Nel ASA

Investor Presentation • Apr 27, 2023

First quarter 2023 results presentation

27 April 2023

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 first quarter 2023 presentation 27 April 2023. 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.

Leading pure play hydrogen technology

This is Nel

company with a global presence, specializing in electrolyser technology and hydrogen fueling equipment

We unlock the potential of renewables and enable global decarbonization

NEL IN BRIEF

Leading pure play hydrogen technology company with a global footprint

2. Q1 2023 highlights

Financial results and financing

Revenues NOK 359 million

EBITDA NOK -121 million

Order intake NOK 580 million

Order backlog NOK 2 913 million

Cash balance NOK 4 621 million

Key developments in Q1 2023

• NOK ~125m purchase order from HyCC for a project in the Netherlands
• NOK ~360m purchase order from HH2E for projects in Germany
• Investment decision to automate and expand PEM production capacity from 50 to 500 MW
• Successful private placement completed, raising NOK 1.6 billion of new equity

Financial highlights Q1 2023

NOK million	Q1 2023	Q1 2022	FY 2022
Revenue and operating income	359	213	994
EBITDA	-121	-152	-780
EBIT	-175	-187	-1 279
Pre-tax income (loss)	-194	82	-1 187
Net income (loss)	-192	84	-1 171
Net cash flow from operating activities	-29	-159	-691
Cash balance at end of period	4 621	3 940	3 139

Q1 2023

Segment Financials

Electrolyser division (NOK million)	Q1 2023	Q1 2022	Change
Revenue and operating income	278	159	75%
EBITDA	-34	-60
Order intake	555	213	161%
Order backlog	2 555	987	159%

Fueling division (NOK million)	Q1 2023	Q1 2022	Change
Revenue and operating income	81	54	50%
EBITDA	-57	-60
Order intake	25	70	-64%
Order backlog	358	252	19%

• Revenues from alkaline electrolysers increased by 145% YoY whereas revenues from PEM electrolysers increased by 9%
• Margins in the quarter improved compared to Q1-22 but were still negatively impacted by projects signed prior to summer 2022
• Results continue to be negatively impacted by high warranty costs and increased utilization of stations on fixed rate service contracts
• Nel, as well as the rest of the hydrogen fueling industry, is working to mature the technology and therefore investing heavily in service & maintenance and improved product robustness and reliability. Nel will continue to incur high costs related to these activities going forward

Order intake and backlog

• Fueling: NOK 25 million down 64% YoY

LTM order intake: NOK 2 572 million up 161% YoY

Order intake expected to vary between quarters as order sizes have increased

Order intake Order backlog

Order backlog as of Q1 2023: NOK 2 913 million up 126% YoY - Electrolyser: NOK 2 555 million up 159% YoY

• Fueling: NOK 358 million up 19% YoY

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

Q1 2023

NOKm

Successful private placement completed, raising NOK 1.6 billion of new equity

0 1 000 2 000 3 000 4 000 5 000 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23

• On 6 March 2023 Nel raised NOK 1.6 billion through the largest private placement in Nel's history
• Nel will continue to invest in technology development and in scaling up the organization and production capacity
• This includes the planned expansions at Herøya and Wallingford, organizational growth and tender activity, as well as potential additional growth

3. Commercial developments

COMMERCIAL DEVELOPMENTS

40 MW purchase order from HyCC for production of Sustainable Aviation Fuel (SAF)

• Client: HyCC

• Value: NOK ~125 million
• Size: 40 MW
• HyCC is a Dutch company specialising in hydrogen production
• The client has received environmental permit for a project in Delfzijl and is working towards an FID in 2024
• Kraftanlagen Energies & Services has been contracted for the FEED study related to the project

COMMERCIAL DEVELOPMENTS

Firm contract with HH2E for 120 MW of alkaline equipment in Germany

• Client: HH2E

• Size: 2x60 MW plants
• HH2E is a German hydrogen production company
• The firm order is for two of Germany's largest electrolyser projects announced to date
• HH2E has an ambition to reach 4 GW of green hydrogen production capacity by 2030
• The final purchase order signed in March followed a LoI announcement in January 2023

COMMERCIAL DEVELOPMENTS

Great interest in Nel as renewable hydrogen is seen as key to a society with low emissions

• Politicians from Australia, Europe, and the US travel to Norway to see our manufacturing facility and learn about our technology
• Nel is invited to discussions with policymakers and other stakeholders all over the world
• The EU is gradually catching up with the USA in developing favourable framework conditions
• The relaxation of EU state aid rules and introduction of the Hydrogen Bank represent a positive response to the Inflation Reduction Act in the US

BIGGER • BETTER • FOCUSED

The preferred high-capacity hydrogen fueling equipment provider with a 15% market share in 2025

The leading electrolyser provider with 20-30% market share (ex China) in 2025

Capacity expansion plans in progress

• Construction of line 2 (~500 MW) at Herøya started in January and is progressing according to plan
• Production of PEM electrolysers in Wallingford to be automated and capacity increased to ~500 MW by 2025

The site selection process for US Gigafactory has been concluded

• Announcement will be made shortly together with the selected state
• Nel aims to build a factory with 4 GW of production capacity, split between PEM and Alkaline
• The factory will be built in phases to match supply with demand
• No final investment decision has been made yet; the current Wallingford expansion is important to create the blueprint for PEM expansion

SUMMARY

First quarter 2023 summary

Continued strong order intake and record-high order backlog

Successful private placement, raising NOK 1.6bn of new equity

Significant revenue growth and positive margin impact from largescale contracts

Line two at Herøya on track 1 GW Wallingford expansion decided 500 MW Concluded on US site selection process

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