Nel ASA

Investor Presentation • Mar 10, 2017

Nel presentation

Jon André Løkke Chief Executive Officer

Nel ASA Nel ASA

• Pure-play hydrogen company listed on the Oslo Stock Exchange facilities in Norway and Denmark
• Three divisions offering hydrogen technology and solutions for industrial and energy applications
• More than 850 hydrogen solutions delivered in 60 countries world wide since 1927
• World #1 on hydrogen electrolysers and hydrogen fueling unrivalled performance and track-record
• Financially strong company with a world-class experienced management team in place

Hydrogen Electrolysers Hydrogen Fueling Hydrogen Solutions

Nel Hydrogen Electrolyser Nel Hydrogen Electrolyser

• Global leader in hydrogen prod. plants highest uptime, lowest conversion cost, robust and reliable
• More than 850 hydrogen solutions delivered in 60 countries world wide since 1927
• Scalable production capacity for industrial and energy/transport applications small scale to large scale solutions

Nel Hydrogen Fueling Nel Hydrogen Fueling

• Global leader within hydrogen fueling solutions for vehicles, first to adapt the newest fueling standards
• Delivered more than 30 stations in 8 countries across Europe since 2003
• Highest reported availability and innovative, in-house developed technologies

High capacity, smallest footprint 200 kg/day, 10m²

50 m from station, 1/3 size of normal dispenser

Largest manufacturing facility 300 station per year capacity

Nel Hydrogen Solutions Nel Hydrogen Solutions

• Unified delivery of complex renewable hydrogen solutions, efficient system integration, project development and sales across segments
• Only provider of integrated solutions along the entire value chain:
• 1. Fueling Networks
  2. Develop entire fueling networks, incl. renewable hydrogen production
  3. Service and maintenance
  4. Network monitoring services
• 1. Renewable Hydrogen & Storage Solutions
  2. Renewable hydrogen
  3. Production based hydro, wind or solar
  4. Large, medium or small scale
  5. Storage solutions and "constant" renewable supply

• Orders received 2016: NOK ~150 million

• Orders received to date 2017: NOK >190 million
• Main order announcements to date:
• Iceland EUR >4 million
• Royal Dutch Shell Plc (California) NOK >140 million
• H2 Frontier Inc. USD >1 million
• Current order backlog NOK ~250 million

Hyundai 2018 model concept FCEV: 800 km range

The hydrogen opportunity

Renewable electricity is becoming competitive & also creates new challenges

• Cheap renewable = cheap hydrogen, creating "fossil parity"
• Timing of supply/demand does not always match hydrogen "bridges the gap"
• Hydrogen solutions needed to realize full potential of renewable energy

Hydrogen cars are available and affordable

• High global focus on zero-emission transportation
• Climate, environment, local energy security & health
• Big advances in cost/quality within hydrogen technology for automotive purposes
• Majority of car manufacturers see hydrogen as the main breakthrough for electric/zero emission mobility

Renewable hydrogen has reached "fossil parity" in multiple markets

The hydrogen opportunity

Renewable hydrogen is set to out-perform gasoline on a cost basis, due to substantial cost reductions for renewables & hydrogen technologies

Assumptions:

• Pump price for hydrogen is converted to a €/litre equivalent
• Incl. both CapEx and OpEx without subsidies
• Electricity and gasoline prices incl. applicable energy taxes, excl. VAT
• Capacity utilization makes the difference, assumes utilization of 70% on installed equipment

Available and affordable

The hydrogen opportunity

• All major car manufacturers are deploying Fuel Cell Electric Vehicles (FCEVs)
• Hyundai, Toyota and Honda have already started FCEV sales & lease in California at affordable prices
• Additional car manufacturers are expected to launch FCEVs models in the coming years

Learn more at: www.toyota.com/fuelcell or www.hyundaiusa.com/tucsonfuelcell orhttp://automobiles.honda.com/clarity

The automotive industry sees hydrogen as the most important fuel of the future The hydrogen opportunity

of executives absolutely or partly agree that FCEVs will be the real breakthrough for electric mobility 78%

62%

of executives absolutely or partly agree that BEVs will fail due to infrastructure challenges

KPMG: Global Automotive Executive Survey 2017

..and is putting money behind their words: pledges USD 10.7 billion investment The hydrogen opportunity

Acquiring Proton OnSite

Nel will be able to offer any type of electrolyser in any market

• Signed a non-binding term-sheet to acquire Proton OnSite and successfully closed private placement
• Settlement to be done through a 20 MUSD cash payment and…
• …a fixed number of Nel shares (~140 million) paid in two installments (12 & 24 months after closing)

"Proton OnSite will fast-track Nel into the PEM electrolyser market"

"Nel will be a one-stop-shop completely independent of technology preference, and the combined sales teams will be a global force to recon with"

Proton OnSite transaction rationale

Nel will become the world's largest producer of electrolysers with a global outreach

Nel will get strong foothold in the U.S. hydrogen market accelerating Nel's growth ambitions

Complementing Nel's current business with several areas of synergies

Nel will cover relevant sizes and technologies in the rapidly growing worldwide hydrogen market

Nel will more than double its revenue and be a player with industry leading scale

Strong cultural fit combining two organizations with stellar track-record in the hydrogen industry

Optimally positioned to benefit from global opportunities arising within energy storage and hydrogen fueling

Two companies with strategic and geographical fit

Several synergistic areas to benefit from

Complementary sales organisation and market reach

Provide strong foothold in the U.S. and new markets

Complementary product offering, full range of electrolyser technologies

Extending range of product offering (XS, S, M, L, XL, XXL, XXXL)

Accelerating technological development

Cost reduction through sourcing synergies

Financial muscles to support ambitious development roadmap

Few areas with overlap both along product and market dimension

Key product overview

• Proton OnSite offers a wide range of products, which are sold to approximately 75 countries worldwide
• Customers range from industrial companies to laboratory institutes
• Proton Onsite additionally offers services, including installation training, service at delivery and maintenance kit

18

The PEM megawatt (MW) electrolyser

Announced the world's largest megawatt PEM deal

Key fact sheet	M Series
Net production rate (Nm3/hr)	100 – 400+
Purity	99.9995%
Output Pressure	15 barg (218 psig) / 30 barg (435 psig)
Key features:	0-100% variable output, > 99% availability
	Cold start less than 5 minutes
	Full ramp up/ramp down in seconds
	Indoor or outdoor options
	Instantaneous response to variable requirements
	Sense demand and automatically adjust production accordingly

• Announced the world's largest megawatt PEM electrolyser deal in December 2016, three systems to be delivered in 2017, possibilities for additional ten systems over next 18 months – total deal value for the 13 units in excess of USD 20m
• Growing market, opportunities for additional systems to be sold in different markets
• Several near-term opportunities for order wins
• Proton OnSite is going into 2017 with a prospective pipeline for its PEM electrolyser system

Other recent developments

All new multi purpose H2Station® Other recent developments

• Can fuel up to three different types of vehicles
• Cars, busses, heavy duty trucks and forklifts
• At both 700 and 350 bar pressure

Partnership with SunPower Corp.

Other recent developments

• February 2017, Nel entered into a framework agreement with SunPower to construct and operate renewable hydrogen production tied directly to solar
• First project of its kind in the U.S., located in California
• Will serve the local market with 100% TRUE renewable hydrogen, target H2'17
• Plant can produce up to 120 metric tons per year
• Target to market the renewable hydrogen at the plant for \$3-5/Kg
• Experience gained will allow for deployment of significantly larger plants going forward

Agreement with Royal Dutch Shell Plc Other recent developments

• On February 21st, 2017, exclusive frame agreement with Shell
• Represents Nel breakthrough into California and U.S.
• Shell will cooperate with Toyota on 7 locations in San Francisco area
• California Energy Commission contributing 16.4 MUSD and Shell/Toyota their part
• Contract value for Nel could exceeded 140 MNOK
• Stations to be shipped in 2017 and 2018
• Still working towards other applicants to secure additional orders
• On March 6th, 2017, received order from H2 Frontier Inc for H2Station®
• Total value USD >1 million, shipment towards the end of 2017

Yellow = under construction

Three stations + an electrolyser to Iceland

Other recent developments

On February 13th, 2017, awarded contract by Icelandic Hydrogen for three H2Station® hydrogen fueling stations and one NEL C-series electrolyser

• Icelandic Hydrogen is the customer, JV between Nel and oil retail company Skeljungur
• Skeljungur 90% and Nel owns 10%
• Target to deliver first fueling station and electrolyser towards end of 2017
• Aim to expand the network along with FCEV deployments
• Total contract value EUR >4 million

Initial hydrogen network in Iceland

Case: 5 hydrogen busses to Bodø, Norway, with locally produced hydrogen Other recent developments

Project overview: 5 VanHool FC buses (EU financing in place), C-150 Electrolyser & 1 H2Station® with multi-fuel dispenser

Key figures:

• Price of dispensed hydrogen: 42 NOK/kg
• Price of diesel for bus: 10,50 NOK/liter
• FC bus consumption: 9 kg/100 km
• Diesel bus consumption: 40 l/100 km
• Annual driving range: 60,000 km

Enables fuel savings of >10%/bus/year

Project develop.: 400MW renewable H2 plant to outcompete natural gas reforming Other recent developments

• Working on GIGA factory concept for renewable hydrogen production to outcompete natural gas reforming
• Largest electrolyser plant ever designed
• International industrial customer
• Tied to solar power
• CapEx of USD ~175 million
• Benchmark CapEx ratio:
• 0.45 MUSD/MW

Heavy duty transportation opportunities

New support program for zero-emission vehicle (ZEV) procurement

Heavy duty transportation opportunities

• Support program from Enova for ZEV procurement for professional/non-private users
• Supports added costs of purchasing ZEVs:
• Small companies: 50%
• Large companies: 40%
• Taxis, trucks & fork lifts included
• Program for establishment of hydrogen infrastructure will follow during spring 2017

Nikola One unveiled, Nikola Two announced

Heavy duty transportation opportunities

Class 8 hydrogen truck unveiled December 1st 2016

• Up to 1,900 km range
• 100 kg onboard hydrogen storage & 320 kWh battery
• Surpassed \$4 billion in pre-orders
• Norwegian orders:
• Tine, Tenden Transport, VT Gruppen, Per E. Kristiansen
• Will build a network of 364 stations across the U.S. and Canada, and provide renewable hydrogen at \$3.5/kg

Nikola One

Nikola Two

Hydrogen can be produced at a very competitive price from renewable Heavy duty transportation opportunities

<\$50/MWh 24 x NEL A-485 electrolysers – 50MW

Renewable power at <\$50/MWh enables production of H2 at plant <\$3.5/kg (compared to a pump price of \$10-15/kg)

55.000 vars/year

^1.000 buses/year

<\$3.5/kg

500 trucks/year

Nel part of the Norwegian project "HYBRIDskip"

• Purpose of project: establish knowledge base for longer journeys/operational times in bigger vessels, based on battery and hydrogen technology
• Target to realize a hybrid-ferry in operation by 2020
• Nel role: provide information on fueling/bunkering, techno-economical analysis and safety considerations
• Other partners: Fiskerstrand Holding, AS, Fiskerstrand Verft AS, Multi Maritime AS, Stiftelsen SINTEF, Hexagon Raufoss ASA, DNV GL, Sjøfartsdirektoratet, Direktoratet for Samfunnsikkerhet og Beredskap (DSB), Møre og Romsdal Fylkeskommune

Fiskerstrand FV Hydrogen powered – Zero emission

Scandinavian Powerhouse on Hydrogen

Heavy duty transportation opportunities

The hydrogen specialists in Scandinavia join forces to create a JV, taking advantage of world-leading hydrogen technology and competence

• The JV will be a one-stop-shop for world-class hydrogen solutions tailored for selected emerging, high growth hydrogen energy markets

Summary/outlook

• 1. All-time-high project activity level and order backlog, expected to grow
• 1. Exclusive supplier to Shell/Toyota in California, the most important market for hydrogen
• 1. Set to become the world's largest producer of electrolysers with a global outreach
• 1. Strong financial and strategic position, successful private placement undertaken (NOK > 170 million)
• 1. High liquidity share, interest from institutional investors towards next industrial development phase

Q&A