Slide 1: Q2 2018
Q2 2018 Jon André Løkke Chief Executive Officer
Slide 2: Forward-looking information
Forward-looking information Nel ASA Q2 2018 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: Nel ASA Q2 2018 agenda
Nel ASA Q2 2018 • Q2 highlights • Nel in brief & segment updates - Nel Hydrogen Fueling - Nel Hydrogen Solutions - Nel Hydrogen Electrolyser • Nikola • Plant expansion at Notodden • Summary/Outlook
Slide 4: Q2 highlights
Q2 highlights Nel ASA Q2 2018 Financial results and financing Operations and sales • Revenues of NOK 135.8 million in Q2’18, up from NOK 39.1 million • Received a USD 5.5 million additional purchase order from Nikola in Q2’17, mainly following the acquisition of Proton Energy Systems followed by a m
Slide 5: Financial highlights
Financial highlights Nel ASA Q2 2018 2018 2018 2017 2017 2016 (NOK million) Q2 Adj* Q2 Q2 Operating revenue 135.8 135.8 39.1 298.4 114.5 Total operating costs 173.0 173.0 63.9 415.6 169.8 EBITDA -8.8 -20.6 -22.0 -81.2 -44.9 EBIT -25.5 -37.2 -24.7 -117.2 -55.3 Pre-tax loss -29.9 -41.5 -27.0 -124.4 -6
Slide 6: Successful private placement and secondary sale
Successful private placement and secondary sale Nel ASA Q2 2018 • Raised NOK 281 million in gross proceeds through a private placement of 90,000,000 new shares at NOK 3.12 per share • F9 Investments LLC sold 50,000,000 existing shares in the company at NOK 3.12 per share • Net proceeds to be used to
Slide 7: Nel in brief & segment updates
Nel in brief & segment updates
Slide 8: Nel in brief & segment updates
Nel ASA Nel ASA Q2 2018 Nel in brief & segment updates • Global, listed pure-play hydrogen company – facilities in Norway, Denmark and the U.S. • Significant foothold in fast-growing markets with several breakthrough contracts • World-leading on hydrogen electrolyzers and fueling equipment – unrival
Slide 9: Achieved world's first UL certification for hydrogen fueling station product
Achieved world’s first UL certification for hydrogen fueling station product Nel ASA Q2 2018 Nel in brief & segment updates FACTORY certified H2Station®, approved by UL • Sets new industrial norm and benchmark for safety level and legal compliance for hydrogen fueling stations • Enables faster and m
Slide 10: Received purchase order in Korea, assumed full ownership of joint venture
Received purchase order in Korea, assumed full ownership of joint venture Nel ASA Q2 2018 Nel in brief & segment updates Enables Nel to extend and accelerate activities and sales in the region • Nel-Deokyang Co., Ltd. received EUR 2 million purchase order for a H2Station® hydrogen fueling solution •
Slide 11: Subsequent event: Received purchase order for two additional H2Stations in Norway
Subsequent event: Received purchase order for two additional H2Stations in Norway Nel ASA Q2 2018 Nel in brief & segment updates • Nel Hydrogen Solutions awarded EUR 2 million contract by Uno-X Hydrogen AS to build next two H2Station® hydrogen fueling stations in Norway • To be located in Hvam and S
Slide 12: Subsequent event: Received purchase order for two additional H2Stations in Germany
Subsequent event: Received purchase order for two additional H2Stations in Germany Nel ASA Q2 2018 Nel in brief & segment updates • Nel Hydrogen Solutions awarded EUR 2 million contract by H2 Mobility to build two H2Station® hydrogen fueling stations in Germany • Part of largest hydrogen infrastruct
Slide 13: Nel electrolyzer powers first hydrogen vessel to travel around the world
Nel electrolyzer powers first hydrogen vessel to travel around the world Nel ASA Q2 2018 Nel in brief & segment updates The Energy Observer: 6 years, 50 countries and 101 ports of call • First vessel powered entirely by a mix of clean hydrogen and renewable energies to embark on trip around the worl
Slide 14: The transformational Nikola partnership
The transformational Nikola partnership
Slide 15: Additional USD 5.5 million purchase order from Nikola
Additional USD 5.5 million purchase order from Nikola Nel ASA Q2 2018 The transformational Nikola partnership • Two DEMO stations to support Nikola test-fleet of trucks • Additional purchase order of USD 5.5 million brings total value for demo stations to USD >9 million • Delivery in the second half
Slide 16: Awarded multi-billion NOK electrolyzer and fueling station contract by Nikola
Awarded multi—billion NOK electrolyzer and fueling station contract by Nikola Nel ASA Q2 2018 The transformational Nikola partnership Contract for delivery of up to 448 electrolyzers / 1 GW of electrolysis • Contract awarded as part of Nikola’s development of a hydrogen station infrastructure in the
Slide 17: Nikola Motors has received nearly $11 billion in pre-orders
Nikola Motors has received nearly $11 billion in pre-orders Nel ASA Q2 2018 The transformational Nikola partnership Received pre-order from Anheuser-Busch (AB) and raised capital • AB targets to convert its entire long-haul fleet to renewable powered trucks by 2025 • AB has placed an order of up to
Slide 18: Construction of mega-factory
Construction of mega-factory
Slide 19: Constructing the world's largest electrolyzer manufacturing plant
Constructing the world’s largest electrolyzer manufacturing plant Nel ASA Q2 2018 Construction of mega-factory Name plate capacity of 360 MW per year, more than 10x current annual production • Highly automated and designed according to lean manufacturing principles • Industrial scale electrode produ
Slide 20: Game-changer for large-scale electrolyzer cell stack production
Game-changer for large-scale electrolyzer cell stack production Nel ASA Q2 2018 Construction of mega-factory Aiming at system cost reduction of more than 40% • Phase 1 expansion from 25 MW/year to ~40 MW/year completed • Debottlenecking and optimizing the existing plant • Total production capacity a
Slide 21: Highly automated and designed according to lean manufacturing principles
Highly automated and designed according to lean manufacturing principles Nel ASA Q2 2018 Construction of mega-factory • Plant layout has been designed to accommodate lean principles Assembly Post-treatment Station • Based upon a “built in quality” philosophy with high degree of automation and proces
Slide 22: Making renewable hydrogen mainstream – Changing industries
Making renewable hydrogen mainstream – Changing industries Nel ASA Q2 2018 Construction of mega-factory Cost efficient alternative to natural gas reforming • Electrolysis has for several decades been a niche solution, but will now become an attractive and renewable alternative to steam methane refor
Slide 23: Summary/Outlook
nel: Summary/Outlook
Slide 24: Creating a rapidly growing billion NOK company
Creating a rapidly growing billion NOK company Nel ASA Q2 2018 Global presence Technology leadership Strong financials Cost leadership Commercial capabilities Preferred partner 24
Slide 25: Outlook
Outlook Nel ASA Q2 2018 • Following the July private placement, the company is well funded to support current business plan and ongoing expansion activities • Initiated factory expansion at Notodden to support deliveries to Nikola and other customers • Ongoing growth initiatives and US legal costs w
Slide 26: Number one by nature
nel: Number one by nature