Slide 1: Q1 2017
Q1 2017 Jon André Løkke Chief Executive Officer
Slide 2: Forward looking information
Forward looking information Nel ASA Q1 2017 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 accurac
Slide 3: Table of contents
Table of contents • Q1 highlights and financials • Segment updates - Nel Hydrogen Electrolyser - Nel Hydrogen Fueling - Nel Hydrogen Solutions • Market update • Proton OnSite acquisition • Summary/Outlook • Appendix: Q1 financials
Slide 4: Q1 Highlights
Q1 Highlights Nel ASA Q1 2017 • Reported revenues in Q1 2017 of NOK 35.7 million, up from • Awarded contract by Icelandic Hydrogen for three H2Station® NOK 26.0 million in Q1 2016, representing a growth of 37.3 hydrogen fueling stations and NEL C-Series electrolyser, with percent value of more than
Slide 5: Solid backlog for 2017
Solid backlog for 2017 Nel ASA Q1 2017 • Orders received March end 2017: NOK >190 million • Main order announcements to date: • Iceland EUR >4 million • Royal Dutch Shell Plc (California) NOK >140 million • H2 Frontier Inc. USD >1 million • Service/replacement/maintenance orders • Current order back
Slide 6: Key figures
Key figures Nel ASA Q1 2017 2017 2016 2016 (NOK million) Q1 Q1 Operating revenue 35.7 26.0 114.5 Total operating costs 51.3 36.1 169.8 EBITDA -13.0 -7.6 -44.9 EBIT -15.6 -10.1 -55.3 Pre-tax profit -16.2 -10.1 -62.6 Net profit -15.6 -9.7 -55.8 Net cash flow from operating activities -14.0 -21.3 -34.2
Slide 7: Segment updates
nel: Segment updates
Slide 8: Nel ASA
Nel ASA Nel ASA Q1 2017 • 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
Slide 9: Nel Hydrogen Electrolyser
Nel ASA Q1 2017 Nel Hydrogen Electrolyser Production and installation of water electrolysers for hydrogen production • Global leader in hydrogen production plants - highest uptime, lowest conversion cost, robust/reliable • More than 850 hydrogen solutions delivered in 60 countries world wide since 1
Slide 10: Recent developments
Recent developments Nel ASA Q1 2017 Nel Hydrogen Electrolyser Turn-key, both delivering 200 bar output pressure: • Ongoing electrolyser project deployments, including initiation of Nel-C electrolyser delivery to Icelandic Hydrogen • Continued high interest for C-range electrolysers C-150 C-300 150 N
Slide 11: Nel Hydrogen Fueling
Nel ASA Q1 2017 Nel Hydrogen Fueling Production of hydrogen fueling stations for cars, buses, trucks, forklifts and other applications • Global leader within hydrogen fueling solutions for vehicles, first to adapt the newest fueling standards • Delivered more than 30 stations in 8 countries across E
Slide 12: Recent developments
4000mm 12 Nel ASA Q1 2017 Gate 500mm 2500mm 3000mm 2 TONS KRAN 10 TONS KRAN 6000mm Storage Storage Storage Storage 1400mm Storage Work Table Racks Valve Lift 1 Lift 2 Top frame assy. 1 Top frame cpl. 3300x2200 3300x2200 2 TONS KRAN Storage Pillars Supply Cabinet Work Table Work Table Compr. Rack Ven
Slide 13: All new multipurpose H2Station
Nel ASA Q1 2017 All new multipurpose H2Station® Nel Hydrogen Fueling • Modular, flexible and scalable fueling solution that can operate up to three dispensers and can fuel cars, busses, heavy duty trucks and forklifts • Can deliver both 700 and 350 bar pressure at multiple dispensers 13
Slide 14: Nel Hydrogen Solutions
Nel Hydrogen Solutions Nel ASA Q1 2017 Established to utilize market opportunities across the Nel group and offers complete solutions to customers • Unified delivery of complex renewable hydrogen solutions, efficient system integration, project development and sales across segments • Only provider o
Slide 15: Agreement with Royal Dutch Shell Plc.
Nel ASA Q1 2017 Agreement with Royal Dutch Shell Plc. Nel Hydrogen Solutions • Entered exclusive framework contract with Shell in partnership with Map of current Toyota Motor Corp. for supply, construction and maintenance of hydrogen stations in CA hydrogen fueling stations • Total value depends on
Slide 16: Partnership with SunPower Corp.
Partnership with SunPower Corp. Nel ASA Q1 2017 Nel Hydrogen Solutions • 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 renewa
Slide 17: Electrolyser and stations to Iceland
Electrolyser and 3 stations to Iceland Nel ASA Q1 2017 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 re
Slide 18: Entered LoI creating Scandinavian Powerhouse on Hydrogen
Entered LoI creating Scandinavian Powerhouse on Hydrogen Nel ASA Q1 2017 Nel Hydrogen Solutions The hydrogen specialists in Scandinavia join forces to create a JV, taking advantage of each party’s respective technologies and competencies to develop world-class, integrated hydrogen solutions Leading
Slide 19: General market update
nel: General market update
Slide 20: Industry getting serious about hydrogen: pledges USD 10.7 bn investment
Nel ASA Q1 2017 Industry getting serious about hydrogen: pledges USD 10.7 bn investment General market update 20
Slide 21: Hydrogen emerges among the key solutions for the energy transition
Nel ASA Q1 2017 “…hydrogen emerges among the key solutions for the energy transition, in the mobility as well as in the power, industrial and residential sectors…” Benoît Potier Co-chair Hydrogen Council CEO Air Liquide 21
Slide 22: Record range and low cost achieved
Record range and low cost achieved Nel ASA Q1 2017 General market update • Hyundai recently launched next generation FCEV • Range of >800 km • Second generation FCEV from Hyundai will receive fourth generation fuel cell tech.: • ~20% lighter fuel cell • ~10 % more efficient • ~30% higher effect dens
Slide 23: Energy density matters
Energy density matters Nel ASA Q1 2017 General market update • With 1000 kg of a given energy carrier, how Useful energy per 1000 kg (in kWh) much useful energy can be recovered? 18 000 16 500 • Battery: <140 kWh 16 000 • Diesel: ~4 000 kWh 14 000 • Hydrogen: >16 500 kWh 12 000 • High energy density
Slide 24: Nikola One unveiled, Nikola Two announced
Nel ASA Q1 2017 Nikola One unveiled, Nikola Two announced General market update Class 8 hydrogen truck unveiled December 1st 2016 Nikola One • Up to 1,900 km range • 100 kg onboard hydrogen storage & 320 kWh battery • Close to 10 000 truck reservations received • Norwegian orders: • Tine, Tenden Tra
Slide 25: Other recent hydrogen heavy-duty truck initiatives
Other recent hydrogen heavy-duty truck initiatives Nel ASA Q1 2017 General market update 25
Slide 26: Nel acquires Proton OnSite
nel: Nel acquires Proton OnSite
Slide 27: Nel + Proton OnSite: Creating the world's largest electrolyser company
Nel + Proton OnSite: Creating the world’s largest electrolyser company Nel ASA Q1 2017 • Have signed the final share purchase agreement to acquire U.S.-based hydrogen technology company, Proton OnSite and successfully closed private placement - target to close in Q2’17 • Settlement to be done throug
Slide 28: Proton OnSite transaction rationale
Proton OnSite transaction rationale Nel ASA Q1 2017 Nel will become the world’s largest producer of electrolysers with a global outreach Nel will get strong foothold in the U.S. hydrogen market accelerating Nel’s growth ambitions Complementing Nel’s current business with several areas of synergies N
Slide 29: Two companies with strategic and geographic fit
Two companies with strategic and geographic fit Nel ASA Q1 2017 Several beneficial synergistic areas Complementary sales organisation and market reach Provide strong foothold in the U.S. and new markets Complementary product offering, full range of electrolyser technologies Extending range o
Slide 30: Proton OnSite in brief
nel: Proton OnSite in brief
Slide 31: Proton OnSite in numbers
Proton OnSite in numbers Nel ASA Q1 2017 USD 27m 2600+ 2016 revenue 75+ Installations Countries with worldwide generators installed 20 80 Years of installation Registered patents ~100 Employees 31
Slide 32: This is Proton OnSite
This is Proton OnSite Nel ASA Q1 2017 World leading PEM hydrogen production technology • Headquarters in Wallingford, Connecticut, U.S. • World leader in Proton Exchange Membrane (PEM) hydrogen production technology • Established in 1996, spin out of United Technologies Aerospace Systems (formerly H
Slide 33: Proton OnSite key capabilities
Proton OnSite key capabilities Nel ASA Q1 2017 Complete product manufacturing & testing Power plants PEM cell stacks Heat treating Containerization and hydrogen storage solutions Semiconductors Turnkey product installation Complete systems Laboratories World-wide sales and service Storage so
Slide 34: Key product overview
Key product overview Nel ASA Q1 2017 H-Series C-Series M Series • Wide range of products sold to ~75 countries 1 MW Process Skid • Customers range from industrial companies to laboratory institutes Net production rate: 2-6 Nm3/hr Net production rate: 10-30 Nm3/hr Net production rate: 100-200 Nm3/hr
Slide 35: The PEM megawatt (MW) electrolyser
The PEM megawatt (MW) electrolyser Nel ASA Q1 2017 Announced the world’s largest megawatt PEM deal • Announced the world’s largest megawatt PEM electrolyser deal in December 2016, three systems to be delivered in 2017, possibilities for additional ten systems over next 18 months – total deal value f
Slide 36: Proton OnSite target markets
Proton OnSite target markets Energy Storage Hydrogen Fueling Industrials Laboratory 36
Slide 37: Energy Storage
Energy Storage Nel ASA Q1 2017 Value proposition • Renewable energy being installed at increasing rates, driven by growing demand for power and the need to Safe reduce CO2 emissions Cost-effective • However, intermittent power disruptions are common Reliable when dealing with renewable resourc
Slide 38: Hydrogen Fueling
Hydrogen Fueling Nel ASA Q1 2017 • Fueling infrastructure grows at rapid pace, also demand Value proposition for hydrogen production Reliable • Converting energy from renewable sources into hydrogen Green via PEM enables green, carbon-free, hydrogen Safe Project examples: Reduces carbon foot
Slide 39: Industrials
Industrials Nel ASA Q1 2017 • Hydrogen demanded to satisfy the need of industrial Value proposition processes is increasing Safe • PEM saves space and generate hydrogen safely and Cost-effective reliably, easy to permit, install and operate Reliable Target markets: Space saving Convenient
Slide 40: Laboratory
Laboratory Nel ASA Q1 2017 Value proposition • Lab professionals seek safe, reliable and simple gas sources • Proton's hydrogen equipment, nitrogen and zero air generators Safe are easy to install and operate, enabling customers to get the Cost-effective gas they need Reliable Several applicat
Slide 41: Proton OnSite key figures
Proton OnSite key figures Nel ASA Q1 2017 • 2016 gross profit levels were impacted by a (USD million) USGAAP 2016 2015 2014 2013 concentration of revenue from lower margin Operating revenue 27.2 27.8 23.7 21.8 projects, effect not expected to continue into Cost of revenues 21.0 18.6 16.3 14.7 2017 G
Slide 42: Key differentiating factors of Proton vs. PEM competitors
Key differentiating factors of Proton vs. PEM competitors Nel ASA Q1 2017 • By far the largest PEM electrolyser producer in the world, 5-10 times larger than the closest competitor • Lowest cost position on PEM systems in the industry • Long track record with more than 1 billion hours aggregated ope
Slide 43: Creating world's largest hydrogen electrolyser company with a global footprint
Creating world's largest hydrogen electrolyser company with a global footprint Nel ASA Q1 2017 Transaction roadmap • Transaction expected to close in Q2 2017 • The plan for integration, synergies and business development, along with the new management team and company structure, will be presented at
Slide 44: Summary/Outlook
nel: Summary/Outlook
Slide 45: Strong position, large opportunities
Strong position, large opportunities Nel ASA Q1 2017 Nel Hydrogen Electrolyser Nel Hydrogen Solutions • All time high level of sales leads, both in • Well-positioned for Californian market, both traditional and new markets related to fueling stations and renewable • Strong interest for containerized
Slide 46: Summary
Nel ASA Q1 2017 Summary 1. Strong financial and strategic position, successful completed private placement (NOK >170 million) at 2.72 NOK/share 2. Acquisition of Proton makes Nel the world’s largest electrolyser manufacturer with a complete range of products in all relevant markets, on a pro forma b
Slide 47: Q&A
nel: Q&A
Slide 48: Appendix: Profit and loss
Appendix: Profit and loss Nel ASA Q1 2017 2017 2016 2016 (NOK million) Q1 Q1 Operating revenue 35.7 26.0 114.5 Operating costs 51.3 36.1 169.8 EBITDA -13.0 -7.6 -44.9 EBIT -15.6 -10.1 -55.3 Pre-tax profit -16.2 -10.1 -62.6 Net profit -15.6 -9.7 -55.8 Total comprehensive income -15.0 -15.9 -75.4 48
Slide 49: Appendix: Balance sheet
Appendix: Balance sheet Nel ASA Q1 2017 2017 2016 (NOK million) Q1 Fixed assets 470.3 462.9 Current assets 463.4 300.0 -of which is cash and cash equivalents 368.3 225.5 Equity 831.2 671.2 Long term liabilities 9.0 12.6 Short term liabilities 80.4 65.6 Total balance 933.7 762.9 Equity ratio (%) 89%
Slide 50: Appendix: Cash flow
Appendix: Cash flow Nel ASA Q1 2017 2017 2016 (NOK million) Q1 -15.6 -10.1 Pre-tax profit (loss) Net cash from operations -14.0 -21.3 Net cash from investments -11.4 -2.9 Net cash from financing 168.3 0.1 Net change in cash and cash equivalents 142.9 -24.1 Cash at end of period 368.3 289.0 50
Slide 51: Number one by nature
nel: Number one by nature