Nordex SE

Investor Presentation • Mar 23, 2021

Nordex Group Nordex SE – Financial-year figures 2020

23rd March 2021

Financial figures 9M/2020 | 13 Nov 2020

• › All financial figures within this presentation are final and audited.
• › This presentation was produced in March 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-todate 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.

Markets and orders Patxi Landa Financials Dr Ilya Hartmann Operations and technology José Luis Blanco Guidance FY 2021 José Luis Blanco Drivers strategic targets José Luis Blanco Strategic targets FY 2022 José Luis Blanco
Q&As All
Key takeaways José Luis Blanco

Executive summary FY 2020

FY 2020 SUCCESSFULLY COMPLETED IN LINE WITH REINSTATED GUIDANCE

Sales	EBITDA margin	Working capital ratio
EUR 4,651m	2.0%	-6.3%

• › Order intake amounted to around 6 GW in FY 2020 despite Covid-19 pandemic
  • › 81% accounts for latest Delta4000 turbine series.
  • › Q4/2020 with 2.3 GW strongest quarter.
• › FY 2020 sales totaled around EUR 4.6bn up 42% versus previous year (EUR 3.3bn).
  • › Record of installations and production despite Covid-19 pandemic (5,461 MW installed, increase 77% yoy) and record turbine assembly (5,786 MW produced, increase 24% yoy).
• › EBITDA margin in line with guidance, but affected by Covid-19 costs of EUR 240m and additional one-off costs due to a Nordics EPC project in FY 2020.
• › Extensive financing measures successfully implemented in FY 2020.
• › Sale of European project development portfolio to RWE for around EUR 400m before costs and taxes successfully completed in Q4/2020.
• › Strategic targets for FY 2022 in place: sales of approx. EUR 5.0bn and an EBITDA margin of 8%.

FY figures 2020 | 23 March 2021

| 5 Introduction

Nordex remains top 4 worldwide in FY 2020

ONSHORE MARKET SHARES (BASED ON MW INSTALLED)

| 6 Introduction

Nordex approaching top 3 worldwide in FY 2020

ONSHORE MARKET SHARES (BASED ON ORDER INTAKE MW )

Global onshore wind market (excl. China) expected to peak in 2021; CAGR 2020 to 2024 at -1.4%

Capacity addition (GW) Key highlights

Europe

• › German market slowly recovering fueled by permitting support
• › Positive near-term momentum in Finland and Sweden
• › New FIT announced in Turkey at higher than expected pricing, enabling continuity in the market
• › New auction held in Spain with disappointing pricing level. Solar PV beat wind
• › Italy: Tech-neutral auction hosted in 2020 undersubscribed by 45% as developers struggle with permitting projects in time

North America

› USA: One year prolongation of PTC value and project spillover from 2020 will support market volumes in 2021. Biden's win expected to improve regulation

Rest of the world

• › Positive market momentum in Brazil and Chile continued fueled by PPA demand
• › Negative momentum in Mexico continues with very limited activity in the market
• › South Africa held the accelerated round auction
• › Delays in Federal and State auctions in India with increasing focus on hybrid projects

| 8 Markets & orders

• › Again strong order intake in FY 2020: EUR 4,218m (EUR 4,415m in the previous year)
• › Thereof in Q4/2020: EUR 1,576m (EUR 1,102m in prior-year quarter)
• › Stable ASP of EUR 0.70m/MW in FY 2020

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

• › Largest orders came from USA, Brazil, Germany, Norway and Great Britain in FY 2020
• › Order intake for Delta4000 generation increased to 81% in FY 2020 compared to 44% in FY 2019
• › Order intake received from 20 different countries in FY 2020

Service business FY 2020

Share of fleet under contract (as % of installed base)

• 16.1% 17.7% 15.8% › Service sales share amounted to 9.4% of group sales in FY 2020
  • › Service EBIT margin of 15.8% in FY 2020
  • › 97.3% average availability of WTGs under service
  • › Service order book remains strong of around EUR 2.8bn at the end of FY 2020
  • › 21 GW of installed base are under service contracts representing a coverage of around 66%
  • › Average service contract duration of around 11 years

Combined order book of over EUR 8.1bn at the end of FY 2020

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

• › Turbine order book of around EUR 5.3bn at the end of FY 2020 reflects consistent high order intake over the previous quarters
• › Distribution on Nordex focus markets in FY 2020: Europe (62%), North America (16%), Latin America (16%), Rest of World (6%)

› 8,383 wind turbines under service – corresponding to around 21 GW at the end of FY 2020

Comprehensive financing activities in FY 2020

Extention of	Multi-Currency Guarantee Facility (MGF)	State-guaranteed	Revolving Credit Facility (RCF)
› Amount: › Tenor: › Purpose: › Specialties:	EUR 1.24bn 3 years with 1+1 renewal option Guarantees and up to EUR 100m in ancillary facilities Closed in April 2020, ESG-linked	› Amount: › Tenor: › Purpose: › Specialties:	EUR 350m (EUR 100m already paid back) Due in April 2022 General corporate purposes Closed in August 2020, ESG-linked, 90% German federal- and state-guaranteed
Secured refinancing	of SSD	Equity capital	increase by way of ABB
› › context of the RCF › repayment next month	EUR 215m of SSD up for refinancing in April 2021 Nordex already secured the upcoming refinancing in the Replacing loan has a tenor of 5 years, the proceeds of which have been received and will be used for the SSD	› › 3.5x oversubscribed › placement process	Successful capital increase of EUR 200m by way of Accelerated Book Building (ABB) on December 1st, 2020 Very strong interest from investors with transaction being Key shareholder placed significant order during the

| 12 Financials

Income statement FY 2020

in EUR m (rounded figures)	FY 2020	FY 2019	abs. change
Sales	4,651	3,285	1,366
Total revenues	4,346	3,871	474
Cost of materials	-3,798	-3,096	-702
Gross profit	547	775	-228
Personnel costs	-434	-361	-73
Other operating (expenses)/income	-19	-291	272
EBITDA	94	124	-30
Depreciation/amortization	-156	-143	-12
EBIT	-62	-20	-42
Net profit	-130	-73	-57
Gross margin*	11.8%	23.6%
EBITDA margin	2.0%	3.8%
EBIT margin w/o PPA	-0.8%	0.1%

• › Sales figures of EUR 4,651m showing strong growth despite Covid-19 pandemic in FY 2020
• › EBITDA margin of 2.0% in line with guidance for FY 2020
• › EBITDA strongly impacted by Covid-19 and non-recurring costs, offset by inflows from RWE pipeline sale
• › PPA depreciation amounted to around EUR 24m in FY 2020 (EUR 24m in the previous year)

| 13 Financials

Income statement Q4/2020

in EUR m (rounded figures)	Q4/2020	Q4/2019	abs. change
Sales	1,483	1,342	132
Total revenues	1,237	1,352	-115
Cost of materials	-1,034	-1,092	58
Gross profit	203	260	-56
Personnel costs	-120	-96	24
Other operating (expenses)/income	-61	-101	40
EBITDA	22	64	-41
Depreciation/amortization	-41	-41	0
EBIT	-19	23	-41
Net profit	-22	4	-53
Gross margin*	13.8%	19.4%
EBITDA margin	1.6%	4.7%
EBIT margin w/o PPA	-0.9%	2.1%

• › Sales figures of EUR 1,483m showing high execution level in the last quarter 2020 as expected
• › PPA depreciation in Q4/2020 totaled EUR 5.3m (EUR 5.7m in previous-year quarter)

| 14 Financials

Balance sheet FY 2020

in EUR m (rounded figures)	31.12.20	31.12.19	abs. change	Δ in %
Non-current assets	1,526	1,489	37	2.5
Current assets	2,884	2,514	371	14.7
Total assets	4,410	4,003	407	10.2
Equity	774	745	29	3.9
Non-current liabilities	653	914	-261	-28.6
Current liabilities	2,984	2,343	641	27.3
Equity and total liabilities	4,410	4,003	407	10.2
Net debt*	-41	-84
Working capital ratio**	-6.3%	-9.1%
Equity ratio	17.5%	18.6%

• › Strong cash position of EUR 778m at the end of FY 2020 (EUR 510m year-end 2019)
• › Reclassification of promissory notes (SSD) into current liabilities due to maturity in April 2021
• › Refinancing of promissory notes (SSD) of EUR 215m already been secured

| 15 Financials

Working capital development FY 2020

• › Despite impact from Covid-19 working capital well below guided figure of -4% for FY 2020
• › Working capital development supported by stringent working capital management throughout the year

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

› Decrease in inventories driven by high installation level in the last quarter 2020

| 16 Financials

Cash flow statement FY 2020

in EUR m (rounded figures)	FY 2020	FY 2019
Cash flow from operating activities before net working capital	-346	-157
Cash flow from changes in working capital	-6	195
Cash flow from operating activities	-352	38
Cash flow from investing activities	232	-164
Free cash flow	-120	-126
Cash flow from financing activities	406	31
Change in cash and cash equivalents*	285	-95

Comments

• › Cash flow from operating activities mainly influenced by the negative net result
• › Cash flow from investing activities reflecting cash inflow from RWE deal received 2nd November 2020
• › Cash flow from investing activities also driven by ongoing expansion of supply chain and blade production
• › Cash flow from financing activities largely impacted by capital increase in December 2020 and funds received from RCF and outflows from leasing payments, partial repayment of RCF and EIB facility

*Including FX effects.

| 17 Financials

CAPEX (in EUR m) Comments

• › Investments in FY 2020 mainly consists of:
  • Investments in blade production facilities in Mexico, India and Brazil
  • Investments in installation and transport tooling and equipment
  • Investments in product development
• › Decrease in intangible assets because of lower level of development costs compared to previous year

| 18 Financials

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

› At the end of FY 2020 leverage ratio well below own ambition level of 1.5 as expected

› Equity ratio increased towards year-end primarily driven by successful capital increase in December 2020

Strong ramp-up in operations in FY 2020

Installations (MW) Production

• › Total installations of 1,492 WTGs in 23 countries in FY 2020 (938 WTGs in previous year)
• › Geographical split: 46% Europe, 30% North America, 19% Latin America and 5% Rest of World

• › Output turbines totaled 1,488 units in FY 2020: 802 GER, 437 ESP, 160 IND, 79 BRA and 10 ARG
• › Inhouse blade production of 1,545 units in FY 2020: 724 GER, 369 MEX, 289 IND and 163 ESP
• › Outsourced blade production of 2,816 units in FY 2020 (previous-year period: 2,556 units)

Guidance for FY 2021*

FY figures 2020 | 23 March 2021

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

Wind will be a prominent source as global energy production rises

Strong, continuous growth of onshore wind in the medium term expected

FY figures 2020 | 23 March 2021

Source: Bloomberg New Energy Finance, New Energy Outlook 2020. Conventional sources include nuclear, coal, gas and oil capacities. Other renewables include geothermal, hydro and others.

Strong demand in 4 MW+ segment, driving revenue growth for Nordex

Source: Wood Mackenzie, Global wind turbine technology trends 2019, 18 December 2019. *Wood Mackenzie Global Wind Turbine Order Database Feb 2021 (2021).

Strategic capacity expansion as part of comprehensive company program - India for Global Initiative

India for Global (I4G) marks Nordex strategic initiative to leverage its existing local expertise to increase Delta4000 production capacity in best cost countries.

• › Production from India is planned for export only and will support Nordex ambitions to grow further and to gain market share in the wind onshore segment globally.
• › Components from additional Indian capacity expected to create a significant cost advantage compared to other currently operating production locations.
• › Ramp-up of new capacity is going to benefit from existing infrastructure and staff.
• › Quality of products secured through European suppliers delivering their components also locally from India.
• › Well experienced management to run the initiative (COO and Head of Purchase Department both from India).
• › Additional new blade facility* starts operations in 2021. Existing blade and nacelle facilities already converted to produce Delta4000 platform. Necessary Capex considered in 2021 budget.

FY figures 2020 | 23 March 2021

› Business performance in Q1/2021 still impacted by the ongoing Covid-19 pandemic and volatility in the market, expecting recovery in Q2/2021.

› Demand for new turbine Delta4000 platform remains on a promising level with strong focus on Europe and the Americas.

› Comprehensive company programme on track.

› Confirmation of strategic targets of around 6 GW+, approx. 5bn sales with 8% EBITDA margin by the end of 2022.

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