Nel ASA

Investor Presentation • Oct 20, 2022

Third Quarter 2022 Results Presentation

20 October 2022

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 third quarter 2022 presentation 20 October 2022. 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. The global Covid-19 pandemic is expected to continue to cause disruptions in Nel ASA's operations and financials in the near- and mediumterm. Production, order intake, customer dialogue, installations, commissioning and associated revenue recognition have all been impacted by "stay home" policies.

Nel is a global, dedicated hydrogen technology company that delivers optimal solutions to produce, store and distribute hydrogen from renewable energy

This is Nel

We unlock the potential of renewables and enable global decarbonization

THIS IS NEL

Leading pure play hydrogen technology company with a global footprint

2. Q3 2022 highlights

Financial results and financing

Revenues NOK 183 million

Electrolyser: NOK 148 million (flat vs. Q3 2021) Fueling: NOK 35 million (down 57% vs. Q3 2021)

EBITDA

NOK -214 million Decrease from -113 million in Q3 2021

Order backlog NOK 2,103 million Up 107% vs. NOK 1,014 million Q3 2021

Order intake NOK 775 million

Up 456% vs. NOK 139 million in Q3 2021

Cash balance NOK 3,520 million Up 20% from NOK 2,930 million in Q3 2021

Key developments in Q3 2022

• Received purchase orders for:
  • 200 MW of alkaline stacks from a US client. Value approx. EUR 45m
  • An alkaline electrolyser in Denmark from Skovgaard Energy. Value approx. EUR 4m
  • A PEM containerized electrolyser in Australia from Viva Energy. Value approx. EUR 4m
  • A PEM containerized electrolyser system from LanzaJet. Value approx. EUR 3m
  • Fueling equipment from a European client. Value approx. EUR 8m
• Investment decision for the second 500 MW production line at Herøya made

Subsequent events

• Received app. NOK 600 million contract from Woodside Energy for stacks, balance of stacks, and engineering
• Received app. USD 6 million funding from US Department of Defence for accelerating advanced PEM electrolyser stack development

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Financial highlights

NOK million	Q3 2022	Q3 2021	YTD 2022	YTD 2021	2021
Operating revenue	183	229	579	550	798
Total operating expenses	443	368	1 267	936	1 381
EBITDA	-214	-113	-563	-308	-475
EBIT	-260	-139	-688	-386	-583
Pre-tax income (loss)*	-262	-509	-456	-1 403	-1 684
Net income (loss)*	-260	-507	-450	-1 397	-1 667
Net cash flow from operating activities	-118	-116	-497	-348	-449
Cash balance at end of period	3 520	2 930	3 520	2 930	2 723

Segment Financials

Electrolyser division (NOK million)	Q3 2022	Q3 2021	Change	YTD 2022	YTD 2021	Change
Revenue and operating income	148	148	1%	437	289	51%
Operating expenses	265	208	27%	736	474	55%
EBITDA	-94	-46		-237	-139
Order intake	680	96	608%	1 077	425	153%
Order backlog	1 680	773	117%

Fueling division (NOK million)	Q3 2022	Q3 2021	Change	YTD 2022	YTD 2021	Change
Revenue and operating income	35	82	-57%	143	261	-45%
Operating expenses	127	134	-5%	414	394	5%
EBITDA	-93	-42		-236	-105
Order intake	95	43	120%	217	124	74%
Order backlog	423	240	76%

• Mixed revenue picture in Alkaline and PEM

• o Significant revenue increase in Alkaline vs. Q3 last year
• o Revenue decline in PEM amid large delivery to Iberdrola in Q3'21 and supply chain issues that delay revenue recognition despite record high sales on smaller systems
• Current profitability negatively impacted by low-margin contracts signed in 2020/2021, project execution, inflationary pressure on non-hedged components, and increased personnel expenses to prepare for large-scale projects
• Revenues and margins expected to improve when recently signed contracts reach revenue recognition in 2023/2024
• Revenues hampered by weak order intake in previous quarters plus supply chain issues delaying revenue recognition
• Fueling continues to contribute negatively to overall results due to high quality costs as utilization of stations increases and higher personnel expenses
• Nel is dissatisfied with the profitability in its Fueling division and is intensifying actions to improve performance and profitability

Order intake and backlog

NOK million NOK million

Order intake Order backlog

Order backlog as of Q3 2022: - Electrolyser backlog: - Fueling backlog:	NOK 2,103 million NOK 1,680 million NOK 423 million	(up 107% y/y) (up 117% y/y) (up 76% y/y)
Order backlog will continue to grow following recent development

*NOK 600m order ** Q3'22 Backlog + NOK 600m order

3. Political events

POLITICAL EVENTS

IPCEI second wave likely to accelerate project FIDs in Europe

• The Important Projects of Common European Interests will likely have substantial effects on project FIDs
• For the second wave, Nel is involved in several of the projects, though with substantial commercial uncertainties
• Expected timing on FIDs varies from project to project
• Still awaiting clarification for key regulatory framework conditions
  • Definition for renewable hydrogen is key for project developers
  • Expect renewable energy directive to be finalized by year end 2022

POLITICAL EVENTS

Inflation Reduction Act has a direct positive impact on Nel

• Nel's two largest orders both US based
• Nel is well positioned for a number of solid, highquality projects with manageable risk profile
• Site selection process for a 4 GW location in the US continues. Expected to be concluded in 1H 2023
• US likely to become a global hydrogen hub, and as such could become the company's second home

"With the passage of the Inflation Reduction Act, the drive to accelerate the energy transition in the US is underway" Shaun Gregory, EVP, Woodside New Energy

4. Commercial developments

COMMERCIAL DEVELOPMENTS

Record size purchase order received in Q3 - the start of Nel's large-scale era

• Client: Undisclosed, USA

• Delivery: Mid-24
• Value: EUR 45 million
• Purchase order includes 200MW of alkaline electrode stacks
• The client has secured a 20-year green power purchase agreement and a 20-year offtake agreement for 100% of the product
• Nel was chosen based on maturity of technology and installed production capacity
• The project will have a considerable positive effect on the organisation

COMMERCIAL DEVELOPMENTS

Purchase order for electrolyser equipment to the world's first dynamic green ammonia plant

• Client: Skovgaard Energy
• Delivery: Q3-2023
• Value: EUR 4 million
• The project in Denmark will be the world's first dynamic green ammonia plant where renewable electricity from wind and solar connected directly to the electrolyser
• This is a demo plant that will test how an ammonia reactor can fluctuate operations based on renewable power input

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COMMERCIAL DEVELOPMENTS

Two containerized systems sold in Q3, one in US and one in Australia

• Delivery: Q3-2023
• Value: EUR 4 million
• Project will supply fuel cell grade hydrogen directly on site to the dedicated fueling station
• Client 2: LanzaJet
• Delivery: Q3-2023
• Value: USD 3 million
• Electrolyser to be installed at the world's first commercial "Alcohol-to-Jet" production plant for sustainable aviation fuel (SAF)

Purchase order for several fueling stations

• Client: Undisclosed
• Delivery: Early 2023
• Value: EUR 8 million
• The contract is a firm purchase order from an undisclosed European client for the delivery of several H2Station™ units for fueling of light- and heavy-duty fuel cell electric vehicles
• The contract includes service and maintenance

COMMERCIAL DEVELOPMENTS - SUBSEQUENT

Receives Funding for accelerating advanced PEM electrolyser stack development

• Funding from: US DoD, ERDC- CERL

• Project duration: 19 months
• Amount: USD 5.6 million
• Aim to accelerate PEM electrolyser development to reduce operating and capital costs
• Activities include:
  • Development of membranes
  • High volume manufacturing and recycling methods
  • Reduction of precious metals
  • Cell stack integration and testing at ERDC-CERL

COMMERCIAL DEVELOPMENTS - SUBSEQUENT

Woodside Energy H2OK project, Nel's largest contract so far

• Client: Woodside Energy
• Delivery: 2024
• Value: NOK 600 million
• Liquid hydrogen production in Oklahoma for major transport companies
• Contract includes stack, BoS, and engineering
• Will have a substantial positive financial impact

5. Summary and outlook

We deliver on our promises

200 MW order

"The pipeline grows and projects are getting bigger"

"The 200 MW order is not a one-off"

NOK 600 million contract

Q2 presentation: Q3 presentation:

"More large-scale orders are coming"

More large-scale orders are coming SUMMARY AND OUTLOOK

Very positive market outlook:

• Nel's pipeline continues to improve and mature
• Customers concerned about near-term industry supply
• Nel continues to secure high quality, large-scale orders with attractive margins
• Order intake expected to vary between quarters as order size increases

Reiterating the pursuit of projects where Nel has:

• A suitable technology offering
• High quality counterparties with high probability of reaching FID
• A high probability to win
• Attractive margins and acceptable risk profile

Increased threshold for what is regarded as insider information

• The threshold for what is seen as insider information, and thus must be disclosed to the market, has been increased from about EUR 2 million to about EUR 5 million
• Nel's equity story is all about larger projects that provide visibility on future earnings/market share and confirm that large-scale projects are real
• Nel has also stated that the company strategy is to move towards large-scale projects, and as such smaller contract wins are no longer as relevant as they were historically
• By increasing the threshold, the communication from the company will be better aligned with what the investor community finds material for the Nel share

SUMMARY AND OUTLOOK

Nel is uniquely positioned to capitalize on increasing market demand

Unrivalled track record

• Decades of experience
• Largest installed base
• Proven technology with performance guarantees

Technology leadership

• Broad product portfolio
• High system efficiency and durability/lifetime
• World-class safety

Cost and scale leadership

• Front-runner in cost reduction
• Market leading production capabilities
• Strong financing

number one by nature