Nel ASA

Investor Presentation • Feb 28, 2023

Fourth quarter 2022 results presentation

28 February 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 fourth quarter 2022 presentation 28 February 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. The global Covid-19 pandemic is expected to continue to cause disruptions in Nel ASA's operations and financials in the near- and mediumterm. Production, order intake, customer dialogue, installations, commissioning and associated revenue recognition have all been impacted by "stay home" policies.

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

THIS IS NEL

Leading pure play hydrogen technology company with a global footprint

2. Q4 2022 highlights

Financial results and financing

Revenues NOK 414 million

EBITDA NOK -216 million

Order intake NOK 982 million

Order backlog NOK 2 613 million

Cash balance NOK 3 139 million

Key developments in Q4 2022

• NOK ~600m purchase order from Woodside Energy for a project in Oklahoma, US
• NOK ~120m purchase order from Statkraft
• USD ~7m capacity reservation agreement from a US energy company for 16 hydrogen fueling stations
• Joint Development Agreement with General Motors for PEM stack development
• USD ~6m in funding from US Department of Defence for accelerating advanced PEM electrolyser stack development

Subsequent events

• NOK ~125m purchase order from HyCC for a project in Netherlands
• Investment decision to automate and expand PEM production capacity to 500 MW

Financial highlights

NOK million	Q4 2022	Q4 2021	FY 2022	FY 2021	y/y Change
Revenue and operating income	414 1)	248	994	798	25%
EBITDA	-216 1)	-168	-780	-475	-64%
EBIT	-591 1),2)	-197	-1 279	-583	-119%
Pre-tax income (loss)	-731 1),2),3)	-281	-1 187	-1 684	30%
Net income (loss)	-721 1),2),3)	-269	-1 171	-1 667	30%
Net cash flow from operating activities	-194	-102	-691	-449	-54%
Cash balance at end of period	3 139	2 723	3 139	2 723	15%

1) Includes a NOK 20 million warranty in Fueling related to compensation from supplier for replacement of equipment

2) Includes impairment of Goodwill of NOK 296 million of the fueling division, and impairment of other technology (intangible assets) in Fueling of NOK 31 million

3) Includes a net fair value adjustment of financial instruments of NOK -108 million and currency exchange loss of -63 million

Segment Financials

Electrolyser division (NOK million)	Q4 2022	Q4 2021	Change	FY 2022	FY 2021	Change
Revenue and operating income	311	178	75%	748	466	61%
EBITDA	-66	-70	6%	-304	-210	-45%
Order intake	902	338	167%	1 978	763	159%
Order backlog	2 224	937	137%

Fueling division (NOK million)	Q4 2022	Q4 2021	Change	FY 2022	FY 2021	Change
Revenue and operating income	103 1)	71	45%	245	332	-26%
EBITDA	-116 1)	-64	-81%	-352	-169	-108%
Order intake	81	80	0%	297	205	45%
Order backlog	388	293	32%

• Revenues up due to increased production and sales of alkaline electrolysers and catch-up on shipments of industrial PEM products
• Results negatively impacted by low-margin contracts signed in 2020/2021, inflationary pressure on previously non-hedged components, sub-optimal project execution, and increased personnel expenses
• Revenues and margins expected to improve when contracts signed in H2'2022 reach revenue recognition (from H2-23 and onwards)
• Quarterly revenues up due to catch-up on previously postponed deliveries
• Results negatively impacted by increased cost for stations under warranty and fixed rate service contracts due to increased utilisation
• 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 increased product robustness and reliability. Nel will continue to incur high costs related to these activities going forward

Q4 2022

Order intake and backlog

• Fueling: NOK 81 million flat y/y

Full year 2022 order intake: NOK 2 275 million up 135% y/y

Order intake expected to vary between quarters as order size increases

Order intake Order backlog

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

3. Commercial developments

Woodside Energy H2OK project, Nel's largest contract so far

• Client: Woodside Energy • Value: NOK ~600 million

• Woodside Energy is a global energy company headquartered in Australia
• The electrolyser will be used for liquid hydrogen production in Oklahoma, US, for major transport companies
• The contract includes stack, BoS, and engineering and is expected to have a substantial positive impact on Nel's financials

12

40 MW order from Statkraft paving the way for green hydrogen in Norway

• Client: Statkraft

• Value: NOK ~120 million
• Size: 40 MW
• Statkraft is Europe's largest producer of renewable energy
• The electrolyser equipment will be used to produce green hydrogen in one of Statkraft's many hydrogen projects
• Statkraft's ambition is to have a production capacity of 2 GW renewable hydrogen by 2030

Capacity reservation agreement for 16 fueling stations from a US energy company

• Client: Undisclosed US-based

• Value: USD ~7 million
• Nel has reserved capacity and started sourcing long-lead items
• The manufacturing of the equipment will commence when a final PO is signed
• A final purchase order (including the CRA fee) is estimated to be worth USD ~17m

Signed a joint development agreement with GM to accelerate PEM development

• General Motors has invested substantially in fuel cell technology
• Combining GM's and Nel's knowledge the two companies are looking to reduce the cost and increase the efficiency of Nel's PEM electrolysers
• Cheaper and better electrolysers will in turn make it cheaper to fuel GM's hydrogen vehicles

COMMERCIAL DEVELOPMENTS - SUBSEQUENT

40 MW purchase order from HyCC for production of Sustainable Aviation Fuel (SAF)

• Client: HyCC

• Value: NOK ~125 million
• Size: 40 MW
• HyCC is a Netherlands-based company specialising in hydrogen production
• The client has received environmental permit for a project in Delfzijl and is working towards an FID in 2024
• Kraftanlagen Energies & Services has been contracted for the FEED study related to the project

COMMERCIAL DEVELOPMENTS - SUBSEQUENT

Signed a Letter of Intent with HH2E for potential 120 MW capacity in Germany

• Client: HH2E

• Size: 2x60 MW plants
• HH2E is a German hydrogen production company developing a portfolio of projects
• The LoI and related FEED is for two of Germany's largest electrolyser projects announced to date
• HH2E has an ambition of 4GW green hydrogen production capacity by 2030
• A final purchase order for electrolyser equipment intended in H1-23

COMMERCIAL DEVELOPMENTS - SUBSEQUENT

Capacity expansion progress

• Construction of Herøya Line 2 (~500 MW) is running according to plan
• Expansion of production capacity in Wallingford to be increased to ~500 MW by 2025 (Capex of NOK ~260 million)
• Site selection process for US Gigafactory in final phase
  • Three finalist sites across three states
  • Decision to be made shortly

4. Strategy update

STRATEGY UPDATE ELECTROLYSER

Electrolyser strategy

• The electrolyser industry is going from small- to large-scale
  • Several large-scale purchase orders placed
  • Policy support mechanisms in place to drive further growth

• Nel aims to capture 20-30% (excluding China) of the market by:

• Rapidly scaling manufacturing capacity in line with market demand
• Offering the best technology at a competitive and market enabling price
• Adapting its business model to create required execution focus

STRATEGY UPDATE ELECTROLYSER - BIGGER

Moving from small- to large-scale

Market shifting from small to large-scale projects Capacity to be scaled in line with demand

Beat competition on knowledge and cooperation

Unrivalled track record with almost 100 years of electrolyser experience

The deepest hydrogen competence in the industry

Collaboration with customers and partners that make Nel better

Offer the best technology with lowest cost of production (LCOH)

Continue to invest in AWE and PEM and develop the most efficient and reliable electrolyser technology Significantly reduce electrolyser stack cost

Focus on what we do best

STRATEGY UPDATE FUELING Fueling strategy

• Nel continues to see short-term challenges in its Fueling division
  • Unfocused market approach has led to high organizational and operational complexity driving cost
  • Immature and non-standardized technology has resulted in high quality costs, which increase with higher station utilization

• However, the market potential for heavy-duty fueling is high

• Global efforts to decarbonize the transport sector increases demand for high-capacity hydrogen fueling stations
• Some of the largest energy companies in the world, which are Nel customers, have made long-term commitments to developing this infrastructure
• Nel will capitalize on a highly experienced workforce and market-leading fueling technology by
  • Reducing complexity and transitioning towards standardized highcapacity products
  • Assessing strategic partnerships and alternatives to improve the business case

STRATEGY UPDATE FUELING

Hydrogen fueling market is moving towards high-capacity solutions

• Demand for high-capacity fueling stations for heavy duty vehicles is expected to grow and become the largest market segment
• Nel will focus on developing the best product offering in this segment

Annual installations 2022-2025

STRATEGY UPDATE FUELING

Reducing complexity and transitioning towards standardized high-capacity products

From.. To.. Market focus • Low & medium capacity vehicles • Customized deliveries to wide range of clients

Design and Technology focus

• Broad product range
• All in-house, including pressure compression 50-1 000 bar

Manufacturing focus

• High capacity & trailer filling solutions
• Standard products to selected high volume clients
• Single product platform
• Core technologies in-house
  • High pressure compression 300-1 000 bar
  • Control
  • Cooling
• Other components developed externally
• Component assembly Module based assembly

SUMMARY

Fourth quarter 2022 summary

20-30% market share ambition for electrolysers

Joint Development Agreement with GM to accelerate PEM development

Strategic shift in Fueling division to reduce complexity and improve profitability

Record high order intake and backlog, including the largest contract so far

Line two at Herøya on track → 1 GW Wallingford expansion decided → 500 MW

CRA for 16 Fueling stations in the US

number one by nature