Nel ASA

Earnings Release • May 11, 2017

Nel ASA: First quarter 2017 results

Nel ASA: First quarter 2017 results

(Oslo, 11 May 2017) Nel ASA (Nel) reported revenues in the first quarter of 2017

of NOK 35.7 million, compared to NOK 26.0 million in the first quarter of 2016,

representing a growth of 37.3 per cent. The acquisition of Proton OnSite will

create the world's largest hydrogen electrolyser company with a global footprint

and a combined backlog of close to NOK 400 million.

"The first quarter of 2017 was naturally characterised by the milestone

agreement for the Californian hydrogen network and the acquisition of Proton

OnSite. Size matters, both commercially and financially, and now that Nel is

becoming the world's largest hydrogen electrolyser company, we are optimally

positioned to benefit from the global opportunities arising within renewable

energy storage and hydrogen fueling," says Jon André Løkke, Chief Executive

Officer of Nel.

In the first quarter of 2017, Nel reports revenues of NOK 35.7 million, compared

to NOK 26.0 million in the first quarter of 2016, following an increased

interest in hydrogen solutions as fueling stations, electrolysers, and

integrated systems. The high activity level within business development,

investments and preparations for production ramp-up continued as planned, but

also had a negative EBIT contribution, which ended at NOK -15.6 million (-5.4).

The cash balance increased to NOK 368.4 million during the quarter, following

the successful private placement of NOK 176.7 million in gross proceeds at a

price per share of NOK 2.72.

During the first quarter, Nel entered into a framework contract for the supply,

construction and maintenance of H2Station® hydrogen fueling stations in

California for Royal Dutch Shell Plc. in a partnership with Toyota Motor Corp.

The total value depends on the number of H2Stations ordered and the scope of

equipment and services. The first purchase orders were received after the

closing of the quarter, with a value in excess of NOK 140 million.

Nel also announced the acquisition of the Connecticut-based hydrogen technology

company, Proton Energy Systems Inc. ("Proton"), thus creating the world's

largest hydrogen electrolyser company with a global footprint and combined pro

forma FY 2016 revenues of NOK approximately NOK 345 million. There is a strong

strategic fit between Nel and Proton, with synergies related to sales and

commercialisation, product portfolio, R&D and best practices across the combined

company.

"The exceptional energy density of hydrogen makes this energy carrier relevant

for an expanding range of markets. Within transportation, hydrogen will not only

be relevant in cars, but increasingly in busses, trucks, ferries and ships. Nel

has a leading technology positon within each of its technology areas, and is

cooperating with leading players on other relevant technologies, placing us in

the pole position to address the market opportunities going forward," says

Løkke.

The presentation will be broadcast live at www.nelhydrogen.com/webcast and can

also be viewed at http://webtv.hegnar.no/presentation.php?webcastId=52724136

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

www.newsweb.no and www.nelhydrogen.com.

ENDS

Further information:

Jon André Løkke, CEO, +47 9074 4949

Bent Skisaker, CFO, +47 4682 1693

Bjørn Simonsen, VP Market Development and Public Relations, + 47 9717 9821

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.