Nordex SE

Investor Presentation • Mar 29, 2022

Nordex Group Nordex SE – Financial-year figures 2021

29th March 2022

Financial figures 9M/2020 | 13 Nov 2020

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

Introduction, operations & technology	José Luis Blanco
Markets and orders	Patxi Landa
Financials	Dr Ilya Hartmann
Sustainability	Dr Ilya Hartmann
Strategy and Outlook	José Luis Blanco
Q&As	All
Key takeaways	José Luis Blanco

FY figures 2021 | 29 March 2022

SUCCESSFUL COMPLETION OF FY 2021 IN LINE WITH REVISED GUIDANCE

Sales	EBITDA margin	Working capital ratio
EUR 5,444m	1.0%	-10.2%

• › Strong order intake momentum in FY 2021 7.95 GW of order intake (+32% yoy) despite challenging environment.
• › 83% of the order intake accounts for latest Delta4000 series in FY 2021.
• › Q4/2021 with record high order intake volume of 3.3 GW (+48% yoy).
• › FY 2021 sales amounted to EUR 5.4bn up 17% versus previous year (EUR 4.7bn).
• › Strong installations and production in FY 2021 (6,679 MW installed, +20% yoy) and turbine assembly (6,686 MW produced, +16% yoy).
• › EBITDA margin of 1.0% in line with revised guidance; severely impacted by continuously high commodity prices and further increase of freight costs in the second-half of FY 2021.
• › Nordex winner of the gold medal for the N163/5.X as "Turbine of the Year" published by Windpower Monthly.

Nordex remains top 4 worldwide in 2021

ONSHORE MARKET SHARE EX CHINA (BASED ON MW INSTALLATIONS)

Source: Wood Mackenzie 2022, Global Wind Power Project Installation Database Q4 2021 (Jan-Nov).

Strong ramp-up in operations in FY 2021

Installations (MW) Production

• › Total installations of 1,619 WTGs in 22 countries in FY 2021 (1,533 WTGs in previous year)
• › Geographical split (in terms of MW): 58% Europe, 23% North America, 10% Latin America and 9% Rest of World

• › Output turbines totaled 1,480 units in FY 2021: 790 GER, 553 ESP, 100 IND, 37 BRA
• › Inhouse blade production of 1,680 units in FY 2021: 665 GER, 466 ESP, 298 IND and 251 MEX
• › Outsourced blade production of 2,822 units in FY 2021

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7

Introduction, operations & technology	José Luis Blanco
Markets and orders	Patxi Landa
Financials	Dr Ilya Hartmann
Sustainability	Dr Ilya Hartmann
Strategy and Outlook	José Luis Blanco
Q&As	All
Key takeaways	José Luis Blanco

• › Strong order intake in FY 2021: EUR 5,681m (EUR 4,218m in the previous year)
• › Thereof in Q4/2021: EUR 2,462m (EUR 1,576m in prior-year quarter)
• › Increased ASP of EUR 0.72m/MW in FY 2021 (0.70m/MW in previous year period); in Q4/2021 ASP of EUR 0.74m/MW (0.70m/MW in Q4/2020)

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

• › Orders received from 22 different countries in FY 2021
• › Largest single markets in FY 2021: Brazil, Germany, Australia, Finland and USA
• › Order intake for Delta4000 series increased to 83% in FY 2021 compared to 81% in the previous year (share in Q4/2021: 88%)

Service business FY 2021

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

Comments

• 17.7% 15.8% 16.6% › Service sales share accounts for 8.6% of group sales in the reporting period
  • › Strong Service EBIT margin of 16.6% in FY 2021
  • › 97.1% average availability of WTGs under service
  • › Service order book remains strong with EUR 3.0bn at the end of FY 2021
  • › Around 27 GW of installed base are under service agreement

Combined order book of over EUR 9.2bn at the end of FY 2021

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

• › Turbine order book of around EUR 6.2bn reflects very strong order intake momentum in FY 2021
• › Geographical distribution on Nordex focus markets: Europe (61%), North America (6%), Latin America (24%), Rest of World (8%)

› 9,765 wind turbines under service corresponding to around 27 GW at the end of FY 2021

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11

Introduction, operations & technology	José Luis Blanco
Markets and orders	Patxi Landa
Financials	Dr Ilya Hartmann
Sustainability	Dr Ilya Hartmann
Strategy and Outlook	José Luis Blanco
Q&As	All
Key takeaways	José Luis Blanco

| 12 Financials

Income statement FY 2021

in EUR m (rounded figures)	FY 2021	FY 2020	abs. change
Sales	5,444	4,651	793
Total revenues	5,052	4,345	707
Cost of materials	-4,225	-3,798	-427
Gross profit	827	547	280
Personnel costs	-474	-434	-40
Other operating (expenses)/income	-301	-19	-281
EBITDA	53	94	-41
Depreciation/amortization	-160	-156	-4
EBIT	-107	-62	-45
Net profit	-230	-130	-100
Gross margin*	15.2%	11.8%
EBITDA margin	1.0%	2.0%
EBIT margin w/o PPA	-1.8%	-0.8%

Comments

• › Strong sales growth of EUR 5,444m in FY 2021 due to continuously high order intake momentum
• › EBITDA margin hampered by high inflationary pressures, increased raw material and shipping costs and supply chain disruptions
• › PPA depreciation amounted to EUR 8.6m in FY 2021 (EUR 24.3m in the previous year)

| 13 Financials

Income statement Q4/2021

in EUR m (rounded figures)	Q4/2021	Q4/2020	abs. change
Sales	1,488	1,483	5
Total revenues	1,467	1,238	229
Cost of materials	-1,316	-1,034	-282
Gross profit	150	204	-54
Personnel costs	-126	-120	-6
Other operating (expenses)/income	-72	-61	-11
EBITDA	-48	23	-71
Depreciation/amortization	-50	-41	-9
EBIT	-98	-18	-80
Net profit	-127	-22	-105
Gross margin*	10.1%	13.8%
EBITDA margin	-3.2%	1.6%
EBIT margin w/o PPA	-6.5%	-0.9%

Comments

• › Strong sales of EUR 1,488m in the last quarter of 2021 on the back of high execution level
• › PPA depreciation in Q4/2021 totaled EUR 1.0m (EUR 5.3m in previous-year quarter)

| 14 Financials

Balance sheet FY 2021

in EUR m (rounded figures)	31.12.21	31.12.20	abs. change	Δ in %
Non-current assets	1,608	1,526	82	5.4
Current assets	2,500	2,884	-384	-13.3
Total assets	4,108	4,410	-302	-6.8
Equity	1,062	774	289	37.3
Non-current liabilities	716	653	63	9.6
Current liabilities	2,330	2,984	-654	-21.9
Equity and total liabilities	4,108	4,410	-302	-6.8
Net debt/(net cash)*	(424)	41
Working capital ratio**	-10.2%	-6.3%
Equity ratio	25.9%	17.5%

Comments

• › Very healthy cash level of EUR 784m at the end of FY 2021 (EUR 778m year-end 2020)
• › Strong equity ratio on the back of EUR 586m due to rights issue in Q3/2022
• › Current liabilities decreased mainly due to repayment of promissory note and cancellation of state backed RCF in Q3/2022

FY figures 2021 | 29 March 2022

*Cash and cash equivalents less bank borrowings, bond and shareholder loan. **Based on actual sales figures.

| 15 Financials

Working capital development FY 2021

› Despite challenging environment working capital ratio consistently well below guided figure for FY 2021

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

› Decrease in inventories primarily driven by high installation level in the last quarter of FY 2021

| 16 Financials

Cash flow statement FY 2021

in EUR m (rounded figures)	FY 2021	FY 2020
Cash flow from operating activities before net working capital	-136	-346
Cash flow from changes in working capital	263	-6
Cash flow from operating activities	127	-352
Cash flow from investing activities	-152	232
Free cash flow	-25	-120
Cash flow from financing activities	62	406
Change in cash and cash equivalents*	38	285

Comments

• › Cash flow from operating activities mainly influenced by consistent positive working capital development throughout the year
• › Cash flow from investing activities reflects ongoing optimization of supply chain and expansion of blade production facilities
• › Cash flow from financing activities largely determined by cash inflows from rights issue

| 17 Financials

CAPEX (in EUR m) Comments

• › Investments in FY 2021 mainly consists of:
  • Investments in expansion of blade production facilities, moulds and tooling
  • Investments in transport and installation equipment for international projects
• › Increase in intangible assets due to higher level of development costs compared to previous year

FY figures 2021 | 29 March 2022

| 18 Financials

Capital structure FY 2021

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

› Leverage ratio as per end of FY 2021 materially improved due to cash proceeds from rights issue

› Strong equity ratio as expected due to inflows from rights issue; improvement by 8.4%-pts compared to previous-year end

FY figures 2021 | 29 March 2022

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

Markets and orders Patxi Landa Financials Dr Ilya Hartmann Sustainability Dr Ilya Hartmann Strategy and Outlook José Luis Blanco	Introduction, operations & technology	José Luis Blanco
Q&As All
Key takeaways José Luis Blanco

Sustainability strategy 2022 - 2025

Together for change – Wind for a sustainable future

Main targets:

• › Provide fully recyclable blades by 2032
• › Decrease carbon footprint of all turbines by 25%, by 2025

• › Define Science-based targets in line with the 1.5°C target ambition, in 2022
• › Achieve climate neutrality by 2023 (Scope 1+2) and continuously improve climate impact
• › Reduce accidents to a lost time injury frequency of <1.5, by 2025
• › Achieve a minimum of 25% female representation in management positions, by 2025

• › Promote responsible and ethical business conduct internally and with our business partners
• › Engage with and positively impact the supply chain

EU Taxonomy Eligibility

Nordex contributes to objectives climate change mitigation and climate change adaptation with two main EU Taxonomy activities:

• › 3.1 Manufacture of renewable energy technologies
• › 7.6 Installation, maintenance and repair of renewable energy technologies

	Total (in EUR m)	Proportion of Taxonomy-eligible economic activities (in %)
Turnover	5,444	99.99
CapEx	221	94.86
OpEx	75	92.40

ESG-Rating Scores

Scale	Nordex Group
A+ (best) to D	B Prime1)
A (best) to D	B
AAA (best) to CCC	A
Risk Rating 0 (best) to 100	24.8/100 – Medium
1-100 (best)	66/100 Gold

1) Awarded to companies with an ESG performance above the sector-specific Prime threshold, which means that they fulfil ambitious absolute performance requirements

Introduction, operations & technology	José Luis Blanco
Markets and orders	Patxi Landa
Financials	Dr Ilya Hartmann
Sustainability	Dr Ilya Hartmann
Strategy and Outlook	José Luis Blanco
Q&As	All
Key takeaways	José Luis Blanco

Strong long-term demand outlook for onshore wind

Annual onshore capacity additions (GW)

• › Net Zero Emissions by 2050 would require more than 4x the current level of wind capacity additions
• › Long-term demand expected to soar:
  • › Energy security and independency in EU are back on the agenda due to Russian invasion of Ukraine – ambitions set in RePowerEU could mean EU market size doubling from 15-20 GW to
  • › Decarbonization commitments with rapidly increasing electrification and exploding demand for green hydrogen

European Green

Aiming for net zero emissions (NZE) by 2050

Deal:

But, our margins in the short term are exposed due to ongoing geopolitical events

Known direct
impacts

› Financial impact

• › Up to EUR 2m service revenues at risk
• › Potential risk to the revenues due to unclear status of 120 MW firm order and ~160 MW order in pipeline with planned revenue in 2022 in Ukraine now lost
• › Minor impact on working capital possible mainly due to one late stage project hand-over
• › >1% cash balance in Ukrainian bank accounts

• › Operational impact

  • › Possible supply chain disruptions due to small number of suppliers based in Ukraine and Russia
  • › Risks of Russian vessels/chartering agents within our supply chain could add extra costs

• Further risks › General slow down in order intake

  • › Another bout of extreme volatility in specific commodities, impacting material and logistics costs
  • › Disruptions in supply chain due to indirect dependence on affected countries
  • › Potential LD risks
  • › Cash flow risks, inventory risks or any other unforeseen expenses

Nordex response

Fast response to evolving crisis - Crisis task force set up to identify the risks and contain them

Difficult to forecast full impact under current conditions today - Analysis of margins and possible mitigants under constant evaluation

FY figures 2021 | 29 March 2022

Heightened volatility in certain commodities in the current environment

Extreme volatility again in last few weeks since the invasion Comments

• › Price volatility reduced post Q3/2021 across key commodities and shipping markets before the Ukraine-Russia conflict
• › However, global metals market and oil are showing higher volatility again in the past few weeks
• › Difficult to assess the full effect of these trends on our margins today

Our mitigants

• › Price increases/cost plus contracts however, turbine prices usually flow through the financials with a 12-month time lack
• › Escalation clauses in customer contracts
• › Back-to-back contracts, where possible
• › Longer term shipping contracts
• › Hedge commodities, where possible
• › Leaner scope – Reduce the exposure by limiting scope of the projects

1) Global average bunker prices (VLSFO =Very low sulphur fuel oil) 2) source EIA (crude oil) 3) Commonly called 'rebar', used for reinforcing concrete – 3 months 4) LME prices

In parallel, we continue to reconfigure our production footprint to adapt to the global demand and cost base

Nordex' global production network Background

• › Nordex continuously evaluates its production and procurement process to combat the price pressure in the current market environment
• › Transition towards turbines with 163mdiameter and expansion of Delta4000 series production across the world is well on track
• › In order to gain further synergies and cost efficiency, the company plans to discontinue production in factories in Germany (Blades) and Spain (Nacelles)
• › This will have a one-off effect on our margins in 2022, with expected savings across next two to three years

Production cessation planned

Striving for flexible global network for key components to ensure best landed costs in all regions.

Guidance for FY 2022

	2021	2022 guidance
		Before any costs related to footprint reconfiguration and geopolitical events
Sales:	EUR 5.4bn	EUR 5.4 – 6.0bn
EBITDA margin:	1.0%	1.0 - 3.5%
Working capital ratio:	-10.2%	below -7%
CAPEX:	EUR 168.7m	approx. EUR 180m

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

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

| 29 Q&As

FY figures 2021 | 29 March 2022

Although, short term challenges remain due to war induced volatility and inflationary pressures with potentially larger unknown effects during the year.

Nordex making steady progress from last year`s levels based on healthy order intake and margin improvements before the war broke out.

Task force already set up to manage the external risks and preserve margins and cash flows.

Improving electricity prices, coupled with potential demand growth could be a great platform for successful costs pass-through and hence helping us towards our mid-term strategic EBITDA margin target of 8%.

IF YOU HAVE ANY QUESTIONS PLEASE CONTACT INVESTOR RELATIONS:

Felix Zander

Phone:	+49-40-30030-1116
Email:	fzander@nordex-online.com

Tobias Vossberg

Phone:	+49-40-30030-2502
Email:	tvossberg@nordex-online.com

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