Nel ASA (NLLSF)

[TPX]

Nel ASA: First Quarter 2019 Results Presentation Q1 highlights https://nelhydrogen.com/assets/uploads/2019/05/Nel-ASA_Q1-2019_presentation.pdf

Currency Info: NOK 122.4 million = $13979884,73 Dollar
https://fx-rate.net/USD/NOK/

Financial results and financing

Revenues of NOK 122.4 million in Q1’19, up from NOK 112.5
million in Q1’18, representing a growth of 8.9 %

40% growth in Fueling segment - Electrolyser segment -8%
All-time high pipeline

Order backlog of NOK 406 million at end of Q1’19, have
added close to NOK 200 million of new orders in Q2’19

Completed a successful private placement of 84 906 560
new shares, raising NOK 462.7 million in gross proceeds

Cash balance of NOK 743.2 million (Q1’18: 250.8), not
including NOK 68 million in gross proceeds from subsequent

Operations and sales

Awarded USD 6.5 million contract for the delivery of H2Station®
solution for fueling of heavy-duty vehicles in the U.S. from Shell

>3 oversubscribed private placement

Purchase Order (“PO”) for two hydrogen fueling stations in Korea

Joins HyNet - aim to establish 100 hydrogen fueling stations in South
Korea by 2022

USD >3 million PEM electrolyser order from H2Energy for heavy duty
trucking

Subsequent events

PO from Shell for additional H2Station® units for heavy duty fueling in
California, USD ~7 million

PO for a 4.5 MW alkaline electrolyzer solution from Hybrit Develop. AB

PO for six H2Station® hydrogen fueling stations in Korea, EUR ~8 million

PO for H2Station® from Canada

Nel ASA

Pure play hydrogen technology company listed on the Oslo Stock Exchange (NEL.OSE)

Manufacturing facilities in Norway, Denmark and U.S. & global sales network

World’s largest electrolyzer manufacturer, with >3500 units delivered in 80+ countries since 1927

World leading manufacturer of hydrogen fueling stations, with ~50 H2Station® solutions delivered to 9 countries

*************************** Latest developments ***************************

Awarded USD >13 million purchase orders for HDV H2stations from Shell

Since new year, received two purchase orders for H2Station®
solutions for fueling of heavy-duty vehicles in California from
Shell

Order issued under earlier announced framework agreement between
Nel and Shell Global Solutions International B.V.

First orders for a HDV station from Shell – have already delivered
several LDV stations

Total value of approximately USD 13.5 million

Nel will upgrade existing H2Station® technology to better
accommodate the HDV requirements as well as further
improving uptime/reliability of station equipment

Awarded PO for PEM electrolyzer and enters a 30 MW framework contract

First containerized megawatt PEM electrolyzer from Nel in Europe

Awarded a USD >3 million PO for containerized 2 MW Proton PEM
electrolyzer as part of new 30 MW framework contract with Hydrospider
AG, an affiliated company of H2 Energy AG

Represents phase 1 of the 60 – 80 MW needed to supply green hydrogen to the 1600
expected trucks from Hyundai over the coming years

Will be first containerized M-series PEM electrolyzer from Nel to be installed in
Europe

H2 Energy is working together with partners to establish a nation-wide
network of hydrogen stations and hydrogen supply chain in Switzerland

Received purchase orders for 8 H2Stations in Korea, 9 in total

Breakthrough for the Nel hydrogen fueling solutions in the Korean market

Nel Korea has received following PO’s

Two H2Station® from Gangwon Technopark

Value contract EUR ~2.8 million

Purchase orders for six H2Station® from Korea Gas Technology
Corporation (KOGAS-Tech)

Value contract is around EUR ~8.0 million

Korea has ambitions of 310 hydrogen stations by 2022

Nel has joined HyNet, a special purpose company for expanding the
country’s hydrogen infrastructure is under development

Target to establish 100 H2 stations in South Korea by 2022

Awarded PO for H2Station® from HTEC in Canada

Nel’s first H2Station® to be delivered in the Canadian market

On May 3rd awarded a PO for a H2Station® fueling station from
HTEC (Hydrogen Technology & Energy Corporation)

First H2Station® from Nel in Canada, opening up a new market

Will be installed in Vancouver, British Columbia (BC) during 2020

HTEC is a leading developer and provider of hydrogen supply
solutions

Opened the first retail hydrogen refueling station in Canada in 2018 and
is actively planning and building additional stations in Vancouver and
Quebec, in collaboration with key retail operators

Entered into MoU for HDV standardization

Heavy duty fueling technology and standards reaching a mature stage

Entered MoU together with Air Liquide, Hyundai, Nikola Motor, Shell
and Toyota to develop and test 70 Mpa hydrogen fueling hardware
for heavy duty vehicles

Standardization will enable cost reductions and allow different makes of
trucks to utilize the same infrastructure

Supported by R&D grant of EUR 1 million from the Danish Energy
Technology Development and Demonstration Program (EUDP) for
continued H2Station®? hydrogen technology development

Support efforts in development and demonstration of increased hydrogen
fueling capacity, especially for heavy duty applications

Successful Nikola World event

Nel and Nikola = Hydrogen @Scale

Nel awarded contract as part of Nikola’s development of a hydrogen
station infrastructure owned and operated by Nikola in the U.S.

Multi-billion NOK 1 000 MW electrolyzer and fueling station contract, to be deployed from 2021 – largest electrolyzer contract ever awarded

Nikola + Nel are vertically integrated
- Nikola producing Fuel Cell Class 8 Trucks at the end of 2022
- Nikola using Nel technology for 8 tons H2/ day @ Scale Stations

Nikola currently has 13,000+ trucks in pre-orders

Received purchase order for a 4.5 MW electrolyzer from HYBRIT

HYBRIT aims to develop fossil free steel production for the future

4.5 megawatt alkaline electrolyzer solution will be used
in a pilot plant for fossil free steel production

Hybrit Development AB (HYBRIT) is a joint venture
owned equally by SSAB, LKAB and Vattenfall

The steel industry accounts for 7% of global and 10% of
Swedish CO2
-emissions

Pilot plant will operate in Luleå, Sweden from 2021 –
2024, with target of full-scale implementation by 2035

Full scale implementation of the HYBRIT project will
consume 15 TWh of renewable energy

Outlook

Ongoing growth initiatives and focus on long term high value orders will have a negative impact on
Nel's ability to deliver positive EBITDA in the short term

Orders booked will primarily affect revenue growth from the second half of 2019

Continue work on the x10 electrolyzer factory expansion to support deliveries to Nikola and other
customers

Leveraging the fast-growing Heavy Duty Vehicle (HDV) opportunities

Developing next generation electrolyzer technology for industrial applications, such as ammonia,
refineries, etc.

Significant tender activities for larger projects for electrolyzers and H2Stations

Continue to develop the Nel organization

Q1 2019 Report: https://nelhydrogen.com/assets/uploads/2019/05/Q1-2019-Interim-Report.pdf