Nel ASA

Investor Presentation • Aug 11, 2022

Second Quarter 2022 Results Presentation

11 August 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 second quarter 2022 presentation 11 August 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.

Agenda 1. Nel in brief 2.Q2 highlights 3.Commercial developments 4.Political events 5. Summary and outlook 6.Q&A

This is Nel

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

We serve a range of different customers with leading hydrogen technologies and we continuously improve our product offering to maintain a leadership position and remain in the forefront of the development

THIS IS NEL

Leading pure play hydrogen technology company with a global footprint

2. Q2 2022 highlights

Highlights Q2 2022

Financial results and financing

Revenues NOK 183 million Up 12% from NOK 164 million in Q2 2021

EBITDA

NOK -197 million Decrease from -120 million in Q2 2021

Order backlog NOK 1,439 million Up 33% vs. NOK 1,078 million Q2 2021

Order intake NOK 236 million

Up 61% vs. NOK 147 million in Q2 2021

Cash balance NOK 3,646 million

Up 19% from NOK 3,074 million in Q2 2021

Key developments in Q2 2022

• Received purchase orders for:
  • An alkaline electrolyser from Glencore Nikkelverk in Norway. Value approx. EUR 3m
  • An alkaline electrolyser from a refinery in India. Value approx. EUR 2m
  • Two H2Station™ fueling systems from a European client. Value approx. EUR 3m
  • One H2Station™ hydrogen fueling module from HTEC in Canada. Value approx. USD 1.5m
  • Hydrogen fueling equipment from Biproraf in Poland. Undisclosed value
• Official opening of the Herøya facility
• Decided to secure long-lead items for a new 500 MW alkaline production line

Subsequent events

• Record purchase order for 200 MW of alkaline stacks. Value approx. EUR 45m
• Received additional purchase orders for:
  • An alkaline electrolyser in Denmark from Skovgaard Energy. Value approx. EUR 4m
  • A PEM electrolyser in Australia from Viva Energy. Value approx. EUR 4m
  • Fueling equipment from a European client. Value approx. EUR 8m
• Final investment decision on a second 500 MW production line at Herøya taken

Financial highlights

NOK million	2022 Q2	2021 Q2	YTD 2022	YTD 2021	2021
Operating revenue	183	164	396	321	798
Total operating expenses	424	313	824	568	1 381
EBITDA	-197	-120	-350	-195	-475
EBIT	-241	-149	-428	-247	-583
Pre-tax income (loss)*	-277	-314	-195	-894	-1 684
Net income (loss)*	-275	-312	-191	-890	-1 667
Net cash flow from operating activities	-220	-47	-378	-232	-449
Cash balance at end of period	3 646	3 074	3 646	3 074	2 723

*The second quarter 2022 includes a net unrealised fair value adjustment of financial instruments of NOK 2 million

FINANCIAL DEVELOPMENTS

All-time high order backlog

• NOK 236 million in order intake in Q2 2022, substantial order intake in subsequent weeks
  • Up 61% YoY
  • Up 17% from YE 2021
• Order intake expected to vary between quarters as average order size increases
• All-time high order backlog end of Q2 2022
  • Up 33% YoY
  • Up 17% from YE 2021
• The pipeline continues to grow across all segments and

Illustration of the impact of the 200 MW order

9

3. Commercial developments

Purchase order for an alkaline electrolyser system in Norway

• Client: Glencore Nikkelverk
• Delivery: mid-2023
• Value: EUR 3 million
• The client is already familiar with alkaline electrolyser technology as it currently operates a similar system in Kristiansand delivered by Nel
• Nikkelverk was Nel's first commercial client (initial system delivered in 1961)

11

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 will be 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

12

Purchase order for a PEM electrolyser system in Australia

• Delivery: Q3-2023
• Value: EUR 4 million
• The electrolyser will be the biggest in Australia
• The system is a containerized solution with a production capacity up to 1,063 kg/day and will supply fuel cell grade hydrogen directly on site to the dedicated fueling station

Several purchase orders for fueling equipment

• Purchase order from HTEC, Biproraf, and an undisclosed European client received in Q2 2022
• Demand is picking up in several markets, and we expect to see more orders in H2 2022
• Yesterday Nel announced a purchase order for several fueling stations to an undisclosed European client with a total value of approx. EUR 8 million

Substantial Enova support in Norway, Nel's home turf

• In June, Glomfjord Hydrogen was awarded NOK 150m in support for its 20 MW hydrogen project for green fuel to customers in the maritime sector

• Nel ASA owns 23% of the company
• Four other hydrogen hubs in Norway received support, totalling NOK 669m
• Enova also announced NOK 121m in support to Celsa Armeringsstål for green reinforcement steel production

16

What we said six months ago

Record order for 200 MW of alkaline stacks

• Client: Undisclosed, USA
• Production: Feb'23-mid'24
• Value: EUR 45 million
• Purchase order only includes alkaline electrode stacks
• Value could potentially double with Balance of Plant (BoP) equipment following paid FEED study
• The client has secured both a 20 year green power purchase agreement and a 20-year offtake agreement for 100% of the end product
• Nel was chosen based on maturity of technology and installed production capacity

The 200 MW order is for stacks only, balance of plant could be added on later

1 Electrolyser cell stack 2 hydrogen separator tank 3 Oxygen separator tank 4 Hydrogen flange

5 Oxygen flange 6 Lye circulation pump 7 Gas cooler 8 Lye cooler

1 2 3 4 5 6 7 1 Lye tank

2 Gas scrubber / cleaner 3 Gas holder 4 Compressor

5 Deoxidizer and gas dryer 6 Transformer 7 Rectifiers

COMMERCIAL DEVELOPMENTS Impact on Nel

• Important reference project
• Positive financial contribution
  • Standard product delivery with solid margin
  • Pass-through on the most important input factors
• Herøya baseload secured, volume enables further cost reductions
• A blueprint for future large-scale projects

20

COMMERCIAL DEVELOPMENTS

The 200 MW order is not a one-off

• Pipeline is still growing and projects are getting bigger
• Customers concerned about industry supply constraints
• Several paid large-scale FEED studies ongoing and new studies will be initiated

Nel will pursue projects where we have:

• A suitable technology offering
• High quality counterparties
• High probability for project FID
• A high probability to win
• An acceptable risk profile

Investment decision to build 2nd alkaline production line at Herøya taken

• Increases total annual alkaline production capacity to ~1 GW
• Line 2 is expected to go live in April 2024
• Capex for equipment estimated to be EUR 35 million
• Based on main principles from Line 1 with continuous improvements implemented

4. Political events

POLITICAL EVENTS

US tax credit Expected to accelerate project FIDs in the US

• Max tax credit of \$3.0/kg of hydrogen
• Green hydrogen will become competitive with grey hydrogen in many applications
• US will become an increasingly important market

5. Summary and outlook

Main triggers for large-scale green hydrogen projects are pushing projects towards final investment decisions

Political drive backed by real incentives

Financing of hydrogen projects maturing

Continuous cost reductions Available long-

term green energy intake

Available longterm end product offtake

Large-scale green hydrogen project FIDs

Nel uniquely positioned to capitalize on increasing market demand

Unrivalled track record

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

Technology leadership

• Technology leader in PEM, alkaline, and fueling
• Optimal system efficiency and durability/lifetime
• World-class safety

Cost and scale leadership

• Front-runner in cost reduction, and first to announce \$1.5/kg target
• Market leading production capabilities
• Strong financing

number one by nature