Nordex SE — Earnings Release 2011

Apr 4, 2012

Nordex SE Fiscal 2011 and Outlook

Frankfurt, April 2nd, 2012

1.	Global Wind Market – Development 2011 and Outlook	B. Schäferbarthold
2.	Order Intake	B. Schäferbarthold
3.	Financials 2011	B. Schäferbarthold
4.	Outlook 2012	B. Schäferbarthold
5.	New CEO	B. Schäferbarthold
6.	Initial Strategic Assessment	Dr. J. Zeschky
7.	Strategic Focus	Dr. J. Zeschky
8.	Summary	Dr. J. Zeschky

MODERATE GROWTH OF 6% IN 2011 FOR THE WIND INDUSTRY AS A WHOLE

• Northern and Eastern markets stable Southern Europe weakening
• New MW installed: Market +4%; Nordex +9%
• New orders received: Wind industry -13%; Nordex +50%¹

• Nordex: Slight market share improvement and significant outperformance in new orders received

• Notable increase in installations of 43% (yoy) due to expiry of cash grant in the US and emerging wind markets like Canada and Brazil

• A further 8.3 GW were under construction in the US at the end of 2011 – up to 10 GW of new installations likely in 2012

• Nordex: Doubling of sales and increased order intake by 38%

• Stronger focus on quality in China led to a minor market decrease of 5% to 18 GW – still the biggest world market

• Major order from Pakistan (250 MW)
• Nordex: JV negotiations initiated to gain better access to Chinese market

Source: GWEC, EWEA, AWEA, MAKE Consulting, Nordex 1) MAKE Consulting – New orders received 2011 vs. 2010

OUTLOOK WIND ENERGY MARKET 2012 – 16: STABLE GROWTH AFTER US-INDUCED DIP IN 2013

Source: 2010/ 2011 - GWEC; 2012-2016 - MAKE Consulting, March 2012

• Global WTG installations to grow by 22% in 2012; CAGR 2011 – 2016: +7%
• Northern European demand stable
• Southern Europe held back by the credit crisis, but still slight growth mainly thanks to Turkey and France
• Eastern Europe with the highest dynamic in the region (CAGR +14%)
• USA will be the most volatile market due to the uncertain PTC situation – extension expected by MAKE late in December 2012
• Asian volume driven by China and with a large gap – India. Emerging markets catching up, Pakistan to be a TOP 3 market in Asia by 2014
• RoW dominated by South Africa
• Offshore installations to account for ~8 % over the next 5 years – but considerable uncertainty remains

Fiscal 2011 and Outlook | Nordex SE | Frankfurt/M. | 02.04.2012

Development of firm order intake 2011 – 2012 in EUR mn

• Promising start in 2012: Order intake 84% above Q1 2011 best first quarter in three years
• Diversified country presence without a significant exposure to weak countries of the Euro zone
• Orders from large utility customers (e.g. E.on) and major IPPs (e.g. Falck Renewables, Allianz, Eolia)

INCOME STATEMENT 2011

In EUR mn

	2011	2010	Δ in %
Sales	920.8	972.0	(5.3)
Total revenues	927.0	1,007.9	(8.0)
Cost of materials	(692.5)	(748.2)	(7.4)
Gross profit	234.5	259.7	(9.7)
Personnel costs	(147.4)	(119.4)	23.5
Depreciation	(27.8)	(22.5)	23.6
Other operating exp./inc.	(89.0)	(77.7)	14.5
EBIT	(29.7)	40.1	(>100)
Exceptionals/non-recurring effects	(19.4)	n/a	n/a
EBIT before exceptionals/non-rec. effects	(10.3)	n/a	n/a
Net financial result	(18.2)	(7.3)	(>100)
EBT	(47.9)	32.8	(>100)
Tax	(1.6)	(11.6)	(86.2)
Net profit	(49.5)	21.2	(>100)

Sales decreased by 5% due to delayed and postponed projects in the amount of EUR 80 mn

• Positive EBIT in core European onshore business of EUR 4.1 mn
• Non-recurring items related to reorganisational costs and offshore R&D

In EUR mn

	2011	2010
Net profit	(49.5)	21.2
Depreciation	28.2	22.5
Change in provisions	(3.7)	(4.8)
Change in working capital	(14.2)	(34.0)
Other cash inflow from operating activities	(4.1)	5.8
Cash flow from operating activities	(43.3)	20.3
Cash flow from investing activities	(45.8)	(58.7)
Cash flow from financing activities	158.2	16.3
Change in liquidity from cash flows	69.1	(22.1)
Liquidity beginning of period	141.1	159.9
Other	1.8	3.3
Liquidity end of period	212.0	141.1

• Positive operating cash flow in HY2 of EUR 79.1 mn
• Clear investment focus on R&D and products (superior cost of energy solutions for IEC I and IEC II, comparable to N117/2400, customized applications)

In EUR mn

	2011	2010		2011	2010
Liquid funds	212.0	141.1	Current bank borrowings	76.2	30.3
Trade receivables and future receivables	260.1	269.5	Trade payables	109.7	177.7
Net inventories	227.4	279.0	Others (esp. Bond)	407.5	268.8
Other current assets	60.7	54.4	Current liabilities	593.4	476.8
Current assets	760.2	744.0	Non-current bank borrowings	0	86.4
Deferred tax assets	40.7	32.9	Deferred tax liabilities	16.8	12.6
Other non-current assets	228.1	210.1	Other non-current liabilities	42.2	40.4
Non-current assets	268.8	243.0	Non-current liabilities	59.0	139.4
			Shareholders' equity	376.6	370.8
Total assets	1,029.0	987.0	Total assets	1,029.0	987.0
 Liquid funds increased by 50% to EUR 212 mn due to capital measures in HY1 (bonds and capital increase)  Equity ratio above 35% in line with German engineering sector
Fiscal 2011 and Outlook Nordex SE Frankfurt/M. 02.04.2012					8

• Liquid funds increased by 50% to EUR 212 mn due to capital measures in HY1 (bonds and capital increase)
• Equity ratio above 35% in line with German engineering sector

EBIT Bridge 2011 2012 in EUR mn

• Expected price-pressure partly compensated by "n-ergize"-programme; remaining effect estimated at EUR 20 mn
• Additional upside potential may arise if JV negotiation in China is completed successfully

GUIDANCE 2012

• Nordex expects a stable level of new orders EUR 1 – 1.1 bn
• Serial production N117/2400, flexible solutions for the Gamma Generation (e.g. hybrid towers up to 140 m; anti icing)
• Increase in business volume ~ EUR 1 - 1.1 bn
• Sound order book of ~EUR 700m at the beginning of 2012
• Strong order intake in Q1 (+84% to EUR 284 mn)

"Back to black" EBIT-margin of 1-3%

• Cost cutting and efficiency programme (full impact in 2012) as well as scale effects will mitigate the ongoing price pressure and support profitability
• Gross profit margin of ~21%
• Positive operating cash flow and decrease of the working capital quota to ~20%
• CAPEX of around EUR 70mn budgeted for 2012
• Investment focus R&D, engineering test facilities

BOARD LED BY NEW CEO, DR. JÜRGEN ZESCHKY

Nordex Management Board team (from left to right): Dr. Marc Sielemann (COO), Dr. Jürgen Zeschky (CEO), Lars Bondo Krogsgaard (CCO), Bernard Schäferbarthold (CFO)

• Dr. Jürgen Zeschky
• Previously Executive Vice President of Voith Turbo in Heidenheim, Germany between 2003 - 2012
• A highly profitable "hidden champion" which makes drive systems used in a broad range of industries
• 1991-2003: Director Operations Mannesmann Demag, incl. 6 years in US
• Clear management focus on strategy & products
• Remaining board members focused on Customers (CCO), Operations (COO) and Finance (CFO)

Strengths	IEC II • Flexible organisation ensures customized solutions •Quality products with high availability	Need for a
	•Strong position in core European onshore market •Best-in-class product for IEC III – development pipeline targeting IEC I and

focused strategy!

A MORE FOCUSED STATEGY

Europe	Our biggest market and our main opportunity   Stable regulatory environment in Northern and Central Europe Nordex offers attractive "low cost of energy" packages  Opportunities in selected markets outside the EU 
Americas	Accounts for 1/5 of our business 2011  Expect tough market in 2013   Target: Stay break even Winning specific projects in the US   Contribution from our own project development  Focus on key projects in other parts of the Americas  Intelligent capacity utilization
China	Huge market but difficult to access   and no compelling business case Negotiations with potential JV partner are a big priority 

NORDEX' STRATEGY: GOALS AND TARGETS

MY GOALS FOR 2012

• 1. Finding good solutions for the offshore project and our business in China
• 2. Development of a clear strategic profile
• 3. Efficient implementation of strategy

On the basis of 73.529 mn shares, as of March 2012

Contact

Ralf Peters

Head of Corporate Communications Phone: +49 (0)40 30030 1522 Fax: +49 (0)40 30030 1333 eMail: rpeters@nordex-online.com

Nordex SE

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

Disclaimer

The targeted goals in this document reflect forward looking statements which are based solely on estimates and not on predictable risks.

Should the estimates with regard to the successful integration of acquisitions and the future internal growth of the company not to be realized or if other unpredictable risks should arise, it cannot be ruled out that the actual financial results of the company will differ substantially from the targeted goals as laid out in this document.

In this respect Nordex SE is unable to give a guarantee that the actual financial results of the company will not differ from any forecasts or guidance given.