Nel ASA

Investor Presentation • Feb 18, 2021

Q4 2020

Jon André Løkke, CEO 18 February, 2021

Forward-looking information

This Presentation includes and is based, inter alia, on forward-looking information and statements relating to the business, financial performance and results of Nel ASA and/or industry and markets in which it operates that are subject to risks and uncertainties that could cause actual results to differ materially from the statements expressed or implied in this Presentation by such forward-looking statements. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Nel ASA and Nel ASA's (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" , "aims", "anticipates", "intends", "plans", "projects", "targets" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Nel's businesses, raw material prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation.

Although Nel ASA believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation, and you are cautioned not to place any undue reliance on any forward-looking statements. Nel ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Nel ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use of this Presentation. This presentation was prepared in connection with the Nel ASA fourth quarter 2020 presentation 18 February 2021. Information contained in this Presentation will not be updated. This Presentation should be read and considered in connection with the information given orally during the presentation. The Nel ASA shares have not been registered under the U.S. Securities Act of 1933, as amended (the "Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act. The global Covid-19 pandemic is expected to continue to cause disruptions in Nel ASA's operations and financials in the near- and medium-term. Production, order intake, customer dialogue, installations, commissioning and associated revenue recognition have all been impacted by "stay home" policies and the general business slowdown.

Agenda 1. Q4 highlights

• 1. Financial review
• 1. Nel in brief
• 1. Key technology developments
• 1. Other developments of the quarter
• 1. ESG
• 1. Summary/Outlook
• 1. Q&A

Highlights Q4 2020

Financial results and financing Operations and sales

Revenues

NOK 229.1 million Up 30% from NOK 175.9 million in Q4 2019

EBITDA NOK -96.2 million Decreased from Q4 2019

Order backlog NOK 981.1 million Up >90% compared to Q4 2019

Cash balance

NOK >2.3 billion

Supports Nel's leading position and accelerated investments in organization and technology

• PO for 1 H2StationTM by Everfuel, value EUR 1.6 million
• PO for 2 H2StationTM units by ZE PAK, value EUR 3.2 million
• PO for 1.25 MW PEM electrolyser, value USD 2 million
• PO for PEM electroylser cell stacks to U.S. Navy, value 5.4 million
• PO for 1.5 MW PEM electrolyser US client, value USD 2.7 million
• LoI with Statkraft for a green hydrogen project of up to 50 MW
• MoU with Iberdrola to develop large scale green hydrogen project in Spain
• Signs MoU with Everfuel for further development of H2 Fuel Norway
• Awarded 20 MW electrolyser contract by Everfuel

Subsequent events

• Awarded 20 MW electrolyser plant contract by Iberdrola
• Launches 1.5 USD/kg target for green renewable hydrogen to outcompete fossil alternatives

Financial review TWO

Year-end/Q4 EBITDA

• Nel is no longer reporting adjusted EBITDA separately, will be part of overall explanation
• Incl. provision for possible NOK 20 million fine in connection with Kjørbo, notice received February 16th
• EBITDA negatively impacted by preparations and investments for the future
• Projects are getting larger; we continue to recruit to be able to deliver on what is coming
• Across the entire organization, in particular within project execution
• Ramp-up of Herøya organization in connection with the expansion
• Projects often include new geography, customer segments, technological components, and/or products leading to additional costs and risk
• Financial results also negatively impacted by overall Covid-19 situation, including Q4 provisions for future cost, like:
• Hiring external resources to compensate for Nel-employees not being able to travel
• Additional hours spent on different projects due to restrictions and limitations
• Covid-19 is expected to continue to cause disruptions, e.g. within customer dialogue, installations, and commissioning, etc.

Financial highlights

(NOK million)	2020 Q4	2019 Q4	2020	2019	2018
Operating revenue	229.1	175.9	651.9	569.7	489.0
Total operating expenses	368.4	238.3	1,066.4	823.3	685.1
EBITDA*	-96.2	-41.7	-251.5	-178.1	-131.6
EBIT*	-139.3	-62.4	-414.5	-253.6	-196.1
Pre-tax income (loss)**	1,285.1	-95.1	1,245.5	-277.2	-197.5
Net income (loss)**	1,295.4	-93.2	1,261.9	-269.7	-188.8
Net cash flow from operating activities	-93.9	-61.6	-215.9	-199.7	-142.8
Cash balance at end of period	2,332.9	526.0	2,332.9	526.0	349.7

The effect of the intangible asset impairments and amortisations of received grants has negatively impacted operating loss by NOK -19.4 million and positively impacted EBITDA by NOK 1.1 million, respectively, in Q4 2020. Expenses and results negatively impacted by NOK 20.0 million provision for Kjørbo fines (no: forelegg), notice received February 16th 2021 *

Q4 2020 includes a negative fair value adjustment of the shareholding in Nikola Corporation of NOK -70.8 million (a value of USD 15.26 per share as of December 31, 2020). The fair value adjustment was NOK 1.8 million in the fourth quarter 2019. A USD 10 increase/reduction in the share price of Nikola Corporation will lead to gains/losses of about NOK 100 million with a USD/NOK of 9.0. **

Q4 2020 includes a positive fair value adjustment of the shareholding in Everfuel of NOK 1 531.8 million (a value of NOK 125.00 per share as of December 31, 2020). The fair value adjustment was NOK 0.0 in the fourth quarter 2019. The Everfuel shares are subject to a lock-up expiring on October 29, 2021. A NOK 10 increase/reduction in share price of Everfuel will lead to gains/losses of about NOK 120 million

FINANCIAL REVIEW

Solid backlog

Order backlog by quarter NOK million

Solid order backlog

• Backlog increased sequentially by ~4.5% in Q4'20 – quarterly fluctuations to be expected

• 90% growth YoY

• Strong pipeline across segments and industries

Nel in brief THREE

NEL IN BRIEF

Leading pure play hydrogen technology company with a global footprint

Pure play hydrogen technology company listed on Oslo Stock Exchange (NEL.OSE)

Manufacturing facilities in Norway, Denmark, and U.S., and a global sales network

World's largest electrolyser manufacturer, with >3,500 units delivered in 80+ countries since 1927

Leading manufacturer of hydrogen fueling stations, with 110+ H2StationTM solutions delivered/in progress to 13 countries

NEL IN BRIEF

The front runner within hydrogen technologies

Alkaline and PEM electrolysers Compact hydrogen fueling station

Converting water and electricity to hydrogen and oxygen – for industry, mobility, and energy purposes

World's most compact fueling stations, capable of fueling any kind of vehicle and simple to integrate with other fuels

NEL IN BRIEF

Strong field know-how and manufacturing capacity

PEM electrolysers

Wallingford, USA

Systems delivered: 2,700+ Production capacity: >50 MW/year History: 23 years

Alkaline electrolysers Notodden/Herøya, Norway

Systems delivered: 800+ Production capacity: 40 MW/year 500 MW/year (~2 GW/year) History: 90 years

Hydrogen refueling stations

Herning, Denmark

Stations delivered: 110+ Production capacity: 300 HRS/year History: 16 years

FOUR

Key technology developments

KEY TECHNOLOGY DEVELOPMENTS

Scaling up for future large-capacity opportunities

5x

• 5 times scale-up of advanced, patented electrolyser cell stack design
• 1.25 MW input power
• Capacity to make more than 500 kg H2 per day
• Based on Nel's unique competence and experience to design and manufacture durable cell stack products
• Size is maximized on current supplier capabilities

KEY TECHNOLOGY DEVELOPMENTS

MC250 and MC500 – new containerized large-scale PEM electrolysers

Nel Hydrogen Electrolyser launched two new containerized large-scale PEM electrolysers

• Automated MW-class on-site hydrogen generators
• Utilizes a modular containerized design for ease of installation and integration
• MC250 and MC500 will be delivered as standard 1.25 and 2.5 MW (246 and 492 Nm3/h) configurations respectively
• Integrating Nel's newly developed 1.25 MW PEM cell-stack, allowing for higher capacities per unit and lower costs
• MC 250 & 500 = 1 & 2 stacks respectively

• MC 200 & 400 = 4 & 8 stacks respectively

Vs.

New PEM electrolyser launched including new stack

Large-scale PEM

1.5 \$/kg

Nel green hydrogen cost target by 2025

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

Based on large scale (>100 MW) alkaline electrolysers delivered from new fully automated production line concept

ELECTRODE PRODUCTION AT HERØYA

Capacity expansion at Herøya

Fully automated and designed according to lean manufacturing and industry 4.0 principles

Industrial scale production of most efficient electrolysers in the market, at a game-changing cost

Large scale production line improvements identified, name plate capacity up from ~360 to ~500 MW

Room to expand to ~2 GW annually

CO2 reduction potential in line 1 (pilot) of 1.000,000 ton – with 2 GW, 4-5 million ton

Test production in new line Q2'21, start of ramp-up Q3'21

Production line 1 – fully automated

FIVE

Other key developments of the quarter

Close cooperation: Everfuel and Nel

Purchase order for hydrogen fueling station for buses

• Value in excess of around EUR 1.6 million
• Latest generation H2Station™ module to be used for fueling of buses in the Netherlands
• To be installed during 2021

Agreement to further development H2 Fuel Norway

• Strategy to build, own and operate hydrogen fueling stations in Norway

Awarded EUR 7.2 million contract

• 20 MW electrolyser contract for the green hydrogen production facility adjacent to the Fredericia refinery in Denmark.

Solid Everfuel development following IPO

Strong Everfuel development on Euronext Growth

• Everfuel A/S, a Nel minority owned company listed on Euronext Growth October 29
• Raised NOK 290 million in conjunction with the listing
• Nel participated with NOK ~9 million, leading to an ownership share of ~17%
• Frame agreement of EUR 100 million between Everfuel and Nel
• Everfuel raised NOK 600 million in January 2021

First H2StationTM order in Poland

Purchase order for two H2StationTM solutions for cars and buses

• Value of around EUR 3.2 million
• Latest generation H2Station™ module to be used for fueling of cars and buses in Poland
• To be installed during 2021

Purchase order for a 1.25 MW PEM electrolyser from NREL (MC 250)

Containerized 1.25 MW Proton PEM® electrolyser National Renewable Energy Laboratory (NREL)

• For installation in the ARIES research initiative at the NREL campus in Boulder, CO
• Collaboration by providing an advanced and flexible electrolyser platform for integrated energy system research
• Value of around USD 2 million
• Scheduled to be delivered in 2021

Purchase order for a 1.5 MW PEM electrolyser in the US (M 300)

Source: PEM M-series electrolyser from Nel

Containerized 1.5 MW Proton PEM® electrolyser from a large industrial client in the US

• Value of around USD 2.7 million
• Scheduled to be installed during 2021

PEM electrolyser cell stacks to submarines >USD 10 million in 2020

Purchase order for cell stacks for oxygen production

• Nel Hydrogen received purchase order for PEM electrolyser cell stacks from United Technologies' Collins Aerospace Division
• USD ~5 million contract value
• Will produce critical life support oxygen for U.S. and U.K. Navy crews on multiple classes of nuclear-powered submarines
• Delivered under an exclusive contract
• Part of an on-going production contract
• Continues Nel's history of supplying PEM electrolyser stacks for Navy submarines for over a decade
• Purchase orders in 2020 with a combined value of USD >10 million

Signed letter of intent (LoI) with Statkraft for green hydrogen project in Norway

Up to 50 MW electrolysis to support fossil free recycling steel production

• Statkraft, the largest renewable energy company in Europe partnered up with Celsa Armeringsstål (Celsa), a leading steel producer
• Facility in Mo i Rana which produces reinforced steel from recycling of scrap metal
• Current production: 700,000 tons/year (equal to two Eiffel towers per week)
• By exchanging natural gas with hydrogen, CO2-emissions can be reduced by >60%
• Nel and Statkraft has entered into a LoI for 40 – 50 MW of electrolyser capacity

Signed an agreement with Iberdrola for a 20 MW green fertilizer project in Spain

To deliver 20 MW PEM electrolyser solution to Iberdrola

• Iberdrola, one of the largest electricity utilities in the world, has together with world-leading fertilizer manufacturer Fertiberia launched a project to establish the largest green hydrogen plant in Europe
• Project includes 100 MW photovoltaic plant, a 20 MWh battery and a 20 MW electrolyser
• Will use hydrogen to produce green fertilizer commencing in 2021

SIX

ESG & 2021 priorities

Sustainability at the core ESG

VISION

Empowering generations with clean energy forever

ESG report 2020 In accordance with GRI Standards, supplemented by considerations found in TCFD and Euronext, focusing on four of UN's SDG

Setting the stage for sustainability reporting

NOW

Positive outlook for Nel's integration of sustainability

EU Taxonomy

• New EU classification system for sustainable activities enabling scale up of sustainable investments
• To be used for certifications and funding
• Nel's business activities are covered by the EU Taxonomy positive outlook for achieving compliance
• Important enabler for accessing funding for customer's projects

SUMMARY & OUTLOOK

Significant 2021 investments to accommodate scalable multi-billion NOK revenue capacity

Accelerating investments in organization, technology, and partnerships to maintain leading position in a growing market

Continuing development investments in alkaline and PEM technologies, as well as technologies to support fast and reliable hydrogen fueling for heavy duty applications

Key markets show strong momentum with ever-larger projects. Nel needs to be a financially strong counterpart to meet its delivery and performance commitments as a much larger entity

Building scalable capacity to accommodate to multi-billion NOK revenue capacity and investing to maintain leading position

Will add more capacity as required by the market

Ramp up resulting in significantly negative EBITDA in 2021

technology development projects in 2021

Deploying ~25% of capital raised in 2020 in plant, equipment, and

>100 new employees in 2021

Summary SEVEN

______ Sports Towel

SUMMARY & OUTLOOK

2025: the global leader within hydrogen technologies

Thanks for the ride, dinosaurs. We'll take it from here!

Q&A EIGHT

number one by nature