Nel ASA

Earnings Release • Aug 26, 2020

Nel ASA: Second quarter 2020 financial results

Nel ASA: Second quarter 2020 financial results

(Oslo, 26 August 2020) Nel ASA (Nel) reported revenues of NOK 148.6 million in

the second quarter of 2020, up from NOK 122.5 million in the same quarter of

2019 and an adjusted EBITDA of negative NOK 22.3 million. The order backlog grew

75% to over NOK one billion and the company holds more than NOK 2.5 billion in

cash. Nel reiterates the long-term outlook.

"We are relatively happy with the second quarter revenue growth and an all-time

high order intake, despite the Covid-19 situation. The markets in which we

operate continue to show high activity and growth momentum, in addition to good

governmental interest for developing green energy infrastructure and industries

post Covid-19. It seems like renewable hydrogen will play a vital role in The

Green Deal that should contribute to Europe becoming the first carbon neutral

continent in the world, and Nel aims to leverage on these opportunities going

forward," says Jon André Løkke, Chief Executive Officer of Nel.

Nel reported revenues in the second quarter of 2020 of NOK 148.6 million

(122.5), up 21% from the corresponding quarter in 2019 and the adjusted EBITDA

ended at NOK -22.3 million, adjusted for non-recurring and other ramp-up costs.

The reported EBIT was NOK -72.0 million (-90.7), while the pre-tax income ended

at NOK 594.3 million (-94.7) following the listing of Nikola Corporation

(Nikola) and the corresponding positive fair value adjustment of Nel´s

shareholding in Nikola. The backlog grew 75% to approximately NOK one billion.

During the second quarter of 2020, Nel completed a successful subsequent

offering of gross NOK 127 million and completed a successful private placement

raising NOK 1.3 billion, bringing the cash position to exceed NOK 2.5 billion.

"Nel targets to have a strong financing to execute on our strategic plans. The

private placement and subsequent offering were both oversubscribed, showing a

solid backing from our shareholders. 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 contracts," Løkke

comments.

Nel remains committed to the growth strategy, including the electrolyser

manufacturing scale-up project at Herøya, Norway, where pre-engineering studies

have revealed a potential for the nameplate capacity per production line to be

around 500 MW/year compared to previous target at 360 MW/year, enabling a total

potential of around 2 GW/year at the facility. Nel has also taken on additional

employees and costs to prepare for future growth during the quarter and holds

the workforce largely intact to maintain the momentum when the Covid-19

situation normalizes.

"The pandemic will most likely continue to negatively impact the general

business environment for the rest of this year, but the Covid-19 situation also

accelerates the adoption of green hydrogen and industrial hydrogen applications

across Europe, and we are now preparing for that, both in terms of manufacturing

capacity and organisation. We remain confident in the long-term potential for

the industry and reiterate the strong outlook," Løkke concludes.

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

second quarter and half year 2020 report on page 22, as well as in the

accompanying presentation page 6.

The second quarter and half year 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 Skøyen Atrium, Askekroken 11,

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

www.nelhydrogen.com and can also be streamed at

https://channel.royalcast.com/webcast/hegnarmedia/20200826_1. The presenter will

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

Please register by email to OsloOffice@nelhydrogen.com for participation at the

presentation at Skøyen Atrium. Due to Covid-19 restrictions, number of

participants will be limited.

ENDS

For further information, please contact:

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

Bjørn Simonsen, VP Investor Relations & Corporate Communication, +47 971 79 821

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.