Nordex SE

Earnings Release • Nov 15, 2021

Nordex Group Nordex SE – Nine-month financial figures 2021

15th November 2021

| 2 Disclaimer

› All financial figures within this presentation are unaudited.

• › This presentation was produced in November 2021 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.

Introduction	José Luis Blanco
Markets and orders	Patxi Landa
Financials	Dr Ilya Hartmann
Operations and technology	José Luis Blanco
Revised Guidance FY 2021	José Luis Blanco
Strategic targets	José Luis Blanco
Q&As	All
Key takeaways	José Luis Blanco

| 4 Introduction

Executive summary 9M/2021 RESULTS Sales EUR 3,956m EBITDA margin 2.5% Working capital ratio -7.7%

› 4.6 GW of order intake (+23% yoy), thereof around 80% accounting for Delta4000 series.

• › 923 MW/162 turbines Largest single order booked in the quarter from Acciona.
• › Strong sales of almost EUR 4.0bn (+25% yoy) demonstrating solid execution despite ongoing supply chain disruptions.
• › EBITDA margin at 2.5%, significantly impacted by ongoing inflationary pressures and logistical challenges.
• › Much improved equity ratio at 28.5%, with net cash of EUR 516m, on the back of successful capital increase of EUR 586m completed in July 2021.
• › Entry into the 6 MW class with the new N163/6.X turbine in September 2021.
• › Guidance for FY 2021 and strategic targets revised due to accelerated cost increases in commodities and logistics.

| 5 Markets & orders

Order intake 9M/2021

› Order intake in 9M/2021: EUR 3,219m (EUR 2,642m in previous year period)

thereof in Q3/2021: EUR 1,257m (EUR 836m in Q3/2020)

› ASP of EUR 0.70m/MW remains stable in 9M/2021 compared to previous year period

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

• › Largest single markets in 9M/2021: Australia, Brazil, Germany, Finland and Spain
• › 80% of the order intake accounts for various turbine types of Delta4000 generation in the 9M/2021
• › Order intake received from 16 different countries in 9M/2021

Comments

• › Service sales share accounts for 8.4% of group sales in the first nine months 2021
• › Service EBIT margin stands at 16.7%
• › 97.3% average availability of WTGs under service
• › Strong service order backlog of almost EUR 3.0bn at the end of Q3/2021

| 7 Markets & orders

Combined order backlog at a high level of almost EUR 8.0bn at the end of 9M/2021

Order backlog turbines (EUR m) Order backlog service (EUR m)

• › Turbine order backlog of EUR 5,006m at the end of 9M/2021 remains on a stable level
• › Geographical distribution on Nordex focus markets: Europe (68%), Latin America (19%), RoW (10%) and North America (3%)

› 9,773 wind turbines under service corresponding to 26.6 GW at the end of 9M/2021

| 8 Financials

Income statement 9M/2021

in EUR m	9M/2021	9M/2020	abs. change
Sales	3,956	3,167	789
Total revenues	3,585	3,108	477
Cost of materials	-2,908	-2,764	-144
Gross profit	677	343	333
Personnel costs	-348	-314	-34
Other operating (expenses)/income	-228	41*	-269
EBITDA	101	71	30
Depreciation/amortization	-110	-115	5
EBIT	-10	-44	34
Net profit	-104	-108	4
Gross margin**	17.1%	10.8%
EBITDA margin	2.5%	2.2%
EBIT margin w/o PPA	-0.1%	-0.8%

Comments

• › Strong growth in sales achieved on the back of high execution
• › EBITDA margin of 2.5% achieved in an environment impacted by high inflationary pressures and logistical challenges
• › PPA depreciation amounted to EUR 7.5m in 9M/2021 (EUR 19m in 9M/2020)

Financial figures 9M/2021 | 15 November 2021

*Q3/2020 includes profits from sale of European project development business to RWE. **Gross profit in relation to sales.

| 9 Financials

Balance sheet 9M/2021

in EUR m	30.09.21	31.12.20	abs. change	Δ in %
Non-current assets	1,573	1,526	47	3.1
Current assets	2,691	2,884	-193	-6.7
Total assets	4,264	4,410	-146	-3.3
Equity	1,217	774	443	57.4
Non-current liabilities	692	653	39	6.1
Current liabilities	2,354	2,984	-630	-21.1
Equity and total liabilities	4,264	4,410	-146	-3.3
Net debt*	(516)	41
Working capital ratio**	-7.7%	-6.3%
Equity ratio	28.5%	17.5%

Comments

• › Balance sheet showing substantially improved equity and leverage ratio
• › Very strong cash position of EUR 871m at the end of 9M/2021 (EUR 408m 9M/2020) due to cash from capital increase and positive free cash flow in Q3
• › Current liabilities decreased mainly due to repayment of promissory note and cancellation of state backed RCF

Financial figures 9M/2021 | 15 November 2021

*Cash and cash equivalents less bank borrowings, bond and shareholder loan. **Based on last twelve months sales.

| 10 Financials

Working capital development 9M/2021

› Working capital ratio on track - well below guided figure for FY 2021 at the end of Q3/2021

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

› Decrease in receivables mainly driven by positive development of milestone payments

| 11 Financials

Cash flow statement 9M/2021

in EUR m	9M/2021	9M/2020
Cash flow from operating activities before net working capital	2.3	-238.5
Cash flow from changes in working capital	125.2	-42.5
Cash flow from operating activities	127.5	-281.0
Cash flow from investing activities	-104.3	-97.2
Free cash flow	23.2	-378.2
Cash flow from financing activities	73.0	298.2
Change in cash and cash equivalents*	96.2	-80.0

Comments

• › Cash flow from operating activities mainly driven by consistent positive working capital development
• › Cash flow from investing activities driven by ongoing supply chain expansion and blade production facilities
• › Cash flow from financing activities reflecting cash inflows from capital increase

| 12 Financials

Total investments 9M/2021

CAPEX (in EUR m) Comments 19.8 9M/2020 9M/2021 108.6 112.2 90.3 18.3 92.4 3.3% Property, plant, equipment Intangible assets

• › Investments in 9M/2021 mainly consists of:
• Investments in establishment and expansion of blade production facilities
• Investments in transport and installation equipment for international projects
• › Slight increase in intangible assets due to higher level of development costs compared to previous year period

| 13 Financials

Capital structure 9M/2021

Net debt*/EBITDA** Equity ratio (in %)

› Leverage ratio in Q3/2021 significantly improved due to cash proceeds from capital increase

› Strong equity ratio as expected due to the inflows from capital increase

* Bank borrowings, bond, employee bond and shareholder loan less cash and cash equivalents. ** Based on last twelve months.

Strong operations in 9M/2021 despite challenging market environment

Installations (MW) Production

› Total installations of 1,216 WTGs in 22 countries in 9M/2021: 55% Europe, 17% North America, 14% Latin America and 14% Rest of World

• › Output turbines amounts to 1,068 units in 9M/2021: 615 GER, 398 ESP, 35 IND and 20 BRA
• › Inhouse blade production of 1,242 units in 9M/2021: 493 GER, 301 ESP, 291 MEX and 157 IND
• › Outsourced blade production of 1,878 units in 9M/2021

	Old Guidance	Revision
Sales:	EUR 4.7 – 5.2bn	EUR 5.0 – 5.2bn
EBITDA margin:	4.0 – 5.5%	Around 1%
Working capital ratio:	below -6%	No Change
CAPEX:	approx. EUR 180m	No Change

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

		Revision
Sales:	~ EUR 5.0bn (in the short term)	No Change
EBITDA margin:	8% in FY 2022	8% in mid term
Capacity:	6 GW+	No Change

Comments

• › FY 2021 and FY 2022 to be impacted by supply chain inflation until compensated by pass-through to customers
• › During transition margins expected to experience additional pressure
• › Return to normalized levels of margins still feasible in the mid-term

| 17 Q&As

• › Ongoing strong order intake momentum relative to the industry with a high share of Delta4000 series.
• › Continuous inflationary pressures and supply chain disruptions to impact margins in the short to mid-term.
• › Long-term industry prospects are promising due to very low wind LCOE supporting competitiveness which should allow us to pass on cost increases to end customers.
• › Nordex balance sheet strengthened to overcome this period of volatility, cost inflation and sale price adjustments.
• › Feasible to achieve normalized EBITDA margin of 8% in the mid-term, once wider markets have stabilized again.

IF YOU HAVE ANY QUESTIONS PLEASE CONTACT THE INVESTOR RELATIONS TEAM:

Felix Zander

Phone:	+49-40-30030-1116
Email:	fzander@nordex-online.com

Tobias Vossberg

Phone:	+49-40-30030-2502
Email:	tvossberg@nordex-online.com

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