Nel ASA — Earnings Release 2020

Feb 18, 2021

Nel ASA: Fourth quarter 2020 financial results

Nel ASA: Fourth quarter 2020 financial results

(Oslo, 18 February 2021) Nel ASA (Nel) reported revenues of NOK 229.1 million in

the fourth quarter of 2020, up from NOK 175.9 million in the same quarter of

2019 and an EBITDA of negative NOK 96.2 million (Q4 2019: -41.7) incl. one-offs,

ramp-up cost and a NOK 20 million provision for a potential fine. The order

backlog ended at approximately NOK 980 million, up 90%, and the company holds

over NOK 2.3 billion in cash. Nel has outlined a target of producing green

hydrogen at USD 1.5 per kilo* by 2025, outcompeting fossil alternatives, and

reiterates the strong long-term outlook.

"The fourth quarter was another busy period for Nel with several important

project awards and the preparation of the technology roadmap supporting our new

target of producing green hydrogen at USD 1.5 per kilo by 2025. Achieving this

will allow green hydrogen to start to reach fossil parity, representing one of

the most significant achievements for zero-emission solutions and a carbon

neutral planet. The expansion of the production to multi-GW scale will be

instrumental in the strategy, in addition to grow the organization to add

capacities and capabilities, and investing in technology to ensuring that Nel

continues to be the global leader in the hydrogen industry," says Jon André

Løkke, Chief Executive Officer of Nel.

Nel reported revenues in the fourth quarter of 2020 of NOK 229.1 million (175.9)

with an EBITDA of NOK -96.2 million, incl. one-offs, ramp-up cost and a NOK 20

million provision for a potential fine. Nel is no longer reporting adjusted

EBITDA separately. The reported operating loss was NOK -139.3 million (-62.4),

while the pre-tax income ended at NOK 1 285.1 million (-95.1) following a

positive fair value adjustment of Nel´s shareholding in Everfuel A/S. The

backlog grew over 90% to approximately NOK 980 million from the fourth quarter

of 2019, and the company holds over NOK 2.3 billion in cash.

A key element of the Nel strategy is to expand the electrolysis production to

accommodate large-scale projects by constructing a fully automated manufacturing

facility at Herøya, Norway. Test production of the first 500 MW production line

will commence in the second quarter of 2021 with start of commercial ramp-up in

the third quarter 2021. Nel recently also announced that the facility could

later be expanded to a capacity of more than 2 GW.

"Herøya represents the first industrial-scale production of the most efficient

electrolysers on the market, at a game-changing low cost. The Nel team is

continuously working to drive down the cost of hydrogen, where scale-up is key,

and will continue to assess the exact timing for the next expansion step," says

Jon André Løkke, and concludes:

"Large opportunities also represent major challenges for Nel going forward, as

maintaining a leadership position requires large investments, rapid expansion of

the organization, and execution of large-scale projects across the globe in an

increasingly competitive environment. In 2021 alone, we will add more than 100

new colleagues, deploy over 25% of the capital raised in 2020 in plant,

equipment, and technology development projects, and add more capacity as

required by the market. We are addressing all these challenges, as an emission

-free future depends on green hydrogen, and reiterate out strong long-term

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

fourth quarter 2020 report on page 24.

The fourth quarter 2020 report and presentation are enclosed and available

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

live pre broadcasted live at www.nelhydrogen.com and the event can also be

streamed at https://channel.royalcast.com/landingpage/hegnarmedia/20210218_1/

The presenters will be Jon André Løkke and Chief Financial Officer Kjell

Christian Bjørnsen, and the presentation will be held in English.

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.

*Assumptions: Nel analysis based on electricity of 20 $/MWh, >8% cost of

capital, cost of land, civil works, installation, commissioning, building water

etc., lifetime 20 years incl. O&M cost, at 30 bar.