Nordex SE

Investor Presentation • Feb 29, 2024

Nordex Group Nordex SE – Full year 2023

29th February 2024

FY figures 2023 | 29 February 2024

› All financial figures within this presentation are final and audited.

• › This presentation was produced in February 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-todate 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.

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

FY 2023 Results	Commentary
Sales: 6.5bn	› Nordex consistently #1 in order intake (MW) in Europe in 2022 and 2023 › Strong order intake of 2.5 GW in Q4/2023; +30% vs 1.9 GW Q4/2022 › FY order intake of 7.4 GW; +16% vs 6.3 GW in FY 2022 › Sales amounted to EUR 6.5bn in FY 2023; +14% vs FY 2022
EBITDA margin: 0%	› 2023 EBITDA margin reaching break-even in line with our guidance and much better compared to -4.3% achieved in 2022; Q4/2023 EBITDA margin sequentially stepping up to 3.4% as expected › Annual installations of 7.3 GW in FY 2023; +39% compared to previous year. However, installations in Q4 did not recover all the delays of 2023 › Strong working capital ratio of -11.5% at year-end
Working capital ratio: -11.5%	› Positive free cash flow of EUR 20m, mainly on the back of improving operating performance and tighter working capital › Net cash level improved to EUR 631m as we converted two shareholder loans into equity and repaid high yield bonds during the last year › 2024 guidance shows improving margin outlook year over year subject to managing near term challenges of inflation and shipping disruptions; mid term EBITDA target of 8% still intact

Nordex makes top 3 worldwide in 2023 for order intake (ex China)

ONSHORE MARKET SHARE BASED ON MW ORDERS

Source: Wood Mackenzie 2023, Global Wind Power Project Installation Database Q4/2023.

FY figures 2023 | 29 February 2024

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

| 7 Markets and orders

Order intake increased by 16% in 2023

• › Order intake in Q4/2023: 2.5 GW increase of 30% compared to 1.9 GW in the previous-year quarter
• › ASP* remains stable with of EUR 0.84m/MW in Q4/2023 and FY 2023 (0.84m/MW in the previous year)

Order intake turbine (in GW) Order intake turbine by regions (in GW in %)

• › Orders received from 23 different countries in FY 2023
• › Largest single markets were Turkey, Spain, Sweden and Germany
• › Germany with strong order intake of almost 1.5 GW in FY 2023 (+36% vs FY 2022)

Service business constantly growing

• +18% › Service sales aggregate to 10.5% of group sales in the reporting year
  • › Service EBIT margin sequentially improved in Q4 to 17.3%
  • › Full year EBIT margin temporarily influenced by inflationary pressures, regional and turbine mix
  • › Average service contract length of 12 years
  • › Service order book remains strong with EUR 3.6bn at the end of FY 2023
  • › Around 35 GW of installed base are under service agreement

› Classification: Public

Increase of combined order book to EUR 10.5bn

Order book turbines (EUR bn) Order book service (EUR bn)

• › Healthy growth of the order book to EUR 6.9bn
• › Majority of the orders coming from our key region Europe with EUR 5.8bn (84%)

› Growing fleet of 11,400 WTGs under service accounting for around 35 GW at the end of FY 2023

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

Income statement FY 2023

in EUR m (rounded figures)	FY 2023	FY 2022	abs. change
Sales	6,489	5,694	795
Total revenues	6,551	5,991	560
Cost of materials	-5,566	-5,505	61
Gross profit	985	486	499
Personnel costs	-630	-588	-42
Other operating (expenses)/income	-353	-143	-210
EBITDA	2	-244	246
Depreciation/amortization	-189	-182	-7
EBIT	-187	-427	240
Net profit	-303	-498	195
Gross margin*	15.2%	8.5%
EBITDA margin	0%	-4.3%
EBIT margin w/o PPA	-2.8%	-7.4%

Comments

• › Strong sales growth of 14% to EUR 6.5bn in FY 2023 due to consistent good order intake momentum
• › Full year gross margins improving and likely to improve further in 2024 as share of legacy orders recede
• › EBITDA reaching break even in the reporting year
• › PPA depreciation amounted to EUR 5m in FY 2023 (EUR 4.9m in the previous year)

Income statement Q4/2023

in EUR m (rounded figures)	Q4/2023	Q4/2022	abs. change
Sales	2,012	1,820	192
Total revenues	2,127	2,099	28
Cost of materials	-1,752	-2,052	300
Gross profit	375	47	328
Personnel costs	-170	-162	-8
Other operating (expenses)/income	-137	71	-208
EBITDA	69	-44	113
Depreciation/amortization	-50	-52	2
EBIT	19	-96	115
Net profit	31	-126	157
Gross margin*	18.6%	2.6%
EBITDA margin	3.4%	-2.4%
EBIT margin w/o PPA	1.0%	-5.3%

Comments

• › As anticipated, sales further improved to EUR 2bn in Q4/2023
• › Q4 gross margins almost recovering to normal levels compared to last year
• › Operating margins slightly impacted from cost increases due to lower installations compared to our planning
• › PPA depreciation totaled EUR 1.2m in Q4/2023 (EUR 1.2m in previous-year quarter)

| 13 Financials

› Classification: Public

Balance sheet FY 2023

in EUR m (rounded figures)	31.12.23	31.12.22	abs. change
Non-current assets	1,869	1,795	74
Current assets	3,553	2,961	592
Total assets	5,422	4,757	665
Equity	978	878	100
Non-current liabilities	771	452	319
Current liabilities	3,673	3,427	247
Equity and total liabilities	5,422	4,757	665
Net cash*	631	244
Working capital ratio**	-11.5%	-10.2%
Equity ratio	18.0%	18.5%

Comments

• › Very robust liquidity levels of ~EUR 1bn including cash facility under MGF at the end of FY 2023
• › During the year, balance sheet was further strengthened by two major transactions
  • › EUR 347m shareholder loans were converted into equity at EUR 14.15 per share, leading to significant interest cost savings
  • › EUR 333m of debut convertible bond issuance further strengthened the capital structure while optimising the finance costs

FY figures 2023 | 29 February 2024

*Cash and cash equivalents less bank borrowings, bond and shareholder loan. **Based on actual sales figures.

| 14 Financials

› Classification: Public

Working capital development FY 2023

› Working capital ratio improved towards year end 2023 remaining clearly below guidance of below -9%

Working capital ratio (in % of sales)* Working capital development (in EUR m)*

› Higher payments due to strong order intake and better operating performance led to further improvement in Q4/2023

Cash flow statement FY 2023

in EUR m (rounded figures)	FY 2023	FY 2022
Cash flow from operating activities before net working capital	-6	-373
Cash flow from changes in working capital	167	23
Cash flow from operating activities	161	-350
Cash flow from investing activities	-141	-164
Free cash flow	20	-514
Cash flow from financing activities	286	346
Change in cash and cash equivalents*	306	-168

Comments

• › Cash flow from operating activities positively influenced by strong working capital development
• › Cash flow from investing activities reflects continuous level of investment during the year, but lower than initially planned
• › Free cash flow of EUR 20m at the end of FY 2023 on the back of better operating performance and tighter working capital management
• › Cash flow from financing activities mainly attributable to the proceeds from the convertible bond issuance in April 2023

*Including FX effects.

Total investments FY 2023

CAPEX (in EUR m) Comments

• › The overall capex spend was lower during the year mainly due to tighter capex management and partly due to some investments in the US being delayed
• › The key investment priorities in FY 2023 included the following:
  • Investments in blade production facilities and moulds in India and Spain
  • Investments in installation and transport tooling and equipment for projects

| 17 Financials

› Classification: Public

Capital structure FY 2023

(Net debt)/net cash* Equity ratio (in %)

› Strong net cash levels at the end of Q4/2023 › Equity ratio at a comparable level to previous year end mainly influenced by the successful completion of the debt-to-equity swap in April 2023

FY figures 2023 | 29 February 2024

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

|

Implementation of Nordex sustainability strategy 2025 on track

Together for change – Wind for a sustainable future

Main targets

• › Provide fully recyclable blades by 2032 "ongoing activity"
• › Decrease carbon footprint of our turbines by 25%
• › Define science-based targets in line with the 1.5°C target ambition ( ) *
  • › Achieve climate neutrality by 2023 (Scope 1+2) and continuously improve climate impact ( ) **
  • › Reduce accidents to a lost time injury frequency of <1.5
  • › Achieve a minimum of 25% female representation in management positions "ongoing activity"
  • › Promote responsible and ethical business conduct internally and with our business partners "ongoing activity"
  • › Engage with and positively impact the supply chain "ongoing activity"

* Nordex has submitted science-based targets to the SBTi in December 2023. Validation is currently ongoing. ** Nordex will compensate remaining scope 1+2 for 2023 emissions via carbon offsets. The corresponding transaction will be carried out in Q1/2024.

EU Taxonomy Eligibility and Alignment Nordex ESG Rating Scores

Nordex contributes to the environmental objective "climate change mitigation" with the following main economic activities:

• › 4.3 Electricity generation from wind power
• › 7.6 Installation, maintenance and repair of renewable energy technologies

	Taxonomy-eligible economic activities		Taxonomy-aligned economic activities
	in EUR m	%	in EUR m	%
Turnover	6,485.89	99.95	6,485.89	99.95
CapEx	150.38	93.25	142.74	88.51
OpEx	85.61	93.43	84.35	92.06

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

Installations increased by 39% to 7.3 GW compared to previous year

Installations (GW) Production

• › Installations of 1,429 WTGs in 24 countries (FY 2022: 1,129 WTGs)
• › Activity level in Q4/2023 was slightly behind our internal planning due to harsh weather conditions in parts of Europe

• › Output turbines of 1,520 units, the majority coming from Germany (711) and India (293) in FY 2023
• › Total blade production splits into in-house of 25% and outsourced blade production of 75% in FY 2023

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

|

Guidance for FY 2023 delivered

	2023 Guidance	2023A
Sales:	EUR 5.6bn – 6.1bn	EUR 6.5bn
EBITDA margin:	-2% to +3%	0%
Working capital ratio:	Below -9%	-11.5%
CAPEX:	Approx EUR 200m	EUR 131m

FY figures 2023 | 29 February 2024

› Classification: Public

Nordex is progressing as communicated

Our communication in 2022 Mid-term drivers

Progress update

On track - margins steadily improving

Key market Europe is growing

Onshore wind installations – Germany

Key takeaways

• › Strong growth expected in onshore wind demand driven by Europe and the US
• › EU onshore wind installations need to double by 2030 to meet the REPowerEU target of 500 GW of total wind capacities2
• › Outside Europe, North America will continue to drive future growth mainly driven by IRA
• › In 2023, Nordex booked 6.3 GW order in Europe (+37 % vs 2022) and 7.4GW in total (+16% vs 2022)

Key takeaways

• › German onshore wind market posted strong growth in 2023
• › Still a significant gap remains to reach 115 GW by 2030 (2023: 61 GW) with slow pace of transport permits becoming a near term drag
• › Nordex order intake increased to 1.5 GW in 2023 (+36% vs 2022) and also secured 1.8 GW in the auctions in 2023 (+125% vs 2022)

1 Wood Mackenzie Global Onshore Wind Installation Database Q3/2023 in GW; Wood Mackenzie Global Wind Power Market Outlook Update Q4/2023, 2. Wood Mackenzie (2023) The EU's Wind Action Plan.

Better quality order book and improving service business to drive overall margin improvement

Key takeaways

• › Significant margin improvement in the order book as share of more profitable European orders grow
• › Legacy orderbook to run down in 12-18 months, supporting overall expected margin improvement until 2026
• › Supply chain risks and inflationary pressures continue to remain a key challenge in the near term

Growing service business

Key takeaways

• › Consistent high growth expected in service business over the next few years due to increasing turbine sales
• › At the same time, increasing share of delta series in the service fleet likely to benefit the overall margin improvement in the medium term

3

	2024 guidance	Mid-term target
Sales:	EUR 7.0 – 7.7bn
EBITDA margin:	2.0% to 4.0%	8% EBITDA
Working capital ratio:	below -9%	margin
CAPEX:	approx. EUR 175m

Update on green hydrogen initiatives

Long Term Trends

• › Global hydrogen demand likely to grow by 7x over the next 30 years
• › Green hydrogen production expected to grow to c. 40mtpa* by 2030 from <1mtpa in 2020
• › Nordex is making inroads with a clear hydrogen strategy and with a minimal capital investment risk

Nordex Hydrogen initiatives

› Nordex Electrolyzers S.L. formed in December 2022 as a spin-off of Nordex › SODENA participation for a 15% investment (EUR 15m) in the next 5 years signed in Feb 2023 › New 50 kW stack prototype built with the same design concepts planned for the larger-scale 500 kW › ACCIONA & Nordex Green Hydrogen, S.L. joint venture formed between Nordex and Acciona › Over 50 GW under development in 6 countries (USA, Chile, Brazil, Morocco, Argentina, Mexico) › Project development work on expected schedule Project Development Electrolyzers

› 500 kW prototype development on track

› Ambitious wind targets across the EU and our home market Germany in particular, keep strengthening the case for the wind industry over the medium term 1

› 2023 results show steady and consistent progress with stabilizing margins and positive free cash flow generation

› A healthy balance sheet structure in place with low debt levels and high cash balances

› Margin outlook improving further in 2024, despite the temporary challenges in the form of shipping disruptions and higher project costs in some cases

› Nordex setting the platform to achieve EBITDA margin target of 8%, on the back of potential demand growth and stable pricing

IF YOU HAVE ANY QUESTIONS PLEASE CONTACT:

Felix Zander phone: +49 152 0902 40 29 email: fzander@nordex-online.com

Tobias Vossberg phone: +49 173 4573 63 3 email: tvossberg@nordex-online.com

Torben Rennemeier phone: +49 152 3461 79 54 email: trennemeier@nordex-online.com

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