Nel ASA

Earnings Release • Aug 19, 2021

Nel ASA: Second quarter 2021 financial results

Nel ASA: Second quarter 2021 financial results

(Oslo, 19 August 2021) Nel ASA (Nel) reported revenues of NOK 163.7 million in

the second quarter of 2021, up 10% from NOK 148.6 million in the same quarter of

2020 and an EBITDA of negative NOK 120.3 million (Q2 2020: -48.7) incl. one-offs

and ramp-up cost. This includes costs relating to the ramp-up at the new Herøya

facility which is still not contributing to revenue. The order backlog ended at

NOK 1 078 million, up ~4% from same quarter last year. The cash balance ended at

NOK 3.07 billion. Nel reiterates the strong long-term outlook and growth

prospects for the sector.

"In the second quarter, we are very happy to see that the ramp-up of our Herøya

facility is going according to plan despite challenges related to the pandemic.

The new, fully automated, 500MW production line will be a game changer for Nel

and for the industry once it is producing and we will start the ramp-up in the

third quarter of this year; significantly reducing the costs of producing green

hydrogen. As expected, Nel's second quarter results are impacted by the

strategic ramp-up, investments in people and technology and the continued

effects of the Covid-pandemic. We are still expecting that the order intake will

vary between quarters as order sizes increases and public funding mechanisms are

being implemented." says Jon André Løkke, Chief Executive Officer of Nel.

Nel reported revenue and operating income in the second quarter 2021 of NOK

163.7 million (148.7), following a growth in both the Fueling and Electrolyser

segment compared to the same quarter in 2020. Nel is no longer reporting

adjusted EBITDA separately, however, the EBITDA includes one-offs and ramp-up

cost. In particular, results are impacted by costs relating to the ramp-up at

Herøya, before production and revenue contribution from the facility. The

reported operating loss was NOK -149.1 million (-70.2), while the pre-tax loss

ended at NOK -314.1 million (594.3) following a net negative fair value

adjustment related to the shareholding in Everfuel and Nikola. The backlog is up

slightly since second quarter last year, with an order intake of around NOK 150

million in the quarter. Net cash balance at the end of second quarter 2021 was

NOK 3.07 billion.

"Nel has a solid balance sheet and a strong financial position to execute on our

strategic plans, and we will continue to invest in technology and people in

order to maintain our leadership in what will be a rapidly growing market,"

Løkke comments.

Nel is expanding its electrolyser capacity at Herøya, Norway, which is a key

element to delivery on the cost target of USD 1.5/kg set out at the Capital

Markets Day in January. The expansion of the electrolysis production will

accommodate large-scale projects by constructing a fully automated manufacturing

facility. The construction process is on track, with more than 45,000 manhours

completed and with zero HSE incidents. Installations, verification of improved

technology and tests of installed equipment are completed to meet production

start and ramp-up in Q3 2021.

"We remain confident in the long-term potential of the green hydrogen industry

and reiterate the strong growth outlook. 2021 will be a monumental year for the

industry, and even if we should see the first 100MW+ project in the industry

this year, larger orders are taking longer to close as we are waiting for

important public financing mechanisms to come through. With the new production

facility at Herøya we remain confident that Nel is well suited to capitalise on

these opportunities with our proven track record, market leading position and

global delivery and execution muscle" 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

second quarter 2021 report on page 24.

The second quarter 2021 report and presentation are enclosed and available

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

presentation at 08.00 CET and the event can be streamed at

https://channel.royalcast.com/landingpage/hegnarmedia/20210819_2/. There are

available places to view the presentation in-person at H7-2, Haakon VIIs gate,

Oslo - those registered will be prioritized as participation is limited due to

Covid-19 restrictions (Contact ir@nelhydrogen.com to register).

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

Financial Officer Kjell Christian Bjørnsen, and the presentation will be held in

English.

ENDS

For further information, please contact:

Kjell Christian Bjørnsen, CFO, +47 917 02 097

Ida Marie Fjellheim, Investor Relations, +47 905 09 291

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.