Slide 1: Q2 2020
Q2 2020 Jon André Løkke Chief Executive Officer August 26, 2020 Nel ASA Q2 2020
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 and the Presentation information and statements that are subject to risks and uncertainties are based upon reasonable assumptions, it can give no assura
Slide 3: Agenda
Agenda Q2 highlights Financial review Nel in brief Key developments Summary / Outlook Q&A Nel ASA Q2 2020 3
Slide 4: Q2 highlights
Q2 highlights Financial results and financing Operations and sales Revenues • PO for 85 MW alkaline electrolysers to Nikola, value >USD 30 million NOK 148.6 million • PO for multiple H2Station™ units, value >NOK 150 million Up 21% increase from NOK 122.5 million in Q2 2019 • PO for three H2Station™
Slide 5: Financial review
Financial review Nel ASA Q2 2020 5
Slide 6: Financial highlights
Financial highlights (NOK million) 2020 Q2 Adj* 2020 Q2 2019 Q2 2020 Q1 2019 2018 Operating revenue 148.6 148.6 122.5 126.5 569.7 489.0 Total operating expenses 194.2 220.6 213.3 213.4 823.3 685.1 EBITDA -22.3 -48.7 -72.6 -64.6 -178.1 -131.6 EBIT -45.6 -72.0 -90.7 -86.9 -253.6 -196.1 Pre-tax income
Slide 7: Strong cash position of ~2.6 BNOK
Strong cash position of ~2.6 BNOK Cash position (NOK million) Targets strong financial position to 2800 execute on strategic plans 2300 • Completed private placement of 89.0 million shares in January 2020 Capital raise of 1.3 • Completed subsequent offering of 13.4 1800 million shares in April 2020
Slide 8: All-time high order backlog
All-time high order backlog Order backlog by quarter (MNOK) All-time high order backlog 1100 • Order intake of NOK 602.3 million in Q2 900 • The order backlog includes a USD >30 million electrolyser PO for Nikola 700 • Received a PO of NOK 150 million for multiple H2Station™ • All-time high order ba
Slide 9: Insight into nominee account reveals high number of German shareholders
Insight into nominee account reveals high number of German shareholders Shareholding of Clearstream Banking S.A. since 2018 More than 140,000 shareholders 50% 45% • Clearstream Banking S.A. (Clearstream) is a nominee account majority owned by 40% Deutsche Börse AG 35% • Shows up on the shareholder l
Slide 10: Nel in brief
Nel in brief Nel ASA Q2 2020 10
Slide 11: Leading pure play hydrogen technology company with a global footprint
Leading pure play hydrogen technology company with a global footprint Pure play hydrogen technology Manufacturing facilities in World’s largest electrolyser Leading manufacturer of company listed on Oslo Stock Norway, Denmark, and U.S., manufacturer, with >3,500 hydrogen fueling stations, with Excha
Slide 12: The front runner within hydrogen technologies
The front runner within hydrogen technologies Alkaline and PEM electrolysers Hydrogen fueling stations Converting water and electricity to hydrogen and oxygen The H2Station™ from Nel is the world’s most compact – for industry, mobility and energy purposes fueling stations, capable of fueling any kin
Slide 13: Strong field know-how & manufacturing capacity
Strong field know-how & manufacturing capacity PEM electrolysers Alkaline electrolysers Hydrogen refuelling stations Wallingford, USA Notodden/Herøya, Norway Herning, Denmark Systems delivered: 2,700+ Systems delivered: 800+ Stations delivered: 80+ Nameplate capacity: ~40MW/year Nameplate capacity:
Slide 14: Key developments
Key developments Nel ASA Q2 2020 14
Slide 15: Purchase order for 85 megawatt of electrolysers from Nikola
Purchase order for 85 megawatt of electrolysers from Nikola Reached major milestone with Nikola • Partnership with Nikola, global leader in zero- emission transportation and infrastructure solutions • PO on June 3, 2020 • Excess of USD 30 million • 85 MW alkaline electrolysers related to development
Slide 16: H2Station™ order to large international company
H2Station™ order to large international company Purchase order for multiple hydrogen fueling stations • Value in excess of NOK 150 million • H2Station™ modules to be used for fueling of passenger vehicles in an existing market for Nel • To be installed on multiple sites during 2021 • The unnamed cus
Slide 17: Framework agreement for delivery of electrolysers in France
Framework agreement for delivery of electrolysers in France Signed framework agreement • Agreement covers 60 MW of electrolysers to be delivered by 2024 • Follows previously announced PO of an alkaline electrolyser in Q1 2020 • France has recently stepped up hydrogen efforts • Lhyfe targets to devel
Slide 18: Purchase order for three additional hydrogen fueling stations from South Korea
Purchase order for three additional hydrogen fueling stations from South Korea Hydrogen fueling stations roll-out in Korea • PO from Hydrogen Energy Network Co., Ltd. (HyNet) for three additional H2Station™ units • Value of approx. EUR 4 million • To be installed on multiple sites during 2021 • HyNe
Slide 19: Purchase order for a 2.5 MW PEM electrolyser in Europe
Purchase order for a 2.5 MW PEM electrolyser in Europe Containerised 2.5 MW Proton PEM® electrolyser from European customer • Value in excess of USD 3 million • Scheduled to start producing green hydrogen in spring of 2021 • Additional details to be provided following project launch Source: PEM M-se
Slide 20: Received R&D grants for development of next generation electrolysers
Received R&D grants for development of next generation electrolysers Grant for next gen alkaline electrolyser • Will improve fundamental elements in the cell stack affecting efficiency and cost • NOK 16 million grant by the Research Council of Norway • Full scale pilot will be installed at Yara for
Slide 21: Capacity expansion at Herøya
Capacity expansion at Herøya Planned capacity expansion at Herøya • Fully automated and designed according to lean manufacturing principles • Industrial scale production of the most efficient electrolysers in the market, at a game-changing cost • Large production line improvements already identified
Slide 22: Norway's new hydrogen strategy fails to create a European leader
Norway’s new hydrogen strategy fails to create a European leader A missed opportunity if approved • Norway’s hydrogen strategy was launched on June 3, 2020 • No concrete targets and no support for infrastructure roll-out, sole focus on pilots • Nel believes this strategy leaves Norway behind • Stron
Slide 23: Nel steps up with Hydrogen Europe
Nel steps up with Hydrogen Europe Nel enters board of Hydrogen Europe • Hydrogen Europe is the European industry association for hydrogen with more than 150 industry members • Initiator of 2x40 GW Green Hydrogen Initiative • Nel is joining the board to contribute making Europe the leading region glo
Slide 24: EU launches hydrogen strategy, taking a global leadership in green hydrogen
EU launches hydrogen strategy, taking a global leadership in green hydrogen Towards a hydrogen economy in Europe Hydrogen rocks! • European Commission announced new European hydrogen strategy on July 8, hydrogen will be part of the Covid-19 recovery plan • Phase 1 (2020-24) goal of 6 GW • Phase 2 (2
Slide 25: Summary/Outlook
Summary/Outlook Nel ASA Q2 2020 25
Slide 26: Leveraging on the arising opportunities within energy storage and hydrogen fueling
Leveraging on the arising opportunities within energy storage and hydrogen fueling Global presence World-class safety Strong financing Cost leadership Preferred partner Technology front-runner Nel ASA Q2 2020 26
Slide 27: Covid-19 priorities and impact
Covid-19 priorities and impact The global outbreak of Covid-19 will continue to cause disruptions in Nel´s operations and financial performance, the pandemic negatively impacts the general business Safety as priority #1 environment, orders received, installations, commissioning and associated revenu
Slide 28: Reiterating strong long-term outlook
Reiterating strong long-term outlook To maintain and strengthen its Nel targets to maintain its Markets in which Nel operates Ongoing growth initiatives, leading position in a growing current leading position in the show high activity and strong ramp-up costs and remaining market, Nel will accelerat
Slide 29: IR analytics
IR analytics Market cap Investor base Shares Billion NOK >167.000 investors 1. Jan - 21 Aug, 2020 +140% >75% ~28.5 International ownership Daily average turnover of NOK (million) ~275 Financial calendar Road show Analyst coverage Jonas Meyer (SB1), Tomas Skeivys (Norne), Mikkel Nyholt (Carnegie), 5
Slide 30: Q&A
nel: Q&A ‘number one by nature