Nel ASA

Investor Presentation • Aug 26, 2020

Q2 2020

Jon André Løkke Chief Executive Officer

August 26, 2020 Nel ASA Q2 2020

This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. 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" 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's businesses, raw material prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation.

Although Nel ASA believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. 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 directors, officers or employees will have any liability to you or any other persons resulting from your use.

This presentation was prepared in connection with the Q2 release on 26 August 2020. Information contained within will not be updated. The following slides should be read and considered in connection with the information given orally during the presentation.

The Nel 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.

Agenda

Q2 highlights

Financial results and financing

Revenues NOK 148.6 million Up 21% increase from NOK 122.5 million in Q2 2019

EBITDA adjusted* NOK -22.3 million Improved from Q2 2019

Order backlog NOK >1 billion All time high and up 75% compared to end of last quarter (Q1 2020)

Cash balance NOK >2.5 billion

Supports Nel's leading position and accelerated investments in organization and technology

Operations and sales

• PO for 85 MW alkaline electrolysers to Nikola, value >USD 30 million
• PO for multiple H2Station™ units, value >NOK 150 million
• PO for three H2Station™ by HyNet, value ~EUR 4 million
• PO for 2.5 MW PEM electrolysers, value >USD 3 million
• Took 100% ownership of Uno-X Hydrogen, changed the name to H2 Fuel Norway, Uno-X took 100% ownership of HRS at Åsane and Hvam

Subsequent events

• NOK 16 million R&D-grant from Research Council of Norway to further develop next generation alkaline electrolyser
• USD 4.4 million R&D-grant from Department of Energy to further develop next generation PEM electrolyser

Financial review

Financial highlights

(NOK million)	2020 Q2 Adj*	2020 Q2	2019 Q2	2020 Q1	2019	2018
Operating revenue	148.6	148.6	122.5	126.5	569.7	489.0
Total operating expenses	194.2	220.6	213.3	213.4	823.3	685.1
EBITDA	-22.3	-48.7	-72.6	-64.6	-178.1	-131.6
EBIT	-45.6	-72.0	-90.7	-86.9	-253.6	-196.1
Pre-tax income (loss)**	620.7	594.3	-94.7	-5.2	-277.2	-197.5
Net income (loss)	622.8	596.4	92.8	-3.2	-269.7	-188.8
Net cash flow from operating activities	-54.1	-54.1	-81.7	-8.8	-209.2	-142.8
Cash balance at end of period***	2.566.1	2 566.1	697.7	1 221.4	526.0	349.7

Non-recurring, ramp-up and net other costs of 23.5 MNOK have been booked in the quarter. Mainly related to start-up costs for start-up costs of the activities in new markets and ramp-up activities, counterbalanced in part by positive one-offs in the quarter. In addition, costs related to the group's share option program of 2.9 MNOK were booked in the quarter. *

Includes 32.2 MNOK in unrealised currency exchange loss related to internal loans and a positive fair value adjustment of the shareholding in Nikola Corporation of NOK 675.6 million (a value of USD 67.53 per share as of June 30, 2020). A 10 USD increase/reduction in the share price of Nikola Corporation will lead to gains/losses of about MNOK 100.0 with a USD/NOK of 9.0 **

Nel raised 128 MNOK in gross proceeds in April 2020 and 1.3 BNOK in June 2020 ***

Order backlog by quarter (MNOK)

All-time high order backlog • Order intake of NOK 602.3 million in Q2 • The order backlog includes a USD >30 million electrolyser PO for Nikola • Received a PO of NOK 150 million for multiple H2Station™ • All-time high order backlog of NOK 1 036.6 million • Strong pipeline across segments and industries

More than 140,000 shareholders

• Clearstream Banking S.A. (Clearstream) is a nominee account majority owned by Deutsche Börse AG
  • Shows up on the shareholder list of numerous companies on OSE
• Has since 2018 grown to >44%
• Nominee account for mainly German banks
• Nel has asked for, and so far received lists of beneficiary owners for 72% of the holdings
• Lists received show that there are >140,000 private and >160 institutional investors, with biggest private owning ~2 M shares, and

Nel in brief

Leading pure play hydrogen technology company with a global footprint

Alkaline and PEM electrolysers Hydrogen fueling stations

Converting water and electricity to hydrogen and oxygen – for industry, mobility and energy purposes

The H2Station™ from Nel is the world's most compact fueling stations, capable of fueling any kind of vehicle and simple to ingrate with other fuels

PEM electrolysers

Wallingford, USA

Systems delivered: 2,700+ Nameplate capacity: ~40MW/year

Alkaline electrolysers

Notodden/Herøya, Norway

Systems delivered: 800+ Nameplate capacity: ~40MW/year ~500 MW/year (~2GW/year)

Hydrogen refuelling stations

Herning, Denmark

Stations delivered: 80+ Nameplate capacity: ~300 HRS/year

Key developments

Purchase order for 85 megawatt of electrolysers from Nikola

Reached major milestone with Nikola

• Partnership with Nikola, global leader in zeroemission transportation and infrastructure solutions
• PO on June 3, 2020
  • Excess of USD 30 million
  • 85 MW alkaline electrolysers related to development of world's first 8 ton/day hydrogen fueling stations
  • Electrolysers will primarily be delivered from new electrolyser mega-factory currently under development in Norway
• PO for remaining station equipment expected when Nikola has firmed up exact station locations

H2Station™ order to large international company

Purchase order for multiple hydrogen fueling stations

• Value in excess of NOK 150 million
• H2Station™ modules to be used for fueling of passenger vehicles in an existing market for Nel
• To be installed on multiple sites during 2021
• The unnamed customer is a large multinational company
• Additional information on project to be provided in second half of 2020

Initially focusing on the French market, Lhyfe is a developer /owner/operator of green hydrogen production sites

Signed framework agreement

• Agreement covers 60 MW of electrolysers to be delivered by 2024
• Follows previously announced PO of an alkaline electrolyser in Q1 2020
• France has recently stepped up hydrogen efforts
• Lhyfe targets to develop a number of different sites, all producing renewable hydrogen for different applications

Hydrogen fueling stations roll-out in Korea

• PO from Hydrogen Energy Network Co., Ltd. (HyNet) for three additional H2Station™ units
• Value of approx. EUR 4 million
• To be installed on multiple sites during 2021
• HyNet to roll out 100 hydrogen fueling stations in Korea by 2022, as part of the national ambition in Korea to have more than 300 stations operational by the same year

Purchase order for a 2.5 MW PEM electrolyser in Europe

Containerised 2.5 MW Proton PEM® electrolyser from European customer

• Value in excess of USD 3 million
• Scheduled to start producing green hydrogen in spring of 2021
• Additional details to be provided following project launch

Received R&D grants for development of next generation electrolysers

Grant for next gen alkaline electrolyser

• Will improve fundamental elements in the cell stack affecting efficiency and cost
• NOK 16 million grant by the Research Council of Norway
• Full scale pilot will be installed at Yara for testing and production of green ammonia

Grant for next gen PEM electrolyser

• Will develop advanced components and manufacturing methods to optimize flow and conductivity of the stack
• USD 4.4 million grant by US Department of Energy under the H2@Scale initiative

Capacity expansion at Herøya

Planned capacity expansion at Herøya

• Fully automated and designed according to lean manufacturing principles
• Industrial scale production of the most efficient electrolysers in the market, at a game-changing cost
• Large production line improvements already identified, name plate capacity up from ~360 to ~500 MW/year
• Test production in new line Q2 2021, start of ramp-up Q3 2021
• Room to expand to ~2 GW/year with 4 production lines

A missed opportunity if approved

• Norway's hydrogen strategy was launched on June 3, 2020
• No concrete targets and no support for infrastructure roll-out, sole focus on pilots
• Nel believes this strategy leaves Norway behind
• Strong contrast to ambitious targets throughout Europe
• As a consequence, Nel will assess whether to start orienting its activities towards areas with more hydrogen related activities

https://hydrogeneurope.eu/

Nel enters board of Hydrogen Europe

• Hydrogen Europe is the European industry association for hydrogen with more than 150 industry members
• Initiator of 2x40 GW Green Hydrogen Initiative
• Nel is joining the board to contribute making Europe the leading region globally for green hydrogen technologies

Towards a hydrogen economy in Europe

• European Commission announced new European hydrogen strategy on July 8, hydrogen will be part of the Covid-19 recovery plan
  • Phase 1 (2020-24) goal of 6 GW
  • Phase 2 (2025-2030) goal of 40 GW
  • Phase 3 (-2050) large-scale use of hydrogen
• Maximize use of green hydrogen, blue hydrogen will play a transitional role, NO grey hydrogen
• Production price for grey hydrogen (EUR 1.5/kg) benchmark for green hydrogen
• Cost target will be reached in a few years

Summary/Outlook

Leveraging on the arising opportunities within energy storage and hydrogen fueling

Covid-19 priorities and impact

The global outbreak of Covid-19 will continue to cause disruptions in Nel´s operations and financial performance, the pandemic negatively impacts the general business environment, orders received, installations, commissioning and associated revenue recognition.

Nel remains committed to its strategy and has since 2019 taken on additional employees and costs to prepare for future growth. The revenue shortfall and business disruptions caused by Covid-19 have impacted and will continue to impact financial results negatively throughout 2020:

• Installation and commissioning delays caused by travel restrictions
• Certain new order booking delays due to the macroeconomic slow-down
• Nel holds the workforce largely intact to maintain the momentum when the situation normalizes and will continuously assess the situation

Nel reiterates the confidence in the long-term potential for the industry, supported by the "green recovery" outlined by various governmental initiatives

Safety as priority #1 Transparency A green Covid-19 recovery

Reiterating strong long-term outlook

To maintain and strengthen its leading position in a growing market, Nel will accelerate investments in organisation, technology and partnerships

Nel targets to maintain its current leading position in the electrolysis sector, continuing to develop both PEM and alkaline technologies, as well as developing technology elements to support fast and reliable hydrogen fueling of heavy duty applications

Markets in which Nel operates show high activity and strong growth momentum, making it increasingly important to be a financially strong counterpart, especially for larger contracts

Ongoing growth initiatives, ramp-up costs and remaining effects of the Covid-19 outbreak will have a negative EBITDA impact in 2020

IR analytics

Q&A

number one by nature