Nel ASA

Earnings Release • May 11, 2022

Nel ASA: First quarter 2022 financial results

Nel ASA: First quarter 2022 financial results

(Oslo, 11 May 2022) Nel ASA (Nel, OSE:NEL) reported revenues of NOK 213 million

in the first quarter of 2022, up from NOK 157 million in the same quarter of

2021. Nel continues with its scale-up strategy to maintain the leadership

position in a market set to grow rapidly. After a reported order intake of NOK

283 million for the period, the company now has a record-high backlog.

Quarterly highlights

· Nel ASA (Nel) reported revenue and operating income in the first quarter

2022 of NOK 213 million, up 36% from the first quarter 2021 (Q1 2021: 157).

· Order intake this quarter of NOK 283 million (Q1 2021: 263). At quarter end,

Nel reported the highest ever order backlog of NOK 1 289 million, up 19% from

the first quarter 2021 (up 5% compared to the fourth quarter 2021).

· EBITDA of NOK -152 million (Q1 2021: -74).

· Strong cash balance of NOK 3 940 million (Q1 2021: 3 248) following a

successful private placement during the quarter which raised NOK 1 500 million

in gross proceeds.

· Ramp-up of production at the new 500 MW line at the Herøya facility

continued successfully and the first electrolyser systems were delivered during

the quarter.

· Nel appointed Håkon Volldal as new Chief Executive Officer from July 1,

· Subsequent to the quarter, Nel has decided to secure long-lead items for a

new 500 MW alkaline production line. Location in Europe to be decided.

Results continue to be affected by the company's strategy to pursue growth and

higher activity levels, including an increasing number of employees working to

develop projects, including paid large-scale FEED studies. Increasing price

pressure on raw materials and supply chain challenges following the aftermath of

Covid-19 and the war in Ukraine is also impacting the results.

"We remain committed to our growth strategy and are confident in the long-term

potential for the industry. Both backlog and pipeline are growing, and we

continue to see a strong outlook for green hydrogen", says CEO Jon André Løkke.

"By industrializing our technology platforms, designing large-scale hydrogen

plants, and further develop our technology, we will continue to reduce cost and

take large steps towards our goal of reaching fossil parity by 2025".

Nel recently inaugurated its new and fully automated electrolyser manufacturing

facility at Herøya in Norway. The factory has a current production capacity of

500 MW which can be extended to 2 GW. The company has now decided to secure long

-lead items for a second 500 MW alkaline production line.

"We have enough space to expand our production capacity at Herøya, but are also

considering other locations in Europe outside of Norway, where the authorities

can offer favorable frame-work conditions," says Løkke.

At quarter-end the cash balance was NOK 3 940 million (Q1 2021: 3 248) following

a successful private placement on 23 March 2022. The company raised gross

proceeds of NOK 1 500 million at NOK 15.3 per share, the largest in Nel's

history. The book was substantially oversubscribed at 4.5x. This capital raise

puts Nel is in a solid financial position to pursue its growth strategy.

EBITDA and other alternative performance measures (APMs) are defined and

reconciled to the IFRS financial statements as a part of the APM section of the

first quarter 2022 report on page 21.

The first quarter 2022 report and presentation are enclosed and available

through www.newsweb.no (Ticker: NEL) and www.nelhydrogen.com. Nel will host a

live broadcast at www.nelhydrogen.com and the event can also be streamed at

https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20220511_1. The

presenters will be Chief Executive Officer Jon André Løkke and Chief Financial

Officer Kjell Christian Bjørnsen. The presentation will be held in English.

The presentation will be held at Hotel Continental, Oslo at 08:00 CET. The

presentation will be followed by Q&A based on submitted questions during the

call. As Covid-19 restrictions are lifted in Oslo, physical participation is

welcome.

ENDS

For additional information, please contact:

Kjell Christian Bjørnsen, CFO, +47 917 02?097

Wilhelm Flinder, Head of Investor Relations, +47 936 11 350

About Nel ASA | www.nelhydrogen.com

Nel is a global, dedicated hydrogen company, delivering optimal solutions to

produce, store and distribute hydrogen from renewable energy. We serve

industries, energy and gas companies with leading hydrogen technology. Since its

origins in 1927, Nel has a proud history of development and continual

improvement of hydrogen plants. Our hydrogen solutions cover the entire value

chain from hydrogen production technologies to manufacturing of hydrogen fueling

stations, providing all fuel cell electric vehicles with the same fast fueling

and long range as conventional vehicles today.

This information is subject to a duty of disclosure pursuant to Section 5-12 of

the Norwegian Securities Trading Act.

This information was issued as inside information pursuant to the EU Market

Abuse Regulation, and was published by Wilhelm Finder, Head of Investor

Relations, at NEL ASA on the date and time provided.