Nel ASA

Investor Presentation • Feb 28, 2024

Fourth quarter and full year 2023 results presentation

28 February 2024

Forward-looking information

This Presentation includes and is based, inter alia, on forward-looking information and statements relating to the business, financial performance and results of Nel ASA and/or industry and markets in which it operates that are subject to risks and uncertainties that could cause actual results to differ materially from the statements expressed or implied in this Presentation by such forward-looking statements. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Nel ASA and Nel ASA's (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" , "aims", "anticipates", "intends", "plans", "projects", "targets" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Nel ASA's businesses, raw material prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and other factors.

Although Nel ASA believes that its expectations, estimates and projections are based upon reasonable assumptions, it can give no assurance that these will be achieved or that forecasted results will be as set out in the Presentation, and you are cautioned not to place any undue reliance on any forward-looking statements. Nel ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Nel ASA nor any of its, or its subsidiaries' directors, officers or employees will have any liability to you or any other persons resulting from your use of this Presentation. This presentation was prepared in connection with the Nel ASA fourth quarter and full year 2023 presentation 28 February 2024. Information contained in this Presentation is subject to change without notice and will not be updated. This Presentation should be read and considered in connection with the information given orally during the presentation. The Nel ASA shares have not been registered under the U.S. Securities Act of 1933, as amended (the "Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act.

NEL IN BRIEF

Leading pure play hydrogen technology company with a global footprint

2. Q4 2023 highlights

Quarterly highlights

Financial results and financing

Revenues and income NOK 534 million

EBITDA NOK -106 million

Order intake NOK 183 million

Order backlog NOK 2 458 million

Cash balance NOK 3 363 million

Key developments in Q4 2023

• One containerized PEM order signed
• Received a cancellation from HyCC
• Received a significantly reduced notice of fines related to the Kjørbo incident
• Sale of Everfuel shares for a total compensation of NOK 116.6 million

Subsequent events

• Signed a contract with Samsung C&T for 10 MW alkaline equipment, EUR ~5 million
• Renewed the relationship with Nikola with a new framework supply agreement for a USD ~9 million compensation
• Partnering up with Fortescue on its Phoenix Hydrogen Hub, USD ~11 million
• Iwatani Corporation of America filed a lawsuit against Nel and some subsidiaries regarding the delivery of fueling equipment and services. Nel strongly rejects the allegations

Q4 2023

Group Financials

(NOK million)	Q4 2023	Q4 2022	FY 2023	FY 2022
Total revenue and income	534	414	1 773	994
EBITDA	-106	-216	-474	-780
EBITDA margin	-20%	-52%	-27%	-78%
EBIT	-166	-590	-700	-1 279
Pre -tax income (loss)	-105	-731	-873	-1 187
Net income (loss)	-94	-721	-855	-1 171
Net cash flow from operating activities	-140	-194	-670	-691
Cash balance at end of period	3 363	3 139

• Financial performance in Q4'23 and 2023 in general represents a significant improvement vs. 2022
• Strong revenue growth and better execution translated into improved profitability
• Nel has a solid cash position and no immediate needs for additional equity
• Significant portion of ongoing production capacity expansions already paid for during 2022/23, further expansions beyond committed CAPEX depends on order intake

~80% revenue growth (NOK ~800m)

8

~50 pp EBITDA margin improvement (NOK ~300m)

NOK ~3.4 bn in cash reserves entering 2024

Q4 2023

Segment Financials – Electrolyser division

• 91% YoY growth in 2023

• NOK 145m YoY EBITDA improvement in 2023
  • -3% EBITDA margin in AWE
  • -24% EBITDA margin in PEM
• 2023 EBITDA was impacted by legacy projects with wider scope than what Nel is now accepting
• Business model proven with clear scale effects

Q4 2023

Segment Financials – Fueling division

• 41% YoY growth in 2023
• NOK 150m YoY EBITDA improvement in 2023
  • Reduced warranty and quality cost
  • Leaner organisation
  • Improved margins on delivered systems
• Set up for growth with further development and commercialisation of highcapacity concept

3. Commercial developments

COMMERCIAL DEVELOPMENTS

Order intake and backlog

Order intake Q4 2023:	NOK	183 million	-81%	y/y
- Electrolyser: - Fueling:	NOK NOK	131 million 52 million	-86% -35%	y/y y/y
Order intake expected to vary between quarters as order sizes have increased

ORDER BACKLOG (NOK million)

Order backlog Q4 2023:	NOK	2 458 million	-6% y/y
- Electrolyser: - Fueling:	NOK NOK	2 093 million 364 million	-6% y/y -6% y/y

The order backlog is subject to risks such as delays and/or cancellations

Expected follow-up orders on signed contracts

• About 400 MW of current backlog is related to "stack only" purchase orders
• Nel will also deliver balance of stack equipment, not included in the order backlog for these orders
• The expected follow-up orders for stack only contracts accumulate to around NOK 500 million
• Exact timing of order intake depends on the maturity of the individual projects

COMMERCIAL DEVELOPMENTS

Sales pipeline development

• The top 20 sales leads have an average size of about 450 MW and a median of about 200 MW
• Sales pipeline examples:
  • Ongoing paid FEED study with Samsung Engineering for a GW system in Asia
  • Ongoing paid FEED study with undisclosed customer for a multi-GW system in the US
• The top 20 pipeline has an overweight of large industrial companies, but also working with quality project developers. There is a good geographical spread across Europe, US and Asia

COMMERCIAL DEVELOPMENTS - SUBSEQUENT

10 MW order from Samsung C&T

• Client: Samsung C&T
• Size: 10 MW
• Value: EUR ~5 million
• Location: South Korea
• This is the clients first off-grid green hydrogen production project
• Samsung C&T will do the EPC work internally
• Samsung C&T has a significant pipeline of electrolyser projects

COMMERCIAL DEVELOPMENTS - SUBSEQUENT

Renewed relationship with Nikola

• Cancelled the old supply agreement from 2018
• Will enter into a new supply agreement for 110 stacks (275MW)
  • Not a firm order, and thus not in the order backlog
  • Aligned with Nel's preferred scope of supply (Stacks + BoS)
• Nel has received a USD 9 million compensation for the reduced commitment

Partnering up with Fortescue on its Phoenix Hydrogen Hub

• Client: Fortescue

• Scope:
  • BoS equipment for a 80 MW electrolyser system
  • Updated warrantees and guarantees for already delivered stacks
• Value: USD 11 million
• Fortescue have taken over Phoenix Hydrogen Hub from Nikola, including stacks already delivered by Nel
• The project has taken FID, and will become one of North Americas largest electrolyser systems

4. Strategy update

Nel's electrolyser strategy

Nel aims to capture >20% of the market outside China by:

• Targeting large-scale projects and rapidly scaling manufacturing capacity in line with market demand (BIGGER)
• Offering the best technology at a competitive and market enabling price (BETTER)
• Adapting its business model and scope of supply to create required execution focus (FOCUSED)

2023 at a glance: Electrolyser division

BIGGER

• Production output more than doubled driven by yield improvements and line optimizations
• Expansion in Norway on track with 1 GW AWE production capacity from Q2 2024
• US expansion on track with 500 MW PEM production capacity from 2025

• 50 MUSD in support for a new gigafactory in Michigan, US

2023 at a glance: Electrolyser division

BETTER

• Product cost reduced and efficiency increased of atmospheric AWE electrolysers
• Next-generation pressurized AWE solution progressed according to plan with very promising test results from Norway
• Feasibility of super-aggressive next-generation PEM stack targets verified in collaboration with GM

2023 at a glance: Electrolyser division

FOCUSED

• All contracts signed after summer of 2022 now aligned with Nel's preferred scope of supply: stack + balance of stack
• Partnership agreements signed with leading EPC companies to ensure global delivery capabilities for balance of plant equipment and drive standardization
• Standardization increased, design and system documentation enhanced, installation and commissioning routines improved

Nel's Fueling strategy

Nel aims to capture >15% of the highcapacity HRS market outside China by:

• Offering a station concept tailored to the needs of heavy-duty vehicles (BIGGER)
• Capitalizing on insights derived from the lightduty market to standardize products and derisk the high-capacity fueling business case (BETTER)
• Adapting its make versus buy plans to create required execution focus (FOCUSED)

2023 at a glance: Fueling division

BIGGER

• Development of high-capacity station for heavy duty transportation initiated
• Very positive market/customer feedback on design approach and targeted performance metrics
• Product expected to be commercialised in 2025 (combination of existing and new modules)

2023 at a glance: Fueling division

BETTER

• Increased uptime for station modules installed in the field (despite more fillings)
• Significant reduction in warranty/quality cost per station during the year across all key product platforms

2023 at a glance: Fueling division

FOCUSED

• Old products phased out and existing products further standardized
• Decision to develop compression, cooling, and control system in-house and source remaining parts externally
• Development agreement signed with worldleading company for a key high-capacity station module

On the note of becoming more «FOCUSED»…

Exploring a spin-off and separate listing of the Fueling division

• There are few synergies between the Electrolyser and Fueling divisions
• With reference to the Q4'22 report, Nel has for some time considered strategic actions for its Fueling division
• Creating two independent companies targeting leadership within their respective segments of the hydrogen value chain is believed to be more beneficial
  • Sharper focus and increased execution speed
  • Allows both entities to explore their respective strategic agendas
• Contemplated transaction structure is a dividend-in-kind to Nel ASA shareholders during 2024, making Nel shareholders owners in both companies at the time of the split
• The decision to spin off and separately list the Fueling division has not yet been concluded and no assurances can currently be given that it will be completed

CORPORATE DEVELOPMENT

The potential new Fueling Co.

• A pure-play hydrogen fueling technology company with ~250 employees
• Headquartered in Herning, Denmark, and listed on the Oslo Stock Exchange
• Full attention from a new and dedicated Board, the management team, and the organization
• A more targeted strategy focused on:
  • Harvesting a leading position in the low-capacity segment
  • Pursuing market leadership in the developing highcapacity market
• Improved strategic flexibility to pursue organic and structural business opportunities

CORPORATE DEVELOPMENT The potential new Nel ASA

• A lean, 100% focused electrolyser technology company with ~425 employees
• Uniquely positioned as a market leader in the only two commercially proven technologies
  • Products proven in the field for decades
  • Competitive pricing
  • Bankable performance
  • Strategic partners for full scope offering
• Funding and knowledge to launch next generation products with ground-breaking performance offering significantly lower LCOH

Corporate development

SETT INN BILDER FRA NOEN

AV DE KULE ANLEGGENE

VÅRE!

2023 in review

~30% YoY revenue increase in Q4, ~80% growth for the full year

NOK 87m YoY EBITDA improvement in Q4, NOK ~300m for the full year

NOK 3.4bn in cash reserves entering 2024, no near-term need to raise additional cash

Production output more than doubled, capacity expansion to 1.5 GW on track/ budget

Substantial cost and efficiency improvements on current offering, solid progress on next-gen PEM and pressurized AWE stacks

All contracts signed since summer 2022 aligned with preferred stack+BoS scope, new global strategic EPC partners signed up

number one by nature