Slide 1: Q4 2016
Q4 2016 Jon André Løkke Chief Executive Officer
Slide 2: Forward looking information
Forward looking information Theme/Subject This Presentation includes and is based, inter alia, on forward-looking out in the Presentation. Nel ASA is making no representation or information and statements that are subject to risks and uncertainties warranty, expressed or implied, as to the accuracy,
Slide 3: Table of contents
Table of contents • Q4 highlights and financials • Segment updates • Nel Hydrogen Electrolyser • Nel Hydrogen Fueling • Nel Hydrogen Solutions • The hydrogen opportunity • Market update on the US • Heavy duty transportation opportunities • Summary/outlook • Appendix: Q4 financials
Slide 4: Financial highlights - quarterly development 2016
Financial highlights - quarterly development 2016 Theme/Subject (NOK million) Q1 Q2 Q3 Q4 Total Share prog. FY 2016 Operating revenues 26.0 13.4 24.4 50.6 114.5 - 114.5 EBITDA -7.6 -14.0 -10.1 -2.8 -34.6 -10.3 -44.9 EBIT -10.1 -16.5 -12.7 -5.7 -45.1 -10.3 -55.3 Cash balance end of period 289.0 265.9
Slide 5: Q4 Highlights
Q4 Highlights Theme/Subject • Reported Q4 revenues of NOK 50.6 million, • Awarded contract with Instituto Mexicano del sequentially up from NOK 24.4 million in Q3 Petróleo (IMP) for the delivery of a Nel A-150 • Cash balance at end of quarter at NOK 225.5 electrolyser plant (Q3’16: 223.6) Subsequent
Slide 6: Nel ASA
Nel ASA • Pure-play hydrogen company listed on the Oslo Stock Exchange – facilities in Norway and Denmark • Three divisions offering hydrogen technology and solutions for industrial and energy applications • More than 850 hydrogen solutions delivered in 60 countries world wide since 1927 • World #1
Slide 7: Segment updates
nel: Segment updates
Slide 8: Nel Hydrogen Electrolyser
Nel Hydrogen Electrolyser • Global leader in hydrogen prod. plants - highest uptime, lowest conversion cost, robust and reliable • More than 850 hydrogen solutions delivered in 60 countries world wide since 1927 • Scalable production capacity for industrial and energy/transport applications – small
Slide 9: Recent developments
Recent developments Nel Hydrogen Electrolyser • High interest for C-range electrolysers • Low-cost, turn-key solution, representing the world’s C-150 150 Nm3/h (330 kg/day) smallest footprint for containerized, high capacity 700 kW system electrolysers with 200 bar pressure • Contract with Instituto
Slide 10: Rotolyser status
Rotolyser status Theme/Subject Nel Hydrogen Electrolyser Project running according to plan 100x smaller than ATM from high pressure and centrifugal effect • Design and technical solutions improved to facilitate higher capacity and commercial hydrogen production • In process of completing production
Slide 11: Nel Hydrogen Fueling
Nel Hydrogen Fueling • Global leader within hydrogen fueling solutions for vehicles, first to adapt the newest fueling standards • Delivered more than 30 stations in 8 countries across Europe since 2003 • Highest reported availability and innovative, in-house developed technologies High capacity, sm
Slide 12: Recent developments
Recent developments Nel Hydrogen Fueling • Development of Herning facility continues on budget & schedule • Investments related to plant takeover/rebuild/ construction amounts to NOK 30 million in H2’16 • Name-plate production capacity of ~300 stations/year • Was awarded two R&D grants • Grants tota
Slide 13: All new multi purpose H2Station
All new multi purpose H2Station® Nel Hydrogen Fueling • Can fuel up to three different types of vehicles • Cars, busses, heavy duty trucks and forklifts • At both 700 and 350 bar pressure 13
Slide 14: Nel Hydrogen Solutions
Nel Hydrogen Solutions • Unified delivery of complex renewable hydrogen solutions, efficient system integration, project development and sales across segments • Only provider of integrated solutions along the entire value chain: 1. Fueling Networks • Develop entire fueling networks, incl. renewable
Slide 15: Multi Purpose Station for Asko
Multi Purpose Station for Asko Nel Hydrogen Solutions Nel awarded contract with ASKO, Norway's largest grocery wholesaler with 600 trucks on Norwegian roads • ASKO facility at Tiller, Trondheim, installation in 2017 • Locally produced renewable hydrogen from electrolysis • Will be tied to solar powe
Slide 16: 1st of 20 opened, next station in Bergen
1st of 20 opened, next station in Bergen Nel Hydrogen Solutions • Official opening of 1st station on November 22nd • Two additional H2Stations will be installed in key locations in the Bergen area during 2017 2016 at Kjørbo, the #1 HRS in Scandinavia • Large fleet customers already engaged in the •
Slide 17: Three stations + an electrolyser to Iceland
Three stations + an electrolyser to Iceland Nel Hydrogen Solutions Awarded contract by Icelandic Hydrogen for three Initial hydrogen network in Iceland H2Station® hydrogen fueling stations and one NEL C-series electrolyser • Icelandic Hydrogen is the customer, JV between Nel and oil retail company S
Slide 18: The hydrogen opportunity
nel: The hydrogen opportunity
Slide 19: Why now?
Why now? The hydrogen opportunity Renewable electricity is becoming competitive & also creates new challenges • Cheap renewable = cheap hydrogen, creating “fossil parity” • Timing of supply/demand does not always match - hydrogen “bridges the gap” • Hydrogen solutions needed to realize full potentia
Slide 20: Renewable hydrogen has reached fossil parity in multiple markets
Renewable hydrogen has reached “fossil parity” in multiple markets The hydrogen opportunity Renewable hydrogen is set to out-perform gasoline on a cost basis, due to substantial cost reductions for renewables & hydrogen technologies Norway Europe California avg. grid price Wind land based Solar (LCO
Slide 21: Available and affordable
Available and affordable The hydrogen opportunity • All major car manufacturers are deploying Fuel Cell Electric Vehicles (FCEVs) • Hyundai, Toyota and Honda have already started FCEV sales & lease in California at affordable prices • Additional car manufacturers are expected to launch FCEVs models
Slide 22: The automotive industry sees hydrogen as the most important fuel of the future
The automotive industry sees hydrogen as the most important fuel of the future The hydrogen opportunity 78% of executives absolutely or partly agree that FCEVs will be the real breakthrough for electric mobility 62% of executives absolutely or partly agree that BEVs will fail due to infrastructure c
Slide 23: Pledges USD 10.7 billion investment
..and is putting money behind their words: pledges USD 10.7 billion investment The hydrogen opportunity 23
Slide 24: Market update for the US
nel: Market update for the US
Slide 25: California
California Market update for the US • Application submitted to California Energy Commission, allocation Map of hydrogen expected in Q1’17: stations in CA • Grant Funding Opportunity (GFO) to reach 100 fueling stations by 2020 • Current funding round to cover ~20 stations, for installation in 2017, s
Slide 26: Partnership with SunPower
Partnership with SunPower Market update for the US • Nel entered into a framework agreement with SunPower to construct and operate renewable hydrogen production tied directly to solar • First project of its kind in the U.S., located in California • Will serve the local market with 100% TRUE renewabl
Slide 27: Significant market opportunity
Significant market opportunity Market update for the US • Already more than 1,000 hydrogen cars on the road in CA • Expected to increase to between 7,000-10,000 in 2017 • Currently, no true renewable hydrogen being produced in the U.S. • California (CA) requires that at least 33% of the hydrogen for
Slide 28: Hydrogen can be produced at a very competitive price from renewable
Hydrogen can be produced at a very competitive price from renewable Market update for the US Renewable power at <$50/MWh enables production of H2 at plant <$3.5/kg (compared to a pump price of $10-15/kg) 55.000 vars/year 1.000 buses/year <$50/MWh 24 x NEL A-485 electrolysers – 50MW <$3.5/kg 500 truc
Slide 29: Heavy duty transportation opportunities
Heavy duty transportation opportunities
Slide 30: nel
nel 30
Slide 31: New Norwegian Incentive Program
New Norwegian Incentive Program Heavy duty transportation opportunities 31
Slide 32: Nikola One unveiled, Nikola Two announced
Nikola One unveiled, Nikola Two announced Heavy duty transportation opportunities Class 8 hydrogen truck unveiled December 1st 2016 Nikola One • Up to 1,900 km range • 100 kg onboard hydrogen storage & 320 kWh battery • Surpassed $4 billion in pre-orders • Norwegian orders: • Tine, Tenden Transport,
Slide 33: Hydrogen ferry project
Hydrogen ferry project Heavy duty transportation opportunities Nel part of the Norwegian project “HYBRIDskip” • Purpose of project: establish knowledge base for longer journeys/operational times in bigger vessels, based on battery and hydrogen technology • Target to realize a hybrid-ferry in operati
Slide 34: Scandinavian Powerhouse on Hydrogen
Scandinavian Powerhouse on Hydrogen Heavy duty transportation opportunities The hydrogen specialists in Scandinavia join forces to create a JV, taking advantage of world-leading hydrogen technology and competence Leading company on hydrogen Leading company on composite Leading company on fuel cell p
Slide 35: Summary/outlook
nel: Summary/outlook
Slide 36: Summary
Summary 1. At Nel we deliver solutions to ensure the success of hydrogen 2. Hydrogen already competitive with fossil fuels, and has reached “fossil parity” in numerous markets 3. Hydrogen cars are available and affordable 4. Hydrogen can be used in every form of transportation • The larger, longer,
Slide 37: Strong position, large opportunities
Strong position, large opportunities Nel is at the forefront of the hydrogen industry, pure play company with market leading technology, strong management team, solid balance sheet and positioned to play a leading role in a fast moving industry Nel Hydrogen Electrolyser Nel Hydrogen Solutions • All
Slide 38: Q&A
nel: Q&A
Slide 39: Appendix: Profit and loss
Appendix: Profit and loss (NOK million) Q4 2016 Q4 2015 2016 2015 Operating revenue 50.6 35.6 114.5 99.9 Operating costs 66.6 40.9 169.8 118.2 EBITDA -13.1 -1.2 -44.9 -2.7 EBIT -16.0 -5.4 -55.3 -18.3 Pre-tax profit -24.1 -16.1 -62.6 -27.8 Net profit -18.5 -12.7 -55.8 -21.7 Total comprehensive income
Slide 40: Appendix: Balance sheet
Appendix: Balance sheet (NOK million) Q4 2016 Q4 2015 Fixed assets 464.5 435.0 Current assets 300.0 380.7 -of which is cash and cash equivalents 225.5 313.0 Equity 673.7 721.0 Long term liabilities 13.1 14.6 Short term liabilities 63.5 49.0 Total balance 764.5 815.7 Equity ratio (%) 88.1% 89.6% 40
Slide 41: Appendix: Cash flow
Appendix: Cash flow (NOK million) Q4 2016 Q4 2015 Pre-tax profit (loss) -24.1 -18.8 Net cash from operations 11.0 -14.1 Net cash from investments -9.2 -0.1 Net cash from financing 0.0 102.4 Net change in cash and cash equivalents 1.8 88.2 Cash at end of period 225.5 313.0 41
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nel: