Nel ASA

Earnings Release • Nov 5, 2020

Nel ASA: Third quarter 2020 financial results

Nel ASA: Third quarter 2020 financial results

(Oslo, 5 November 2020) Nel ASA (Nel) reported revenues of NOK 147.7 million in

the third quarter of 2020, slightly down from NOK 148.9 million in the same

quarter of 2019 and an EBITDA of negative NOK 42.1 million. The order backlog

ended at approximately NOK 940 million and the company holds approximately NOK

2.5 billion in cash. Nel reiterates the strong long-term outlook.

"The markets in which we operate continue to show high activity and strong

growth momentum, in addition to significant governmental interest for developing

green energy infrastructure and industries post Covid-19. While our short-term

operations, production and installations are affected by the pandemic, with the

financial performance in the third quarter in line with our outlook, the

adoption of green hydrogen and industrial hydrogen applications continues to

accelerate. Nel continuous to build the organization and capabilities to

leverage on these opportunities going forward," says Jon André Løkke, Chief

Executive Officer of Nel.

Nel reported revenues in the third quarter of 2020 of NOK 147.7 million (148.9)

with an EBITDA of NOK -42.1 million. The reported EBIT was NOK -116.3 million (

-48.4), while the pre-tax loss ended at NOK -628.6 million (-34.3) following a

negative fair value adjustment of Nel´s shareholding in Nikola Corporation of

NOK 513.3 million. The backlog was approximately NOK 940 million at the end of

the quarter, up 60% from the end of the third quarter last year, and the company

holds NOK 2.5 billion in cash.

"Nel targets to have a strong financial position to execute on our strategic

plans. We want to maintain and strengthen our leading position in a growing

market through accelerated investments in technology and organization, and

experience an increased importance of being a financially strong counterpart,

especially for larger projects," Løkke comments.

After the closing of the quarter, Everfuel successfully completed a private

placement with gross proceeds of NOK 290 million, valuing Everfuel to NOK 1

610.4 million at the offer price of NOK 22. Everfuel was subsequently listed on

Merkur Markets and Nel has a shareholding of 16.86% of the company after the

private placement. Nel also announced a letter of intent (LoI) with Statkraft

for the delivery of 40 - 50 MW of alkaline electrolysers to support green steel

production by Celsa at Mo Industripark in Norway, and announced that Nel has

been selected by Iberdrola as a preferred supplier for a 20 MW PEM system to

support green fertilizer project in Spain.

"Through our electrolyser scale-up program we have not only identified ways to

manufacture our alkaline electrolysers more efficiently, we have also identified

a number of measures which can be implemented to improve the electrolyser

performance even beyond today's industry leading standard. We have also worked

on larger scale solutions for our PEM platform, and there is no better way of

demonstrating such improvements than through realizing actual large-scale

projects," says Jon André Løkke, and concludes:

"Nel remains committed to our growth strategy and has taken on additional

employees and costs to prepare for future growth. Nel holds the workforce

largely intact to maintain the momentum when the Covid-19 situation normalizes.

We remain confident in the long-term potential for the industry and reiterate

the strong outlook."

EBITDA and other alternative performance measures (APMs) are defined and

reconciled to the IFRS financial statements as a part of the APM section of the

third quarter 2020 report on page 25.

The third quarter 2020 report and presentation are enclosed and available

through www.newsweb.no (Ticker: NEL) and www.nelhydrogen.com. Nel will host an

open investor presentation 08:00 CET at Hotel Continental, Stortingsgaten 24/26,

Oslo, Norway, and the presentation will be broadcasted live at

www.nelhydrogen.com and can also be streamed at

https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20201105_1. The

presenter will be Jon André Løkke, CEO, and the presentation will be held in

English.

Due to Covid-19 restrictions, the number of participants that can attend the

physical presentation will be limited. If you would like to attend the physical

presentation in person, registration is still possible by email to

OsloOffice@nelhydrogen.com.

An online question and answer-session aimed at the analyst community will be

held on 5 November at 15:30 CET at https://bit.ly/35CCosW.

ENDS

For further information, please contact:

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

Kjell Christian Bjørnsen, CFO, +47 917 02 097

About Nel ASA | www.nelhydrogen.com

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

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

industries, energy and gas companies with leading hydrogen technology. Our roots

date back to 1927, and since then we have had a proud history of development and

continuous improvement of hydrogen technologies. Today, our solutions cover the

entire value chain: from hydrogen production technologies to hydrogen fueling

stations, enabling industries to transition to green hydrogen, and providing

fuel cell electric vehicles with the same fast fueling and long range as fossil

-fueled vehicle, without emissions.