Nordex SE

Investor Presentation • Aug 12, 2021

Nordex Group Nordex SE – Half-year financial figures 2021

12th August 2021

Financial figures H1/2021| 12 August 2021

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› All financial figures within this presentation are unaudited.

• › This presentation was produced in August 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
Guidance FY 2021	José Luis Blanco
Strategic targets	José Luis Blanco
Q&As	All
Key takeaways	José Luis Blanco

| 4 Introduction

Executive summary
H1/2021 RESULTS
Sales EUR 2,697m	EBITDA margin 2.5%	Working capital ratio -6.5%

• › Order intake in H1/2021 increased by 9.9% to 2.8GW, thereof 82% coming from the Delta4000 platform.
• › Sales went up from EUR 2,048m to EUR 2,697m reflecting the growth trajectory.
• › EBITDA margin at 2.5% on the back of 4% EBITDA margin in Q2/2021, in line with expectations.
• › Overall cost situation is tighter compared to Q1/2021 and thus challenging.
• › Capital raise successfully completed with proceeds of EUR 586m combined with an increase and extension of bond facility to strengthen the balance sheet further and improving interest payments considerably.
• › Largest N163/5.X project to date in Q3 from Acciona in Australia: 162 turbines totaling 923 MW.
• › Strategic collaboration with TPI Composites for a period of three years in the rotor blade production in Mexico to safeguard profitable growth in the future.
• › Guidance for 2021 maintained.

| 5 Markets & orders

• › Order intake in H1/2021: EUR 1,962m (EUR 1,806m in H1/2020)
• › Stable ASP of EUR 0.71m/MW in the first half-year 2021 compared to the previous year period (EUR 0.71m/MW)

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

• › Largest single markets in H1/2021: Brazil, Finland, Germany and Spain
• › 82% of the order intake (in MW) in the first-half year 2021 is attributable to various turbine types of the Delta4000 generation

Service business H1/2021

• › Service sales share totaled around 8% of group sales in the first half-year 2021
• › Service EBIT margin of 16.6% in the first six months 2021
• › 97.2% average availability of WTGs under service in first half-year 2021
• › Service order backlog stands at around EUR 2.9bn at the end of Q2/2021

| 7 Markets & orders

Combined order backlog of around EUR 7.7bn at the end of H1/2021

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

• › Order backlog of EUR 4.8bn at the end of Q2/2021 reflects ongoing high execution level
• › Geographical footprint of the order backlog: Europe (68%), Latin America (22%), North America (7%), Rest of World (2%)

› 9,096 wind turbines under service corresponding to 24.7 GW at the end of Q2/2021

Successful capital raise combined with increase and extension of guarantee facilities to re-set capital structure

Financial figures H1/2021| 12 August 2021

	Strengthened metrics
Q2 2021 pro-forma* Q2 2021 reported
	Net debt EUR 68m		EUR -508m
	Leverage	0.3	-2.2
	Equity ratio	16.6%	27.3%
Lowered interest costs
Reduced shareholder loan leads to lower interest expenses
Lowered bond costs due to improved credit metrics
	Flexibility to repay or refinance high yield bond

*Adjusted for the capital increase and repayment of remaining EIB loans.

Fully positioned to benefit from industry tailwinds

| 9 Financials

Income statement H1/2021

in EUR m	H1/2021	H1/2020	abs. change
Sales	2,697	2,048	649
Total revenues	2,325	1,990	335
Cost of materials	-1,840	-1,702	-138
Gross profit	485	288	197
Personnel costs	-247	-203	-44
Other operating (expenses)/income	-169	-155	-14
EBITDA	68	-71	139
Depreciation/amortization	-74	-76	2
EBIT	-6	-146	140
Net profit	-64	-180	116
Gross margin*	18.0%	14.0%
EBITDA margin	2.5%	-3.5%
EBIT margin w/o PPA	0.0%	-6.5%

• › Strong sales of EUR 2,697m in the first six months 2021 in line with high execution
• › EBITDA margin of 2.5% in line with expectations
• › PPA depreciation totaled EUR 6.5m (EUR 13m in the previous-year period)

| 10 Financials

Income statement Q2/2021

in EUR m	Q2/2021	Q2/2020	abs. change
Sales	1,445	1,083	362
Total revenues	1,204	968	235
Cost of materials	-935	-837	98
Gross profit	268	131	137
Personnel costs	-129	-113	16
Other operating (expenses)/income	-81	-102	-21
EBITDA	58	-84	142
Depreciation/amortization	-35	-39	-4
EBIT	23	-123	146
Net profit	-9	-142	133
Gross margin*	18.5%	12.1%
EBITDA margin	4.0%	-7.8%
EBIT margin w/o PPA	1.7%	-10.8%

• › Strong sales of EUR 1,445m in the second quarter 2021 in line with high execution level
• › EBITDA margin increased from 0.8% in Q1/2021 to 4.0% in Q2/2021 (H1/2021 of 2.5% in line with expectations)
• › PPA depreciation totaled EUR 1.1m in Q2/2021 (EUR 5.8m in the previous-year quarter)

| 11 Financials

Balance sheet H1/2021

in EUR m	30.06.21	31.12.20	abs. change	Δ in %
Non-current assets	1,588	1,526	62	4.1
Current assets	2,500	2,884	-385	-13.3
Total assets	4,088	4,410	-322	-7.3
Equity	679	774	-94	-12.2
Non-current liabilities	902	653	249	38.1
Current liabilities	2,506	2,984	-477	-16.0
Equity and total liabilities	4,088	4,410	-322	-7.3
Net debt*	68	41
Working capital ratio**	-6.5%	-6.3%
Equity ratio	16.6%	17.5%

Comments

• › Cash position of EUR 502m at the end of H1/2021 (EUR 334m H1/2020) not yet reflecting cash proceeds from capital increase
• › Increase in non-current liabilities due to shareholder loan of EUR 215m, of which EUR 197m was swapped to equity in July 2021 as part of the capital increase
• › Current liabilities decreased due to repayment under RCF and promissory note (SSD) of EUR 215m in April 2021

Financial figures H1/2021| 12 August 2021

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

| 12 Financials

Working capital development H1/2021

› Despite ongoing disruptions, working capital developed as expected by the end of Q2/2021

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

› Decrease in inventories driven by ongoing high installations

| 13 Financials

Cash flow statement H1/2021

in EUR m	H1/2021	H1/2020
Cash flow from operating activities before net working capital	7.5	-74.2
Cash flow from changes in working capital	50.4	6.2
Cash flow from operating activities	57.9	-68.0
Cash flow from investing activities	-68.1	-69.0
Free cash flow	-10.2	-137.1
Cash flow from financing activities	-265.4	-24.1
Change in cash and cash equivalents	-275.7	-161.1

• › Cash flow from operating activities mainly supported by positive working capital development
• › Cash flow from investing activities in line with further expansion of supply chain and blade production facilities
• › Cash flow from financing activities largely driven by shareholder loan refinancing SSD, repayments under RCF and EIB facility
• › Cash proceeds from capital increase of EUR 390m not yet reflected in cash flow from financing activities

| 14 Financials

CAPEX (in EUR m) Comments

• › Investments in H1/2021 primarily comprise:
  • Investments in blade production facilities, moulds and tooling in India
  • 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

| 15 Financials

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

› Leverage ratio remains further below own ambition level of 1.5 at the end of H1/2021

› Equity ratio will substantially improve in Q3/2021 due to inflows coming from capital increase

Financial figures H1/2021| 12 August 2021

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

Installations (MW) Production

• › Total installations of 775 WTGs in 21 countries in H1/2021 (H1/2020: 610 WTGs)
• › Geographical split in H1/2021: 52% Europe, 19% Latin America, 14% North America and 15% Rest of World

• › Output turbines of 685 units in H1/2021: 373 GER, 289 ESP, 20 BRA and 3 IND
• › Inhouse blade production of 819 units in H1/2021: 340 GER, 201 ESP, 196 MEX and 82 IND
• › Outsourced blade production of 1,209 units in the firsthalf year 2021

Guidance for FY 2021 maintained

Guidance		Comments
Sales:	EUR 4.7 – 5.2bn	› Assumptions remain subject to greater uncertainties than usual
		› As of today, for H2/2021 limited impact from
EBITDA margin:	4.0 – 5.5%	Covid-19 assumed › However, additional layers of risk for the sector remain, in particular:
Working capital ratio:	below -6%	- extraordinary volatility within commodities and logistics markets - new waves of Covid-19 causing further
		repercussions for commodities or logistics
CAPEX:	approx. EUR 180m	- in case of such impacts causing delays, there could be extra costs including LDs

Sales:	~ EUR 5.0bn (in the short term)
EBITDA margin:	8% in FY 2022
Capacity:	6 GW+

Assumptions underlying the strategic targets are subject to greater uncertainties than normal.

Financial figures H1/2021| 12 August 2021

| 19 Q&As

Financial figures H1/2021| 12 August 2021

• › EBITDA margin expected to improve further in H2/2021 in line with positive business development.
• › Order intake expected to remain strong with continuously high share of Delta4000 series.
• › Volatility and inflation in commodities and logistic costs getting more challenging compared to Q1/2021.
• › Consequently working on price improvements with some first successful steps to support 2021 and 2022 performance.
• › Situation in India under control despite some delays due to Covid-19 disruptions.
• › Guidance for financial year 2021 maintained.

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

Felix Zander Tobias Vossberg Rolf Becker

Nordex SE Langenhorner Chaussee 600 22419 Hamburg Germany

Phone: +49-40-30030-1000 Email: investor-relations@nordex-online.com Web: www.nordex-online.com