Nel ASA

Earnings Release • Feb 16, 2022

Nel ASA: Fourth quarter 2021 financial results

Nel ASA: Fourth quarter 2021 financial results

(Oslo, 16 February 2022) Nel ASA (Nel) reported all time high revenues of NOK

248.1 million in the fourth quarter of 2021, up from NOK 229.1 million in the

same quarter of 2020 and an EBITDA of negative NOK -167.7 million (Q4 2020:

-96.2) following the global scale-up strategy to maintain the leadership

position in a market set to grow rapidly. The company had an order intake of NOK

418 million in the period ending the quarter with a record order backlog. The

addressable project pipeline doubled during the fourth quarter of 2021,

providing a strong long-term outlook.

"The fourth quarter concluded a year characterised by our massive scale-up to

maintain our leadership position in a market set to grow rapidly. During our

Capital Markets Day in January 2021, we outlined our growth strategy towards

2025 where investments in people and organization were key to target the all

-time-high pipeline of projects across the globe. In 2021 alone, we hired 114

new colleagues and have strategically expanded our cost-base and investments

ahead of the demand curve. With an addressable pipeline more than doubling  to

USD 12 billion from the third quarter 2021, Nel is perfectly positioned with our

partners to execute on the opportunities," says Jon André Løkke, Chief Executive

Officer of Nel.

Nel reported all time high revenues in the fourth quarter of 2021 of NOK 248.1

million (229.1) with an EBITDA of NOK -167.7 million. The reported operating

loss was NOK -196.7 million (-139.3), while the pre-tax loss ended at NOK -280.9

million (1 285.1) following the operating loss and a net negative unrealised

fair value adjustment from shareholdings of NOK 89.1 million. The backlog grew

25% and ended at record levels of approximately NOK 1.2 billion from the fourth

quarter of 2020, and the company holds over NOK 2.7 billion in cash.

The pipeline of potential orders continues to grow and stands at a record-high

amount of more than USD 12 billion. The pipeline represents more than 22 GW of

installed electrolyser capacity and over 1 000 projects.

"The projects are getting significantly larger, the customers will be more

diversified and the geographical market will broaden. Nel has scaled up to be

ready to accommodate this unprecedented pipeline and is effectively addressing

all growth segments with over 90 own employees developing the pipeline from

leads to execution, " Løkke adds.

Nel is leading the race towards fossil parity with the commencement of

production at Herøya, Norway, the world´s first and largest

fully automated electrolyser manufacturing facility. The plant is finished on

time and budget, and is running production at three shifts with new production

records every week. The company has initiated a site selection process for a

large PEM and alkaline facility in the US, with an ambition to develop a global

production capacity towards 2025 in the US, Europe and Asia.

"We have scalable solutions providing high quality and lower costs, are a

technology leader on both alkaline and PEM, and have a product portfolio

spanning from 2, 20, 200 and 800 MW hydrogen plants. With our leading technology

and capacity expansion capabilities, we are preparing to build production

facilities in the US, Europe and Asia totaling about 10 GW in 2025, pending the

market demand. With the record-high pipeline and our leadership position within

hydrogen technologies, we are well-positioned to be awarded significant

contracts in 2022 and we reiterate our strong long-term outlook," Løkke

concludes.

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

fourth quarter 2021 report on page 24.

The fourth quarter 2021 report and presentation are enclosed and available

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

live pre broadcasted live at www.nelhydrogen.com and the event can also be

streamed at https://channel.royalcast.com/landingpage/hegnarmedia/20220216_5/.

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 further information, please contact:

Jon André Løkke, CEO, Nel ASA, +47 907 44 949

Kjell Christian Bjørnsen, CFO, +47 917 02 097

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. Our roots

date back to 1927, and since then we have had a proud history of development and

continuous improvement of hydrogen technologies. Today, our solutions cover the

entire value chain: from hydrogen production technologies to hydrogen fueling

stations, enabling industries to transition to green hydrogen, and providing

fuel cell electric vehicles with the same fast fueling and long range as fossil

-fueled vehicle, without emissions.

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 Kjell Christian Bjørnsen, CFO at NEL ASA

on the date and time provided.