Slide 1: Q1 2018
Q1 2018 Jon André Løkke Chief Executive Officer
Slide 2: Forward-looking information
Forward-looking information Nel ASA Q1 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 Q1 2018 agenda
Nel ASA Q1 2018 • Q1 highlights • Fuel Cell Electric Bus (FCEB) opportunity • Nel in brief & segment updates - Nel Hydrogen Electrolyser - Nel Hydrogen Fueling - Nel Hydrogen Solutions • HYON update • Summary/Outlook • Appendix: Q1 financials
Slide 4: Q1 Highlights
Q1 Highlights Nel ASA Q1 2018 Financial results and financing Operations and sales • Revenues of 112.5 MNOK in Q1’18, up from 35.7 MNOK in • Received additional purchase order of 5.5 MUSD from Nikola, Q1’17, mainly following the acquisition of Proton Energy as part of previously announced exclusive
Slide 5: Financial highlights
Financial highlights Nel ASA Q1 2018 2018 2018 2017 2017 2016 (NOK million) Q1 Adj* Q1 Q1 Q1-Q4 Q1-Q4 Operating revenue 112.5 112.5 35.7 298.4 114.5 Total operating costs 144.3 144.3 51.3 415.6 169.8 EBITDA -5.5* -15.8 -13.0 -81.2 -44.9 EBIT -21.6 -31.9 -15.6 -117.2 -55.3 Pre-tax loss -22.6 -32.9 -1
Slide 6: Solid backlog
Solid backlog Nel ASA Q1 2018 Q1 Highlights • Orders received in Q1 ended at ~70 MNOK Order backlog development 2017-2018 • Only includes firm PO’s with agreed price/volume/Terms & Conditions MNOK 500 • Current order backlog ~410 MNOK 450 • Contributions to backlog in Q1’18: 400 • A number of orders
Slide 7: Fuel Cell Electric Bus (FCEB) opportunity
Fuel Cell Electric Bus (FCEB) opportunity
Slide 8: Renewable hydrogen from electrolysis becoming more and more competitive
Renewable hydrogen from electrolysis becoming more and more competitive Nel ASA Q1 2018 General market update CapEx: Electrolyzers from Nel - becoming OpEx: Renewable energy already enables competitive with SMR fossil parity for hydrogen 4,9 Onshore wind Offshore wind $/kW 6,0 7,3 Cost split of H2/K
Slide 9: How Fuel Cell Electric Buses can outcompete diesel (fossil fuels)
How Fuel Cell Electric Buses can outcompete diesel (fossil fuels) Nel ASA Q1 2018 General market update Fossil parity for hydrogen electric buses are: Renewable hydrogen bus solution competitive with diesel busses on cost of ownership basis • Renewable hydrogen at the pump at 50 NOK/kg equals diesel
Slide 10: How to reach fossil parity with Fuel Cell Electric Buses
How to reach fossil parity with Fuel Cell Electric Buses Nel ASA Q1 2018 General market update • Semi-centralized hydrogen production, use low cost renewable energy • Centralized vs. onsite depends on power availability/pricing in the specific market and distribution cost/distance 0.40 NOK/kWh 25 NO
Slide 11: Hydrogen supply from central production
Hydrogen supply from central production Nel ASA Q1 2018 General market update Central large scale production, distribution and fueling services Efficient Hydrogen distribution: • 1,500 kg pr. truck Central H2Plant® • Container swap or dump-off at optimized location Efficient Hydrogen distribution: •
Slide 12: H2 distribution example – Rosenholm Oslo (operated by Unibus/Ruter)
H2 distribution example – Rosenholm Oslo (operated by Unibus/Ruter) Nel ASA Q1 2018 General market update Semi-central large scale hydrogen production (hydro power available at numerous sites) Trucked-in in pressurized tanks, 700 bar in a 40ft container, 1,500kg of hydrogen Bus depot at Rosenholm, c
Slide 13: Example: New fueling solution enables 10x capacity at half price
Example: New fueling solution enables 10x capacity at half price Nel ASA Q1 2018 General market update Existing solution from 2012: • Existing H2 fuelling • Onsite production • Up to 250 kg/day, ~10 FC buses • Footprint: ~350m2 • H2 price: +110 NOK/kg New proposed solution: • New H2Station® • Centra
Slide 14: Flexible and scalable configuration
Flexible and scalable configuration Nel ASA Q1 2018 General market update • Operating multiple dispensers to fuel hydrogen buses, swap storage and driver can leave with empty trailer • Scalable and efficient solution, can also add dispensers for cars and trucks Small bus station, 700 bar in a 20ft.
Slide 15: Price of Fuel Cell Electric Buses cut by >60%
Price of Fuel Cell Electric Buses cut by >60% Nel ASA Q1 2018 General market update CapEx for FC electric bus is lower than battery and close to diesel buses • Price has come down with every new Experience Curve - Fuel Cell Transit Bus demonstration project 1 200 CHIC • Next trigger: 1,000 FC electr
Slide 16: Nel in brief & segment updates
Nel in brief & segment updates
Slide 17: Nel ASA
Nel ASA Nel ASA Q1 2018 • 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 – unrivalled performance and track-recor
Slide 18: Purchased adjacent facility at Notodden
Purchased adjacent facility at Notodden Nel ASA Q1 2018 Nel Hydrogen Electrolyser • Evaluating capacity expansion by developing a fully automated, large-scale production line at Notodden that will reduce costs by more than 30% • Enables leading cost-position, ability to offer renewable hydrogen proj
Slide 19: Installed and started up NEW pressurized, alkaline electrolyzer
Installed and started up NEW pressurized, alkaline electrolyzer Nel ASA Q1 2018 Nel Hydrogen Electrolyser Important step in ensuring longer term product portfolio • Successfully started up prototype 50 Nm3/h alkaline, pressurized electrolyzer • Significantly higher capacity per electrolyser compared
Slide 20: Awarded contract for hydrogen fueling station by SSAB
Awarded contract for hydrogen fueling station by SSAB Nel ASA Q1 2018 Nel Hydrogen Solutions H2Station® fueling solution for fueling of very large fork lifts • Contract with SSAB EMEA AB, Sweden for leasing arrangement of a H2Station® • Installed at SSABs site in Oxelösund, Sweden, where it will ser
Slide 21: Fueling and Solutions has moved to their new office in Herning
Fueling and Solutions has moved to their new office in Herning Nel ASA Q1 2018 Nel Hydrogen Solutions Reception area Path to main entrance Standardized production line – 5 steps Phase I: Production started up in August 2018 Phase II: Move into completed office space during Q1’18 21
Slide 22: Key developments in Californian market
Key developments in Californian market Nel ASA Q1 2018 Nel Hydrogen Solutions • First H2Station® installed in California • Shell and SunLine stations to follow • Working on a number of important RFPs, continuing to position Nel as the preferred hydrogen equipment supplier • Incl. electrolysers for r
Slide 23: Achieved world's first UL certification for hydrogen fueling station product
Achieved world’s first UL certification for hydrogen fueling station product Nel ASA Q1 2018 Nel Hydrogen Fueling 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 more stream
Slide 24: Accelerating efforts in South Korea following government agreement
Accelerating efforts in South Korea following government agreement Nel ASA Q1 2018 Nel Hydrogen Solutions • South Korean Government announced the establishment of a Special Purpose Company (SPC) for expanding the country’s hydrogen infrastructure • Goal of installing hydrogen fueling stations along
Slide 25: Additional USD 5.5m purchase order from Nikola
Additional USD 5.5m purchase order from Nikola Nel ASA Q1 2018 Nel Hydrogen Solutions ● 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 of 2018 and into 2019 ●
Slide 26: Anheuser-Busch places order of up to 800 Nikola trucks
Anheuser-Busch places order of up to 800 Nikola trucks Nel ASA Q1 2018 With order from Anheuser-Busch, Nikola Motors has nearly $9 billion in pre-orders • Anheuser-Busch (AB) is one of the world’s largest brewery companies with 22 breweries in the US, and over 100 brands of beer • AB targets to conv
Slide 27: Hyon update
nel: Hyon update
Slide 28: Hyon AS, a one-stop-shop for complete hydrogen energy solutions
Hyon AS, a one-stop-shop for complete hydrogen energy solutions Scandinavian powerhouse within hydrogen w/maritime expertise • Joint venture between Nel ASA, Hexagon Composites ASA and PowerCell Sweden AB • Utilizes each partner’s respective world-leading technologies and competencies to manage and
Slide 29: Hyon AS – areas of operation
Hyon AS – areas of operation Nel ASA Q1 2018 Maritime applications: • Offers complete on-board hydrogen systems, incl. tank and fuel cell arrangements • Fuel cell solutions up to 50% smaller/lighter and 35-100% higher efficiency vs. traditional maritime gen-sets • Offers bunkering solutions based on
Slide 30: Summary/Outlook
nel: Summary/Outlook
Slide 31: Creating a rapidly growing billion NOK company
Creating a rapidly growing billion NOK company Nel ASA Q1 2018 Levering on the arising opportunities within energy storage and hydrogen fueling Global presence Technology leadership Strong financials Cost leadership Commercial capabilities Preferred partner 31
Slide 32: Outlook
Outlook Nel ASA Q1 2018 • Nel has an enviable position within the hydrogen industry as a Key developments in 2018 includes: pure play company positioned to play an important role in a • Ongoing activities to implement synergies between Norwegian and U.S. fast-growing market. Nel offers the complete
Slide 33: Q&A
nel: Q&A
Slide 34: Appendix: Profit and loss
Appendix: Profit and loss Nel ASA Q1 2018 2018 2017 2017 (NOK million) Q1 Q1 Q1-Q4 Operating revenue 112.5 35.7 298.4 Operating costs 144.3 51.6 415.6 EBITDA -15.8 -13.0 -44.9 EBIT -31.9 -15.9 -117.2 Pre-tax loss -32.9 -16.1 -124.4 Net loss -30.1 -15.6 -52.4 Total comprehensive income -66.3 -15.0 -3
Slide 35: Appendix: Balance sheet
Appendix: Balance sheet Nel ASA Q1 2018 2018 2017 (NOK million) Q1 Year End Fixed assets 1,119.7 1,141.4 Current assets 530.4 584.3 -of which is cash and cash equivalents 250.7 295.0 Equity 1,344.3 1,409.4 Long term liabilities 59.3 34.1 Short term liabilities 184.6 213.9 Total balance 1,650.1 1,725
Slide 36: Appendix: Cash flow
Appendix: Cash flow Nel ASA Q1 2018 2018 2017 (NOK million) Q1 Q1-Q4 Pre-tax loss -32.9 -15.6 Net cash from operations -37.9 -14.0 Net cash from investments -34.2 -11.4 Net cash from financing 27.9 168.3 Net change in cash and cash equivalents -44.2 142.9 Cash at end of period 250.7 142.9 36
Slide 37: Number one by nature
nel: Number one by nature