Nel ASA

Earnings Release • May 4, 2016

FIRST QUARTER REPORT 2016

Highlights of the quarter

• NEL Hydrogen AS and H2 Logic A/S (H2 Logic) were awarded contracts of approximately NOK 25 million for the delivery of a hydrogen refuelling station with integrated on-site hydrogen production to Uno-X Hydrogen AS.
• NEL Fuel AS, a subsidiary of NEL ASA (NEL), and Uno-X entered into a final agreement for the rollout of minimum 20 hydrogen refuelling stations covering all the major cities in Norway within 2020.
• NEL reported revenues in the first quarter of NOK 26.0 million, compared to NOK 17.6 million in the first quarter of 2015. The revenues were negatively impacted by the planned maintenance and production optimisation programme at the Notodden facility.
• The EBITDA was negative NOK 7.6 million, reflecting the high activity level within future growth initiatives and the ongoing production ramp up investments.
• The cash balance at the end of the first quarter was NOK 289 million.

Subsequent events

• H2 Logic entered into a contract for the purchase of a facility in Herning, Denmark for the development of a new large-scale production plant for hydrogen refuelling stations. The factory will have an annual capacity to manufacture up to 300 refuelling stations per year, sufficient for refuelling 200 000 new Fuel Cell Electric Vehicles (FCEV) annually.
• NEL and partners initiated the project "Hyper", a feasibility study of the potential for large scale hydrogen production in Norway for export to the European and Japanese markets. The project has received a 14 MNOK grant from the ENERGIX programme of the Research Council of Norway.
• H2 Logic launched the H2Station® CAR-200, a hydrogen refuelling station that triples the fuelling capacity, while reducing the footprint to one third of the current generation.
• NEL entered into a Letter of Intent with Meløy Energi AS and Meløy Næringsutvikling AS to establish Glomfjord Hydrogen AS, for the potential development of a large-scale, low-cost hydrogen production facility in Glomfjord Industrial Park in Meløy, Norway.

Key figures

	2016	2015	2015
(Unaudited figures NOK million)	Q1	Q1	Full year
Operational revenue	26.0	17.6	99.9
Total operating cost	36.1	19.6	118.2
EBITDA*	-7.6	1.5	2.6
EBIT	-10.1	-2.1	-18.3
Pre‐tax profit	-10.1	-1.6	-27.8
Net profit	-9.7	-0.6	-21.7
Net cash flow from operating activities	-21.3	-0.8	-37.8
Cash balance end of period	289.0	164.5	313.0

* EBITDA in 2015 excludes transaction costs related to the acquisition of H2 Logic.

Financial development

In the first quarter of 2016, NEL reported revenues of NOK 26.0 million, compared to 17.6 million in the same quarter in 2015. The revenues were negatively impacted by the planned maintenance and production optimisation programme at the Notodden facility. The comparable figures do not include H2 Logic, which was consolidated from the third quarter of 2015.

EBITDA in the first quarter was negative NOK 7.6 million, compared to an EBITDA of 1.5 million in the corresponding quarter last year, reflecting the high activity level within future growth initiatives and the ongoing production ramp up investments.

EBIT was negative NOK 10.1 million, compared to negative NOK 2.1 million in the first quarter of 2015. This includes NOK 2.5 million in depreciation of physical and intangible assets.

Net loss for the quarter was NOK 9.7 million, compared to a loss of NOK 0.6 million in the same quarter last year.

Total assets were NOK 781.1 million at the end of the first quarter 2016, compared to NOK 815.6 million at the end of the fourth quarter of 2015. Total equity was NOK 714.6 million. Thus, the equity ratio was 91 percent.

Net cash flow from operating activities in the first quarter 2016 was negative NOK 21.3 million, compared to negative NOK 0.8 million in the same quarter last year. Net cash flow from investment activities was negative NOK 2.9 million. Net cash flow from financing activities was positive NOK 0.1 million, compared to negative NOK 0.3 million in the corresponding quarter last year.

NEL's cash balance at the end of the first quarter was NOK 289.0 million, up from NOK 164.5 million at the same end of the first quarter in 2015.

Strategy

NEL is the first dedicated hydrogen company on the Oslo Stock Exchange. Since its foundation in 1927, NEL Hydrogen has a proud history of development and continual improvement of hydrogen plants. NEL is global a supplier of hydrogen solutions, covering the entire value chain from hydrogen production technologies to hydrogen refuelling stations for fuel cell electric vehicles.

The company has three divisions: Upstream, Downstream and Systems.

Upstream

Production of electrolysers for hydrogen production

The core of the Upstream division is NEL Hydrogen AS (NEL Hydrogen), a world-leading supplier of hydrogen production plants based on alkaline water electrolyser technology.

The company dates back to 1927, when Norsk Hydro developed large-scale electrolyser plants, providing hydrogen for use in ammonia production with fertiliser as the end-product. Since then, the electrolyser technology has been improved continuously, and NEL Hydrogen has accumulated unique experience and knowledge about hydrogen refuelling stations and powerto-gas systems.

Traditionally, hydrogen is used as an input to a number of industrial applications, including as industrial feedstock, to provide a protective atmosphere, and for other purposes. Relevant sectors include food production, chemicals/refining, metallurgy, glass production, electronics, generator cooling, and the production of polysilicon for use in PV solar panels.

Looking ahead, hydrogen will increasingly be utilised as an energy carrier, both to maximise the utilisation of renewable energy and, subsequently, as a sustainable fuel for zeroemission FCEVs. With the commercial

introduction of FCEVs already taking place, NEL Hydrogen intends to supply the hydrogen refuelling, energy storage and power-to-gas markets.

The water electrolyser market currently accounts for only a small fraction of the total hydrogen market, but is expected to grow significantly in the coming years, primarily driven by increased refuelling and energy storage demand. By 2020, 40% of renewable electricity is expected to take the form of wind and solar power. (Source: IEA.)

A number of energy storage projects have been initiated worldwide, and NEL Hydrogen expects this development to be a main driver of demand for hydrogen energy storage in the medium term. The sector has specific interest in NEL Hydrogen, because the market growth is making NEL Hydrogen's portfolio of large-scale products increasingly relevant.

NEL Hydrogen started commercial sales of electrolysers in the 1970s, and has sold more than 500 electrolyser units to a broad range of industries across Europe, South America, Africa and Asia. The company has production facilities in Notodden, Norway, and has a global reach through its in-house sales apparatus and extensive network of agents.

NEL Hydrogen's water electrolysis and atmospheric pressure technologies are considered world-class. The company's long experience in the electrolysis field and sustained research and development efforts over the past 89 years give it a unique technological platform.

The company's NEL A electrolysers are widely respected for their robustness, reliability and energy efficiency. The products set a benchmark for competitors. When the products' flexibility, ease-of-use, high capacity and safety record are added to the list, the solutions are simply unmatched.

A new technology to be commercialized is a new medium pressurized electrolyser, operating at 50 Nm3/h. This pre-assembled solution will reduce time for installation and commissioning.

In addition, the company is developing the RotoLyzer®, a pressurized, compact electrolyser, which utilizes a vertical, rotating cell pack, providing full operational flexibility, while allowing for low production costs. This opens up new market segments for NEL, and provides an ideal solution for hydrogen refuelling stations where space is limited, or integration with renewable energy sources. The technology is patented and has been verified through extensive testing.

Downstream

Production of hydrogen refuelling stations

The Downstream division consists of H2 Logic A/S (H2 Logic), a leading manufacturer of H2Station® hydrogen refuelling stations that provides FCEVs with the same fast fuelling and long range as conventional vehicles today. Since incorporation in 2003, H2 Logic has invested significantly in R&D, bringing H2Station® to a level where products are offered to the early market for roll-out of larger networks of hydrogen refuelling stations.

Today, H2 Logic is one of few global leaders on fast refuelling for FCEVs. H2Station® technology is in operation in several European countries, providing hydrogen fuelling for fuel cell electric vehicles from major car manufacturers.

H2 Logic was among the first to achieve fast fuelling of hydrogen in compliance with the SAE J2601 standard required by the major car manufacturers. In Denmark, H2 Logic has delivered H2Station® technology for the entire Danish network of hydrogen fuelling stations, operated in collaboration with leading oil, energy and gas companies.

Aside from providing fast fuelling, H2Station® technology has a long proven track-record of reliable operation with more than 99% availability – one among the highest recorded in

the world for a scattered network of 24-hour public available hydrogen fuelling stations. The ambition is to keep this position and act as a preferred supplier of H2Station® for international infrastructure operators such as oil, energy and gas companies.

Systems (to be established)

System integration and project development, both electrolysers and refuelling stations

The Systems divisions will operate, maintain, own, and finance different hydrogen solutions. The focus going forward is on new markets, like California and Japan, but existing markets, like Germany and Scandinavia, also represent opportunities.

NEL has delivered the entire Danish network, the world's first country-wide network in daily operation. NEL services and operates the entire network, in collaboration with leading oil, energy and gas companies.

In Norway, NEL Fuel AS owns 49% of the joint venture, Uno-X Hydrogen AS, where partner, Uno-X, owns the remaining 51%. The joint venture will build a network of hydrogen refuelling stations, where fuel cell electric vehicles (FCEVs) can operate between all the major cities in Norway. The stations will be deployed in cities like Oslo, Bergen, Trondheim, Stavanger, Kristiansand, along with corresponding corridor locations. The target is that FCEVs can drive between the most populated cities in Norway within 2020.

Developments

Upstream

NEL Hydrogen continued to secure important sales contracts, a testament to the quality of the atmospheric NEL-A electrolysers. However, the production and corresponding revenues in the first quarter were negatively impacted by the planned maintenance and production

optimisation programme at the Notodden facility.

NEL Hydrogen are progressing as planned with the commercialization of the RotoLyzer electrolyser, targeting a commercial unit of 10 Nm3/h by 2017, and a larger unit by 2018. In addition, the company is developing a pressurized electrolyser, which will be a containerized pre-assembled solution.

After the closing of the quarter, NEL Hydrogen and H2 Logic were awarded contracts of approximately NOK 25 million for the delivery of a hydrogen refuelling station with integrated on-site hydrogen production to Uno-X Hydrogen AS.

NEL also entered into a Letter of Intent with Meløy Energi AS and Meløy Næringsutvikling AS to establish Glomfjord Hydrogen AS, for the potential development of a large-scale, low-cost hydrogen production facility in Glomfjord Industrial Park in Meløy, Norway.

Glomfjord Hydrogen will be marketed as a hydrogen fuel provider for industrial applications, as well as personal- and public transportation, particularly focusing on supplying low-cost hydrogen to fossil fuelconverted ferries.

The available buildings and infrastructure at the industrial park provides flexibility and a scalable production model for Glomfjord Hydrogen. The facility will be developed in parallel with the increased demand, and is expected to have a production potential of up to 6000 kilograms of low-cost hydrogen per day.

In April 2016, NEL together with SINTEF, Statoil, Linde Kryotechnik, Mitsubishi Corporation, Kawasaki Heavy Industries, NTNU and The Institute of Applied Energy, among others, initiated the project "Hyper", a feasibility study of the potential for large scale hydrogen production in Norway for export to the European and Japanese markets.

Project Hyper is planned and financed throughout 2019. The total project cost is estimated at NOK 20 million. It is funded by a NOK 14 million grant from the Research Council of Norway (ENERGIX), in addition to the contributions from the project partners.

Downstream

After the closing of the quarter, H2 Logic entered into a contract for the purchase of a facility in Herning, Denmark for the development of a new large-scale production plant for hydrogen refueling stations. The factory will have an annual capacity to manufacture hydrogen refuelling stations sufficient to support 200 000 new Fuel Cell Electric Vehicles (FCEV) annually.

With a total investment of NOK ~85 million, including contingency, NEL intends to convert the facility into a state-of-the-art volume production facility for refuelling stations based on lean manufacturing principles. When rampup and plant optimization is complete, the facility will have a name-plate production capacity of up to 300 refuelling stations per year. This will ensure further product improvements over time as well as other scale benefits.

H2 Logic also announced the launch of H2Station® CAR-200, a hydrogen refuelling station that triples the fuelling capacity, while reducing the footprint to one third of the current generation.

The CAR-200 builds on the operational legacy of the former CAR-100, which is used in multiple countries across Europe and has a documented high performance with better than 99 percent availability.

The new CAR-200 dispenser can be located up to 50 meters away, which enables flexible integration of hydrogen alongside other fuelling products, even at very compact sites. The new refuelling station can be supplied by centralized

hydrogen production delivered by truck, as well as onsite production of hydrogen, enabling NEL to deliver a complete solution to the customer.

Delivery of CAR-200 to the first customers will commence during the second half of 2016.

Systems (to be establisted)

The company is establishing the Systems division to leverage on the market and sales opportunities across the NEL group.

NEL Fuel AS (NEL), a subsidiary of NEL ASA, and Uno-X entered into a final agreement for the rollout of minimum 20 hydrogen refuelling stations covering all the major cities in Norway within 2020. Following the agreement, NEL and Uno-X have established the joint venture Uno-X Hydrogen AS, owned by Uno-X and NEL with 51 % and 49 % respectively.

The joint venture will build a network of hydrogen refuelling stations with hydrogen production, so that fuel cell electric vehicles (FCEVs) can operate in and between all the major cities in Norway. The stations will be deployed in cities like Oslo, Bergen, Trondheim, Stavanger, Kristiansand, along with corresponding corridor locations.

Uno-X will be the main brand of the joint venture, whilst NEL will provide technology for hydrogen production and hydrogen refuelling stations.

In April, the joint venture announced the decision to build a hydrogen refuelling station with on-site hydrogen production co-located with Powerhouse Kjørbo, an energy-positive office building in Sandvika, Norway. This will be the world's first hydrogen station with an integrated solution, and represents an innovative example of the role hydrogen can play in grid balancing and utilization of renewable energy.

Kjørbo is centrally located in Sandvika outside of Oslo, by two of the busiest roads in Norway with 80 000 cars passing daily. The project has a total

budget of NOK 28.4 million, of which NOK 5.7 million is support from the Akershus County Council and NOK 7.7 million is from the Norwegian public enterprise, Enova, responsible for the promotion of environmentally friendly production and consumption of energy.

Outlook

NEL is positioned at the forefront of the industry as a pure play company with a long track record:

• NEL has the most energy efficient electrolysers, with robust and proven technology;
• Refuelling stations with the highest uptime and the lowest cost of ownership;
• Long list of new technology developments.

The strategic position of the company targets the key underlying megatrends for hydrogen: renewable electricity is becoming inexpensive, there is a growing need for energy storage

solutions, hydrogen cars are becoming increasingly inexpensive, and there is a high focus on zero emission transport.

For 2016, the company has the following key targets:

• Continue to capture market share, both upstream and downstream, with increased focus on renewable hydrogen production and energy storage;
• Execute the market penetration strategy for California, both upstream and downstream, and work together with selected partners or directly in the market;
• Launch the next generation refuelling station with standard modular design, ideal for industrial production, according to continuous improvement principles;
• Build the organization, align activities, and capture the synergies across NEL.

Oslo, 03 May 2016 The Board of Directors

Øystein Stray Spetalen	Martin Nes	Anne Marie Gohli Russell
Board member	Chairman	Board member
(Sign)	(Sign)	(Sign)
Eva Dugstad	Jan Christian Opsahl	Kristin Hellebust
Board member	Board member	Board member
(Sign)	(Sign)	(Sign)
Mikael Sloth	Jon André Løkke
Board member	CEO
(Sign)	(Sign)

Condensed interim financial statements

Statement of comprehensive income (unaudited)

PROFIT & LOSS		2016	2015	2015
(figures in NOK thousands)		Q1	Q1	Q1-Q4
Operating Income
Sales income		21 823	0	88 539
Other operating income		4 187	17 597	11 386
Total operating revenue		26 010	17 597	99 925
Operating expenses
Cost of goods sold		11 166	7 038	42 116
Total cost of goods sold		11 166	7 038	42 116
Operating costs
Wages and social costs		13 979	4 481	29 891
Depreciation physical fixed assets		713	3 554	2 818
Depreciation intangible assets		1 737		12 694
Write-down physical fixed assets		0		52
Other operating costs		8 485	4 574	30 613
Total other operating costs		24 913	12 610	76 068
Total operating costs		36 080	19 648	118 184
Operating profit (loss)		-10 070	-2 051	-18 259
Financial income		970	760	5 185
Financial expenses		404	280	1 420
Share of profit and loss associate and joint venture		-617	0	-13 286
Net financial income/expense		-51	480	-9 521
Profit (loss) before taxes		-10 121	-1 571	-27 780
Tax costs		-376	-932	-6 049
NET PROFIT (LOSS)		-9 746	-639	-21 731
Items that may subsequently be reclassified to profit or loss
Currency translation differences		-6 167		20 220
Other comprehensive income		-6 167	0	20 220
TOTAL COMPREHENSIVE INCOME		-15 913	-639	-1 511
Net profit per share (figures in NOK)	3	-0.01	0.00	-0.04

Statement of financial position (unaudited)

BALANCE SHEET	Note	2016	2015	2015
(figures in NOK thousands)		Q1	Q1	Year end
ASSETS
Intangible assets
Technology		48 156	8 550	46 645
Customer relationship		30 621	31 350	31 569
Customer contracts		0	4 800
Development expenses		0	99	0
Goodwill		326 768	60 799	332 958
Total intangible assets		405 545	105 598	411 172
Land, buildings and real estate
Land, buildings and real estate		15 598	3 856	15 829
Total land, buildings and real estate		15 598	3 856	15 829
Other fixed assets Fixtures and fittings, tools, etc.		962	1 106	700
Total other fixed assets		962	1 106	700
Financial fixed assets
Financial fixed assets		6 544	263	7 297
Total financial fixed assets		6 544	263	7 297
Total fixed assets		428 649	110 823	434 998
Current assets
Inventories		20 280	8 839	15 023
Trade receivables		20 839	22 887	40 361
Other receivables		20 801	3 395	10 717
Financial current assets		1 507	0	1 507
Cash and cash equivalents		288 993	164 479	313 042
Total current assets		352 420	199 599	380 650
TOTAL ASSETS		781 069	310 422	815 649
EQUITY AND LIABILITIES
Equity
Share capital		136 120	79 786	136 120
Share premium/Other paid equity		602 410	190 931	602 910
Retained earnings		-23 935	-639	-8 022
Total equity		714 595	270 078	731 008
Non-controlling interests' share		0
Provisions
Deferred tax liability		20 456	15 052	21 027
Total provisions		20 456	15 052	21 027
Other long term liabilities
Other long term liabilities		14 568	7 318	14 641
Total other long term liabilities		14 568	7 318	14 641
Liabilities
Accounts payable		6 592	2 210	16 760
Tax payable		383	0	375
Social security, VAT etc. payable		1 003	706	3 185
Dividends payable		0	0	0
Other current liabilities		23 471	15 059	28 652
Total current liabilities		31 449	17 975	48 972
TOTAL EQUITY AND LIABILITIES		781 069	310 422	815 649

Statement of changes in equity (unaudited)

Statement of changes in Equity and Number of Shares:

				Curr.
(figures in NOK/numbers)	Share capital	Share premium	Other reserves	conv. effects	Other equity	Total equity	Number of shares
As at 1st January 2014	1 632	45 016	-310		-37 662	8 675	8 159 873
Allocation of comprehensive loss		-37 972	310		37 662	0
Shares owned by company					-2 085	-2 085
Transaction cost		-5 342			0	-5 341
Increase of capital 15.4.2014	20 000	30 000				50 000	100 000 000
Increase of capital 20.10.2014	35 385	79 615				115 000	176 923 077
Increase of capital 13.11.2014	10 769	24 231				35 000	53 846 154
Consideration					1 200	1 200
Comprehensive income 1.1.-31.12.2014					-6 511	-6 511
As at 31th December 2014	67 786	135 548	0		-7 396	195 938	338 929 104
						0
Transaction cost		-3 220				-3 220
Increase of capital 12.01.2015	10 000	55 000				65 000	50 000 000
Increase of capital 02.02.2015	2 000	11 000				13 000	10 000 000
Comprehensive income 1.1.-31.3.2015					-639	-639
As at 31st March 2015	79 786	198 328	0		-8 035	270 078	398 929 104
Increase of capital 12.06.2015	10 260	58 997				69 258	51 301 852
Increase of capital 26.06.2015	29 630	170 370				200 000	148 148 148
Transaction costs rel. To Increase of capital Q2		-4 321				-4 321
Comprehensive income Q2 2015					-7 641	-7 641
As at 30th June 2015	119 676	423 374	0		-15 676	527 374	598 379 104
Increase of capital 14.7.2015	4 444	25 556				30 000	22 222 222
Increase of capital 19.8.2015	6 000	61 500				67 500	30 000 000
Transaction costs rel. To Increase of capital Q3		-6 573				-6 573
Net profit Q3 2015					-720	-720
Currency translation differences Q3 2015				3 918		3 918
As at 30th September 2015	130 120	503 857	0	3 918	-16 396	621 499	650 601 326
Increase of capital 17 December 2015 Transaction costs rel. To Increase of capital	6 000	105 000				111 000	30 000 000
Q4		-4 457				-4 457
Shares owned by company		-2 085			2 085	0
Consideration			1 200		-1 200	0
Gain sale shares owned by company		-605				-605
Net profit Q4 2015					-12 730	-12 730
Currency translation differences Q4 2015				16 301		16 301
As at 31st December 2015	136 120	601 710	1 200	20 220	-28 241	731 008	680 601 326
Transaction costs rel. increase in capital Q4		-500				-500
Net profit Q1 2016					-9 746	-9 746
Currency translation differences Q1 2016				-6 167		-6 167
As at 31st March 2016	136 120	601 210	1 200	14 052	-37 987	714 595	680 601 326

Statement of cash flow (unaudited)

CASH FLOW STATEMENT	Note	2016	2015	2015
(figures in NOK thousands)		Q1	Q1	Q1-Q4
Cash flow from operating activities
Pre-tax profit (loss)		-10 121	-1 571	-27 780
Interest costs, reversed		-699		-503
Interests income, reversed		154		-2 303
Ordinary depreciation		2 450	3 554	15 512
Impairment of fixed assets		0	0	52
Change in provisions		292		-1 168
Change in inventories		-5 257		-1 392
Change in trade receivables		19 522		-20 972
Change in trade payables		-10 168		5 547
Change in other short-term receivables
and other short-term liabilities		-17 448	-2 806	-4 803
Net cash flow from operating activities		-21 275	-823	-37 809
Cash flow from investment activities
Proceeds from sale of fixed assets		0	0	0
Acquisitions of fixed assets		-552	-99	-581
Acquisition of intangible assets		-2 325	0	0
Acquisitions of subsidiaries / financial fixed assets		0		-83 182
Proceeds from sale of subsidiaries		0
Net cash flow from investing activities		-2 878	-99	-83 763
Cash flow from financing activities
Interest paid		699		472
Interest received		-154		2 303
Gross cash flow from share issues				355 758
Transaction costs connected to share issues		-500		-18 571
Proceeds from new loan		413		1 118
Payment of long term liabilities		-311	-260	-4 962
Net cash flow from financing activities		102	-260	336 118
Net change in cash and cash equivalents		-24 050	-1 182	214 546
Cash and cash equivalents		288 992	164 479	313 043

Notes to the interim financial statements

1. Presentation

The financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" ("IAS 34"). This financial information should be read together with the financial statements for the year ended 31st of December 2015 prepared in accordance with International Financial Reporting Standards ("IFRS").

The accounting policies used and the presentation of the Interim Financial Statements are consistent with those used in the latest Annual Financial Statements.

The preparation of the Interim Financial Statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities and disclosure of contingent liabilities at the date of the Interim Financial Statements. If in the future such estimates and assumptions, which are based on management's best judgment at the date of the Interim Financial Statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change.

2. Going concern

The financial statement is presented on the going concern assumption under International Financial Reporting Standards. As per the date of this report the Company has sufficient working capital for its planned business activities over the next twelve month period.

3. NEL Hydrogen AS

NEL Hydrogen AS is a global leader in the supply of hydrogen‐based electrolyser plants and hydrogen refuelling stations. The company's production facility is located in Notodden, Norway. NEL ASA holds 100% of the shares in NEL Hydrogen AS.

NEL Hydrogen AS (unaudited)

	2016	2015
(figures in NOK million)	Q1	Full year
Total operating revenue	7.8	60.1
Total operating cost	11.6	57.2
Operating profit	-3.8	2.9
Net Financial income (expence) Pre- tax profit (loss)	-0.1 -4.0	0.2 3.1

4. H2 Logic A/S

H2 Logic A/S is a leading manufacturer of H2Station® hydrogen refuelling stations that provides fuel cell electric vehicles with the same fast refuelling and long range as conventional vehicles today. H2Station® technology is used on a daily basis across Europe for refuelling of vehicles from leading international car manufacturers. The company's production facility is located in Herning, Denmark. NEL ASA holds 100% of the shares in H2 Logic A/S.

H2 Logic A/S (unaudited)

	2016	2015
(figures in NOK million)	Q1	Q3-Q4
Total operating revenue	18.8	41.0
Total operating cost	19.5	35.1
Operating profit	-0.7	5.9
Net Financial income (expence)	-0.6	-12.5
Pre- tax profit (loss)	-1.3	-6.6

H2 Logic A/S was acquired by NEL ASA at the end of Q2 2015. Measured from the transaction date total profit related to H2 Logic included in the consolidated statement of comprehensive income in the first and second quarters 2015 amounts to zero.

5. Goodwill

The table below shows the movement in goodwill during Q1 2016.

	Amount (NOKm)
	2016	2015
	Q1	Full year
Goodwill as of 1 January	333.0	60.8
Acquisition of H2 Logic 2015		256.5
Other acquisitions in 2015		0.6
Currency translation differences	(6.2)	15.1
Goodwill as of 31 March/31 December	326.8	333.0

6. Related party transactions

NEL ASA has paid MNOK 0,6 in management fees to Ferncliff in the period.