Nordex SE — Call Transcript 2015

May 13, 2015

Nordex SE Conference Call Q1 2015

Hamburg 13 May 2015

1.	Highlights	Dr. Jürgen Zeschky
2.	Operational progress and order intake	Dr. Jürgen Zeschky
3.	Financials Q1 2015	Bernard Schäferbarthold
4.	Market update and outlook	Dr. Jürgen Zeschky
5.	Appendix

1. HIGHLIGHTS

• Revenues up by 17.0 % to EUR 496.5 mn
• Order back-log increased by 13.3 % to EUR 1.6 bn
• Order intake in FY 2014 above industry average (16.7 % vs. 13.0%*)
• New orders in Q1/2015 amounted to EUR 642.3 mn (+14.3 % yoy)
• EBIT + 17.3 % to EUR 24.8 mn (5.0 % EBIT margin)
• Net income increased by 61.7 % to EUR 14.8 mn
• Positive free cash flow of EUR 46.2 mn
• Good working capital ratio of -4.8 %
• Net cash position improved to EUR 281.5 mn
• Guidance for FY 2015 maintained

)* Source: MAKE

1.	Highlights	Dr. Jürgen Zeschky
2.	Operational progress and order intake	Dr. Jürgen Zeschky
3.	Financials Q1 2015	Bernard Schäferbarthold
4.	Market update and outlook	Dr. Jürgen Zeschky

5. Appendix

Production – Installations - Service

Installations: 240.2 MW (-25% yoy) – weather related

91 turbines installed in 9 countries – main markets France, Turkey, the UK and Germany

Service sales: EUR 42.5 mn (+23.5% yoy) Renewal rate: 97% (+25ppt) Service order book: EUR 825 mn (+7 % vs.31.12.)

I. Product development

N131/3000 -> Successful launch

√ In progress

Generation Delta -> Tail-end of ramp-up in individual projects

√ In progress

LCoE-reduction -> Value up/cost down projects Order execution excellence -> Revision of core processes Business process alignment -> Project ownership implemented II. Other strategic initiatives √ √ √ In progress In progress In progress

• Order intake of EUR 642.3 mn.
• Generation Delta now accounts for 39% of new orders; N117/2400 for 30%
• Two significant orders from Pakistan totaling 100 MW

1.	Highlights	Dr. Jürgen Zeschky
2.	Operational progress and order intake	Dr. Jürgen Zeschky
3.	Financials Q1 2015	Bernard Schäferbarthold
4.	Market update and outlook	Dr. Jürgen Zeschky

5. Appendix

In EUR millions

	Q1 2015	Q1 2014	∆ in %
Sales	496.5	424.5	17.0
Total revenues	492.8	381.2	29.3
Cost of materials	(384.2)	(289.7)	32.6
Gross profit	108.6	91.5	18.7
Personnel costs	(44.8)	(38.6)	16.1
Other operating (expenses)/income	(26.1)	(22.6)	15.5
EBITDA	37.7	30.3	24.4
Depreciation	(12.9)	(9.2)	40.2
EBIT	24.8	21.1	17.5
Net financial result	(4.1)	(8.0)	(48.8)
EBT	20.7	13.1	58.0
Tax	(5.9)	(4.0)	47.5
Net profit	14.8	9.1	62.6

• Sales increase reflects high order backlog and order intake as well as sales of large projects
• Net profit increase by 62.6% also as a result of better financing terms
• EBIT margin of 5% at lower end of target range

-2.0ppt

Q1 2014 – Q1 2015 (in %) Gross profit per employee (in TEUR)

• High volatility of gross margin during the year, with 22 23 % expected for the full year
• Value added measured as gross profit/employee above last year

Key figures cash flow statement Q1 2015 Key figures cash flow statement Q1 2014

	in EUR mn		in EUR mn
Cash flow from operating activities	62.3	Cash flow from operating activities	27.7
Cash flow from investing activities	(16.0)	Cash flow from investing activities	(12.9)
Free cash flow	46.2	Free cash flow	14.8
Cash flow from financing activities	(-30.0)	Cash flow from financing activities	(-2.1)

• Increased operating cash flow because of higher profit as well as a decrease in working capital
• Investing activities in Q1 2015 mainly for capitalized product development and expansion of the blade-center in Rostock
• Cash flow from financing activities results from investment in fixed-term deposits

Development of working capital 2014 – Q1 2015

• Continuing stringent working capital management
• optimised turnaround and order times
• high customer prepayments

In EUR millions

	Q1 2015	2014		Q1 2015	2014
Liquid funds & fixed-term deposits	440.2	388.4	Trade payables	257.9	177.5
Trade receivables and future receivables	260.0	185.5	Other current liabilities	489.3	451.8
Net inventories	245.5	273.9
Other current assets	103.6	73.4
Current Assets	1,049.3	921.2	Current liabilities	747.2	629.3
Property, plant, equipment	139.4	136.2	Bond1	158.7	156.2
Capitalized R&D expenses	105.7	106.1	Deferred tax liabilities	33.2	30.8
Deferred tax assets	46.0	44.8	Other non-current liabilities	28.2	27.6
Other non-current assets	32.9	31.6
Non-current assets	324.0	318.7	Non-current liabilities	220.1	214.6
			Shareholders' equity	406.0	396.0
Total assets	1,373.3	1,239.9	Total liabilities	1,373.3	1,239.9

• Balance sheet strengthened:
• Net liquidity increased to EUR 281.5 mn (31.12.2014: 232.2 mn)
• Bank borrowings remain at zero
• Equity ratio decreased to 29.6% (31.12.2014: 31.9 %) ¹ Bond incl. interest

Conference Call Q1 2015 | Nordex SE | 13 May 2015

4.	Market update and outlook	Dr. Jürgen Zeschky
3.	Financials Q1 2015	Bernard Schäferbarthold
2.	Operational progress and order intake	Dr. Jürgen Zeschky
1.	Highlights	Dr. Jürgen Zeschky

5. Appendix

Development of the firm order book* Q1 2015 vs. Q1 2014 (in EUR mn)

• Firm order book already covers a major part of 2015 sales
• EMEA currently accounts for 88% of the firm order book, Americas 8% and Asia 4%
• Book-to-bill ratio* at 1.3
• Conditional order back-log EUR 776 mn (-3.7%)

4. DEMAND OUTLOOK

Source: MAKE 3/2015

• Global growth of 13 % expected in 2015. Clean energy spending still at a high level
• Northern Europe: Nordex core markets provide stable foundation for our business gains in market share targeted
• Southern Europe: High demand in Turkey and France will boost our growth
• Eastern Europe: Recovery in EMEA East due to new regulation in Poland
• Emerging Markets: Growth opportunities in Africa (RSA, Egypt) Latin America (URU, Chile) and smaller markets in Asia (PAK etc.). 2015 market entry in Chile and selected watch markets in Africa

	2014A	2015e
Order intake	EUR 1.75 bn	EUR 1.8 – 2.0 bn
Sales	EUR 1.73 bn	EUR 1.9 – 2.1 bn
EBIT margin	4.5 %	5 – 6 %
Working capital ratio	- 2.3%	< 5%
Investment	EUR 76.3 m	~ EUR 50 - 60 m

Guidance unchanged compared with figures released in March

4. MEDIUM-TERM DIRECTION 2017

• Strong demand
• Positive momentum
• Solid order book for Nordex
• Measures to improve operating efficiency
• High growth brings its own challenges
• Implementation of operational improvement according to plan, impact not yet fully reflected in financial results
• Strong product pipeline and focused sales strategy to secure future development

TIME FOR YOUR QUESTIONS

Based on 80.882.447 shares, as of 31 March 2015

Date	Event
13 May	Q1 2015 results and analyst call
2 June	Annual General Meeting, Rostock
9-10 June	Bank of America Merrill Lynch Utilities & Renewables Conference, London
17-19 June	Deutsche Bank German, Swiss & Austrian Conference, Berlin
13 August	H1 2015 results and analyst call
September	Capital Markets Day
12 November	Q3 2015 results and analyst call

5. DISCLAIMER

This presentation was produced in May 2015 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.

THANK YOU FOR YOUR ATTENTION.

Nordex SE

Ralf Peters Head of Corporate Communications Oliver Kayser Investor Relations Manager

Langenhorner Chaussee 600, 22419 Hamburg, Germany Phone: +49 (0)40 30030 1000 Fax: +49 (0)40 30030 1333 eMail: investor-relations@nordex-online.com

NDX1

ISIN: DE000A0D6554 WKN: A0D655

www.nordex-online.com