Nordex SE

Earnings Release • Nov 15, 2022

Nordex Group Nordex SE – Financial figures 9M/2022

15th November 2022

› All financial figures within this presentation are unaudited.

• › This presentation was produced in November 2022 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
Guidance FY 2022 and outlook	José Luis Blanco
Q&As	All
Key takeaways	José Luis Blanco

Executive summary 9M/2022

9M/2022 RESULTS
Sales	EBITDA margin	Working capital ratio
EUR 3,873m	-5.2%	-9.8%

• › Order intake remains healthy with 1.4 GW in Q3 with increasing ASP of EUR 0.91m/MW. Order intake for 9M/2022 stands at 4.4 GW (9M/2021: 4.6 GW).
• › Sales reached to almost EUR 3.9bn in 9M/2022 in line with sequentially increasing installations in Q3 but below previous year's level.
• › EBITDA margin at -5.2% in 9M/2022 reflects ongoing tough macro-economic environment with inflationary pressures, supply chain disruptions and resultant project delays.
• › Working Capital level consistent at -9.8%.
• › Pace of installations catching up in Q3, but still below expectations, leaving a heavy back-end loaded installations target for Q4/2022.
• › Guidance for FY 2022: Margin guidance tightened at around -4% in light of the current market conditions.
• › Mid-term outlook remains promising and target for EBITDA margin of 8% feasible to achieve assuming a sustainably stable macro economic environment.

| 5 Markets & orders

Order intake 9M/2022

› Order intake in 9M/2022: EUR 3,647m (EUR 3,219m in previous year period)

thereof in Q3/2022: EUR 1,290m (EUR 1,257m in Q3/2021)

› Strong increase in ASP** in Q3/2022 to EUR 0.91/MW compared to 0.79m/MW in Q2/2022 and EUR 0.69m/MW in previous year quarter

Financial figures 9M/2022 | 15 November 2022 *Group segment "Projects". ** Average Selling Price.

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

• › Orders received from 19 different countries in 9M/2022
• › Largest single markets in Q3/2022: Brazil, Germany, Finland, Poland and Spain

Service 9M/2022

Comments

• › Service sales share accounts for around 10% of group sales in the first nine months 2022
• › Service EBIT margin of 16.1% at prior-year level
• › 97.1% average availability of WTGs under service
• › Strong service order book of almost EUR 3.2bn at the end of Q3/2022

Combined order book at a high level of EUR 9.7bn at the end of 9M/2022

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

• › Turbine order book of EUR 6.5bn at the end of 9M/2022 shows ongoing strong order intake momentum
• › Geographical footprint in 9M/2022: Europe (65%), Latin America (27%), Rest of World (5%) and North America (3%)

› 10,426 wind turbines under service contract corresponding to 29.8 GW at the end of 9M/2022

| 8 Financials

Income statement 9M/2022

in EUR m (rounded figures)	9M/2022	9M/2021	abs. change
Sales	3,873	3,956	-83
Total revenues	3,893	3,585	308
Cost of materials	-3,453	-2,908	-545
Gross profit	439	677	-237
Personnel costs	-425	-348	-77
Other operating (expenses)/income	-214	-228	14
EBITDA	-200	101	-301
Depreciation/amortization	-131	-110	-21
EBIT	-330	-10	-320
Net profit	-372	-104	-268
Gross margin*	11.3%	17.1%
EBITDA margin	-5.2%	2.5%
EBIT margin w/o PPA	-8.4%	-0.1%

Comments

• › As anticipated, sales improving to EUR 1,747m in Q3/2022 compared to EUR 1,193m in previous quarter on account of higher project activities and installations
• › EBITDA margin continues to be impacted by inflationary pressures and supply chain delays
• › PPA depreciation amounted to EUR 3.6m in 9M/2022 (EUR 7.5m in previous year period)

| 9 Financials

Balance sheet 9M/2022

in EUR m	30.09.22	31.12.21	abs. change	Δ in %
Non-current assets	1,615	1,608	7	1.4
Current assets	3,018	2,500	518	20.4
Total assets	4,632	4,108	525	12.8
Equity	971	1,062	-91	-8.6
Non-current liabilities	360	716	-356	-49.7
Current liabilities	3,302	2,330	972	41.7
Equity and total liabilities	4,632	4,108	525	12.8
Net debt/(net cash)*	(292)	(424)
Working capital ratio**	-9.8%	-10.2%
Equity ratio	21.0%	25.9%

Comments

• › Healthy liquidity level of EUR 762m at the end of Q3/2022 including cash facility under MGF
• › Increase in current liabilities mainly driven by reclassification of the corporate bond in Q2/2022

Financial figures 9M/2022 | 15 November 2022

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

| 10 Financials

Working capital development 9M/2022

› Working capital ratio remains consistently under the guidance level for FY 2022

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

Cash flow statement 9M/2022

in EUR m	9M/2022	9M/2021
Cash flow from operating activities before net working capital	-326.3	2.3
Cash flow from changes in working capital	-31.1	125.2
Cash flow from operating activities	-357.5	127.5
Cash flow from investing activities	-100.5	-104.3
Free cash flow	-458.0	23.2
Cash flow from financing activities	341.5	73.0
Change in cash and cash equivalents*	-116.4	96.2

Comments

• › Cash flow from operating activities mainly determined by lower margin development in 9M/2022
• › Cash flow from investing activities in line with expected investment activities
• › Cash flow from financing activities includes cash inflows from capital increase

| 12 Financials

CAPEX (in EUR m) Comments

• › Investments in 9M/2022 mainly comprises:
• Investments in blade production facilities and moulds in India and Spain
• Investments in installation and transport tooling and equipment for projects
• › Intangible assets at comparable level compared with previous year period

| 13 Financials

Capital structure 9M/2022

(Net debt) / Net cash1) Equity ratio (in %)

• › Healthy net cash levels after the rights issue
• › Includes high yield bond of EUR 275m, which will be repaid by a deeply subordinated shareholder loan early next year

› Equity ratio improved in Q3 as expected on account of the proceeds from the rights issue

Financial figures 9M/2022 | 15 November 2022 1) Bank borrowings, bond, employee bond and shareholder loan less cash and cash equivalents.

Operational performance in 9M/2022

Installations (MW) Production

• › Total installations of 791 WTGs in 17 countries in 9M/2022 (9M/2021: 1,216 WTGs)
• › Geographical split (MW) in 9M/2022: 74% Europe, 14% Latin America and 12% North America

• › Increasing risks from year-end installation delays, which were initially caused after the cyber security incident

• › Output turbines amounts to 1,003 units in 9M/2022: 525 GER, 238 IND, 123 BRA, 115 ESP and 2 CHN

• › In-house blade production of 879 units in 9M/2022: 567 IND, 216 GER, 87 ESP and 9 MEX
• › Outsourced blade production of 2,478 units in 9M/2022

Improving long term prospects While, near term challenges to be addressed

• › Effects of cost inflation still coming through in some components with a lag even as shipping rates and commodities start to cool off
• › Struggling smaller suppliers remain a key risk for supply reliability and price increases

• › Component delays, shipping delays leading to project delays and LD discussions in some projects

• › Heavy installations catch up plan for Q4 Increasing risk of spill over into 2023

• › Effects of cyber security incident in the first half not fully unwound

Improving quality of the order intake with the stronger demand backdrop to support mid term EBITDA target of 8%

	2022 guidance	Updated 2022 guidance
	All inclusive	All inclusive*
Sales:	EUR 5.2 – 5.7bn	EUR 5.2 – 5.7bn
EBITDA margin:	(4)% - 0%	Around (4)%
Working capital ratio:	below (7%)	below (7%)
CAPEX:	approx. EUR 180m	approx. EUR 180m

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

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

Financial figures 9M/2022 | 15 November 2022

| 17 Q&As

Key takeaways

› Support for renewables is growing stronger as a result of new regulatory updates in ¹ USA and Germany.

2 › Order intake continues to be healthy with improving pricing and margin profile.

› 9M/2022 operational performance shows sequential improvement, but near-term ³ challenges continues to be a drag.

5

› High back end loaded performance along with the impacts from project delays remain ⁴ a near term risk, going into the last quarter.

› Margin guidance for 2022 tightened to the lower end while mid-term strategic target of 8% EBITDA margin remains in place once macro economic environment has further stabilized.

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

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