Nel (NEL) Status Update summary

Business overview and market positioning

• Cavendish Hydrogen, spun out from Nel ASA, focuses on hydrogen fueling equipment for mobility, with over 20 years of experience and around 140 systems sold globally, mainly in the US and Europe, plus 15 in Korea.

• The company operates one of the world's largest hydrogen mobility equipment production facilities in Herning, Denmark, and maintains service hubs across three continents.

• Positioned between hydrogen production and consumption, Cavendish's equipment supports both heavy-duty and trailer-filling applications, with a full-service offering from engineering to after-market support.

• The company leverages extensive operational data, collecting up to 17,000 data points per refueling, to inform product development and de-risk high-capacity fueling business cases.

• Key customers include Shell, Everfuel, ZE PAK, HyNet, and KOGAS Tech, with new partnerships emerging in the US and Europe.

Market opportunity and regulatory drivers

• Hydrogen mobility is expected to be a major growth driver in the hydrogen market, with high-capacity fueling for heavy-duty vehicles as a key segment.

• The EU's Alternative Fuels Infrastructure Regulation (AFIR) mandates at least one high-capacity hydrogen fueling station every 200 km on major transport networks by 2030, supported by €1.5 billion in funding.

• The US is following with similar regulatory and funding initiatives, including $2.5 billion for hydrogen mobility infrastructure and expanded credit systems for heavy-duty fueling.

• The addressable market for Cavendish is estimated at €6.7 billion through 2030, with significant growth expected from 2025 as high-capacity and trailer-filling equipment demand rises.

• Major vehicle OEMs are moving toward serial production of hydrogen-powered heavy-duty trucks from 2026, supporting offtake growth.

Financial performance and outlook

• 2023 revenue was approximately €30 million, rebounding from a dip in 2022, with Q1 2024 revenue at €10 million, including a €3.7 million contract termination fee.

• Operational improvements have led to better financials in 2023 and 2024, especially in Europe and South Korea.

• The order backlog at the end of Q1 2024 was about €28 million, supporting production for 9-12 months and projects for 16-24 months.

• The company holds around €50 million in cash, providing a two-year runway at current operational loss levels.

• Break-even is expected after the launch of the new high-capacity station, targeted for commercialization in the second half of 2025.