Nordex SE

Earnings Release • Aug 15, 2022

Nordex Group Nordex SE – Financial figures Q2/2022

15th August 2022

› All financial figures within this presentation are unaudited.

• › This presentation was produced in August 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 H1/2022

H1/2022 RESULTS
Sales	Adjusted EBITDA margin*	Working capital ratio
EUR 2,126m	-6.8%	-10.8%

• › Order intake in the first half-year 2022 increased to 3.0 GW (H1/2021: 2.8 GW) with Q2/2022 contributing 1.8 GW (Q2/2021: 1.5 GW).
• › Sales improved sequentially as expected to EUR 1,193m in Q2/2022 and reaching EUR 2,126m in H1/2022 (EUR 2,697m same period last year). Sales to improve further in the second half 2022 due to increase in installations.
• › Adjusted EBITDA margin before footprint reconfiguration costs stood at -6.8% in H1/2022, mainly due to macroeconomic headwinds, effects from Ukraine conflict and supply chain disruptions as expected. Reported EBITDA margins stood at -8.1%.
• › Robust working capital development with -10.8% in H1/2022.
• › Cyber security incident end of March: Nordex back on track most key systems and applications restored.
• › Guidance for FY 2022 confirmed and strategic target of an EBITDA margin of 8 percent remains in place, once macro economic environment has stabilized.
• › Capital structure significantly strengthened in the current volatile environment on the back of a EUR 637m financing package consisting of equity placement, new shareholder loan facility and the rights issue.

| 5 Markets & orders

• › Order intake in H1/2022: EUR 2,357m (EUR 1,962m in the previous year period)
• › Continuous increase in ASP** over the last quarters: EUR 0.79m/MW in Q2/2022, EUR 0.78m/MW in Q1/2022 (Q2/2021: EUR 0.68m/MW)

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

• › Orders received from 19 different countries in the first half-year 2022
• › Largest single markets in Q2/2022: Germany, Poland, Spain, Brazil, Colombia and US
• › 92% of the order intake in H1/2022 is attributable to turbine types of the Delta4000 series (82% previous year period)

Service business in H1/2022

Comments

• › Share of service sales totaled 10.6% of group sales in the first half-year 2022
• › Service EBIT margin of 17.3% in the first six months 2022
• › Service order backlog stands at over EUR 3.0bn at the end of Q2/2022

| 7 Markets & orders

Combined order book of around EUR 9.7bn at the end of H1/2022

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

• › Order book of EUR 9.7bn at the end of H1/2022 reflects continuous high order intake momentum
• › Geographical footprint of the order book in H1/2022: Europe (63%), Latin America (25%), Rest of World (7%) and North America (5%)

› 10,100 wind turbines under service agreement corresponding to 28.4 GW at the end of Q2/2022

Overview of capital measures conducted in the last couple of months

Objectives of
the capital
measures

› Strengthen the capital structure in the current volatile environment for the wind industry

› Increased cash position to safeguard against risks from the short-term headwinds affecting the industry and improve positioning with customers, net cash proceeds used for general corporate purposes as cash requirements arise in the business

Steps taken

Bilateral equity placement

• › Gross proceeds: EUR 139m
• › Structure: Private placement under exclusion of subscription rights
• › Offer size: 10% of share capital
• › Subscription price: EUR 8.70

Shareholder loan

• › Maximum drawable amount: EUR 286m
• › Structure: Unsecured and deeply subordinated Shareholder loan
• › Maturity: 29 June 2025
• › Purpose: To redeem the EUR 275m 6.5% senior notes due Feb 2023

Rights issue

• › Gross proceeds: EUR 212m
• › Structure: Rights issue
• › Offer size: 20.4% of share capital
• › Subscription price: EUR 5.90
• › Take-up: 96.27%

¹ Equity ratio includes the gross proceeds from the rights issue. ² Includes cash, revolving credit facility with the banks and gross proceeds from the rights issue.

Financial figures Q2/2022 | 15 August 2022

| 9 Financials

Income statement H1/2022

in EUR m (rounded figures)	H1/2022	H1/2021	abs. change
Sales	2,126	2,697	-570
Total revenues	2,220	2,325	-104
Cost of materials	-1,974	-1,840	-134
Gross profit	246	485	-239
Personnel costs	-275	-247	-28
Other operating (expenses)/income	-114	-169	55
Adjusted EBITDA before footprint reconfiguration costs	-144	---	---
Footprint reconfiguration costs	-30	---	---
EBITDA	-173	68	-242
Depreciation/amortization	-88	-74	-14
EBIT	-261	-6	-256
Net profit	-283	-64	-219
Gross margin*	11.6%	18.0%
Adjusted EBITDA margin before footprint reconfiguration costs	-6.8%	---
EBITDA margin	-8.1%	2.5%
EBIT margin w/o PPA	-12.2%	0.0%

Comments

• › Sales increase as expected compared to Q1/2022 to EUR 2,126m at the end of H1/2022
• › Adjusted EBITDA margin before footprint reconfiguration costs of -6.8% also impacted in Q2/2022 by higher costs due to various macro-economic headwinds
• › PPA depreciation amounted to EUR 2.4m in H1/2022 (EUR 6.5m in previous year period)

| 10 Financials

Balance sheet H1/2022

in EUR m	30.06.22	31.12.21	abs. change	Δ in %
Non-current assets	1,628	1,608	20	1.2
Current assets	2,807	2,500	307	12.3
Total assets	4,435	4,108	327	8.0
Equity	796	1,062	-267	-25.1
Non-current liabilities	407	716	-309	-43.1
Current liabilities	3,232	2,330	903	38.8
Equity and total liabilities	4,435	4,108	327	8.0
Net debt/(net cash)*	(271)	(424)
Working capital ratio**	-10.8%	-10.2%
Equity ratio	17.9%	25.9%

Comments

• › Solid liquidity level of EUR 743m including cash facility under MGF
• › Cash position of EUR 653m at the end of H1/2022 (EUR 502m H1/2021) not yet reflecting cash proceeds from rights issue
• › Current liabilities increased predominantly due to the reclassification of the corporate bond

Financial figures Q2/2022 | 15 August 2022

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

| 11 Financials

Working capital development H1/2022

› As expected working capital ratio remains at a very strong level at the end of first half-year 2022 despite numerous headwinds

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

› Increase in inventories largely compensated by strong milestone payments in in the first half-year 2022

| 12 Financials

in EUR m	H1/2022	H1/2021
Cash flow from operating activities before net working capital	-187.8	7.5
Cash flow from changes in working capital	-30.3	50.4
Cash flow from operating activities	-218.1	57.9
Cash flow from investing activities	-68.7	-68.1
Free cash flow	-286.7	-10.2
Cash flow from financing activities	144.8	-265.4
Change in cash and cash equivalents	-141.9	-275.7

Comments

• › Cash flow from operating activities primarily impacted by lower margins in H1/2022
• › Cash flow from investing activities in line with ongoing optimization of supply chain and blade production footprint
• › Cash flow from financing activities mainly influenced by inflows of EUR 139m from equity placement end of June

| 13 Financials

CAPEX (in EUR m) Comments

• › Investments in H1/2022 primarily comprise:
• Investments in blade production facilities and moulds in India, Mexico and Spain
• Investments in installation and transport tooling and equipment for projects
• › Intangible assets at comparable level compared with previous year period

| 14 Financials

Capital structure H1/2022

Net debt1)/EBITDA2) Equity ratio (in %)

› Leverage ratio influenced by extra cost provisions on account of multiple market headwinds in the last quarters

• › Equity ratio decreased due to short-term effects from multiple market headwinds
• › Equity ratio likely to improve in the H2/2022 on account of proceeds from the rights issue

1) Bank borrowings, bond, employee bond and shareholder loan less cash and cash equivalents.

2) Based on last twelve months.

3) Leverage ratio not possible to calculate due to negative EBITDA in the trailing twelve-month period.

Operational performance in H1/2022

Installations (MW) Production

• › Total installations of 416 WTGs in 16 countries in H1/2022 (H1/2021: 775 WTGs)
• › Geographical split (MW) in H1/2022: 75% Europe, 19% Latin America and 6% North America

• › Catch up in installations in second half 2022 expected

• › Output turbines of 604 units in H1/2022: 325 GER, 130 IND, 80 ESP and 69 BRA

• › Inhouse blade production of 573 units in H1/2022: 318 IND, 216 GER, 30 ESP and 9 MEX
• › Outsourced blade production increased to 1,589 units in H1/2022 (1,209 units previous year-period)

FY 2022 guidance and mid-term strategic target

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

| 17 Q&As

Financial figures Q2/2022 | 15 August 2022

Time for your questions

› Comprehensive financing package of EUR 637m successfully completed to safeguard ¹ against short-term headwinds and to focus on improving profitability.

› Order intake continues to be strong with improving margin profile on the back of Delta4000 platform and supported by encouraging long-term growth prospects and demand for higher MW turbines.

› As expected, H1/2022 margins severely affected by the Ukraine war and challenging ³ market environment as many other industries.

› Well diversified geographical production footprint will help to serve our main markets ⁴ competitively while offsetting the operational risks.

› Guidance for 2022 confirmed and mid-term strategic target of 8% EBITDA margin ⁵ remains in place once macro economic environment has further stabilized.

Financial figures Q2/2022 | 15 August 2022

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

Felix Zander

Temporarily reachable via mobile phone: +49 152 0902 40 29 Email: fzander@nordex-online.com

Tobias Vossberg

Temporarily reachable via mobile phone: +49 173 4573 633 Email: tvossberg@nordex-online.com

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