Nel ASA

Investor Presentation • Jul 18, 2023

Second quarter 2023 results presentation 18 July 2023

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 ASA's businesses, raw material prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and other factors.

Although Nel ASA believes that its expectations, estimates and projections are based upon reasonable assumptions, it can give no assurance that these will be achieved or that forecasted 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, or its subsidiaries' 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 second quarter 2023 presentation 18 July 2023. Information contained in this Presentation is subject to change without notice and 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.

Agenda 1. Nel in brief 2. Q2 2023 highlights 3. Commercial developments 4. Summary 5. Q&A

This is Nel

Leading pure play hydrogen technology company with a global presence, specializing in electrolyser technology and hydrogen fueling equipment

We unlock the potential of renewables and enable global decarbonization

NEL IN BRIEF

Leading pure play hydrogen technology company with a global footprint

2. Q2 2023 highlights

Financial results and financing

Revenues and income NOK 475 million

EBITDA NOK -138 million

Order intake NOK 428 million

Order backlog NOK 2 965 million

Cash balance NOK 4 122 million

Key developments in Q2 2023

• Completed US site selection process, selected Michigan for the next Gigafactory
• USD 24 million contract for 16 fueling stations in California, US

Subsequent events

• Granted an additional USD 5.6 million in funding from the U.S. Department of Defense (DoD) for accelerating advanced PEM electrolyser stack development
• EUR 9 million contract for alkaline stacks and balance of stacks to Hyd'Occ in France
• EUR 11 million contract for alkaline stacks to Bondalti in Portugal

Q2 2023

Financial highlights

NOK million	Q2 2023	Q2 2022	YTD 2023	YTD 2022
Revenue and income	475	183	834	396
EBITDA	-138	-197	-258	-350
EBITDA margin	-29%	-108%	-31%	-88%
EBIT	-194	-241	-368	-428
Pre-tax income (loss)	-345	-277	-539	-195
Net income (loss)	-342	-275	-535	-191
Net cash flow from operating activities	-306	-220	-334	-378
Cash balance at end of period	4 122	3 646

Segment Financials

Electrolyser division (NOK million)	Q2 2023	Q2 2022	Change	YTD'23	YTD'22	Change
Revenue and income	391	129	202%	669	289	132%
EBITDA	-47	-83		-81	-143
EBITDA margin	-12%	-64%		-12%	-49%
Order intake	229	184	25%	784	397	98%
Order backlog	2 472	1 102	124%

Fueling division (NOK million)	Q2 2023	Q2 2022	Change	YTD'23	YTD'22	Change
Revenue and income	84	54	56%	165	108	53%
EBITDA	-68	-82		-126	-142
EBITDA margin	-81%	-152%		-76%	-131%
Order intake	199	52	281%	223	122	83%
Order backlog	493	337	46%

• Revenues from alkaline electrolysers increased 383% y/y, PEM electrolysers increased 78%
• Profitability is improving, though further improvements are necessary. Introducing new technologies in larger, complex projects is challenging, but Nel aims to enhance efficiency and margins over time.
• Results continue to be negatively impacted by high warranty costs and increased utilization of stations on fixed rate service contracts
• The order backlog increase is driven by the 16-station contract in the US
• Nel, as well as the rest of the hydrogen fueling industry, is working to mature the technology and therefore investing heavily in service & maintenance and improved product robustness and reliability. Nel will continue to incur high costs related to these activities going forward

Order intake and backlog

• Fueling: NOK 199 million up 281% y/y

LTM order intake: NOK 2 764million up 157% YoY

Order intake expected to vary between quarters as order sizes have increased

Order intake Order backlog

• Electrolyser: NOK 2 472 million up 124% y/y

• Fueling: NOK 493 million up 46% y/y

The order backlog is subject to risks such as delays and/or cancellations

3. Commercial developments

COMMERCIAL DEVELOPMENTS

(up to 4 GW). No FID yet

Capacity expansion plans in progress

COMMERCIAL DEVELOPMENTS

Record size fueling contract signed

• Client: Undisclosed US energy company
• Size: 16 fueling modules
• Value: USD 24 million, including the already announced USD 7 million capacity reservation fee
• Fueling stations to be deployed in California, US
• Improved risk profile and expected to have a positive financial impact
• Aligned with the new strategy to focus on large committed clients in some selected regions
• Estimated delivery starting Q4'23

Two containerized PEM solutions (M-series) sold

• Total order intake in Q2'23 more than USD 7 million from these two contracts
• Demand for smaller units appears to pick up especially in the US
• Full scope electrolyser setup
  • modular concept
  • quick to market
  • easy installation
• Comes in two sizes, MC-250 (single PEM stack), and a MC-500 (two PEM stacks)

Contract for 20 MW of electrolyser equipment in France

• Client: Hyd'Occ
• Size: 20 MW
• Value: EUR 9 million
• The French renewable energy producer, Qair, is the main shareholder. The local government, is also an owner
• Will supply renewable hydrogen to local industry and transportation in southern France
• This is a firm purchase order for alkaline stacks and balance of stacks. The stacks are planned to be delivered to the client around year-end 2023

COMMERCIAL DEVELOPMENTS - SUBSEQUENT

Contract for 40 MW of electrolyser equipment in Portugal

• Client: Bondalti

• Size: 40 MW
• Value: EUR 11 million
• Bondalti is the largest company in the Portuguese chemical industry
• The electrolyser will cater for the client's own hydrogen demand for chemical processes, as well as long-haul transportation and gas grid injection
• The facility is aimed to commence production in the beginning of 2026
• Wood has been contracted for the FEED study related to the project

Receives additional funding for accelerating advanced PEM electrolyser stack development

• Funding from: US DoD, ERDC-CERL

• Amount: USD 5.6 million
• Aim to accelerate PEM electrolyser development to reduce operating and capital costs
• More than USD 11 million received in grants for this project
• Activities include:
  • Development of membranes
  • High volume manufacturing and recycling methods
  • Reduction of precious metals
  • Cell stack integration and testing at ERDC-CERL

Continuing to take industry leadership positions

Promoting the critical role of renewable hydrogen to deliver the EU's long-term decarbonisation goals

• Olivia Breese, CEO Power-2-X Ørsted, will take the position as Chair, and Håkon Volldal, CEO of Nel, as Vice-Chair
• While progress has been made in establishing a predictable European legislative framework, achieving a level playing field on par with the US and China is crucial
• The coalition is driving the development of a regulatory framework that effectively nurtures European interests, secures funding for pioneering projects, and mitigates earlystage risks

SUMMARY AND OUTLOOK

Larger projects take longer time to mature

• Smaller products are becoming more standardised and faster to market
• Large-scale projects have higher complexity
  • Infrastructure
  • Technology mix
  • Off-take agreements
  • Financing/funding
• Increased overall risk for the project developer as well as the technology provider
• Timelines are affected as project developers are diligently working to increase project quality

SUMMARY AND OUTLOOK

Well positioned for large-scale market leadership

With increased size, complexity and risk, the need for competence and experience increases accordingly

Nel's value proposition:

• Unrivalled track record
  • Decades of experience
  • Large installed base
• Technology leadership
  • Multiple technology platforms
  • Proven solutions
• Cost and scale leadership
  • Front-runner in cost reductions
  • Market leading production capabilities

Second quarter 2023 summary

Significant revenue growth and positive margin development

Record size fueling contract signed during the quarter, electrolyser order intake up 25% y/y

Line two at Herøya on track → 1 GW Wallingford expansion on track → 500 MW Concluded on Michigan for the US Gigafactory

number one by nature