Nordex SE

Investor Presentation • Jul 25, 2024

Nordex Group

Nordex SE - Financial figures H1/2024

25th July 2024

Disclaimer

All financial figures within this presentation are unaudited.
This presentation was produced in July 2024 by Nordex SE solely for use as a source of general information regarding the economic circumstances and status of Nordex SE. It does not constitute an offer for the sale of securities or an invitation to buy or otherwise acquire securities in the Federal Republic of Germany or any other jurisdiction. In particular it is not intended to be an offer, an investment recommendation or a solicitation of an offer to anyone in the U.S., Canada, Japan and Australia or any other jurisdiction. This presentation is confidential. Any reproduction or distribution of this presentation, in whole or in part, without Nordex SE's prior written consent is expressly prohibited.

• This presentation contains certain forward-looking statements relating to the business, financial performance and results of Nordex SE and/or the industry in which Nordex SE operates, these statements are generally identified by using phrases such "aim", "anticipate", "believe", "estimate", "expect", "forecast", "guidance", "intend", "objective", "plan", "predict", "project", and "will be" and similar expressions. Although we believe the expectations reflected in such forward-looking statements are based upon reliable assumptions, they are prepared as up-to-date and are subject to revision in the future. We undertake no responsibility to update any forward-looking statement. There is no assurance that our expectations will be attained or that any deviations may not be material. No representation or warranty can be given that the estimates, opinions or assumptions made in, or referenced by, this presentation will prove to be accurate.

Agenda

Introduction	José Luis Blanco
Markets and orders	Patxi Landa
Financials	Dr Ilya Hartmann
Operations and technology	José Luis Blanco
Guidance and Outlook	José Luis Blanco
Q\&As	All
Key takeaways	José Luis Blanco
Appendix

Executive summary H1/2024

Sales:

€3.4 bn
$(+25 \%$ yoy $)$

EBITDA margin:

$3.4 \%$

(H1/2023: -4.2\%)

Q2 Working capital ratio:

$-7.4 \%$
(Q2/2023: -9.6\%)

Operations

• Order intake of over 3.4 GW in H1/2024 (H1/2023: 2.6 GW) with stable ASP of $€ 0.89 \mathrm{~m} / \mathrm{MW}$ (H1/2023: $€ 0.89 \mathrm{~m} / \mathrm{MW}$ ).
• Installations of around 3.0 GW on a comparable level yoy and in line with our internal planning. Run rate expected to improve going forward

Financials

• Continuous improvement of gross margins to $19.5 \%$ in the first half of 2024
• EBITDA margin of $3.4 \%$ (H1/2023: -4.2\%) mainly driven by better project mix, stable gross margins and better execution
• Healthy liquidity levels of $€ 827 \mathrm{~m}$ at the end of H1/2024
• Positive free cash flow of $€ 94 \mathrm{~m}$ in Q2/2024

Strategic update \& Outlook

• Two important milestones in the US: re-opening of the manufacturing facility in Iowa and the launch of our new product N169/5.X
• 2024 guidance tightened to the upper end of the corridor
• On track for achieving the $8 \%$ medium-term EBITDA margin target

Strong long term onshore market dynamics in EMEA and the Americas

1 Sector tailwinds...

2 ...result in capacity addition plans

Onshore EMEA 2023-2028 (GW)

2023 2024e 2025e 2026e 2027e 2028e
Rest of EMEA Germany
Onshore Americas 2023-2028 (GW)

EMEA:

• EU elections: Green party still with majority and abandoning renewables no longer a realistic option
• Growth driven by Germany with recent parliament decisions to simplify permitting and repowering
• Permitting hurdles easing in the UK and Italy

Americas:

• Higher electricity demand to drive the region's growth
• The US likely to remain the biggest market outside of China in the medium term
• Nordex rebuilding its position in the US

Robust order intake in H1/2024

Order intake turbine* (in MW)

• Increase in half year order intake of around $27 \%$ to $€ 2,990 \mathrm{~m}(\mathrm{H} 1 / 2023 € 2,354 \mathrm{~m})$
• Stable pricing continued
• ASP** of $€ 0.89 \mathrm{~m} / \mathrm{MW}$ in $\mathrm{H} 1 / 2024$ and $€ 0.96 \mathrm{~m} / \mathrm{MW}$ in Q2/2024 - on a stable level ( $€ 0.89 \mathrm{~m} / \mathrm{MW}$ Q2/2023)

Order intake turbine* by regions (in MW in \%)

Europe North America	Latin America	RoW

• Orders received from 17 different countries
• Largest single markets were Germany, South Africa, Lithuania and Turkey

Service business grew by around 12\% in H1/2024

Combined order book of over $€ 11$ bn at the end of H1/2024

Order book turbines ( $€$ m)

• Healthy growth of the order book to around $€ 6.9$ bn at the end of Q2/2024 compared to $€ 6.4 \mathrm{bn}$ at the end of the previous year period
• Geographical distribution of the order book in H1/2024: Europe (81\%), Latin America (8\%), North America (3\%) and Rest of World (8\%)

Order book service ( $€$ m)

• 12,425 wind turbines under service agreement corresponding to over 39 GW at the end of Q2/2024

in € m (rounded figures)	H1/2024	H1/2023	abs. change	$\Delta$ in \%
Sales	3,435	2,753	681	24.7
Total revenues	3,254	2,799	455	16.3
Cost of materials	$-2,585$	$-2,505$	$-80$	3.2
Gross profit	670	294	376	128
Personnel costs	$-338$	$-299$	$-40$	13.2
Other operating (expenses)/income	$-213$	$-109$	$-104$	95.0
EBITDA	118	$-114$	232	203.2
Depreciation/amortization	$-89$	$-93$	4	4.1
EBIT	29	$-207$	236	114.1
Net profit	$-13$	$-299$	286	95.8
Gross margin*	$19.5 \%$	$10.7 \%$
EBITDA margin	$3.4 \%$	$-4.2 \%$
EBIT margin	$0.8 \%$	$-7.5 \%$

Comments

Sales in H1/2024 increased by around $25 \%$ to $€ 3.4 \mathrm{bn}$

• Gross margins consistently stable for the last four quarters
• EBITDA margin of $3.5 \%$ in Q2/2024, driven by higher revenues and partially offset by legacy projects

Balance sheet $\mathrm{H} 1 / 2024$

in $€ \mathrm{~m}$ (rounded figures)	30.06.24	31.12.23	abs. change
Non-current assets	2,038	1,869	169
Current assets	3,410	3,553	$-143$
Total assets	5,448	5,422	26
Equity	974	978	$-4$
Non-current liabilities	1,019	771	248
Current liabilities	3,456	3,673	$-217$
Equity and total liabilities	5,448	5,422	26
Net cash*	446	631
Working capital ratio**	$-7.4 \%$	$-11.5 \%$
Equity ratio	17.9\%	18.0\%

Comments

Solid liquidity levels of around $€ 827 \mathrm{~m}$ including cash facility under MGF at the end of Q2/2024 (€741 m Q1/2024)

Working Capital ratio stable at minus $7.4 \%$, reflecting the stable business environment

Working capital development Q2/2024

Working capital ratio (in \% of sales)*

Slightly improved working capital ratio in Q2 to prepare for high activity levels in the second half of the year

Working capital development (in € m)*

Higher operational performance in Q2 leads to an increase of trade payables

Cash flow statement H1/2024

in $€ \mathrm{~m}$	H1/2024	H1/2023
Cash flow from operating activities before net working capital	144	$-244$
Cash flow from changes in working capital	$-216$	26
Cash flow from operating activities	$-72$	$-218$
Cash flow from investing activities	$-88$	$-63$
Free cash flow*	$-160$	$-282$
Cash flow from financing activities	$-17$	308
Change in cash and cash equivalents	$-177$	26

Comments

• Cash flow from operating activities before net working capital mainly driven by normalized operational performance
• Performance partially offset by higher working capital
• Cash flow from investing activities in line with internal planning
• Positive free cash flow of $€ 94 \mathrm{~m}$ in Q2, leading to a net free cash flow of minus $€ 160 \mathrm{~m}$ in the first half year

Total investments H1/2024

CAPEX (in $€ \mathrm{~m}$ )

Property, plant, equipment
Intangible assets

Comments

The key investment priorities in H1/2024 include the following:

• Investments in blade and nacelle production facilities, moulds and tooling
• Investments in installation and transport tooling and equipment for projects
• Capex for the re-opening of mothballed lowa facility and the new US turbine variant covered within our guidance

Solid capital structure Q2/2024

(Net debt)/net cash (in $€$ m)*

Q2/	Q3/	Q4/	Q1/	Q2/
2023	2023	2023	2024	$\mathbf{2 0 2 4}$

Q2/	Q3/	Q4/	Q1/	Q2/
2023	2023	2023	2024	$\mathbf{2 0 2 4}$

Higher cash levels at the end of Q2/2024 mainly reflecting slight improvement of working capital management

Equity ratio (in \%)

Q2/	Q3/	Q4/	Q1/	Q2/
2023	2023	2023	2024	$\mathbf{2 0 2 4}$

Equity ratio at a comparable level to end of the previous year as operational performance has stabilized and margins have further improved

Operational performance H1/2024

Installations (MW)

Total installations of 592 WTGs in 20 countries in H1/2024 (632 WTGs in the previous year quarter)

• Installations of 1,869 MW in Q2/2024; run rate substantially improved compared to Q1/2024 (1,103 MW)
• Geographical split (MW) in H1/2024: 73\% Europe, 16\% Latin America, 2\% North America and 9\% RoW

Production

• Output turbines amounted to 533 units in H1/2024: 288 GER, 113 CHN, 100 IND and 92 ESP
• Inhouse blade production of 718 units in H1/2024: 520 IND, 191 ESP and 7 Germany

EBITDA margin guidance tightened reflecting stable environment

	H1/2024	2024 old guidance	2024 new guidance
Sales:	€3,435 m	€7.0 - 7.7 bn	€7.0 - 7.7 bn
EBITDA margin:	$3.4 \%$	2.0\% to 4.0\%	3.0\% to 4.0\%
Working capital ratio:	$-7.4 \%$	below -9\%	below -9\%
CAPEX:	€ 70 m	approx. €175 m	approx. €175 m

Time for your questions

Answers

Questions

Key takeaways

Stable operating environment continues, with stable selling prices and largely stable supply chains

Making progress in rebuilding our market position in the US and maintaining market position in Europe

H1/2024 continues to show a stable margin profile building confidence in the sustainability of the margin recovery

Free cash flow turned positive in Q2/2024 and is likely to remain positive in the second half

Margin guidance for 2024 tightened to the upper end and mid-term strategic EBITDA margin target remains in place subject to a stabilized environment

Appendix

• Quarterly order intake and installations
• Quarterly order book development
• Quarterly income statement
• Quarterly balance sheet development
• Quarterly cash flow development

Quarterly order intake and installations development
Order intake development in MW

Quarterly order book development
Order book development in € m

Quarterly income statement development

Quarterly balance sheet development
in € m (rounded figures)

Non-current assets	1,788	1,771	1,758	1,869	1,915	2,038
Current assets	2,758	3,025	3,242	3,553	3,273	3,410
Total assets	$\mathbf{4 , 5 4 6}$	$\mathbf{4 , 7 9 6}$	$\mathbf{5 , 0 0 0}$	$\mathbf{5 , 4 2 2}$	$\mathbf{5 , 1 8 8}$	$\mathbf{5 , 4 4 8}$
Equity	680	992	939	978	964	974
Non-current liabilities	413	659	692	771	832	1,019
Current liabilities	3,453	3,145	3,369	3,673	3,392	3,456
Equity and total liabilities	$\mathbf{4 , 5 4 6}$	$\mathbf{4 , 7 9 6}$	$\mathbf{5 , 0 0 0}$	$\mathbf{5 , 4 2 2}$	$\mathbf{5 , 1 8 8}$	$\mathbf{5 , 4 4 8}$
Net cash*	$\mathbf{1 0 4}$	$\mathbf{3 6 0}$	$\mathbf{3 4 4}$	$\mathbf{6 3 1}$	$\mathbf{3 5 9}$	$\mathbf{4 4 6}$
Working capital ratio**	$\mathbf{- 1 0 . 6 \%}$	$\mathbf{- 9 . 6 \%}$	$\mathbf{- 1 0 . 2 \%}$	$\mathbf{- 1 1 . 5 \%}$	$\mathbf{- 7 . 0 \%}$	$\mathbf{- 7 , 4 \%}$
Equity ratio	$\mathbf{1 5 . 0 \%}$	$\mathbf{2 0 . 7 \%}$	$\mathbf{1 8 . 8 \%}$	$\mathbf{1 8 . 0 \%}$	$\mathbf{1 8 . 6 \%}$	$\mathbf{1 7 . 9 \%}$

Quarterly cash flow statement

in € m (rounded figures)	Q1/2023	Q2/2023	Q3/2023	Q4/2023	Q1/2024	Q2/2024
Cash flow from operating activities before net working capital	$-133$	$-112$	$-6$	244	65	79
Cash flow from changes in working capital	57	$-31$	35	106	$-267$	51
Cash flow from operating activities	$-76$	$-143$	29	350	$-203$	130
Cash flow from investing activities	$-39$	$-24$	$-31$	$-47$	$-51$	$-36$
Free cash flow	$-115$	$-167$	$-2$	303	$-254$	94
Cash flow from financing activities	3	305	$-8$	$-14$	$-8$	$-9$
Change in cash and cash equivalents*	$-112$	138	$-10$	289	$-262$	85

Nordex publication dates \& events 2024

IIF YOU HAVE ANY QUESTIONS PLEASE CONTACT:

Anja Siehler
phone: +49 (0)1623515334
email: asiehler@nordex-online.com

Tobias Vossberg

phone: +49 (0)1734573633
email: tvossberg@nordex-online.com

Torben Rennemeier

phone: +49 (0)15234617954
email: trennemeier@nordex-online.com

Nordex SE

Langenhorner Chaussee 600
22419 Hamburg / Germany
www.nordex-online.com