Nordex SE

Earnings Release • Mar 31, 2023

Nordex Group Nordex SE – Financial-year figures 2022

31st March 2023

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

• › This presentation was produced in March 2023 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 2022 RESULTS

Sales	EBITDA margin	Working capital ratio
EUR 5,694m	-4.3%	-10.2%

• › Healthy order intake of 1.9 GW in Q4/2022 with around 20% increase in ASP to EUR 0.89m/MW (EUR 0.74m/MW in the previous year quarter).
• › Sales amounted to EUR 5.7bn in FY 2022; up around 5% versus previous year of EUR 5.4bn.
• › Annual installations of 5,221 MW for FY 2022 (6,679 MW in 2021).
• › Annual EBITDA margin of -4.3% in line with revised guidance; Q4/2022 EBITDA margin of -2.4%, impacted by installation delays, additional warranty provisions, partly offset by income from project development activities.
• › Strong working capital ratio at -10.2%.
• › Launch of the highly efficient turbine type N175/6.X of the Delta4000 series.
• › High yield bond repaid and process for converting the shareholder loans into equity initiated with the approval in the EGM in Q1/2023.
• › Nordex taking early initiatives in the green hydrogen space with the signing of two joint ventures.
• › Improving margin outlook within 2023 guidance while maintaining mid term EBITDA target of 8%.

| 5 Introduction

Nordex makes top 3 worldwide in 2022 for installations

ONSHORE MARKET SHARE EX CHINA (BASED ON MW INSTALLATIONS)

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 › Classification: Public

Order intake FY 2022

• › Order intake in Q4/2022: 1,902 MW (3,335 MW in the previous-year quarter)
• › Healthy increase of over 20 percent in ASP** in Q4/2022 to EUR 0.89m/MW (FY 2022: 0.84m/MW) compared to EUR 0.74m/MW in Q4/2021 (FY 2021: 0.72m/MW)

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

• › Orders received from 20 different countries in FY 2022 showing diversified footprint
• › Largest single markets in FY 2022: Germany, Brazil, Finland, Turkey and Poland

Service business FY 2022

Share of fleet under contract (as % of installed base)

• 15.8% 18.5% 16.7% › Service sales share totaled around 10% of group sales in the reporting period
• › Service EBIT margin of 16.7% in FY 2022, temporarily impacted by inflationary pressures and spare parts availability
• › Approx. 97% average availability of WTGs under service
• › Service order book remains strong with almost EUR 3.3bn at the end of FY 2022
• › Around 31 GW of installed base are under service agreement

| 9 Markets and orders

Combined order book of almost EUR 9.8bn at the end of FY 2022

Order book turbines (EUR m) Order book service (EUR m)

• › Turbine order book of around EUR 6.5bn reflects consistently strong order intake momentum in FY 2022
• › Geographical distribution on Nordex focus markets: Europe (71%), Latin America (22%), North America (4%) and RoW (2%)

› 10,599 WTGs under service contract corresponding to around 31 GW at the end of FY 2022

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

Shareholder loans conversion update: Continued strong commitment from largest shareholder Acciona

Significantly positive impact on key financials

Equity ratio increasing substantially to 26% on a pro forma basis*

Around EUR 46m interest costs savings p.a. directly from the conversion of shareholder loans

Conversion at a much higher price vs. 2022 rights issue, showing strong commitment of Acciona

Key transaction terms Likely timeline

› Shareholder loans:

› EUR 346mn (incl. interest up to 26 March 2023)

› Capital increase for conversion:

• › Issue / conversion price: EUR 14.15
• › New shares to be issued: 24.5m
• › approx. EUR 346m equivalent value

› Impact on Acciona's shareholding:

› Increase from 41% to around 47%

Income statement FY 2022

in EUR m (rounded figures)	FY 2022	FY 2021	abs. change
Sales	5,694	5,444	250
Total revenues	5,991	5,052	939
Cost of materials	-5,505	-4,225	-1,280
Gross profit	486	827	-341
Personnel costs	-588	-474	-114
Other operating (expenses)/income	-143	-301	158
EBITDA	-244	53	-297
Depreciation/amortization	-182	-160	-22
EBIT	-427	-107	-319
Net profit	-498	-230	-268
Gross margin*	8.5%	15.2%
EBITDA margin	-4.3%	1.0%
EBIT margin w/o PPA	-7.4%	-1.8%

• › Solid sales growth of EUR 5,694m in FY 2022 due to ongoing good order intake momentum
• › EBITDA margin of -4.3% in line with revised guidance impacted by
• › Inflationary pressures, supply chain disruptions, project delays due to cyber security incident in H1/2022, partly offset by income from project development activities
• › PPA depreciation amounted to EUR 4.9m in FY 2022 (EUR 8.6m in the previous year)

Income statement Q4/2022

in EUR m (rounded figures)	Q4/2022	Q4/2021	abs. change
Sales	1,820	1,488	332
Total revenues	2,099	1,467	632
Cost of materials	-2,052	-1,316	-736
Gross profit	47	150	-103
Personnel costs	-162	-126	-36
Other operating (expenses)/income	71	-72	143
EBITDA	-44	-48	4
Depreciation/amortization	-52	-50	-2
EBIT	-96	-98	2
Net profit	-126	-127	1
Gross margin*	2.6%	10.1%
EBITDA margin	-2.4%	-3.2%
EBIT margin w/o PPA	-5.2%	-6.5%

• › Q4/2022 gross margin mainly influenced by
• › Installation delays and other project issues leading to higher LDs
• › Additional provisions made to address some legacy issues in an older discontinued machine type
• › EUR 133m profit booked on sale of 50% stake in Nordex H2 to Acciona Group
• › PPA depreciation in Q4/2022 totaled EUR 1.3m (EUR 1.0m in previous-year quarter)

| 14 Financials

› Classification: Public

Balance sheet FY 2022

in EUR m (rounded figures)	31.12.22	31.12.21	abs. change	Δ in %
Non-current assets	1,795	1,608	187	11.6
Current assets	2,961	2,500	462	18.5
Total assets	4,757	4,108	649	15.8
Equity	878	1,062	-184	-17.3
Non-current liabilities	452	716	-264	-36.8
Current liabilities	3,427	2,330	1,097	47.1
Equity and total liabilities	4,757	4,108	649	15.8
Net cash*	244	424
Working capital ratio**	-10.2%	-10.2%
Equity ratio	18.5%	25.9%

• › Healthy liquidity level of EUR 714m at the end of FY 2022 including cash facility under MGF
• › Increase in current liabilities mainly driven by reclassification of corporate bond – repayment of bond completed in Q1/2023

| 15 Financials

Working capital development FY 2022

› Despite challenging environment working capital ratio consistent under guidance level throughout FY 2022

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

in EUR m (rounded figures)	FY 2022	FY 2021
Cash flow from operating activities before net working capital	-374	-135
Cash flow from changes in working capital	23	263
Cash flow from operating activities	-351	128
Cash flow from investing activities	-164	-152
Free cash flow	-515	-25
Cash flow from financing activities	346	62
Change in cash and cash equivalents*	-168	38

• › Cash flow from operating activities mainly influenced by lower margin development throughout the year
• › Cash flow from investing activities reflects ongoing investment levels throughout the year
• › Cash flow from financing activities mainly influenced by cash inflows from rights issue in July 2022

Total investments FY 2022

CAPEX (in EUR m) Comments

• › Investments in FY 2022 above guided level, mainly consists of:
• Investments in expansion of blade production facilities and moulds in India, Spain and Mexico
• Investments in installation and transport tooling and equipment for projects
• Investments in moulds and factory tooling for concrete tower factories
• › Intangible assets largely stable compared to previous year

| 18 Financials

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

• › Healthy net cash levels throughout the year
• › Includes high yield bond of EUR 275m, which has been repaid by shareholder loan in February this year

› Equity ratio expected to increase post completion of debt-to-equity swap

* Bank borrowings, bond, employee bond and shareholder loan less cash and cash equivalents. 1) Pro forma net cash assuming conversion/repayment of the shareholder loan and high yield bond as of 31st December 2022. 2) Pro forma equity ratio assuming EUR 346m conversion of the shareholder loans/high yield bond as of 31st December 2022.

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

Nordex sustainability strategy 2025 was developed in 2021 based on comprehensive materiality analysis; first targets achieved in 2022

Together for change – Wind for a sustainable future

Main targets

• › Provide fully recyclable blades by 2032
• › 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
• › Promote responsible and ethical business conduct internally and with our business partners
• › Engage with and positively impact the supply chain

Nordex activities have a very high EU Taxonomy-alignment; sustainability ratings above industry average

EU Taxonomy Eligibility and Alignment

Nordex contributes to objectives climate change mitigation and climate change adaptation with two main EU Taxonomy 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
	mio EUR	%	mio EUR	%
Turnover	5,681.85	99.79	5,681.85	99.79
CapEx	293.35	97.59	224.40	74.65
OpEx	62.14	93.38	62.14	93.38

ESG Rating Scores

Scale	Nordex Group
A+ (best) to D	B Prime**
A (best) to D	B
AAA (best) to CCC	A
Risk Rating 0 (best) to 100	25.0/100 – Medium
1-100 (best)	71/100 Gold

The change for the 2022 disclosures was made upon recommendation from PwC. ** Awarded to companies with an ESG performance above the sector-specific Prime threshold, which means that they fulfil ambitious absolute performance requirements.

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

Operational performance in FY 2022

Installations (MW) Production

• › Total installations of 1,129 WTGs in 19 countries in FY 2022 (FY 2021: 1,619 WTGs)
• › Geographical split (in MW): 75% Europe, 14% Latin America, 10% North America and RoW 1%

• › Run rate back to normal levels, but not sufficient enough to cover for delays in H1/2022

• › Output turbines amounts to 1,502 units in FY 2022: 710 GER, 335 IND, 230 ESP, 204 BRA and 23 CHN

• › In-house blade production of 1,243 units in FY 2022: 819 IND, 216 GER, 199 ESP and 9 MEX
• › Outsourced blade production of 3,531 units in FY 2022

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

	2022 Guidance	2022A*
Sales:	EUR 5.2bn – 5.7bn	EUR 5.7bn
EBITDA margin:	Around -4%	-4.3%
Working capital ratio:	Below -7%	-10.2%
CAPEX:	Approx EUR 180m	EUR 205m

* For clarity: figures include all exceptional and one-off effects including reconfiguration costs, any profits from project development operations, costs from cyber security incident and so on.

Long term outlook continues to be positive

Annual global onshore capacity additions (GW)

• › At current rate of installations, we will have >2/3 of the wind capacity required for 1.5o C and net zero pathway, condemning us to miss our climate goals (Source: GWEC)
• › Long-term demand expected to rise:
• › Policy momentum strengthening on the back of energy security concerns and NZE 2050 ambitions
• › Growing support for green hydrogen

Green Hydrogen production by 2050 will need over 20TW2 of renewable energy

capacity

› Onshore is one of the cheapest sources of renewable energies today

FY figures 2022 | 31 March 2023

Sources: Wood Mackenzie, Global Wind Market Outlook Update Q4 2022; IEA November 2021; BNEF New Energy Outlook 2021; IRA. Notes: 1NZE 2050 = IEA's 'Net Zero Emissions by 2050' scenario, 2Bloomberg's best case scenario assuming 1,318 mt of hydrogen demand by 2050.

European Green Deal: Aiming for net zero emissions

by 2050

While near term outlook of the core operations improving on the back of better quality order intake

2022 onshore order intake (MW) by turbine OEM*

Key takeaways

• Continued momentum in order intake supports 2023 revenues
• Double digit growth in turbine prices supports margin recovery in 2023 and beyond
• Sale contracts amended for better risk protection
• × Lingering supply chain disruption and geopolitical uncertainty continue to remain a key risk

Please note the assumptions underlying the guidance are subject to greater uncertainties than normal

Nordex taking early initiatives in the green hydrogen market to complement its core business

Demand for green hydrogen likely

• › 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.
• › This requires c.750GW of new renewables and c.400 GW of electrolyzer capacity by 2030
• › Ample policy support offered under US IRA 2022; 10mtpa of green hydrogen import targeted under REPowerEU by 2030

Hydrogen initiatives
Project development 1 initiatives	2 Electrolyzers
› Large pipeline of projects in early stage of development › Number of agreements in place with local credible developers Efforts focused on off-grid › onshore windy sites across south and north America and Middle eastern regions › Joint venture with Acciona to support the investments for the next four years	› In-house development at an early stage › Based on proven and cost-effective alkaline technology › 50kw prototype ready and tested › 500kw prototype to be ready within 2023 › Collaboration with Sodena, a Spanish private equity fund founded by the local government › Investments jointly covered with Sodena and govt grants

Joint Venture with Acciona Group to develop the hydrogen projects 1

Strategic partnership to benefit both parties

• › Equity value of the Joint Venture EUR 136m
• › The purchase price to be paid over next four years, covers forecasted capex commitments for Nordex

Joint Venture with Sodena to develop the electrolyzers 2

Strategic partnership to benefit both parties

• › Objective to develop a commercial prototype and industrial deployment of alkaline electrolyzers
• › Both parties commit to EUR 15m capex over the next 5 years in the Joint Venture
• › EUR 11.6m grant from 'Important Project of Common European Interest (IPCEI)', approved by the European Commission and called Hy2Tech

Key terms

| 33 Q&As

FY figures 2022 | 31 March 2023

› Focus on energy security and energy independence strengthening the case for the wind industry given it is one of the most competitive sources of energy today. 1

3 › Making steady progress with better quality order intake and improved risk mitigation approach.

5

› In parallel, Nordex taking early initiatives in green hydrogen with a much favourable risk reward profile via two partnerships already in place. 4

› Improving electricity prices, coupled with potential demand growth could be a great platform for successful costs pass-through and hence helping us towards our mid-term EBITDA margin target of 8%.

|

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 633 Email: tvossberg@nordex-online.com

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