Nel ASA

Earnings Release • Apr 27, 2023

Nel ASA: First quarter 2023 financial results

Nel ASA: First quarter 2023 financial results

(April 27 - 2023, Oslo, Norway) Nel ASA (Nel, OSE:NEL) reported revenues of NOK

359 million in the first quarter of 2023, up 68% from NOK 213 million in the

same quarter of 2022. Order intake was NOK 580 million, up 105% year-on-year,

positively impacted by purchase orders from HH2E (EUR 34 million) and HyCC (EUR

12 million). At the end of the first quarter, the order backlog was NOK 2 913

million, up 126% from Q1 2022. The cash balance was NOK 4 621 million at quarter

end.

Quarterly highlights

· Nel reported revenue and operating income in the first quarter of 2023 of

NOK 359 million, up 68% from the first quarter of 2022 (Q1 2022: 213). All

segments, Fueling, PEM electrolysers and alkaline electrolysers experienced

strong growth compared to the same quarter last year.

· Order intake in the quarter amounted to NOK 580 million (96% from

electrolyser), up 105% from the same quarter last year (Q1 2022: 283).

· At quarter end, Nel had a record high order backlog of NOK 2 913 million

(88% related to electrolyser), up 126% from the first quarter of 2022 and up 12%

compared to the previous quarter.

· EBITDA of NOK -121 million (Q1 2022: -152) driven by high losses in Fueling,

low margins on electrolyser projects signed in 2020/2021, and increased

personnel expenses to prepare for large-scale projects.

· Net loss of NOK -192 million (Q1 2022: 84), mainly related to loss from

operations and a net negative unrealized fair value adjustment from

shareholdings of NOK -76 million. The same quarter last year had a positive

unrealized fair value adjustment from shareholdings of NOK 270 million.

· Cash balance of NOK 4 621 million (Q1 2022: 3 940) following a successful

private placement during the quarter which raised NOK 1 609 million in gross

proceeds.

Nel had a good start to 2023 with robust growth for its Electrolyser division

compared to the previous year's first quarter. The production volumes at the

company's manufacturing facility at Herøya in Norway are increasing, and the

company received two large purchase orders for its alkaline electrolyser

equipment. The new contracts followed a solid second half of 2022, with the

company improving terms and conditions on significantly larger contracts.

"Our results are improving as a consequence of increased production volumes and

the fact that better margins on our newest contracts have started to impact our

financial results," says Nel's CEO, Håkon Volldal.

At quarter-end, the cash balance was NOK 4 621 million (Q1 2022: 3 940)

following a successful private placement on 6 March 2023. The capital raise puts

Nel in a solid financial position as the company is committed to capitalizing on

its position as a technology frontrunner.

Volldal says Nel will continue to invest in the organization, in technology

development, and in scaling up the production capacity.

"Nel is observing a constant increase in interest and potential opportunities

within the hydrogen industry. Our pipeline continues to improve and mature, and

we continue to secure large-scale contracts. As a result, we shall keep on

investing in the organization, improving our technology platforms, and scaling

manufacturing capacity," says Volldal.

The construction of Nel's second production line at Herøya is progressing

according to plan, bringing the total production capacity to 1 GW. In addition,

the company is preparing to automate its PEM electrolyser technology's

production process, and expand to ~500 MW manufacturing capacity at its facility

in Wallingford, Connecticut.

Furthermore, the site selection process for Nel's new gigawatt Alkaline and PEM

manufacturing facility in the US is now in its very final stage, and the company

will shortly communicate in which state this factory will be located.

The first quarter 2023 report and presentation are enclosed and available on

www.newsweb.no (Ticker: NEL) and www.nelhydrogen.com. The presentation will be a

virtual event only, followed by a Q&A session. The live presentation can be

accessed on the company's website www.nelhydrogen.com or by following this

link (https://nelhydrogen.com/quarterly-presentation/). A recording of the

presentation will be publicly available following the event.

ENDS

For additional information, please contact:

Kjell Christian Bjørnsen, CFO, +47 917 02?097

About Nel ASA | www.nelhydrogen.com

Nel has a history tracing back to 1927 and is today a leading pure play hydrogen

technology company with a global presence. The company specializes in

electrolyser technology for production of renewable hydrogen, and hydrogen

fueling equipment for road-going vehicles. Nel's product offerings are key

enablers for a green hydrogen economy, making it possible to decarbonize various

industries such as transportation, refining, steel, and ammonia.

This information is subject to a duty of disclosure pursuant to Section 5-12 of

the Norwegian Securities Trading Act. This information was issued as inside

information pursuant to the EU Market Abuse Regulation, and was published by

Kjell Christian Bjørnsen, CFO, at NEL ASA on the date and time provided.