Financial developmentIncome statementNel reported revenue and operating income in 2020 of NOK 651.9 million, up 14.4 % from NOK 569.7 million in 2019. The growth can mainly be attributed to Nel Hydrogen Fueling’s revenue increasing 30%. Fueling constituted 48% of Nel’s total revenue in 2020, up from 43% in 2019. At the end of 2020, Nel had a record-high order backlog of approximately NOK 981 million, up 87% from NOK 526 million in 2019. The backlog only includes firm purchase orders with agreed price, volume, timing and terms and conditions.Raw materials expenses totalled NOK 394.0 million (342.4), an increase of 15.1% from 2019. The increased raw materials are related to the 11.4 % increase in revenue from contracts with customers and is also affected by increased costs from project execution in the Fueling and Electrolyser divisions. Personnel expenses amounted to NOK 329.4 million (243.2), the 37.4 % increase compared to 2019 is explained by a higher number of employees, up from 310 employees by the end of 2019 to 393 at the end of 2020. Other operating expenses amounted to NOK 180.0 million (162.2). The high level of personnel and other operating costs are the results of Nel’s strategic decision to pursue growth and higher activity levels. Costs for the share option program, which are included in personnel expenses, were NOK 8.6 million in 2020 compared to 10.3 million in 2019.EBITDA ended at NOK -251.5 million (-178.1), negatively impacted by ramp up costs. Nel’s customer projects often include new geography, customer segments, technological components and/or products leading to additional costs and risk.Depreciation, amortisation and impairment increased to NOK 163.0 million (75.5), mainly driven by impairment of intangible assets of NOK 58.9 million (NOK 38.0 mill in RotoLyzer® technology and NOK 20.9 million in other technology development in Electrolyser Norway where we no longer expect to complete the development).The operating loss amounted to NOK -414.5 million (-253.6).Net financial items amounted to a gain of NOK 1 660.0 million (-23.6) and were driven by a positive fair value adjustment of shareholdings in Everfuel and Nikola, with NOK 1 531.8 million (a value of NOK 125.00 per share as of December 31, 2020) and NOK 100.2 million (a value of USD 15.26 per share as of December 31, 2020), respectively. Pre-tax income totalled NOK 1 245.5 million (-277.2) and the net income for the year was NOK 1 261.9 million, compared to a loss of NOK -269.7 million in 2019.Financial positionTotal assets were NOK 6 136.7 million at the end of 2020, compared to NOK 2 430.7 million at the end of 2019. Total equity was NOK 5 468.3 million. Thus, the equity ratio was 89 percent.Cash flowNet cash flow from operating activities in 2020 was NOK -215.9 million, compared to NOK -199.7 million in 2019. The development is mainly due to higher personnel expenses driven by increase in full time employees. Net cash flow from investing activities was NOK -294.4 million (-134.1). Nel has purchased property, plant and equipment for NOK 148.5 (49.9) million in 2020, mainly related to the expansion at Herøya, Norway, in the electrolyser division.Nel’s cash balance at the end of 2020 was NOK 2 332.9 million. The increase from end of 2019 is mainly due to raising net proceeds of NOK 818.8 million and NOK 1 265.5 million from the share capital increase in January and June, respectively. This is partly offset by negative cash flow from operations and investments.10Report from the Board of Directors