Nel Asa · OSL:NEL
Nel Asa — Investor Presentation (January 2020)
40 slides from Nel Asa's investor presentation, January 2020
Slide 1: Nel ASA Company presentation January 2020
Nel ASA Company presentation January 2020
Slide 2: Disclaimer
Disclaimer This Presentation has been produced by Nel ASA (the “Company” or “Nel”) in connection with a potential private placement and may not be reproduced or redistributed, in whole or in part, to any other person. This presentation is strictly confidential, has not been reviewed or registered wi
Slide 3: Nel in brief
Nel in brief BUSINESS OVERVIEW REVENUE SPLIT 2018 BY SEGMENT • Global pure-play OSE listed hydrogen company, w/facilities in Norway, Denmark and US • More than 3,500 hydrogen solutions delivered in 80+ countries worldwide since 1927 • A leading company within hydrogen electrolysers and fueling – str
Slide 4: Transaction and Nel update
nel: Transaction and Nel update
Slide 5: Continued strong trends experienced in the hydrogen market
Continued strong trends experienced in the hydrogen market… 1 Hydrogen as the Hyundai reveals Heavy-Duty Truck Selected announcements: STRONG preferred future fuel concepts – plan to deliver 1,600 MOMENTUM alternative – facilitates trucks to Switzerland WITHIN true zero emission Anglo American/Engie
Slide 6: Fast-growing interest in green hydrogen from large industry and energy companies
…with fast-growing interest in green hydrogen – strong attention from several of the world’s largest industry- and energy companies • Large industry- and energy companies have engaged in Industrial gas companies positioning green hydrogen projects recently within the hydrogen segment Recent investme
Slide 7: Nel is one of the leading players within green hydrogen
Nel is today one of the leading players within green hydrogen as a manufacturer of electrolysers and hydrogen refueling stations Nel will increase use of resources related to the electrolyser manufacturing Nel is today the world’s largest manufacturer of both alkaline and expansion project to realis
Slide 8: Nel will accelerate investments in technology and organization
To maintain and strengthen its position in a growing market, Nel will accelerate investments in technology and organization Increase investment in • Development of pressurized electrolysers continues, both for alkaline and PEM, with need for technology development, both continued innovation alongsid
Slide 9: Increasingly important to be a financially strong counterpart
Increasingly important to be a financially strong counterpart, especially for larger contracts • Nel is experiencing increased number of inquiries for larger scale projects • For larger projects a strong balance sheet and financial position is important to show ability to satisfy contractual obligat
Slide 10: The contemplated transaction
The contemplated transaction KEY TRANSACTION DETAILS USE OF PROCEEDS CONTEMPLATED • Private placement • Maintain and strengthen market position through accelerated investments in technology TRANSACTION and organization to take advantage of the attractive market opportunities • Up to 89,000,000 new •
Slide 11: Trading update
Trading update TRADING UPDATE Sales Q4 sales slightly higher than Q3 Q4 EBITDA (reported) is negatively impacted by significant ramp-up costs and other non-recurring costs as a result of EBITDA (reported) increased activity. Including year-end closing judgements and evaluation of various projects, E
Slide 12: Recent Nel announcements, Q4 2019
Recent Nel announcements, Q4 2019 27 DECEMBER 2019 • Purchase order from Everfuel Europe A/S for the delivery of a H2Station® fueling solution for a fleet of taxis in Copenhagen, PURCHASE ORDER Denmark 20 DECEMBER 2019 • Purchase order for the delivery of two H2Station® units for fueling of vehicles
Slide 13: A unique opportunity in the hydrogen space
A unique opportunity in the hydrogen space
Slide 14: Nel - a unique opportunity in the hydrogen space
Nel - a unique opportunity in the hydrogen space 1 Hydrogen – a large market opportunity Hydrogen market is set to grow by 10x by 2050, today electrolysis represents only ~1% of the market Hydrogen from renewables becoming competitive 2 Large cost reductions for renewable energy combined with fallin
Slide 15: Large opportunities for electrolysis within existing hydrogen market
Large opportunities for electrolysis within existing hydrogen 1 market – only 1% from water electrolysis today Global hydrogen market, by end-use1): Large potential for growth, driven by increasing focus on climate and renewable energy, decreasing electricity prices and decreasing electrolyser capex
Slide 16: Hydrogen demand is changing longer-term
Hydrogen demand is changing longer-term, transportation and 1 industry to be largest demand sources in the future Global energy demand supplied with Hydrogen (mill tons)1) • Hydrogen market continues to develop, both within industrial applications as well as within transportation 545 CAGR CAGR and p
Slide 17: Hydrogen is expanding its areas of application
1 Hydrogen is expanding its areas of application CONVENTIONAL INDUSTRY MOBILITY POWER-TO-X Food Glass Polysilicon Laboratories Chemical Industry Industry Industry Industry Mobility Power-To-X (transportation) (renewable hydrogen) Thermal Chemical vapor Steel Power Industry Life processing deposition
Slide 18: Growth expected to be accelerated by transportation
Growth expected to be accelerated by transportation – hydrogen is 1 becoming relevant in all forms of mobility Hydrogen as the preferred future fuel alternative: PASSENGER CAR FASTFERRY − True zero emission from production to use TRAIN − Can beat fossil fuel applications on a TCO-basis − Low weight
Slide 19: Freight activity / heavy duty transport projected to double by 2050
1 Freight activity / heavy duty transport projected to double by 2050 40 • Heavy duty vehicles responsible for 47% of CO2 emissions from land based mobility 30 Freight activity (trillion metric ton-km) and ~8% of total global CO2-emissions • Freight activity (ton-km) projected to 20 double by 2050 •
Slide 20: Power-To-X to drive additional growth
Power-To-X to drive additional growth – decreasing cost of 1 renewable hydrogen (and oxygen) is opening up new business areas Hydrogen as a big decarbonizing vector in industry METHANOL AMMONIA REFINERY • Wide variety of existing and new markets where electrolysis can play a major role – Exchanging
Slide 21: Cost of wind and solar has dropped; renewable hydrogen following
Cost of wind and solar has dropped by 70% and 89% respectively 2 during last decade – renewable hydrogen following the same path Wind and solar on a trajectory to become the cheapest sources for electricity generation Global average wind (onshore) LCOE Global average solar PV LCOE • With falling LCO
Slide 22: Hydrogen technology is behind solar and wind on the maturity curve
Hydrogen technology is behind solar and wind on the maturity 2 curve, but catching up – key technology going forward to be decided • Hydrogen industry (electrolysis and fueling stations) can become as large as we currently see within wind and solar, however, maturity SOLAR WIND (market/technology) i
Slide 23: New report from Hydrogen Council on cost reductions
New report from Hydrogen Council: Acceleration of scale up to 2 drive great cost reductions in the coming decade • New report, Path to Hydrogen Competitiveness: A Cost Perspective, from Hydrogen Council issued 20 January 2020 • Evaluates path to cost competitiveness for 40 hydrogen technologies used
Slide 24: Growth in renewable hydrogen will accelerate with reduced capex for electrolysers
Growth in renewable hydrogen will accelerate with reduced capex 2 for electrolysers.... Capex of hydrogen production ($/kW) of SMR vs Nel alkaline electrolysers • SMR – “steam methane reforming” is dominating hydrogen production today, using natural gas and $/kW steam 800 • Nel is establishing a new
Slide 25: Low renewable energy prices make green hydrogen increasingly competitive
…and low prices for renewable energy makes green hydrogen 2 increasingly competitive with gasoline/diesel and fossil hydrogen Low cost renewable electricity enables fossil parity for hydrogen - expect price to decrease further going forward $60 • Opex accounts for ~75% while capex represents $54 ~25
Slide 26: Nel among the global market leaders within electrolysers
3 Nel among the global market leaders within electrolysers • Nel is the largest manufacturer of Electrolyser manufacturers 2018 revenues, USD million electrolysers globally • Nel has an unmatched track record with 36,7 more than 3,500 hydrogen solutions delivered in ~80 countries world wide since 19
Slide 27: PEM and Alkaline electrolysers from Nel
4 PEM and Alkaline electrolysers from Nel • Alkaline electrolysers since 1927 and PEM electrolysers since 1996 • Scalable design from < 1 to >8.000 kg/day production capacity – able to deliver 100+ MW systems • Designed for high volume manufacturing to achieve large scale plants with fossil price pa
Slide 28: Summary
5 Summary Strong momentum within mobility – The hydrogen market is expected to Increasing adoption of industrial especially within HDV. Hydrogen as grow significantly and renewable hydrogen applications with huge the preferred future fuel alternative hydrogen is on a trajectory to overall potential
Slide 29: Going from small to large scale manufacturing
Going from small to large scale manufacturing
Slide 30: Secured location for alkaline electrolyser manufacturing at Herøya, Norway
Secured location for low-cost alkaline electrolyser manufacturing at Herøya, Norway Alkaline electrolyser manufacturing plant with possibility to grow beyond 1 GW/year The new manufacturing facilities are located in Herøya Industrial Park, in a 15,000m2 building in one of the largest industry parks
Slide 31: Hydrogen fueling station from Nel – the H2Station
Hydrogen fueling station from Nel – the H2Station® • Most compact hydrogen station in the market with a footprint of < 10m2 • Proprietary and high capacity compression and cooling technology • Advanced control system for safe, fast and complete fueling in accordance with the latest version of SAE J2
Slide 32: Large-scale H2Station production facility in Denmark
Large-scale H2Station® production facility in Denmark Annual nameplate production capacity of up to 300 H2Stations • First production line in the world for hydrogen stations • Serial production according to lean principles represents significant improvements in existing production efficiency • Hydro
Slide 33: Key risks to the Nel investment case
Key risks to the Nel investment case
Slide 34: Key risks to the Nel investment case (1 of 2)
Key risks to the Nel investment case (1 of 2) Nel cannot know for certain whether hydrogen will become a major energy carrier, or whether renewable energy will be a large source of hydrogen production for industrial purposes in the future There is still uncertainty regarding which electrolyser techn
Slide 35: Key risks to the Nel investment case (2 of 2)
Key risks to the Nel investment case (2 of 2) Nel’s ability to execute successfully on large commercial projects, projects may be located in various parts of the world and could incur significant cost overruns as well as delays Nikola and/or Nel’s ability to execute according to the framework contra
Slide 36: Appendix
nel: Appendix
Slide 37: Appendix: Profit and loss
Appendix: Profit and loss 2019 2018 2018 2017 (NOK million) Q3* Q3** Full year Full year*** Operating revenue 148.9 116.0 489.0 302.2 Total operating costs 197.3 182.2 685.1 419.4 EBITDA -28.9 -53.3 -131.6 -77.4 EBIT -48.4 -66.3 -196.1 -117.2 Pre-tax loss -34.3 -67.4 -197.5 -124.4 Net loss -32.4 -65
Slide 38: Appendix: Balance sheet
Appendix: Balance sheet 2019 2018 (NOK million) Q3 Year End Non-current assets 1,397.6 1,307.7 Current assets 1,096.3 636.7 -of which is cash and cash equivalents 651.0 349.7 Equity 1,951.3 1,579.0 Non-current liabilities 203.5 175.9 Current liabilities 339.1 189.5 Total balance 2,493.9 1,944.4 Equi
Slide 39: Appendix: Cash flow
Appendix: Cash flow 2019 2018 (NOK million) Q3 Full year Pre-tax loss -34.3 -197.5 Net cash from operations -31.0 -142.6 Net cash from investments -26.4 -143.5 Net cash from financing 10.7 340.8 Net change in cash and cash equivalents -46.7 54.7 Cash at end of period 651.0 349.7 39
Slide 40: number one by nature
nel: number one by nature