Good morning everyone.
Welcome to Nel's Third Quarter 2022 Results Presentation.
My name is Håkon Volldal, I'm the CEO.
With me today I have Kjell Christian Bjornsen, our CFO; and Wilhelm Flinder, our IR -- Head of IR.
We have put our purple ties on, it's time to go through the quarterly results.
agenda, you. brief, following for bit the of some have Nel a in boring We
for of interesting yet. Hopefully those with not Nel familiar you that are
we get the main highlights; developments; summary third important Then and events Q&A commercial into then session. outlook; cover we political quarter; will the some quarter the during and dive will to we the
around. We're doing this slightly different this time
[Operator Instructions].
footprint. energy optimal distribute the we Nel. dedicated doing hydrogen of renewable delivers Nel hydrogen hydrogen we that brief, and store is potential global Nel a our that. simple. solutions so enable is produce technology pure Okay, company to the global by mission We play and from with technology company are in global unlock decarburization and renewables, a
the Exchange. the installed since listed actually Stock roots our are been although electrolyzer. back We've to when We traced XXXX, on XXXX that first we Oslo
countries X,XXX more to We more the world, are with XX the electrolyzer in the units delivered manufacturer around than world. largest than
We gigawatt. of have one that XXX-megawatt alkaline expanding a currently to for production capacity
a PEM production XXX-megawatt. XXX to that have XX of expanding megawatt to capacity We
We units or countries in stations hydrogen the are around installed world. XX more than a also leading with manufacturer XXX fueling
in the facilities U.S. have at We and Denmark, large in Norway Herning. in manufacturing Herøya; Connecticut;
We sales have network. a global
We have close to XXX employees now.
preferred expansion growth. and and We we NOKX.X our fund have partner leaders a with industry of are to a cash billion reserve
is then topic the Next third highlights. quarter
order balance latest the include a factor million, now NOKXXX so million and main in billion. argue NOKX.X last of I million year. In by versus later that a is that U.S. up of minus well in down October. more corresponding third does increased scale backlog will intake our to year NOKX.X terms is at purchase were the NOKXXX the megawatts roughly going since still since the third in the first color in last at received almost of EBITDA million, some quarter cash quarter quarter the XXXX, on, a year. The alkaline versus financial than actually XX% came developments announced to and our at to Order XXX revenues picture NOKXXX we're last order Order add five the first with scale results, NOKXXX stacks €XX of we than quarter solid, bit alkaline more for stands a mixed stacks, billion not value a -- could that the large client million. of large -- in down is XX% doubled and
to small also and alkaline orders; We valued mid-sized €X one received system Denmark at for an million.
of NOL engineering for and electrolyzer funding Defense of in for the nice in U.S. also And Woodside stacks. Energy higher actually disclose one This we from on intake a and at stacks value by development is have in compared Based we received the to balance alkaline to backlog, of U.S. we our for decided the PEM rapid also services million. systems scale to line with million. to bringing capacity events order second signed so capacity at the and customer with early also closing received Norway this gigawatt, X add the systems large Then NOKXXX a one also some stations we in the a European valued total second after will one in XXXX. gigawatt fueling -- the -- contract at to expand X one €X the the advanced with of quarter. containerized Herøya, Australia, to order nice win two for had We client growth stacks contract accelerating We PEM Department We the our July.
take course, the after events will, of the fourth us with nice two was that quarter we in So quarter. third that
Now, scale a included contract, not and and that improve system, of comments numbers contracts couple from long you It's signed it's not we The some you a on is quite things. recognition the a we it's a bit. P&L. to And contract. there that times the off Because cardboard -- then at quite our large would shelf, something when project. when put in instance, a important were a for the electrolyzer we I based to expect clarify remind an it's take numbers, to period sign we the that like revenue ship look we we box in have signed,
that will will July, basically start the we on signed bulk in the signed XXXX, hit instance, NOKXXX one million of will come we October revenues to P&L the the in recognize For XXXX. -- in we in contract revenues the
revenue see what far expect, some lower might the And XXXX, quarter in you XXXX, we orders that as XXXX, this So, impact recognition you scale and lower, large come of was year, of the in the period on and XXXX. and will XXXX. topline because is so were this contracts in signed of have years. subsequent intake that a order the in in result also XXXX And
is XX%. So, down million NOKXXX
low whereas elaborate and will The main why in of on PEM for actually revenues is had fueling, why that is bit fueling. a revenues down is electrolyzer a stable within had terms electrolyzer little is quarter growing reason in a we alkaline We because are rapidly, decline.
in we it ahead to deliver to The expense the in in them time in So, to how I've going people, people. educate need OpEx, impact a to need on change of production hire the invest projects, fourth develop have not the takes need terms them, quarter to explained contracts P&L. We the we will capacity quarter. to need we But new of into fourth and It's get signings. not train little make invest either. to the big operational contracts bit sure best contract we to side front-load, R&D why on
you're win. OpEx, immediately, time to Unless takes hits recognition not of course, you to need we revenue and whereas going So, Nel front-load, front-load.
the order now grow to And is reason is a a funds period. to EBITDA negative. look the two Of get it. at this is financials, exactly fund between we But argue will differentiate But we company. could of reason this we And in of to the is help have order get is the revenue this sustainable? the order to the intake why will periods. And the solid that billion have the This we to balance in total to divisions. cash why for then us you is we're and through course, growth When improving coming backlog lot way of is look important important because also raised also profitability. and course not. think that there increase NOKX.X So, equity, I investing the thing; we
the We if of of lot at by we are lot increase spent growth a -- last look XX quarter year, the a so large growth so compared compared flat. that, sense. -- last had we to this in down. P&L. to year, alkaline haven't a hitting delivery revenues, PEM, on of previously, time a tremendous we Iberdrola of but a so makes had scale it's In Alkaline the large revenues Because it comparing this in actually quarter, electrolyzer, the this factor in orders to even actually without
some on supply the have issues industrial of products. also We chain
we're to from of despite not able So, components sales these factory certain our the customer. on very The electrolyzers, to PEM high is ship high. products the currently record lead-times
We right expect it but challenging. improve, to a bit it's now
the the side, Also are than up at electrolyzer are the there's year-to-date drying for I or gauge a that figures, So, XX% mean not doesn't PEM electrolyzers Revenues -- are up the how that things XX%. we're is chain better you It's on that fact on challenge. the market think down look if winning orders. more in supply PEM we for developing. a
of revenues contracts fact have the not are up any big P&L, taken we despite XX%. still So, the that to
have we to to today, hard and with execution it's as either, profitability, XXXX, it's was it different of on margin, taking impacted to by project The we fight and and were signed had been smaller contracts in XXXX not need XXXX, in structure. vibrant win at look had them a the not low you that contract, these are the delivering as market that dynamic fact margin that we learn. If some we a now we is negative fantastic
costs. some projects There's pass have these we these all of is learned anticipated pressure executed and all help inflationary cost, delivery also which learnings going So, on. the making to But forward. will and us been these we than on in model with are -- of course, with difficult project that the higher the improvements
to seen past. that to sign raw the it's metal adjust with now less you means start being when we that prices had mechanisms, increases, signed and different by a contracts, for increase, contracts we we So, we are in but structure to exposed a hit hard that. are In which material recent contract have
people, hired with a also I expenses no so We of personnel up. the increased lot go wonder expenses, operating said, as
a bit P&L take to improve to XXXX. will signed in when this we newly Revenues or So, and improve little margins are story on the is electrolyzers. and contracts expected the XXXX
as revenues, we the as increased and to OpEx much with we've So, side also we also done. on margins don't have get add better
come EBITDA. OpEx, impact So, this of as down share will and revenues, a positively will
fueling. is that So, versus we come shouldn't It and we surprise. down our fueling as course big down Then XX% the are have main are for electrolyzers. you in in outlook we are positive year reason a last of
of is We from issues quarters, it's line. also can supply revenue have figure, order chain see have issues reflection are that that on And delaying supply commented are weak been intake again, XX% chain as consequence the of Again, low. has intake this basically previous these we what And deliveries. the year-to-date quarters it's a some fact a previous on order vary that that, you the in month-to-month. in plus down
manufacture and stations market, hit fueling it's certain also only sales the continues overall been goes our fueling that you're of contribute that to not quarter, costs. have that but quality components, working has the low. to to results it's this way high negatively in products to that extremely all try think we fact We're that get shortcomings. the through for Also I companies by
have has of products; been installed an utilization base We low.
send to As and technicians also had quality to some the issues use consumers we've This service have drives components, out. stations tear. means we we wear more more course, higher on And which stations, to need expenses. personnel there's start the replace of
only profitability therefore why improve related, improve and not to we that with is admit particular products look third is this this and need the it's have the negative quarter, side. the lot in both performance are we of actions there we we intensifying dissatisfied are profitability, we fueling, is and internally. in order running to that's and story field NOKXXX to in measures we and very on with market fueling are And also a why other because see intake the positive side growth the the This almost to are improve in things of million, can And intake are on at we the also EBITDA growth So, profitability. high. more backlog a order investing,
win So, in is grow. the be we're look doing great. as will this And quarter, this of were far to above this backlog to intake, order This We're -- we And so P&L in quarter order -- course the if the contracts, million, you we the the and story. building will fourth also XXXX. XXXX is quarter why This order NOKXXX at it. continue fourth this year already come backlog. will more
the will performance the revenues, expect backlog, we that we scale give in then fuel section, and orders will on higher better large overtime. more also As comment outlook
with that the better and see think pleased developments. and So, intake we're revenues, we're into I not backlog extremely with win can years margins to in come. building in order contracts quite Nel a We the and order recent able scale orders we the but actually we to the figures P&L side, that is solid healthy on large competitive, backlog are only reasonable translate
important political business. of the to backdrop that understand Nel's Some are events
means typical abbreviation. Important which Common for IPCEI, all, of Interest, European Projects First EU
has with from fair decisions those investment funding across its to working share is has appointed The The these with that accelerate it's IPCEI customers to a decision. but we Nel are different were And be of timing support The EU potentially not of a to divestment likely second projects discussions lot projects. drive vary, Europe. directly, investment customers final course, forward. to projects will final XX EU the but EU, these from wave projects with of easier the will projects, make -- on project we in the receive going of
are might them EU still say things of a later unclear a lot will and it's rather of still on bit. expect the out pushed some the side, some even also little be work. positive how come Should bit that than So, mechanisms we happening sooner that will exactly though a
by framework, and also energy endo waiting are comes directive they definition what to have The in not clarifications hydrogen EU for at agenda, it of hydrogen, renewable in terms finalized lead And is want is important stressed but in put of and some which the project happened. developers XXXX. the is, bit the to both successful, energy We for the be regulatory be only to on They then the renewable moment. hydrogen for a high successful this hydrogen. when
its passed the Reduction the to tax -- frank, as has now in U.S. to $X the hydrogen kilogram quarter, credits. produced worried the breaks the possible, support get of due U.S. Biden this and tax is Act administration per lead Inflation to EU take previous be the said that taken So, And will lead. by we in the to up in
of So, the direct with orders Nel that if that Act, decisions energy the Energy client Inflation And the at commented Nel with placed largest accelerate the to you course, the implication our transition in U.S. is Woodside are U.S. I look both the And investment passage think drive been U.S.-based. and of to have their the two in this Reduction impacts the underway.
purchase improve is Nel. our So, easier with then helping clearly, decisions purchase make business the cases, also it's to IRA customers the and orders
So, clearly positive. this is
projects this, of the increasing high site As are we our accelerating quality number process. of selection consequence a
we in facility. then previously have Nel location. communicated in to And gigawatts find also need the establishing four we potential U.S., We want the the course, right to capacity of this support government
but see lot not a possible. of is can grants, so in is U.S. we in on So, giving keen Europe the grants. electrolyzers manufacturers Norway getting that are
grants from from in logistics of capacity to get site serve we trying U.S. the U.S. point suitable So, will for business also find market. to a of some but a point view, a view, booming the establishing
for and to We expect hydrogen already sizable Nel, going market have it the also U.S. to second home organization key and Nel's hub so global say. there. a be a could We be forward
capacity in production more we We U.S. but that development need expanding, the market, come. have U.S. are even to the the in capacity the we in given years
start came the the purchase and We with the in record area. and we come commercial our lot July developments large eventually received July. and on have Some comments to spoke Nel's a scale represented on the would size about then this start in order that it pipeline big projects
to but We order of megawatt purchase that XXX is a high a only. have patient, includes It's be this quality stacks project.
and research. potential internal all for contract a Nel that? different had This want very was was concluded we solution, quick there the also or increase said, means process in do they add This And to And signed time stack to client be So, through we it's a fairly might at be actually the contract announcements, on This balance over sometimes will and And called cannot to have sign the be than sizes then directly when Nel. client confused the positive order on you. limited stacks, the work that do are contract chose value came contract. the I a will based and structure look on just understand scope. it margin demand. equipment a the that services Nel we peripheral with went has analysts the when we How is that have depends that electrodes. the a it compared, as the best was It on because tubes, and just you it suppliers top. we
a So, this P&L for have contract projects. positive and considerable of effect on will terms delivering learning in both a the is that scale and Nel large
the The project, interesting it's but green some together very like quality Skovgaard in dynamic of plant. first partners, in project Another size, Denmark Vestas. Energy with is sort similar with not ammonia high the world's
and electrolyzer. from directly connected So, wind to renewable the solar electricity
input. So, operations that plant renewable fluctuate will based power ammonia how an it's on can demo test a reactor
systems one Skovgaard sustainable directly station. U.S. grade in together fueling interesting third one to aviation Denmark. making Two decarbonize with aviation basically sector in to Australia for So, the to fuel project for and fuel hydrogen making quarter, to containerized the a sold
So, and are are sort these modular of easy operation. that quite for compact systems install, use to commission, -- to and customer to getting the
We also received a for finally nice purchase client. fueling from a stations European order
has start on fueling early the contract, limited, we on deliver intake from see that can side so You was order this the XXXX. will in past this that a to was been helpful
normal. is And a and this shorter includes overtime. bit maintenance on lead-time it than the So, service
is financial size that conditions with scope contract separation and the Energy, the of and have deliveries will will in interesting are will a we for They terms impact or stacks other both in start Again, on liquid stack the So good. nice this on Department to system. and subsequent technology high major $X the to project. transport opportunities and new metals Defense and XXXX. NOKXXX reduce substantial produce includes signed The deliveries Margin in companies, similar Then of call Then we another a interesting precious of includes received use we In can looking the -- U.S. volume announced membranes, development broken record. It we develop at close got further or manufacturing we our and then CERL million of PEM event contract technology. of -- our contract. in how Woodside contract ERDC we Nel. with PEM October, also usage production will the into some million healthy, fueling positive It's stacks balance hydrogen from recently what improve to methods, very testing July.
bigger projects projects XXX XXX, XXX, from to projects. even over megawatt time, moving we're So, and XX megawatt XX,
it it's nice on. our to customers a early reaching strategy into curve. potential learning willing placing -- fits FID -- And customers So, orders it's that have that high commit to quality and of are selecting high a
customer So, business. Woodside there They're plants in building hydrogen Australia export a a large Nel. with had customer lots It's LNG that develop And of natural partner repeat with as company experience exporters background in five a is to for of lot interesting for It's that high because the are with, outlook. work They of of the hubs Energy very Australia a can out we in client quality to also the and have for. together Asia. -- they world's sites summary U.S. gas. interesting scale industrial also for and the of us one six this very largest these looking also and has opportunities liquid is we're for Then to major experience
contracts, down a on of I think even contracts like the results and though XXXX, and in I the report what the that XXXX, made maybe and promise. point we that the bit up we actually best think the still on was I not backlog result do go we XXXX, to make would and deliver
conservative have happen. comes and terms to when have we when scale of will large communicated these contracts, it been a bit what in We it
that said historically, -- we are have come. they We that confident we will have that said we
report scale more a large orders bigger. order we contract said After projects is one-off. the few months a megawatt we coming. nice in million are are I then presentation, And megawatt getting later. and we a the the won that first And are Then XXX now quarter XXX the we it's NOKXXX to think saying So, not said, grows pipeline order.
the for, interesting. back that little ones We our more are orders. are we're orders they plant be larger They cases a and investment large they then testing project might going into the the been the a step-by-step. the stages. and not with like large are Europeans large projects, the especially and the the been and have forward would And funding, whereas to that even makes the scale scale to over are we orders the because small pilot for markets, demo U.S., business and scale straight confident X, go it's I think time. U.S. with immediately, that's it It's this go Phase bypass to especially on there that what demo a bit X and They metal now large, products scale in consider delivering market go small will they X,X, do main has plants, the alkaline I now to a what facility pedal moving European we take X has actually, and all Phase large
into with it not So, will these develop stop gigawatts might orders. They projects.
from to pipeline and that the business the more first will see maybe than they coming? think large prerequisites mature. have They industrial place, outlook that secured to we important. in confident in scale that the have it phase electricity, have have market Why extremely talking are We're of place, solid happen? continues positive. can We're Why secured have initial case. land, gigawatt. are We a more anymore. expand to to dreamers that’s financing saying X our pipeline, orders improve I backgrounds, up XXX-megawatt this people they have of and Well, all, talking to they plans we're so have is that not all in an they
XX realize the hydrogen. the there providers not right it's all XX, Customers about have though to looking finding of they the are scale Actually do all it. more timing And not are of deliver. experienced, stacks, of that have few electrolyzer them ones to only So, even very not into scale are to the them deliver.
electrolyzers. know external it research So, be difficult they XXXX that will capacity XX concerned XX sufficient the I I disagree. are be gigawatts. says near-term, will in get to to market that
much longer think be in I no There take it much a that. customers way will of is and XX realize be It by that. gigawatts will it to XXXX. will XX longer, -- fraction
promise. come delivering factory it's that we equipment, not this production also and just automated have we outputs, real installed have a record take Herøya we to know to track capacity, real see because them plant, of on operators. they what power we is they trained now with So, And a they
markets. market So, customers scale where you're secure supply, a of large quality, course, prices. able attractive orders to about are increase concerned continue with to we In high
I and we it expect will quarter, zero outlook right? even these large require that But scale quarter, vary. of scale a So, positive, in in members, it millions realizing Also they approvals might saying counterparties contracts with caution not we're two be be matrix shouldn't approval the thorough though order overtime, we're you're and could what next that's one millions or saying on. something it not every the very single an and large off commitment, is of should Board professional three quarter, they it's hundreds and Tens seasoned of process. require from have just in sign authorization need dealing that of euros and euros a
is timing from contract the -- it quality. but takes of ready signing So, the that's discussions a start is for time, the sign until
creates for some select have have looking because technology more only being broad comes can how is decide we When We're the are we working customers A lot but time. fast project. mouthing, PEM, meet is trust order need make counterparties. to what sign one just product that actually get door to see But to that projects actually but that right it technology don't and And luxury have way, So, to promising, we or for to of, also we of with. offering. that probability and the a need business can suitable capacity prospects technology take position agnostic. products only actually and are high own alkaline base, And choosing of not to a need offer profitable we by looking a among need trick speaking the quality do projects, for customer extremely technology also offer are Nel are pony, quality we create we're to pick bad we we then through get We're a is a our competing a that with some neutral are by extremely we we requirements that that business. people of what value the bit are production trying to build application. right on customer, And FID. the not a we technology, the quality our happy start the highly the paid high and in sort for can sure at book we also we we again, are tracking, our pipeline we we the high a application the spending win, in need the with in we of case the customers
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of I I consequence some coming for think we is capacity long are my as limited. information. than I orders the analyst a reports we regard will what they is prices said, scale will market as be mentioned going to a personal As to up And have that continue longer and earlier, and attractive more believe insider period capacity increase large much as decided for belief limited that threshold reports be as
million. longer all we So €X orders will disclose above no
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again bag results a quarter, third So to ago. quarters mixed related in a what to sum happened several of bit of up the
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