Slide 1: Second quarter 2024 results presentation
Second quarter 2024 results presentation 17 July 2024
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. Q2 2024 highlights 3. Strategic and commercial update 4. Production update 5. Technology update 6. Q&A 3
Slide 4: A fully dedicated electrolyser technology company
NEL IN BRIEF A fully dedicated electrolyser technology company A century of One focus: World-class partners electrolyser innovation Delivering the most for delivering best-in- and pushing for new energy-efficient and class turn-key systems technologies reliable electrolysers 4
Slide 5: 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 Manufacturing facilities in Investing heavily in R&D to develop (NEL.OSE) since 2014 manufacturer with >3 500 units Norway and the US (Connecticut) next-generation pressuri
Slide 6: 2. Q2 2024 highlights
©. Q2 2024 highlights nel’
Slide 7: Quarterly highlights
Q2 2024 Quarterly highlights Financial results and financing Key developments in Q2 2024 (from continuing operations) Revenue • USD 41 million in additional tax credit for manufacturing expansion in Michigan NOK 332 million • Capacity reservation from Hy Stor Energy for more than 1 GW of alkaline el
Slide 8: Group Financials
Q2 2024 Group Financials (continuing operations) Q2 2024 Q2 2023 YTD 2024 YTD 2023 • Fueling division now separately listed (NOK million) (restated) (restated) and not included as “ongoing operations” Revenue from contracts with customers 332 371 608 635 • YoY revenue development negatively EBITDA -
Slide 9: Alkaline Electrolyser financials
Q2 2024 Alkaline Electrolyser financials Alkaline Electrolyser Revenue and EBITDA • Revenue relatively flat over the last (NOK million) quarters, while 13% down YoY REVENUE • Steady EBITDA development over the 254 238 224 220 last quarters 187 196 • Business model proven with clear scale effects • C
Slide 10: PEM Electrolyser financials
Q2 2024 PEM Electrolyser financials PEM Electrolyser Revenue and EBITDA • 4% decrease in revenue compared to (NOK million) the same quarter last year REVENUE 175 • Flat EBITDA development last three quarters, and in-line YoY 117 108 112 • Completion of the 500 MW PEM 77 52 production line will allow
Slide 11: Order intake and backlog
Q2 2024 Order intake and backlog Order intake Order backlog (NOK million) (NOK million) 1 000 3 000 900 2 443 2 500 2 375 2 329 800 2 093 2 115 2 071 700 2 000 600 500 443 1 500 398 400 338 270 1 000 300 229 200 131 500 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2023 2024 2023 2024 PEM Alkaline PEM
Slide 12: 3. Strategic and commercial update
3. Strategic and commercial update 12
Slide 13: Cavendish successfully spun-out, making Nel a fully dedicated electrolyser company
S TRATEGIC AND COM MERCIAL U PDATE Cavendish successfully spun-out, making Nel a fully dedicated electrolyser company • Nel’s Fueling division was successfully spun-out as a separate listed company on the Oslo Stock Exchange on 12 June 2024 • Nel is now a 100% focused electrolyser company, dedicatin
Slide 14: The Fueling spin-off takes Nel closer to profitability
S TRATEGIC AND COM MERCIAL U PDATE The Fueling spin-off takes Nel closer to profitability Implied EBITDA with and without the Fueling division (discontinued operations) (NOK million) - -100 -200 -300 -400 -500 -600 -700 -800 2020 2021 2022 2023 YTD 2024 Including discontinued operations Excluding di
Slide 15: Technology Licensing Agreement with India's largest privately owned company
S TRATEGIC AND COM MERCIAL U PDATE Technology Licensing Agreement with India’s largest privately owned company • Reliance (RIL) is renowned for its ability to execute large-scale industrial strategies and is building a multi-GW fully integrated end-to- end new energy value chain • The licensing agre
Slide 16: Capacity reservation for more than 1 GW of alkaline electrolysers from Hy Stor Energy
S TRATEGIC AND COM MERCIAL U PDATE Capacity reservation for more than 1 GW of alkaline electrolysers from Hy Stor Energy • Hy Stor Energy’s Mississippi Clean Hydrogen Hub (MCHH) will be the largest zero-carbon, off-grid hydrogen production and salt cavern storage hub in the US • The MCHH project wil
Slide 17: 4. Production update
“. Production update nel’
Slide 18: Alkaline capacity at 1GW
PRODUCTION U PDATE Alkaline capacity at 1GW • Construction of the second 500 MW atmospheric alkaline production line at Herøya is completed • Nel currently has 1 GW of real, fully automated, production capacity for atmospheric alkaline electrolysers at its disposal • No further major CAPEX commitmen
Slide 19: PEM capacity increase on schedule
PRODUCTION U PDATE PEM capacity increase on schedule • The production capacity increase to 500 MW annually for PEM electrolyzers in Wallingford (CT) is progressing according to plan • All major production steps will be optimized and automated, some previously outsourced processes will also be insour
Slide 20: Additional USD 41 million support for the planned electrolyser facility in Michigan
PRODUCTION U PDATE Additional USD 41 million support for the planned electrolyser facility in Michigan • Nel was awarded USD 41 million in tax credits through the Qualifying Advanced Energy Project Tax Credit (48C) program • All in all, Nel has secured close to USD 170 million in support and roughly
Slide 21: 5. Technology update
5. Technology update nel’
Slide 22: Nel is developing ground-breaking technology together with world class partners
TECHNOLOGY U PDATE Nel is developing ground-breaking technology together with world class partners a selection of Nel’s partners 22
Slide 23: Nel's perspective on electrolyser technologies
TECHNOLOGY U PDATE Nel’s perspective on electrolyser technologies Performance S-Curve for future generation stack(s) S-Curve for next generation PEM & Pressurized AWE stacks S-Curve for current AWE and PEM stacks ATM w/low-cost country sourcing and continued electrode advancements AEM New PEM stack
Slide 24: Development of 100 MW turn-key modules in partnership with world-class EPC companies
TECHNOLOGY U PDATE Development of 100 MW turn-key modules in partnership with world-class EPC companies • Multiple strategic partnership agreements have been signed with world-class EPC partners, which cover different geographies, for developing 100 MW Alkaline and PEM turn-key solutions • The new c
Slide 25: Turnkey pressurized alkaline prototype to be built at Herøya in H2-24
TECHNOLOGY U PDATE Following a successful stack test in H1-24, a turnkey pressurized alkaline protype will be built at Herøya in H2-24 25
Slide 26: 6. Summary
6. Summary nel’
Slide 27: Summary
Summary Completed spin-off and separate Signed a licensing agreement with Completed construction of line 2 at listing of Fueling division, creating a Reliance for production and collaboration Herøya, bringing annual alkaline fully dedicated electrolyser company on technology development production c
Slide 28: number one by nature
number one by nature.