Nordex SE

Investor Presentation • Nov 13, 2020

Nordex Group Nordex SE – Nine-month financial figures 2020

13th November 2020

Financial figures 9M/2020 | 13 Nov 2020

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| 2 Disclaimer

› All financial figures within this presentation are unaudited.

• › This presentation was produced in November 2020 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.

| 3 Agenda

Executive summary	José Luis Blanco
Covid-19 operational impact	José Luis Blanco
Markets and orders	Patxi Landa
Financials	Christoph Burkhard
Operations and technology	José Luis Blanco
Guidance FY 2020	José Luis Blanco
Strategic targets FY 2022	José Luis Blanco
Drivers strategic targets	José Luis Blanco
Modules of company program	José Luis Blanco
Q&As	All
Key takeaways	José Luis Blanco

Financial figures 9M/2020 | 13 Nov 2020

Executive summary

9M/2020 RESULTS

Sales	EBITDA margin	Working capital ratio
EUR 3,167m	2.2%	-5.7%

› Order intake amounted to 3,759 MW in 9M/2020 with a share of 81% coming from turbine generation Delta4000.

• › 9M/2020 sales of EUR 3.2bn up 63% versus 9M/2019 (EUR 1.9bn).
• › EBITDA of EUR 71m versus EUR 60m (3.1%) in 9M/2019 and despite Covid-19 slightly better working capital ratio at minus 5.7% (9M/2019: minus 5.2%).
• › 9M/2020 results negatively impacted by Covid-19 and major non-recurring events accounting for approximately EUR 300m in FY 2020.
• › Sale of Nordex European project development pipeline to RWE for around EUR 400m successfully completed.
• › Nordex scored a share of 31% in Germany's latest auction in October sharing top position with Vestas.
• › Reinstated new guidance for FY 2020 with sales of approx. EUR 4.4bn and an EBITDA margin of 2%.
• › Strategic targets set for FY 2022: Sales of approx. EUR 5bn with an EBITDA margin of 8%.
• › Comprehensive company program in implementation in order to secure performance in FY 2021 and fulfillment of strategic targets for FY 2022.

| 5 Operational impact

COVID-19 and major non-recurring events impacting EBITDA in 2020

| 6 Markets & orders

› Order intake in 9M/2020: EUR 2,642m (EUR 3,314m in previous year period)

thereof in Q3/2020: EUR 836m (EUR 1,199m in Q3/2019)

› ASP remains stable of EUR 0.70m/MW in 9M/2020

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

• › Largest orders received from USA, Norway, Great Britain, Spain and Chile in 9M/2020
• › 86% of order intake accounts for Delta4000 generation in Q3/2020 and 81% for the first nine months 2020
• › Order intake received from 20 different countries in 9M/2020 showing well balanced footprint

Comments

• › Service sales share accounts for 10.0% of group sales in the first nine months 2020
• › Service EBIT margin of 14.8% at the end of 9M/2020
• › 97.4% average availability of WTGs under service
• › Strong service order backlog of around EUR 2.8bn at the end of 9M/2020

| 8 Markets & orders

Order backlog remains on high level: EUR 7.9bn at the end of 9M/2020

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

• › Turbine order backlog of EUR 5,138m at the end of 9M/2020 remains on a high level
• › Distribution on Nordex focus markets: Europe (62%), Latin America (16%), North America (15%), RoW (7%)

› 8,192 wind turbines under service corresponding to 21.1 GW at the end of 9M/2020

| 9 Financials

Income statement 9M/2020

in EUR m	9M/2020	9M/2019	abs. change
Sales	3,167.4	1,943.0	1,224.4
Total revenues	3,107.6	2,519.7	587.9
Cost of materials	-2,764.2	-2,004.3	-759.9
Gross profit	343.4	515.4	-172.0
Personnel costs	-313.7	-264.9	-48.8
Other operating (expenses)/income	41.2	-190.3	231.5
EBITDA	70.8	60.2	10.6
Depreciation/amortization	-114.7	-102.4	-12.3
EBIT	-43.9	-42.2	-1.7
Net profit	-107.5	-76.5	-31.0
Gross margin*	10.8%	26.5%
EBITDA margin	2.2%	3.1%
EBIT margin w/o PPA	-0.8%	-1.2%

Comments

• › Sales figures of EUR 3,167m at the end of Q3/2020 reflecting overall growth of Nordex despite the pandemic
• › EBITDA carry significant Covid-19 impact and nonrecurring costs counterbalanced by proceeds from the pipeline sale to RWE
• › RWE transaction has been recognized as Other operating income
• › PPA depreciation amounted to EUR 19m in 9M/2020 (EUR 18m in 9M/2019)

| 10 Financials

Balance sheet 9M/2020

in EUR m	30.09.20	31.12.19	abs. change	Δ in %
Non-current assets	1,494.8	1,488.9	5.9	0.4
Current assets	3,170.6	2,513.8	656.8	26.1
Total assets	4,665.4	4,002.7	662.7	16.6
Equity	635.2	745.4	-110.2	-14.8
Non-current liabilities	849.5	914.2	-64.7	-7.1
Current liabilities	3,180.7	2,343.2	837.5	35.7
Equity and total liabilities	4,665.4	4,002.7	662.7	16.6
Net debt*	492.8	84.0
Working capital ratio**	-5.7%	-9.1%
Equity ratio	13.6%	18.6%

Comments

• › Cash position of EUR 408m at the end of 9M/2020 (EUR 334m end of Q2/2020)
• › Increase in current assets due to recognition of transaction, i.e. sale of European project development business to RWE
• › Reclassification of promissory notes (SSD) into current liability
• › Refinancing of promissory notes of EUR 215m due in April 2021 already been secured in the context of the state-guaranteed RCF

Financial figures 9M/2020 | 13 Nov 2020

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

| 11 Financials

Working capital development 9M/2020

› Working capital ratio impacted by Covid-19 but still on a very acceptable level

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

› Temporary increase of receivables due to Covid-19 related project delays

| 12 Financials

Cash flow statement 9M/2020

in EUR m	9M/2020	9M/2019
Cash flow from operating activities before net working capital	-238.5	-93.6
Cash flow from changes in WC	-42.5	30.8
Cash flow from operating activities	-281.0	-62.8
Cash flow from investing activities	-97.2	-93.2
Free cash flow	-378.2	-156.0
Cash flow from financing activities	298.2	-62.5
Change in cash and cash equivalents*	-80.0	-218.4

Comments

• › Negative cash flow from operating activities not yet reflecting cash from RWE transaction (received on November 2nd)
• › Cash flow from investing activities mainly reflects ongoing expansion of supply chain and blade production facilities
• › Cash flow from financing activities largely determined by funds received from new RCF and outflows from leasing payments and repayment under EIB facility

| 13 Financials

CAPEX (in EUR m) Comments

• › Investments in 9M/2020 primarily comprise:
  • Investments in blade production facilities in Mexico, India and Brazil
  • Investments in installation and transport tooling and equipment for international projects
  • Investments in product development
• › Slight decrease in intangible assets due to lower level of development costs compared to previous

| 14 Financials

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

› Leverage ratio in Q3/2020 decreased as expected due to EBITDA contribution from RWE transaction

› Equity ratio remains on a similar level compared to Q2/2020

Financial figures 9M/2020 | 13 Nov 2020

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

Installations (MW) Production

› Total installations of 1,052 WTGs in 21 countries in the first nine months 2020: 43% Europe, 33% North America, 18% Latin America and 6% Rest of world

• › Output turbines amounts to 1,154 units in 9M/2020: 594 GER, 332 ESP, 154 IND, 64 BRA and 10 ARG
• › Inhouse blade production of 990 units in 9M/2020: 521 GER, 220 MEX, 194 IND and 55 ESP
• › Outsourced blade production of 2,065 units in 9M/2020 (9M/2019: 1,695 units)

| 16 Guidance

Financial figures 9M/2020 | 13 Nov 2020

| 17 Targets 2022

Financial figures 9M/2020 | 13 Nov 2020

| 18 Drivers

Macro & long-term drivers: the trend to renewables is irrevocable

The European Green Deal as a multilayer regulatory package

On its way to an economy with net-zero GHG emissions: EU aims for climate neutrality by 2050

DRIVERS

10,000 WTGs running out alone within the next three years in Germany. Further repowering potential coming from the US, Denmark, Spain, India

Draft of upcoming EEG amendment for Germany passed in September 2020: strong political signal of change expansion path onshore wind is targeted at 71 GW by 2030

German Investitionsbeschleunigungsgesetz: will support wind power projects in Germany, e.g. improving permitting processes

Regional projects:

100% electricity from renewables for federal state Schleswig-Holstein and Hamburg until 2035

Drivers to keep the order intake momentum to support strategic targets for FY 2022

Modules of company program

Initiative clusters	Initiative targets	Overall project status
1 Supply chain transformation	› Setting up 4 GW supply chain in India and moving current EU partners to India	› Supply chain topics starting to mature into contracting stage already
2 Productivity enhancement	› Safer, stronger ramp-up and focus on efficiency and productivity
3 Increase service profitability	› Building a global service unit to further improve the margin profile	› 2021 and 2022 costs being negotiated show material improvement compared to current base levels
4 PM/EPC excellence	› Using experience of examples of excellence from high-performance countries for new markets	› Further initiatives beyond procurement
5 Product delivery	› Stay at the curve of the market benchmark for products	being integrated to allow sustainable transformation into 2022 and beyond
6 Continuation of the sales success story	› Stay in top 3 position in onshore business, as already shown over the last 5 to 6	› Sales in the onshore wind industry
7 Expanding engineering further	quarters › Expand presence and competency depth with a new engineering office in India to secure new supplies	continue to reach or approach the second highest pace

| 21 Q&As

Financial figures 9M/2020 | 13 Nov 2020

› Business performance in 2020 significantly affected by Covid-19 pandemic. However, main impacts already reflected in the current financial figures.

• › Solid order backlog of nearly 8 GW (majority with the more profitable Delta 4000 platform), growing at one of the strongest pace in the onshore wind industry primarily coming from Europe and North America.
• › Financial year 2021 shows materially better risk and margin profile compared to 2020 execution book. Installation plan in 2021: 60% Europe, 20% US.
• › Comprehensive company programme in place, starting to yield upsides from mid financial year 2021.

› Strategic targets: around 6 GW+, approx. 5bn sales with 8% EBITDA margin by financial year 2022 – more details will follow in 2021.

Nordex will hold a Capital Markets Day* in spring 2021

Financial figures 9M/2020 | 13 Nov 2020 * Format subject to the further development of the Covid-19 pandemic. |

Preliminary financial calendar 2021*

2021	Event
March	Publication of preliminary figures FY 2020
23 March	Publication of Annual Report 2020
Spring	Capital Markets Day
11 May	Interim Statement Q1/2021
1 June	Annual General Meeting
12 August	Interim Report H1/2021
15 November	Interim Statement 9M/2021

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

Rolf Becker

Phone:	+49-40-30030-1892
Email:	rbecker@nordex-online.com

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