Slide 1: Q4 2021
Q4 2021 Jon André Løkke, CEO 16 February 2022
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. Q4 highlights & other developments 3. Commercial developments 4. Execution strategy in 1 - 2 – 3 5. Summary/Outlook 6. Q&A 3
Slide 4: Leading pure play hydrogen technology company with a global footprint
THIS IS NEL Leading pure play hydrogen technology company with a global footprint Pure play hydrogen Manufacturing facilities in World’s largest electrolyser Leading manufacturer of technology company listed Norway, Denmark, and U.S., manufacturer, with >3,500 hydrogen fueling stations, on Oslo Stoc
Slide 5: Green hydrogen approaching fossil parity – game-changer across applications and markets
THIS IS NEL Green hydrogen approaching fossil parity – game-changer across applications and markets Hydrogen is compressed and cooled Hydrogen fueling is relevant for in the H2StationTM ready for fueling both light duty vehicles (LDV) and through the dispenser heavy-duty vehicles (HDV) Electricity p
Slide 6: Strong field know-how and manufacturing capacity
THIS IS NEL Strong field know-how and manufacturing capacity PEM electrolysers Alkaline electrolysers Hydrogen refueling stations Wallingford, USA Notodden/Herøya, Norway Herning, Denmark Systems delivered: 2,700+ Systems delivered: 800+ Stations delivered: ~120 Production capacity: >50 MW/year Prod
Slide 7: 2. Q4 highlights & other developments
2. Q4 highlights & other developments 7
Slide 8: Massively scaling up throughout 2021
F INANCIAL DEV ELOPMENTS Massively scaling up throughout 2021 • On January 21, 2021 (CMD): Nel would invest significantly to maintain leadership position in a growing market • Net 114 employees hired during 2021 • Cost base and investments strategically expanded ahead of demand curve • The ramp-up p
Slide 9: Highlights
Q4 2021 Highlights Financial results and financing Key developments Revenues • PO for PEM electrolyser equipment from an undisclosed leading NOK 248 million stationary fuel cell OEM with a value of approximately USD 2.6 million Up 8% from NOK 229 million in Q4 2020 • PO for 20 MW alkaline electrolys
Slide 10: Financial highlights
Q4 2021 Financial highlights NOK million 2021 Q4 2020 Q4 2021 2020 2019 Operating revenue 248 229 798 652 570 Total operating expenses 445 368 1 381 1 066 823 EBITDA -168 -96 -475 -252 -178 EBIT -197 -139 -583 -414 -253 Pre-tax income (loss)* -281 1 285 -1 684 1 246 -277 Net income (loss)* -269 1 29
Slide 11: Negative effect on Q4 EBITDA & earnings
Q4 2021 Negative effect on Q4 EBITDA & earnings • EBITDA significantly impacted by preparations and investments for the future: • Projects are getting larger, continue to recruit to be able to deliver on what is coming • Across the entire organization; in particular, within project execution • Tunin
Slide 12: All time high order backlog
Q4 2021 All time high order backlog Order backlog by quarter Solid order backlog NOK million 1200 • Backlog up 21% from last quarter, up 25% from Q4 2020 1100 • Strong pipeline across segments 1000 and industries 900 • Solid order intake in Q4 800 • Order intake is expected to vary 700 between quart
Slide 13: >6 billion >1 600 MW
Q4 2021 Pipeline shown end Q3 2021 >6 billion >800 Accelerating pipeline USD projects development throughout 2021 • Doubled during the first three quarters >11 >1 600 MW • Doubled again in Q4, during GW Single largest one single quarter 13
Slide 14: >12 billion >2 000 MW
Q4 2021 Unprecedented evolution of pipeline 2 x increase since Q3 Record-high pipeline presents opportunities for Nel: >12 billion >1 000 • Scalable technology USD projects • Reliable systems • World-class efficiency >22 >2 000 MW • Leading Total Cost of Ownership (TCO) for the GW Single largest cus
Slide 15: Fueling agreements levelling up to multi-station contracts
Fueling agreements levelling up to multi- station contracts • From small individual projects to framework agreements for up to 80 fueling stations • From one-off demonstrators to standardized volume solutions • Fleets of stations, entire networks, from professional customers
Slide 16: Herøya, an industrial gamechanger
Herøya, an industrial gamechanger • The world´s largest and first fully automated electrolyser manufacturing facility • Leading race towards fossil parity • Finished on time and budget • From new year, production running at 3 shifts • Line tuning during Q4, 2021 • New production records every week 1
Slide 17: Organized for further growth
NEW ORGANIZATION Organized for further growth • Leadership team tailored to handle increasing pipeline of large project • Dedicated focus Support functions • Gain additional momentum • One team pulling in same direction • New CEO in place on 1 July • In the meantime, full speed ahead and business as
Slide 18: 3. Commercial developments
3. Commercial developments 18
Slide 19: Contract for PEM electrolyser equipment
COMMERCIAL DEVELOPMENTS Contract for PEM electrolyser equipment • Contract for PEM electrolyser equipment • The contract is with a leading global fuel cell company • The equipment will be delivered between 2022 and 2024 • The purchase order has a value of approximately USD 2.6 million 19
Slide 20: Purchase order for 20 MW alkaline electrolyser from Ovako
COMMERCIAL DEVELOPMENTS Purchase order for 20 MW alkaline electrolyser from Ovako • Purchase order for a 20MW alkaline water electrolyser from Ovako • Installation will be in Hofors, Sweden, at the first plant in the world to use green hydrogen to heat steel • Fossil-free hydrogen will replace the u
Slide 21: Purchase order for multiple hydrogen fueling modules in the US
COMMERCIAL DEVELOPMENTS Purchase order for multiple hydrogen fueling modules in the US • H2Station™ fueling station will be located in the United States • Proves the strength of our state-of-the-art technology • Units will be manufactured and installed during 2022 and 2023 • The purchase order has a
Slide 22: Purchase order for alkaline electrolyser system
COMMERCIAL DEVELOPMENTS Purchase order for alkaline electrolyser system • Equipment for steel application • Expected to be delivered in 2022, with the first hydrogen production in 2023 • The value of the contract is approximately EUR 3 million 22
Slide 23: Feeding the world with hydrogen
COMMERCIAL DEVELOPMENTS Feeding the world with hydrogen • Multiple PEM electrolysers to provide green hydrogen for sustainable carbon negative food production • Leader in the commercialization of sustainable protein technology • A novel and exciting approach to addressing both climate change and foo
Slide 24: Contract for containerized electrolyser and hydrogen fueling equipment
COMMERCIAL DEVELOPMENTS Contract for containerized electrolyser and hydrogen fueling equipment • Containerized PEM electrolyser and light duty hydrogen fueling station package for a leading power and gas utility in the US • An important opportunity to demonstrate the flexibility and multiple value s
Slide 25: Completed private placement and IPO
COMMERCIAL DEVELOPMENTS Completed private placement and IPO • HYON specializing in hydrogen bunkering for ships and fast ferries • Saga Pure, Norwegian Hydrogen and Nel as three main shareholders • First day of trading on 14 February • Private placement completed of NOK 50 million 25
Slide 26: 4. Execution strategy in 1-2-3
4. Execution strategy in 1-2-3 26
Slide 27: Key trends currently and towards 2025
EX ECUTION S TRATEGY IN 1- 2-3 Key trends currently and towards 2025 Consequently, Projects getting Pipeline time from lead significantly booming to contract larger getting longer 27
Slide 28: Systematically addressing relevant growth segments
EX ECUTION S TRATEGY IN 1- 2-3 Systematically addressing relevant growth segments Excluding China Forecasted electrolyser orders at Final Investment Decision (FID), GW before and including 2025 High Large-scale projects in mature markets Refinery, ammonia projects, giga-scale, full steel plant conve
Slide 29: Unprecedented evolution of pipeline
EX ECUTION S TRATEGY IN 1- 2-3 Unprecedented evolution of pipeline 2 x increase since Q3 Record-high pipeline presents opportunities for Nel: • Scalable technology >12 billion >1 000 • Reliable systems USD projects • World-class efficiency • Leading Total Cost of Ownership (TCO) for the >22 >2 000 M
Slide 30: Execution strategy 1: Targeting a record-high pipeline and systematically working to win
Execution strategy 1: Targeting a record-high pipeline and systematically working to win 30
Slide 31: We have ~90 own employees continuously developing pipeline from leads to contract and execution
We have ~90 own employees continuously developing pipeline from leads to contract and execution In addition, >50 people from various EPC partners
Slide 32: World class project team working with leading EPC partners
EX ECUTION S TRATEGY 1 World class project team working with leading EPC partners Negotiation Target market Develop FEED work & concept w/EPC Execution & Contract ? Lead & & development qualification Budget quote Firm quote Undertake paid FEED On tender approval, Finalize agreements Target key proje
Slide 33: Execution strategy 2: Large-scale concepts based on a scalable solution with high quality and low cost
Execution strategy 2: Large-scale concepts based on a scalable solution with high quality and low cost 33
Slide 34: A technology leader on two platforms
EX ECUTION S TRATEGY 2 A technology leader on two platforms Alkaline PEM • Provides flexibility and positions us for growth in different market segments around the world 34
Slide 35: Building blocks that enable scalable solutions to meet customers’ need for larger facilities
EX ECUTION S TRATEGY 2 Building blocks that enable scalable solutions to meet customers’ need for larger facilities • Completed design for 800MW green renewable hydrogen production plant • Based on 200MW building blocks • Have “consolidated” Balance of Plant elements to optimize overall CAPEX, reali
Slide 36: Safe, cost-efficient and hassle-free installation
EX ECUTION S TRATEGY 2 Safe, cost-efficient and hassle-free installation • Pre-assembled pipes, stacks and separators, ensures hassle-free installation in a safer and more efficient way • Reduces time and cost for customers • Produced by pre-qualified contract manufacturing partners 36
Slide 37: Safe, cost-efficient and hassle-free installation
EX ECUTION S TRATEGY 2 Safe, cost-efficient and hassle-free installation • Develop a skid that is easy to transport • Easy to unload • Easy to assemble • Ensures scalability from 20 to 800 MW plants and beyond 37
Slide 38: Leveraging on our independent partnership model
EX ECUTION S TRATEGY 2 Leveraging on our independent partnership model • Successfully developing the partnership model Delivery • Flexibility and independence partners Add additional increasingly important: regional/tech • Projects ranging from partners where/when 2-20-200-800 MW plants and relevant
Slide 39: To summarize so far…
EX ECUTION S TRATEGY 2 To summarize so far… • Have leading technology platforms both in terms of CAPEX and OPEX • Introduce world class manufacturing through industrialization and automatization • Scale up of manufacturing • Develop concepts for GW scale production of green renewable hydrogen • Incl
Slide 40: Execution strategy 3: Target large-scale production capacity in key geographical regions
Execution strategy 3: Target large-scale production capacity in key geographical regions, continue to evolve both ALK & PEM platforms 40
Slide 41: Global technology production capacity to address global market
EX ECUTION S TRATEGY 3 Global technology production capacity to address global market • Apply same operational and industrialization principles across technology platforms (PEM & ALK) • Produce both PEM & ALK under same roof in large GW-facilities 4GW PEM/ALK • Have initiated site selection 4GW PEM/
Slide 42: Major step-changes to come on Alkaline & technology platforms
EX ECUTION S TRATEGY 3 Major step-changes to come on Alkaline & technology platforms • Major step-changes to come on Alkaline as well as other technology platforms • Step-change translate into 20MW 800MW doubling of output for 800MW plant customers • From 800MW to 1,600MW with same overall design/fo
Slide 43: Summary and outlook
Summary and outlook nel°
Slide 44: Nel a global leader within hydrogen technologies
S U MMARY AND OU TLOOK Nel a global leader within hydrogen technologies Proven track record and established market leader • Pure play, independent hydrogen technology company • Decades of experience in PEM and alkaline electrolyser platforms • Technology leadership, large-scale concepts ready to go
Slide 45: number one by nature
number one-by nature |