Nel ASA

Investor Presentation • Nov 16, 2016

Chief Executive Officer

Q3 2016

Jon André Løkke

FORWARD LOOKING INFORMATION

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 Q3 release on November 16th 2016. 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.

INDEX

• Q3 highlights and financials
• The hydrogen opportunity
• Global hydrogen market
• Selected market update: Norway & California

• Segment updates

• Appendix: Q3 financials

Q3 HIGHLIGHTS

• Reported Q3 revenues of NOK 24.4 million, sequentially up from NOK 13.5 million in Q2
• Operating earnings impacted by high activities in new markets and preparation for production ramp-up ● New Herning facility on budget (NOK 85 million) ● Launched two new containerised, turn-key electrolysers – first sales contract already signed ● Awarded electrolyser contract to Marsa in Turkey
• Cash balance at end of quarter at NOK 223.6

• Submitted tender for California GFO, as well as offers as a technology provider to partners

• Awarded contract of two H2Stations® to undisclosed European customer

• Awarded contract in Latvia for delivery of dual-filling H2Station® for cars and buses

Subsequent events

• Awarded a solution contract for hydrogen production and triple-filling H2Station® with ASKO in Trondheim ● Signed LoI with a global leading solar company to build TRUE renewable hydrogen in California
• Awarded grants for:
• Deployment of hydrogen production and two H2Stations® in Bergen
• Next generation H2Station® technology development

RECENT ACTIVITIES SUMMARY

RECENT ACTIVITIES SUMMARY
New projects under contract or in advanced discussions since Q2 release (August 24th)
Country	H2Station®	Dispensers	Electrolysers
		II
Undisclosed Marsa/Turkey	II		I
Riga/Latvia	I	II
ASKO/Trondheim	I	III	I
Uno-X Hydrogen/Bergen	II	II	I
Undisclosed/California			I

KEY FIGURES

KEY FIGURES
(NOK million)	Q3 2016	Q3 2015	Q1 Q3 2016 -	Q1 Q3 2015 -	FY 2015
Operating revenues	24.4	30.8	63.8	64.4	99.9
Total operating costs	37.1	32.7	103.2	77.2	118.2
EBITDA	(10.2)	2.3	(31.8)	(1.5)	(2.7)
		(1.9)	(39.3)	(12.9)	(18.3)
EBIT	(12.8)			(11.7)	(27.8)
Pre-tax profit	(12.4)	(1.5)	(38.5)
Net profit	(12.0)	(0.7)	(37.3)	(9.0)	(21.7)
Net cash flow from operating activities	(10.5)	(11.1)	(58.9)	(21.0)	(37.8)

• Level of orders received increased throughout 2016
• Year-to-date September 31st, 2016: ~80 MNOK
• Year-to-date November 16th, 2016: ~120 MNOK
• Expect to close additional orders during remainder of 2016

• Good backlog going into 2017

• 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 59 countries world wide since 1927
• Financially strong company with a world-class experienced management team in place

THE HYDROGEN OPPORTUNITY

RENEWABLE HYDROGEN WILL BE #1

• World needs a new energy carrier to replace oil and gas
• Hydrogen is the element with highest energy density:
• ~3x gasoline
• ~150x battery
• Hydrogen can be produced from water and renewable energy
• Access to renewable energy is practically infinite
• In 2015, German paid € 276 million to energy companies for disconnecting wind turbines from the grid
• Intermittent energy can be found almost everywhere
• Majority of new renewable electricity production fluctuates
• Creates big challenges for the grid
• Creates big opportunities for low cost, renewable hydrogen production

WHY NOW?

1. Renewable electricity is becoming competitive, cheap and available – Timing of supply/demand do not always match 2. Hydrogen cars are affordable and available

• Need hydrogen solutions to realise full potential

• Focus on zero-emission transportation

• Major car companies launching ambitious programs

AVAILABLE AND AFFORDABLE

• Formidable cost reductions enable mass market introduction: Toyota to launch new 20%

TOYOTA REITERATES HYDROGEN TARGETS HYDROGEN IS FIRST PRIORITY

• Hydrogen remains priority #1 for Toyota
• Reiterates target to produce 30 000 FCEV in 2020
• Same ramp-up schedule as Toyota used for the introduction of their hybrid platform
• Toyota expects to use batteries for small cars with shorter-range, outlined in Nikkei article
• Heavier and longer-range vehicles will use hydrogen

RENEWABLE HYDROGEN HAS REACHED "FOSSIL PARITY" IN MULTIPLE MARKETS

• Incl. both CapEx and OpEx without subsidies 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 (price vs. price)
• 70% utilisation of both station and electrolyser capacity
• Incl. return on capital employed
• Electricity and gasoline prices incl. applicable energy taxes, excl. VAT
• Electricity in Norway based on average grid price…
• …and based on wind (land-based) in Europe and solar electricity in California, both nongrid-connected, levelized cost of electricity (LCOE)

Hydrogen fits all modes of transportation…

…and we have the station that can fill it all...

one, global standard for fueling of passenger vehicles already in place

GLOBAL HYDROGEN MARKET & OPPORTUNITIES GOING FORWARD

The electrolyser market is projected to grow 6-fold in the coming 10 years

• Industry stable growth – Power-to-gas – hydrogen produced from renewables will become increasingly important (biogas, natural gas, biofuels, storage) – Hydrogen as a fuel – will follow
• general growth in hydrogen transport sector + increasing renewable portion within "fossil hydrogen" used as fuel – Refineries – potentially an important
• new segment for electrolysis driven by new fuel directives

ELECTROLYSER MARKET - BY EQUIPMENT SIZE Nel is well positioned for growth in the – Medium – large scale electrolysers – Nel is today at the forefront within

External analysis ordered by Nel

electrolyser market

• have the largest growth projections going forward
• these segments
• Atmospheric (100-500 Nm3)
• Are developing new electrolyser technologies, both to capture the small scale market, and to strengthen position within large scale electrolysers (individual stack size): – Rotolyzer (10-100 Nm3) – Pressurized (100-1000 Nm3)

TOTAL GLOBAL HYDROGEN MARKET

Large opportunities for growth within existing hydrogen market

• ~50 million ton/year market
• Only 1% from water electrolysis
• Large potential for growth, driven by increasing focus on climate and renewable energy
• The entire market would represent ~2,800 TWh of electricity and ~450 GW, equivalent to more A-485)

MARKET UPDATE FOR SELECTED REGIONS: Norway & California

FUELING STATIONS ON THE AGENDA

"We have a bill passed by the parliament and we will ask Enova to follow up…

…I'm confident that this bill will be implemented loyally and effective."

HANS IVER ODENRUD HAS IVIR COENNIS SRAMSNATSER NO	oppmøtte talle godt over 100 per- soner.	som ved forrige utrulling av hydro- genstasjoner. Da vil hydrogen få en	gang, og viser til at Enova de to siste årene har bevilget 50 millioner kro-	momstritak fre solete 50,000 bi
TRONDHEIM: - Vi har et vedtak. i Stortinget som vi skal be Enova	Et historisk godt oppmøte, ble det sagt fra talerstolen, men henvis-	ny knekk. Vi før starte forsiktig og i første omgang få på plass flere de-	ner til hydrogenprosjekter.	Spesielt m dette var ikke
om å følge opp, og jeg er helt sik-	ning til at publikum for få år siden	monstrasionsanlegg, sa Holmen til	Vil undertegne avtalen for jul	fredag, som v
ker på at dette blir fulgt opp meget	kun besto av en håndfull av de aller	Finansavisen fredag.	Stortinget har bedt regieringen om	ter å skrive un
lojalt og mest mulig effektivt, sier	mest dedikerte.	Uttalelsene ble lagt merke til av	à sikre støtte til etableringen av et	Enova for jul.
energiminister Tord Lien til Fi-		flere av deltakerne under semina-	nettverk av hvdrogenstassoner i de
nansavisen.	Spenning knyttet til avtale	ret, og energiministeren fikk flere	største byene og korridorene i mel-	Forventer en
NHO arrangerte fredag et eget	Samtidig som noen nærmest me-	spørsmål rundt hvordan departe-	lom.	Venstres nestle
seminar om hydrogen som oppspill	ner hydrogenpotensialet i Norge	mentet vil utforme den nye avtalen	I forslaget til statsbudsjett går det	Ola Elvestuen s
til årskonferansen i 2017. Arrange-	er ubegrenset, er Enova-topp Rune	til Enova for å sørge for at utrullin-	frem at hydrogenbaserte elbiler får	ministeren må
mentet hadde fått tildelt et romslig	Holmen blant de som maner til for-	gen faktisk starter.	de samme fordelene som batteri-	politisk bestillir
lokale på Scandic Hotell Lerkendal	siktighet i satsingen.	Ministeren mener på sin side hv-	elektriske elbiler har fått i introduk-	Han vil ha I
i Trondheim i anledningen, og de	- Vi frykter det samme kan skie	drogenutrullingen allerede er godt i	sionsfasen. Det vil si avgiftsfritak og	et ay programo.

sjonene er tilknyttet aktører som selv bruker hydrogenet til daglig, slik blant annet Asko Midt Norge planlegger åbrukesitt hydrogen på trisitet, biogass og andre teknologier, sier næringsminister Tord Lien til Finansavisen.

Source: Finansavisen 5.10.2016

Prioriterer Asko-prosjekter

Rune Holmen i Enova understrekte fredag at prosjektene som bør pri oriteres er de hvor hydrogensta-

lastebiler og trucker. – Dette er et høyst relevant poeng og er det samme man har gjort med andre teknologier, blant annet elek-

NORWAY

Hydrogen represents a major business opportunity for Norway:

• Long history, leading competence (IFE, SINTEF, Statoil, Hydro, Nel Hydrogen, Hexagon, Greenstat, Reinertsen, etc.)
• Strong financial willingness to develop and invest
• Solutions for maritime and other transport applications
• Solutions for large scale renewable hydrogen production
• Large export potential for both (i) hydrogen technology and (ii) renewable hydrogen to the world markets

HYDROGEN FERRIES

National development project for hydrogen ferries initiated

• Norwegian Maritime Authority appointed to be responsible for introducing hydrogen on ferries, with target for operation in 2021
• High interest from the maritime/offshore industry to develop solutions
• Low/zero emission criteria for procurement of all new ferries
• 180 ferries in operation (121 stretches)
• 50% feasible to run on batteries

HYDROGEN TRAINS

Exchanging diesel with hydrogen trains makes both environmental and business sense • Rather than high CapEx electrification, hydrogen

• can be used at a fraction of the investment
• Opportunities in Norway:
• range, capacity for 300 passengers
• More than 50 trains already ordered by regions in Germany
• Infrastructure can be shared with other transport modes

LARGE INDUSTRIAL OPPORTUNITIES

Exchanging coal with hydrogen as a reduction agent at Tizir, currently the largest CO2 -emitting source in Norway (in one location)

• Reduces emissions drastically, ~90%
• Needs ~30 tons of hydrogen per day
• Equivalent of 60,000 vehicles
• Applicable for several other industries, e.g. large steel mills, etc.

CALIFORNIA

• Application submitted to California Energy Commission, allocation expected in Q4'16:
• Grant Funding Opportunity (GFO) doubled for 2016, target to reach 100 fueling stations by 2020
• Current funding round to cover ~20 stations, for installation in 2017
• Direct and indirect market penetration strategy, reducing risk:
• Direct: established U.S. subsidiary to apply directly for funding, have "feet on the ground" and intend to attract additional investors as visibility improves
• Indirect: offer own leading H2Station® solutions to other GFO applicants, have received confirmation that several operators included Nel equipment in their proposals

Map of hydrogen stations in CA

Source: California Fuel Cell Partnership (November 2016)

SEGMENT UPDATES

NEL HYDROGEN ELECTROLYSER

• Global leader within hydrogen production plants highest uptime, lowest conversion cost, robust and reliable
• More than 850 hydrogen solutions delivered in 59 countries world wide since 1927
• Scalable production capacity for industrial and energy/transport applications small scale to large scale solutions

RECENT DEVELOPMENTS

• High interest for newly announced C-range electrolysers
• Low-cost, turn-key solution, representing the world's smallest footprint for containerised, high capacity electrolysers
• New configurations, Nel C-150 & Nel C-300, have output capacity of 150 and 300 Nm3 /hr respectively, equivalent to ~330/~660 Kg/day
• Marsa-contract confirms leading Nel efficiency and quality
• Agreement with world-leading producer of margarine and liquid oils for delivery of hydrogen electrolyser plant with supplementary equipment
• RotoLyzer® development on track
• Commercial (10 Nm3 /h) market entry planned for 2018
  • Commercial scale prototype operational in 2017
• Continue development to increase scale over time

C-150 150 Nm3 /h (330 kg/day) 700 kW system

C-300 300 Nm3 /h (660 kg/day) 1.4 MW system

Turn-key, both delivering 200 bar output pressure

NEL HYDROGEN FUELING

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

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

Flexible installation, smallest footprint 50 m from station, 1/3 size of normal dispenser

Largest manufacturing facility 300 station per year capacity

RECENT DEVELOPMENTS

• Development of Herning facility continues on budget & schedule
• Investment activities related to plant takeover and rebuild/construction amounts to NOK 35-40 million in H2'16
  • Total investments estimated at NOK 85 million
• Name-plate production capacity of up to 300 stations/year
• Awarded repeat-order for two additional H2Stations® to undisclosed customer
• Confirming the attractiveness and competitiveness of newly launched H2Station®
• Nel Hydrogen Fueling awarded two R&D grants
• Grants totalling EUR 1.1 million from Danish EUDP program for continued H2Station® hydrogen technology development

1. FUELING NETWORKS 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:

• Develop entire fueling networks, incl. renewable hydrogen production

• Service and maintenance

• Network monitoring services

• Renewable hydrogen

• Production based hydro, wind or solar
• Large, medium or small scale
• Storage solutions and "constant" renewable supply

RECENT DEVELOPMENTS

• Application submitted to California Energy Commission, allocation expected in Q4'16
• Direct and indirect market penetration strategy
• Awarded contract in Latvia for delivery of new dual-fueling H2Station®
• Offers combined hydrogen fueling solution for cars and buses in Riga
• Dual-fueling solution enables simultaneous dual-pressure refueling at 700bar for cars / 350bar for buses – Combined hydrogen production from a C-150 electrolyser and a triple-filling H2Station®
• Awarded contract by ASKO in Trondheim, Norway's largest grocery wholesaler
• Awarded grant of NOK 19.8 million from Enova SF for expansion of Norwegian hydrogen network
• Uno-X Hydrogen AS, a Nel joint venture, awarded grant for one hydrogen production facility & two H2Stations® in Bergen

OPENING THE 1ST OF 20 ON NOVEMBER 22ND • Official Kjørbo opening on November

• Target to build 20 hydrogen fueling station in a network by 2020
• 22nd, 2016
• Produce hydrogen from locally installed solar system, fuel directly on the FCEV
• Norway is attractive for FCEV-users:
• No vehicle or value-added tax
• Free access to public transport lanes
• Free public parking
• Free passage on toll roads
• 100% renewable hydrogen

2ND AND 3RD OF 20, FLEET PROJECT IN BERGEN in the Bergen area (Danmarks plass/Åsane) • Key fleet customers engaged in the project: – Bergen kommune

• Two H2Stations® and one C-150 electrolyser at key locations
• • Hordaland fylkeskommune
• Bergen Taxi
• More than 20 Hyundai ix-35 hydrogen vehicles already ordered
• Supported by Enova

MULTI PURPOSE STATION FOR ASKO

Contract with ASKO, Norway's largest grocery wholesaler with 600 trucks on Norwegian roads • H2Station® with triple-fueling functionality: – Trucks – Forklifts – Cars

• ASKO facility at Tiller, Trondheim
• Locally produced renewable hydrogen from electrolysis
• Will be tied to solar power from warehouse roof
• First containerised turn-key C-150 electrolyser sold after launch on August 24th, 2016
• Installation in 2017

RENEWABLE HYDROGEN PRODUCTION IN THE U.S.

BACKGROUND

• Currently, no true renewable hydrogen being produced in the U.S.
• California (CA) requires that at least 33% of the hydrogen for transportation is renewable
• Today, covered by use of Carbon Credits, as the majority of the hydrogen being produced is based on natural gas
• Strong demand for TRUE renewable hydrogen
• Already more than 1,000 hydrogen cars on the road in CA
• Expected to increase to between 7,000-10,000 in 2017
• Equivalent to an annual demand for renewable hydrogen of between 450-650 metric tons

SIGNED LOI TO ESTABLISH JV-PROJECT • Nel has signed an LoI with a global leading solar company – Working on final JV agreements, target to finalise before the end of 2016

• Jointly 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 from second half of 2017
• Plant can produce up to 120 metric tons per year
• Experience gained will allow for deployment of significantly larger plants going forward

SUMMARY/OUTLOOK

40

STRONG POSITION, LARGE OPPORTUNITIES

Nel is at the forefront of the hydrogen industry as a pure play company with market-leading technology, a strong management team, solid balance sheet, and positioned to play a leading role in a fast moving industry Nel Hydrogen Electrolysers Nel Hydrogen Fueling Nel Hydrogen Solutions related to fueling stations and renewable hydrogen Latvia (dual- and triple-fueling solution)

• All-time high level of sales leads, both in traditional and new markets

• Strong interest in new containerised turn-key solution

• Ramp-up of H2Station® production throughout Q4'16 and into 2017

• Currently installing the first new generation H2Station® in Norway, opening 22nd of November at Kjørbo ● New Herning facility on budget and schedule

• Well-positioned for the Californian market, both production

• Delivering multi-purpose fueling station to ASKO and
• Minister of Oil and Energy confirms program for rollout of hydrogen infrastructure in Norway from 2017

Number one by nature

APPENDIX

43

APPENDIX: PROFIT AND LOSS

APPENDIX: PROFIT AND LOSS
(NOK million)	Q3 2016	Q3 2015	2015
Operating revenue	24.4	30.8	99.9
Operating costs	37.1	32.7	118.2
EBITDA	(10.2)	2.3	(2.7)
EBIT	(12.8)	(1.9)	(18.3)
Pre-tax profit	(12.4)	(1.5)	(27.8)
Net profit	(12.0)	(0.7)	(21.7)
Total comprehensive income	(24.5)	3.2	(1.5)

APPENDIX: BALANCE SHEET

APPENDIX: BALANCE SHEET
(NOK million)	Q3 2016	Q3 2015	2015
Fixed assets	448.6	428.8	435.0
Current assets	312.6	285.3	380.7
-of which is cash and cash equivalents	223.6	224.9	313.0
Equity	679.8	621.5	731.0
Long term liabilities	15.4	19.0	14.6
Short term liabilities	46.7	50.0	49.0
Total balance	761.2	714.1	815.6
Equity ratio (%)	89.3%	87.0%	89.6%

APPENDIX: CASH FLOW

APPENDIX: CASH FLOW
(NOK million)	Q3 2016	Q3 2015
Pre-tax profit (loss)	(12.4)	(1.5)
Net cash from operations	(10.5)	(11.1)
Net cash from investments	(31.8)	(8.1)
Net cash from financing	0.1	91.8
Net change in cash and cash equivalents	(42.2)	(72.6)
Cash at end of period	223.6	224.8