Nel ASA

Investor Presentation • Jul 16, 2025

Second quarter 2025 results presentation

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16 July 2025

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©2025 Nel – All rights reserved

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Forward-looking information

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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.

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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 forwardlooking 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 second quarter 2025 results presentation 16 July 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.

15.07.2025

• 1. Nel in brief
• 1. Q2 2025 highlights

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• 1. Commercial update
• 1. Technology update
• 1. Q&A

15.07.2025

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NEL IN BRIEF

A fully dedicated electrolyser technology company

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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

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Q2 2025 highlights

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©2025 Nel – All rights reserved

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Quarterly highlights Q2 2025

Financial results and financing

Revenue from contracts with customers NOK 174 million

EBITDA NOK -86 million

Order intake NOK 71 million

Order backlog NOK 1 249 million

Cash balance NOK 1 928 million

Key highlights in Q2 2025

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• SAMSUNG E&A launches its CompassH2 hydrogen plant solution, utilizing Nel's alkaline technology
• Statkraft cancelled the 40 MW alkaline electrolyser contract
• Signed an MOU with HydePoint to co-develop modular hydrogen systems for offshore and nearshore environments

Group financials Q2 2025

(NOK million)	Q2 2025	Q2 2024	YTD 2025	YTD 2024
Revenue from contracts with customers	174	332	329	608
EBITDA	-86	-79	-201	-48
EBIT	-153	-125	-340	-138
Pre-tax income (loss)	-132	-120	-312	-83
Net income (loss)	-131	-118	-310	-79
Net cash flow from operating activities	-53	-24	-111	-60
Cash and cash equivalents*	1 928	2 228

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• Revenues in the second quarter declined by 48% YoY largely driven by low project activity in the Alkaline segment
• Quarterly EBITDA in line with last year due to improved gross margin and reduced costs
• Cash balance at the end of the quarter remained solid

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Alkaline financials Q2 2025

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• Revenues in the quarter decreased 70% versus last year, mainly due to few project milestones
• Quarterly EBITDA decreased by NOK 23 million as a consequence of lower revenues
• Cost reductions and capacity adjustments implemented in Q1'25 have started to take effect and will continue to reduce costs into the second half of 2025

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PEM financials Q2 2025

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• Revenue in-line with the same quarter last year, mainly driven by containerized systems
• EBITDA improved by 5 MNOK YoY due to improved gross margin
• Overall PEM product and project margins are improving on the back of more favourable contractual terms and conditions and better execution

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Q2 2025

Order intake and backlog

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	PEM	Alkaline
Order intake Q2 2025:	NOK	71 million	-74%	y/y
- Alkaline	NOK	13 million	-94%	y/y
- PEM	NOK	58 million	+2%	y/y

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

Order Backlog (NOK million) 2 375 2 329 2 093 2 115 2 071 1 872 1 610 1 460 1 249 0 500 1 000 1 500 2 000 2 500 3 000 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

PEM		Alkaline
Order backlog Q2 2025:	NOK	1 249 million	-40%	y/y
- Alkaline	NOK	826 million	-51%	y/y
- PEM	NOK	423 million	+11%	y/y

2023 2024 2025

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

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Q2 2025 Cash burn rate

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Historical Cash-burn*

*Includes purchases of property, plant and equipment, payments for capitalised technology and net cash flow from operating activities.

Excludes financing activities and other investing activity comprising change in investments in equity instruments, associates, joint ventures, loans, disposal of fixed assets and change in restricted cash.

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Q2 2025

Costs will continue to come down in the second half of 2025

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Commercial update

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©2025 Nel – All rights reserved

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COMMERCIAL UPDATE

Market perspective

• Pipeline is large and increasing, but FIDs continue to be pushed out in time

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• Quality of projects generally higher than in the past due to stricter FID criterias
• Several target projects in the 20-200 MW range expected to take FID in the next quarters
• Nel currently involved in 540 MW of paid FEED studies for large-scale systems, EPC partners involved in additional studies
• Improved clarity around US regulations expected to help demand

COMMERCIAL UPDATE

Extended visibility and clarity on 45V hydrogen tax credit

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• The 45V clean hydrogen production tax credit is now secured through January 1, 2028
• Projects that meet "commence construction" requirements by this date will be eligible for the full credit, worth up to \$3/kg
• Qualifying projects can claim the credit for a 10-year period once they are placed in service
• Key clarifications:
  • The tax credit allows for foreign equipment
  • The "commence construction" definition is still pending, but is expected to be financial
  • The credit now enjoys a high degree of political stability, with no foreseeable efforts to roll it back before 2028

15.07.2025

COMMERCIAL UPDATE

SAMSUNG E&A unveils the CompassH2

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• a 100MW concept powered by Nel

Designed to deliver world-class system efficiency, scalability, and cost-competitiveness, combining Nel's market-leading electrolyser technology with SAMSUNG E&A's system-level engineering to achieve the lowest LCOH in the market today

• Best System Efficiency with Optimized Design
• System-Level Performance Guarantees
• Comprehensive Engineering Support
• End-to-End Solution Offering

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Technology update

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First generation technology is proven, but LCOH reduction is needed

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Nel`s approach to lowering LCOH

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OPEX:

• Improved energy efficiency
• Wider operating range
• Quicker ramp-up and ramp-down

CAPEX:

• Cheaper modules
• Outdoor operation (no building)
• Standardization
• Smaller footprint and modularization

The next-generation pressurized alkaline system

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The next-generation pressurized alkaline system

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Next steps for pressurized alkaline solution

• Validate 6.25 MW prototype in Q3 2025
• Take FID on GW production setup in Q3 2025

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• Validate 25 MW customer pilot in 2026
• Launch commercial product and deliver first units in 2026
• Deliver at scale, i.e. 100s of MW, in 2027

The next-generation PEM stack

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The next-generation PEM stack

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Next steps for next-generation PEM stack

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• Successfully passed a key design review
• Initiated procurement of full-scale prototype components
• Continued investment in test infrastructure and fullscale test stands to simulate varying duty cycles
• Reliability area being expanded to accommodate prototype validation

15.07.2025

The future belongs to the front runners

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