Nel ASA

Earnings Release • Aug 24, 2017

Nel ASA: Second quarter 2017 results

Nel ASA: Second quarter 2017 results

(Oslo, 24 August 2017) Nel ASA ("Nel") reported revenues in the second quarter

of 2017 of NOK 39.1 million, compared to NOK 13.5 million in the second quarter

of 2016, representing a growth of 190 percent. The quarter was especially marked

by finalization of the acquisition of Proton OnSite ("Proton") on June 30, 2017

creating the world`s largest electrolyser company, as well as an exclusive,

industrial-scale framework agreement with H2V PRODUCT with an initial contract

value of approximately NOK 450 million.

"The second quarter was characterised by significant developments that provide a

promising outlook for the rest of the year and the future of Nel. The key

highlight was the successful closing of the Proton acquisition, meaning we have

now created a world leading electrolyser company. The combined entity will be

able to offer the full spectre of electrolysers in terms of capacity and

technology, in addition to having a strong foothold in the US. Proton has a

motivated and talented organization, a solid backlog, a clear product roadmap

and we expect a good demand for our PEM electrolysers going forward, "says Jon

André Løkke, Chief Executive Officer of Nel.

In the second quarter of 2017, Nel reported revenues of NOK 39.1 million,

compared to NOK 13.5 million in the same quarter of 2016, representing a topline

growth of nearly 190 percent. The high activity level within business

development, investments and preparations for productions ramp-up continues as

planned. Also in the second quarter, the EBITDA was negatively affected by the

ramp-up costs and ended at NOK -12.5 million, adjusted for transaction costs

related to the Proton acquisition and non-cash share options.

During the second quarter, the company entered an exclusive, industrial-scale

power-to-gas framework agreement with H2V PRODUCT. The first 100 MW hydrogen

plant has a contract value of approximately NOK 450 million, increasing to about

NOK 3.15 billion for six other plants and a total of 700 MW. The first plant

will be developed in the period 2018-2020, with a target to continue adding

lines from 2020 until 2025. The partnership also represents significant

opportunities for expansion at the Notodden facility.

The quarter also marked Nel's entry into the Korean market through a joint

venture with Deokyang Co. Ltd, South Korea's largest hydrogen supplier. The

joint venture Nel-Deokyang Ltd. was established for exclusive sales and

marketing of the Nel H2Station® in Korea, where the government targets to

install around 100 fueling stations by 2020 and 230 stations by 2025.

The company also initiated the production of the fueling stations for the

Californian market in August, supporting the NOK 140 million purchase order

received from Shell earlier this year. The stations will be produced at the new

Herning facility, and the company expects to start shipments later this year.

"It has been an eventful second quarter with important partnership agreements, a

milestone acquisition and an order backlog at the end of the period that is

almost 3.5 times the revenue of last year. With an all-time high level of sales

leads, both in traditional and new markets, we expect contribution from all

business areas, including Proton. To provide the investors with a better

understanding of the outlook going forward, we are stating that the revenues in

the third quarter of 2017 will more than twice that of the second quarter," says

Løkke.

Nel will host a presentation at 08:00 CET at Hotel Continental in Oslo on August

24, 2017. A live webcast of the call will also be available on the company's

website,  www.nelhydrogen.com/webcast, and on

http://webtv.hegnar.no/presentation.php?webcastId=58635400

The second quarter 2017 report and presentation will be made available through

www.newsweb.no (Ticker: NEL) and www.nelhydrogen.com

ENDS

For further information, please contact:

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

Bent Skisaker, CFO, Nel ASA, +47 468 21 693

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

foundation 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.