Q1 highlights • Nel in brief • The H2 opportunity • Latest developments • Summary/outlook • QA
Slide 4: Q1 highlights
Q1 highlights Nel ASA Q1 2019 Operations and sales Financial results and financing • Awarded USD 6.5 million contract for the delivery of H2Station® • Revenues of NOK 122.4 million in Q1’19, up from NOK 112.5 solution for fueling of heavy-duty vehicles in the U.S. from Shell million in Q1’18, repres
Slide 5: Financial highlights
Financial highlights Nel ASA Q1 2019 2019 2019 2018 2018 2018 2017 (NOK million) Q1 Adj* Q1 Q1 Q4 Operating revenue 122.4 122.4 112.5 124.9 489.0 302.2 Total operating expenses 174.4 174.4 144.3 185.6 685.1 419.4 EBITDA -20.1 -34.8 -15.8 -41.9 -131.6 -77.4 EBIT -37.3 -52.0 -31.9 -60.7 -196.1 -117.2
Slide 6: Nel in brief
nel: Nel in brief
Slide 7: Nel ASA
Nel ASA Q1 2019 Nel ASA • Pure play hydrogen technology company listed on the Oslo Stock Exchange (NEL.OSE) • Manufacturing facilities in Norway, Denmark and U.S. & global sales network • World’s largest electrolyzer manufacturer, with >3500 units delivered in 80+ countries since 1927 • World leadin
Slide 8: Strong field know-how & manufacturing capacity
Strong field know-how & manufacturing capacity Nel ASA Q1 2019 Wallingford, USA Notodden, Norway Herning, Denmark PEM electrolyzers Alkaline electrolyzers Hydrogen refuelling stations 2,700+ systems delivered 800+ systems delivered 50+ stations delivered Production capacity: Production capacity: Pro
Slide 9: The H2 opportunity
nel: The H2 opportunity
Slide 10: The large opportunity for electrolysis just got a lot bigger
The large opportunity for electrolysis just got a lot bigger Nel ASA Q1 2019 The H2 opportunity Global hydrogen market, by end-use: Large potential for growth, driven by increasing focus on climate and renewable energy, decreasing electricity prices and decreasing electrolyser capex Special focus on
Slide 11: The steel industry is one of the largest industries globally
The steel industry is one of the largest industries globally Nel ASA Q1 2019 The H2 opportunity Accounts for 7% of the global emissions, and industry is growing • 1.6 – 1.9 tons of CO2 emitted per ton of steel produced • Currently 1 200 million tons of ore-based steel produced per year • CO2-emissio
Slide 12: Hydrogen is expanding its areas of application
Hydrogen is expanding its areas of application Nel ASA Q1 2019 The H2 opportunity CONVENTIONAL INDUSTRY MOBILITY POWER-TO-X Food Glass Polysilicon Laboratories Chemical Industry Industry Industry Industry Mobility Power-To-X (transportation) (renewable hydrogen) Thermal Chemical vapor Steel Power In
Slide 13: Hydrogen is becoming relevant in all forms of mobility
Hydrogen is becoming relevant in all forms of mobility Nel ASA Q1 2019 The H2 opportunity PASSENGER CAR Hydrogen as preferred future fuel alternative: FAST FERRY − True zero emission from production to use TRAIN − Can beat fossil fuel applications on a TCO- basis − Low weight (compared to e.g. batte
Slide 14: Decreasing cost of renewable hydrogen opening up new business areas
Decreasing cost of renewable hydrogen (and oxygen) opening up new business areas Nel ASA Q1 2019 The H2 opportunity • Wide variety of existing and new markets METHANOL AMMONIA REFINERY where electrolysis can play a major role – Exchanging fossil hydrogen with renewable hydrogen (f.ex fertilizer) – E
Slide 15: Cost of wind and solar has dropped by 69% and 88% during the last decade
Cost of wind and solar has dropped by 69% and 88% during the last decade Nel ASA Q1 2019 The H2 opportunity Wind and solar is on a trajectory to become the cheapest form of electricity • Falling LCOE1) of wind and solar, Wind LCOE Solar PV LCOE Unsubsidised levelized cost of energy ($/MWh) 2) Unsubs
Slide 16: Scale & automation will reduce CapEx for electrolyzers
Scale & automation will reduced CapEx for electrolyzers Nel ASA Q1 2019 The H2 opportunity Hydrogen production - capex price • SMR – “steam methane reforming” dominating hydrogen production today, $/kW using natural gas 800 • Nel is establishing a >40% cost reduction 700 Fossil parity at • Expect to
Slide 17: Latest developments
nel: Latest developments
Slide 18: Awarded USD >13 million purchase orders for HDV H2stations from Shell
Awarded USD >13 million purchase orders for HDV H2stations from Shell Nel ASA Q1 2019 Latest developments • Since new year, received two purchase orders for H2Station® solutions for fueling of heavy-duty vehicles in California from Shell • Order issued under earlier announced framework agreement bet
Slide 19: Awarded PO for PEM electrolyzer and enters a 30 MW framework contract
Awarded PO for PEM electrolyzer and enters a 30 MW framework contract Nel ASA Q1 2019 Latest developments First containerized megawatt PEM electrolyzer from Nel in Europe • Awarded a USD >3 million PO for containerized 2 MW Proton PEM electrolyzer as part of new 30 MW framework contract with Hydrosp
Slide 20: Received purchase orders for 8 H2Stations in Korea, 9 in total
Received purchase orders for 8 H2Stations in Korea, 9 in total Nel ASA Q1 2019 Latest developments Breakthrough for the Nel hydrogen fueling solutions in the Korean market • Nel Korea has received following PO’s • Two H2Station® from Gangwon Technopark • Value contract EUR ~2.8 million • Purchase or
Slide 21: Awarded PO for H2Station from HTEC in Canada
Awarded PO for H2Station® from HTEC in Canada Nel ASA Q1 2019 Latest developments Nel’s first H2Station® to be delivered in the Canadian market • On May 3rd awarded a PO for a H2Station® fueling station from HTEC (Hydrogen Technology & Energy Corporation) • First H2Station® from Nel in Canada, openi
Slide 22: Entered into MoU for HDV standardization
Entered into MoU for HDV standardization Nel ASA Q1 2019 Latest developments Heavy duty fueling technology and standards reaching a mature stage • Entered MoU together with Air Liquide, Hyundai, Nikola Motor, Shell and Toyota to develop and test 70 Mpa hydrogen fueling hardware for heavy duty vehicl
Slide 23: Successful Nikola World event
Successful Nikola World event Nel ASA Q1 2019 Latest developments Nel and Nikola = Hydrogen @Scale • Nel awarded contract as part of Nikola’s development of a hydrogen station infrastructure owned and operated by Nikola in the U.S. • Multi-billion NOK 1 000 MW electrolyzer and fueling station contra
Slide 24: HYBRIT video
HYBRIT video Nel ASA Q1 2019 Latest developments 24 Source: Hybrit Development AB (HYBRIT) is a joint venture owned equally by SSAB, LKAB and Vattenfall
Slide 25: Received purchase order for a 4.5 MW electrolyzer from HYBRIT
Received purchase order for a 4.5 MW electrolyzer from HYBRIT Nel ASA Q1 2019 Latest developments HYBRIT aims to develop fossil free steel production for the future • 4.5 megawatt alkaline electrolyzer solution will be used in a pilot plant for fossil free steel production • Hybrit Development AB (H
Slide 26: Massive future potential from CO2-free steel production
Massive future potential from CO2-free steel production Nel ASA Q1 2019 Latest developments Total potential for CO2-free steel is around 3x that of ammonia • Both green ammonia and fossil-free steel is less mature market, will only start to develop at large scale after 2025 360 MW electrolyzer • But
Slide 27: Summary/Outlook
nel: Summary/Outlook
Slide 28: Creating a rapidly growing billion NOK company
Creating a rapidly growing billion NOK company Nel ASA Q1 2019 Levering on the arising opportunities within energy storage and hydrogen fueling Global presence Technology leadership Strong financials Cost leadership Commercial capabilities Preferred partner 28
Slide 29: Outlook
Outlook Nel ASA Q1 2019 • Ongoing growth initiatives and focus on long term high value orders will have a negative impact on Nel's ability to deliver positive EBITDA in the short term • Orders booked will primarily affect revenue growth from the second half of 2019 • Continue work on the x10 electro
Slide 30: Q&A
8 May 2019 Q&A
Slide 31: Number one by nature
nel: Number one by nature