Nel ASA

Investor Presentation • Feb 26, 2025

Fourth quarter & full year 2024 results presentation

26 February 2025

Forward-looking information

This Presentation includes and is based, inter alia, on forward-looking information and statements relating to the business, financial performance and results of Nel ASA and/or industry and markets in which it operates that are subject to risks and uncertainties that could cause actual results to differ materially from the statements expressed or implied in this Presentation by such forward-looking statements. 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" , "aims", "anticipates", "intends", "plans", "projects", "targets" 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 ASA's businesses, raw material prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and other factors.

Although Nel ASA believes that its expectations, estimates and projections are based upon reasonable assumptions, it can give no assurance that these will be achieved or that forecasted results will be as set out in the Presentation, and you are cautioned not to place any undue reliance on any forward-looking statements. 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, or its subsidiaries' directors, officers or employees will have any liability to you or any other persons resulting from your use of this Presentation. This presentation was prepared in connection with the Nel ASA fourth quarter 2024 presentation 26 February 2025. Information contained in this Presentation is subject to change without notice and will not be updated. This Presentation should be read and considered in connection with the information given orally during the presentation. The Nel ASA 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.

Nel Hydrogen

Agenda

• 1. Nel in brief
• 1. Q4 and FY 2024 highlights
• 1. Commercial update
• 1. Technology update
• 1. Summary and outlook
• 1. Q&A

1. Nel in brief

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NEL IN BRIEF

A fully dedicated electrolyser technology company

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NEL IN BRIEF

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Nel's value proposition

Unrivalled track record

• Decades of experience
• Large installed base

Technology leadership

• Multiple technology platforms (AWE+PEM)
• Guaranteed and proven performance
• Game-changing next-generation solutions

Cost and scale leadership

• Front-runner in cost reductions
• Market leading production capabilities

2. Q4 and FY 2024 highlights

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Quarterly highlights

Financial results and financing

(from continuing operations)

Revenue from contracts with customers NOK 416 million

EBITDA NOK -36 million

Order intake NOK 148 million

Order backlog NOK 1 614 million

Cash balance NOK 1 876 million

Key highlights in Q4 2024

• 10 MW purchase order from Samsung C&T
• Purchase order for one MC250 from Trillium
• Selected for EUR 135 million in grants for industrialization of next-generation electrolyser technology in Norway
• Initiated a process to adjust capacity to market demand by reducing the workforce and temporarily halting production at the Alkaline production facility in Herøya, Norway

Subsequent highlights

• Additional USD 29 million in tax credits awarded for manufacturing expansion in Michigan
• USD 7 million purchase order for 5 MW of containerized PEM electrolysers

Group financials

(Continuing operations)

(NOK million)	Q4 2024	Q4 2023 (restated)	FY 2024	FY 2023 (restated)
Revenue from contracts with customers	416	412	1 390	1 350
EBITDA	-36	-78	-173	-272
EBIT	-106	-123	-389	-444
Pre-tax income (loss)	-65	-52	-264	-574
Net income (loss)	-64	-50	-258	-566
Net cash flow from operating activities	25	-101	-83	-464
Cash balance at end of period*	1 876	3 363*

* Not restated following to the Fueling spin-off

• Revenues in the quarter positively impacted by increased deliveries of PEM electrolyser equipment and the Reliance IP sharing agreement in the Alkaline segment
• EBITDA improved YoY driven by solid gross margins on equipment deliveries and IP sharing milestone payments
• Improved execution resulted in positive cash flow from operations in Q4

Group financials 2020-2024

(Continuing operations)

Alkaline electrolyser financials

• Revenues were up 10% in the quarter compared to Q4'23, and 15% for FY24 vs. FY23
• EBITDA in Q4'24 improved by NOK 26m YoY due to higher revenues, solid gross margins on equipment deliveries, and technology license milestone payments
• The Alkaline segment has delivered close to NOK 100m in accumulated EBITDA in the past two years

Alkaline electrolyser financials 2020-2024

PEM electrolyser financials

• Substantially higher revenues QoQ, but down 12% YoY
• EBITDA in the quarter improved by NOK 17m YoY, whereas FY24 EBITDA was reduced by NOK 35m compared to FY23
• As in the alkaline segment, project margins are in general up compared to previous years due to more favorable terms and conditions and better execution of production and delivery projects
• Similar positive scaling effects as in the Alkaline segment expected when production volumes come up and the benefits of the new production facility can be harvested

PEM electrolyser financials 2020-2024

Order intake and backlog

NOK	148 million	+13%	y/y
NOK	87 million	+98%	y/y
NOK	61 million	-30%	y/y
Order intake Q4 2024:

Order intake expected to vary between quarters as order sizes have increased

Order backlog (NOK million) 2 443 2 375 2 329 2 093 2 115 2 071 1 872 1 610 0 500 1 000 1 500 2 000 2 500 3 000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024

PEM		Alkaline
Order backlog Q4 2024:	NOK	1 614 million	-23%	y/y
- Alkaline	NOK	1 290 million	-22%	y/y
- PEM	NOK	324 million	-26%	y/y

The order backlog is subject to risks such as delays and/or cancellations

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Backlog details

• 15 January 2025, Nel and client, the "undisclosed US customer" agreed to let Nel use the collateral as consideration for the receivables
  • The collateral value will offset the receivables from this customer
  • No expected P&L impact
• Another customer of Nel entered administration in November 2024
  • A provision for expected credit losses has been recognized in this quarter
  • No additional P&L impact expected

3. Commercial update

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COMMERCIAL

Delivery strategy to meet client demand

COMMERCIAL

The second 10 MW purchase order from Samsung C&T

• Client: Samsung
• Size: 10 MW
• Value: USD ~5 million
• The client will set up a demonstration plant to validate the commercial model for nuclear pink hydrogen
• The aim is to produce hydrogen from excess nuclear power generation, allowing to utilize energy that is otherwise wasted in periods of oversupply, increasing overall energy efficiency

COMMERCIAL

The second purchase order from Trillium Transportation Fuels

• Client: Trillium Transportation Fuels on behalf of the Mass Transportation Authority (MTA) of Flint, Michigan
• Size: 1.25 MW
• The containerized electrolyser will support the clients expansion and be part of an \$20+ million initiative to scale up hydrogen production and fleet capacity with the goal of enhancing clean and efficient public transportation
• This is a repeat customer, where Trillium's continued trust highlights Nel's reliability

COMMERCIAL | SUBSEQUENT

The third purchase order from a major US steel producer

• Client: Undisclosed

• Size: 5 MW
• Value: USD ~7 million
• The undisclosed customer, one of the largest US steel producers, already uses Nel's PEM electrolysers to generate hydrogen at two other sites in the US
• Nel continues to see an increasing demand for containerized PEM electrolysers for smaller installations as this reliable turnkey concept offers easy outdoor installation and operation

COMMERCIAL | SUBSEQUENT

Preferred supplier for a 25MW project in Norway

• Signed LoI with Norwegian Hydrogen, naming Nel as the preferred supplier for the Rjukan project with next-gen alkaline electrolyser
• Nel to supply a 25MW pressurized alkaline electrolyser delivered in phases
• Technology manufacturing at the Herøya facility where the company has been selected for a EUR 135m grant
• Rjukan plays a key part of Nel's history, being the home to the biggest electrolyser ever built in the country. Rjukan is now set to play a pivotal role in introducing nextgeneration technology

COMMERCIAL | SUBSEQUENT

MoU with Korea Hydrogen & Nuclear Power for developing pink hydrogen

• Signed MoU with Korea Hydro & Nuclear Power (KHNP) to collaborate on clean hydrogen production technology
• Partnership combines Nel's alkaline electrolysis expertise with KHNP's nuclear power experience
• KHNP has researched nuclearproduced clean hydrogen since 2022 and leads the world's largest demonstration project
• Nel and KHNP aim to expand into global clean hydrogen markets.

4. Technology update

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TECHNOLOGY

Technology strategy

ATM Alkaline

• Continued cost reductions and efficiency improvements on stack level
• Large cost down potential on system level through standardization and closer collaboration with OEM and EPC partners

PEM

• Continued cost reductions and efficiency improvements on stack level with Nel's new production platform
• Increasingly more standardized systems, moving from projects to products (MC-series)

Current product portfolio Next generation technologies

Pressurized Alkaline

• Significant CAPEX reduction on system level driven by new technology and modular design
• Substantially improved OPEX (efficiency) from current AWE generation

Next generation PEM

• Significant CAPEX reduction on stack level driven by new technology breakthroughs
• Substantially improved OPEX (efficiency) from current PEM generation
• Significant reduction of platinum group metals

TECHNOLOGY

Pressurized alkaline status

• Full cell stack assembled and pressuretested
• All long-lead components in house including transformer and rectifier
• Fabrication of processing skid ongoing
• Initial testing to be performed at Herøya in H1 2025

TECHNOLOGY

Selected for EUR 135 million in support for industrialization of pressurized alkaline • Nel was selected for a grant up to

EUR 135 million from the EU Innovation Fund

• This will enable faster market introduction of the new nextgeneration AWE technology
• Technology development has been ongoing for more than 7 years and builds on Nel's electrolyser expertise accumulated over almost 100 years
• The production line(s) will be built in steps at Nel's facility at Herøya with a total annual production capacity of up to 4 GW when finalized
• Final investment decision depends on successful prototype and pilot testing as well as market acceptance

5. Summary and outlook

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SUMMARY AND OUTLOOK

Market perspective

• The market is showing signs of recovery, and projects continue to mature toward FID
  • Increased clarity around EU and US regulations in combination with national hydrogen auctions will help demand
  • Many of Nel's target projects are expected to take FID in the next quarters
  • Projects are generally in the 20 -100 MW range
• Order intake in 2025 is expected to be higher than in 2024. The quality of the projects is also generally higher given more rigid and demanding FID requirements
• Healthy near -term demand for the PEM MC series, where Nel will deliver more of the total scope compared to its alkaline solutions

SUMMARY AND OUTLOOK

Adjusting capacity to market demand

• In January workforce adjustments and a temporary production halt at Herøya were announced amid lower-than-expected order intake in 2023/24 and several projects at risk of delays or cancellations
• Nel has secured overdue receivables by retaining control over delivered equipment, which provides inventory available for sale at high cash conversion
• Continued focus on cost discipline while preserving ability to pursue strategic sales opportunities and technology investments

Nel Hydrogen

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Measures taken throughout 2024 to set the company up for future success

Restructuring completed, making Nel a pure-play electrolyser company

Improved financial performance with better cost control and margins

Significantly improved safety performance

Partnered with industry leaders such as Reliance, Saipem and KHNP

Expansion to 1.5 GW of automated production capacity

Organization adjusted through 25% capacity reduction

Next-generation technologies advanced at speed

The future belongs to the front runners

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