Slide 1: Third quarter 2023 results presentation
Third quarter 2023 results presentation 25 October 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. Q3 2023 highlights 3. Commercial developments 4. Market & technology 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
NEL IN BRIEF Leading pure play hydrogen technology company with a global footprint Listed on the Oslo Stock Exchange Leading electrolyser manufacturer, Leading manufacturer of Manufacturing facilities in (NEL.OSE) since 2014 with >3 500 units delivered in 80+ hydrogen fueling stations, with >120 Nor
Slide 6: 2. Q3 2023 highlights
©. Q3 2023 highlights nel:
Slide 7: Highlights
Q3 2023 Highlights Financial results and financing Key developments in Q3 2023 Revenues and income • EUR 9 million contract for alkaline stacks and balance of stacks to Hyd’Occ in France NOK 405 million • EUR 11 million contract for alkaline stacks to Bondalti in Portugal • Obtained USD 5.6 million
Slide 8: Financial highlights
Q3 2023 Financial highlights (NOK million) Q3 2023 Q3 2022 YTD 2023 YTD 2022 Revenue and income 405 183 1 239 579 EBITDA -109 -214 -367 -563 EBITDA margin -27% -117% -29% -97% EBIT -165 -260 -533 -688 Pre-tax income (loss) -228 -262 -767 -456 Net income (loss) -226 -260 -761 -450 Net cash flow from
Slide 9: Segment Financials
Q3 2023 Segment Financials ELECTROLYSER DIVISION Q3 Q3 Change YTD’23 YTD’22 Change FUELING DIVISION Q3 Q3 Change YTD YTD Change (NOK million) 2023 2022 (NOK million) 2023 2022 2023 2022 Total revenue Total revenue 321 148 116% 990 437 127% 85 35 143% 250 143 75% and operating income and operating in
Slide 10: Order intake and backlog
Q3 2023 Order intake and backlog ORDER INTAKE ORDER BACKLOG (NOK million) (NOK million) 982 2 913 2 965 1 000 3 000 2 854 2 613 900 775 2 500 800 2 103 700 580 2 000 600 1 439 500 418 428 1 500 1 230 1 289 400 352 1 014 283 1 000 300 236 200 139 500 100 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3
Slide 11: 3. Commercial developments
3. Commercial developments 11
Slide 12: Contract for 20 MW of electrolyser equipment in France
COMMERCIAL DEVELOPMENTS Contract for 20 MW of electrolyser equipment in France • Client: Hyd’Occ • Size: 20 MW • Value: EUR 9 million • The French renewable energy producer, Qair, is the main shareholder. The local government is also an owner • Will supply renewable hydrogen to local industry and tr
Slide 13: Contract for 40 MW of electrolyser equipment in Portugal
COMMERCIAL DEVELOPMENTS Contract for 40 MW of electrolyser equipment in Portugal • Client: Bondalti • Size: 40 MW • Value: EUR 11 million • Bondalti is the largest company in the Portuguese chemical industry • The electrolyser will supply hydrogen to the client’s chemical processes, as well as long-
Slide 14: One containerized PEM system sold in Q3'23, to be deployed in Australia
COMMERCIAL DEVELOPMENTS One containerized PEM system sold in Q3’23, to be deployed in Australia • Client: Undisclosed • Type: MC500 (two stacks) • Output: ~1 000 kg/day • In total, three containerized systems sold YTD • Demand for containerized units continues to be good • A containerized solution o
Slide 15: Ovako's pioneering hydrogen project inaugurated
COMMERCIAL DEVELOPMENTS Ovako’s pioneering hydrogen project inaugurated • The world’s first fossil-free hydrogen plant to heat steel prior to rolling • Sweden’s, and one of Europe’s, largest electrolyser plant (20 MW) for renewable hydrogen production • This is the second 20 MW alkaline system deliv
Slide 16: Decades of experience in the US
COMMERCIAL DEVELOPMENTS Decades of experience in the US • Nel has been present in the US for 27 years • Since 2010, the company has received more than USD 50 million in funding from US authorities, and will receive additional USD ~10 million for ongoing projects • Nel has engaged with a wide range o
Slide 17: USD >50 million in funding secured for the US Gigafactory
COMMERCIAL DEVELOPMENTS USD >50 million in funding secured for the US Gigafactory • Selected Plymouth Charter Township, a suburb of Detroit, for the new Gigafactory • The state of Michigan has awarded Nel USD >50m in support for establishing a new factory in the state • ~4/5 tax credit/exemption • ~
Slide 18: 4. Market & technology
4. Market & technology • Project pipeline • Electrolyser manufacturing capacity • Technology development 18
Slide 19: Well positioned for large-scale leadership
M ARKET & TECHNOLOGY Well positioned for large-scale leadership • Continued positive pipeline development where average size of Nel’s top 20 leads is ~360 MW (median of ~250 MW) • However, large-scale projects have higher complexity, and the overall risk is increasing for both project developers and
Slide 20: Global manufacturing capacity misconception
M ARKET & TECHNOLOGY Global manufacturing capacity misconception • ‘PowerPoint capacity’ and real electrolyser production capacity is not the same • Difference between nameplate and actual capacity • Misalignment between announced capacity and availability of required components • Substantial differ
Slide 21: 100 years of experience
Proven Investing 100 years of technology in in future experience operation technologies 21
Slide 22: Electrolyser R&D spending
M ARKET & TECHNOLOGY Electrolyser R&D spending TECHNOLOGY ROADMAP ESTIMATED FY'23 GROSS R&D SPENDING • Capturing the full potential of current offering • Volume scale-up • Improved sourcing • Further product enhancements • Preparing launch of new offering with new “S-curves” NOK ~300m • Next generat
Slide 23: Sneak peek: Next generation Pressurised Alkaline
M ARKET & TECHNOLOGY Sneak peek: Next generation Pressurised Alkaline • Nel used to have a pressurized alkaline solution, similar to what is being offered today, that did not add any benefits to the product portfolio • Next generation is a fundamental redesign by a dedicated team working for more th
Slide 24: 5. Summary
5. Summary nel:
Slide 25: Nel's value proposition
S U MMARY AND OU TLOOK Nel’s value proposition • Unrivalled track record - Decades of experience - Large installed base • Technology leadership - Multiple technology platforms - Proven solutions • Cost and scale leadership - Front-runner in cost reductions - Market leading production capabilities Wi
Slide 26: Third quarter 2023 summary
Third quarter 2023 summary Significant revenue increase Two alkaline electrolyser Line 2 at Herøya on track → 1 GW and continued positive margin contracts and one PEM Wallingford expansion on track → 500 MW development containerized contract signed Concluded on US GW site, currently secured >50 MUSD
Slide 27: number one by nature
number one by nature.