Nel ASA

Earnings Release • Aug 23, 2018

Nel ASA: Second quarter 2018 financial results

Nel ASA: Second quarter 2018 financial results

(Oslo, 23 August 2018) Nel ASA ("Nel") reported revenues of NOK 135.8 million in

the second quarter of 2018, up from NOK 39.1 million in the corresponding

quarter last year, and an adjusted EBITDA of NOK -8.8 million. The company

announced the construction of the world's largest electrolyzer manufacturing

plant, fully automated and able to deliver the most efficient electrolyzes at a

game changing price. The total development will have a name plate capacity of

360 MW/year, approximately ten times the current annual production capacity, and

the new facility will accommodate the multi-billion NOK order from Nikola Motors

Company (Nikola).

"The second quarter was an important period for Nel, where we continued the

growth journey and entered into the multi-billion contract from Nikola. In

addition, we did pre-engineering of what will be of the world's largest

electrolyzer manufacturing plant. The new facility will be fully automated and

designed according to lean manufacturing principles, capable of making the most

efficient electrolyzers at a cost the world has never seen before. The expansion

will also fully support the ambitions of Nikola and even accommodate other

customers that want to make a significant change to their business model," says

Jon André Løkke, Chief Executive Officer of Nel.

In the second quarter of 2018, Nel reported revenues of NOK 135.8 million,

compared to NOK 39.1 million in the same quarter of 2017, representing more than

a tripling in revenues. The underlying organic revenue growth was around 61

percent, excluding the acquisition of Proton Onsite (Proton), and 52 percent on

a like-for-like basis. The increased cost level follows the integration of

Proton, increased business development activities and considerable growth

initiatives. When adjusting for ramp-up costs, non-recurring items and non -cash

share option costs, the EBITDA ended at NOK -8.8 million. The cash balance at

the end of the second quarter ended at NOK 478.7 million, and the equity ratio

was 83 percent.

During 2018, the Notodden facility has been expanded from a production capacity

of 25 to 40 MW/year, through debottlenecking and optimizing the existing plant.

After the first stage expansion, Nel has been awarded a contract for the

delivery of 448 electrolyzers to Nikola as part of Nikola's development of a

hydrogen station infrastructure in the US for trucks and passenger vehicles.

When fully expanded, optimized and ramped up, the total Notodden facility will

be able to deliver up to 360 MW worth of electrolyzers per year at a five-shift

operation, representing more than 160 A485 units per year.

The expansion is fully aligned with the Nikola roadmap and will be formally

initiated during the second half or 2018. The facility will be operational early

2020, and ramp-up will be aligned to customer requirements. The expansion of the

Notodden facility represents investments of approximately NOK 150 million and

will add 30 - 40 new employees.

"The initiated factory expansion at Notodden will accommodate deliveries to

Nikola and other customers, and the company is well funded to support this

strategy and expansion. However, the ongoing growth initiatives and other non

-recurring costs will have a negative impact on the company's ability to deliver

a positive EBITDA in the short-term," Løkke concludes.

Nel will host a presentation at 08:00 CET at Hotel Continental in Oslo on 23

August 2018. A live webcast of the presentation will also be available on the

company's website and at

http://webtv.hegnar.no/presentation.php?webcastId=92032306.

The second quarter 2018 report and presentation will be made available through

www.newsweb.no and www.nelhydrogen.com.

ENDS

For further information, please contact:

Jon André Løkke, CEO, Nel ASA, +47 907 44 949

Bent Skisaker, CFO, +47 46 82 16 93Nel ASA Q2 2018

Presentation (http://mb.cision.com/Public/115/2598851/8d1654c2c47b0a67.pdf)Nel

ASA Q2 2018

Presentation (http://mb.cision.com/Public/115/2598851/8d1654c2c47b0a67.pdf)

About Nel ASA | www.nelhydrogen.com

Nel is a global, dedicated hydrogen comany, delivering optimal solutions to

produce, store and distribute hydrogen from renewable energy. We serve

industries, energy and gas companies with leading hydrogen technology. Since its

origins in 1927, Nel has a proud history of development and continual

improvement of hydrogen plants. Our hydrogen solutions cover the entire value

chain from hydrogen production technologies to manufacturing of hydrogen fueling

stations, providing all fuel cell electric vehicles with the same fast fueling

and long range as conventional vehicles today.