Nordex SE

Investor Presentation • Nov 7, 2024

11.11.2

Nordex Group

Nordex SE - Financial figures 9M/2024

$7^{\text {th }}$ November 2024

Disclaimer

All financial figures within this presentation are unaudited.
This presentation was produced in November 2024 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 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.

Agenda

Introduction	José Luis Blanco
Markets and orders	Patxi Landa
Financials	Dr Ilya Hartmann
Operations and technology	José Luis Blanco
Guidance and outlook	José Luis Blanco
Q\&A	All
Key takeaways	José Luis Blanco
Appendix

Executive summary 9M/2024

Sales:

€5.1 bn

$(+14 \%$ YoY)

EBITDA margin:

$3.7 \%$
(9M/2023: -1.5\%)

Working capital ratio:

$-7.3 \%$
(Q3/2023: -10.2\%)

Operations

• Order intake grew to 5.1 GW in the first nine months of 2024 (9M/2023: 4.9 GW) with ASP of $€ 0.90 \mathrm{~m} / \mathrm{MW}$, another quarter with stable pricing ( $9 \mathrm{M} / 2023: € 0.85 \mathrm{~m} / \mathrm{MW}$ )
• Order intake momentum expected to continue on the back of positive developments in our core markets
• Installations of around 5.0 GW slightly lower YoY as installation activities normalize after a year of catch-up effects

Financials

• Further improvement of gross margin to $21.6 \%$ in Q3/2024
• EBITDA margin of $3.7 \%$ in the first nine months 2024 (9M/2023: -1.5\%) and 4.3\% in Q3/2024 (Q3/2023: $2.8 \%$ )
• Strong liquidity levels of $€ 962 \mathrm{~m}$ at the end of September with FCF reaching breakeven; FY/2024 FCF expected to be higher than in FY/2023

Update \& Outlook

• Installation of the first N175/6.X turbine in Germany; TÜV SÜD certificate received
• 2024 EBITDA margin expected to be closer to the top end of the guidance corridor
• Medium-term target of 8\% EBITDA margin remains unchanged

Robust order intake in 9M/2024

Order intake turbine* (in MW)

Order intake in value increased by $10.4 \%$ to $€ 4,572$ m in first nine months of 2024 (9M/2023 €4,143 m)

• Stable pricing continued
• ASP of $€ 0.90 \mathrm{~m} / \mathrm{MW}$ in $9 \mathrm{M} / 2024$ and $€ 0.92 \mathrm{~m} / \mathrm{MW}$ in Q3/2024 - compared with $€ 0.85 \mathrm{~m} / \mathrm{MW}$ in 9M/2023 and $€ 0.80 \mathrm{~m} / \mathrm{MW}$ in Q3/2023

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

Europe North America	Latin America	RoW

• Orders received from 23 different countries
• Strongest single markets were Germany, South Africa, Canada as well as Baltic States including Latvia and Lithuania

Order book remains strong - total order book of over $€ 11.5$ bn

Order book turbines ( $€$ m)

• Healthy growth of the order book to around $€ 6.9$ bn at the end of Q3/2024 compared to $€ 6.7 \mathrm{bn}$ at the end of the previous year period
• Geographical distribution of the order book in 9M/2024: Europe (79\%), North America (8\%), Rest of World (7\%) and Latin America (6\%)

Order book service ( $€$ m)

• 12,625 wind turbines under service agreement corresponding to over 40.3 GW at the end of the first nine months 2024
• Order book increase largely a reflection of the strong turbine order intake momentum in the last two years across different regions

Service EBIT margin on track to return to former profitability levels

Income statement 9M/2024

in $€$ m (rounded figures)	9M/2024	9M/2023	abs. change	$\Delta$ in \%
Sales	5,105	4,477	628	14.0
Total revenues	4,847	4,424	423	9.6
Cost of materials	$-3,817$	$-3,814$	$-3$	0.1
Gross profit	1,030	610	420	68.8
Personnel costs	$-514$	$-460$	$-54$	11.7
Other operating (expenses)/income	$-326$	$-217$	$-109$	50.8
EBITDA	189	$-67$	257	$>100$
Depreciation/amortization	$-134$	$-138$	4	$-3.0$
EBIT	55	$-205$	260	$>100$
Net profit	$-9$	$-334$	325	$>100$
Gross margin*	20.2\%	13.6\%
EBITDA margin	3.7\%	$-1.5 \%$
EBIT margin	1.2\%	$-4.5 \%$

Comments

Sales increased by around 14\% to $€ 5.1$ bn YoY reflecting higher ASPs, higher activity levels and growth in service revenues
Gross margin continues to improve with $21.6 \%$ recorded in Q3/2024

Q3/2024 EBITDA further increased to $€ 72 \mathrm{~m}$ (4.3\% EBITDA margin), reflecting normalized operations
Positive net profit in Q3/2024 of $€ 4 \mathrm{~m}$

Balance sheet 9M/2024

in $€ \mathrm{~m}$ (rounded figures)	30.09.24	31.12.23	abs. change
Cash and cash equivalents	882	926	$-44$
Non-current assets	1,954	1,869	85
Current assets without cash and cash equivalents	2,473	2,627	$-154$
Total assets	5,309	5,422	$-113$
Equity	980	978	2
Non-current liabilities	921	771	150
Current liabilities	3,408	3,673	$-265$
Equity and total liabilities	5,309	5,422	$-113$
Net cash*	583	631
Working capital ratio**	$-7.3 \%$	$-11.5 \%$
Equity ratio	$18.5 \%$	$18.0 \%$

Comments

Robust liquidity levels of around $€ 962 \mathrm{~m}$ including cash facility under MGF at the end of Q3/2024
Working Capital ratio continued to be stable during the year
Improvement in the equity ratio to $18.5 \%$

Working capital development Q3/2024

Working capital ratio (in \% of sales)*

Q3/2024 W/C ratio on a similar level compared to Q2/2024
W/C ratio likely to improve in Q4 driven by higher activity levels and higher expected order intake

Working capital development (in $€ \mathrm{~m}$ )*

Strong order intake and progress in projects lead to an increase in pre-payments compensating higher working capital from increased activity levels

Reaching FCF breakeven in 9M/2024

in $€ \mathrm{~m}$ (rounded figures)	9M/2024	9M/2023
Cash flow from operating activities before net working capital	336	$-249$
Cash flow from changes in working capital	$-225$	60
Cash flow from operating activities	112	$-189$
Cash flow from investing activities	$-112$	$-95$
Free cash flow*	0.0	$-283$
Cash flow from financing activities	$-33$	300
Change in cash and cash equivalents	$-33$	16

Comments

• Cash flow from operating activities before net working capital driven by normalized operational performance
• Strong operating cash flow, despite the cash outflow from stable working capital
• Cash flow from investing activities in line with our CAPEX and investment plans
• Positive free cash flow of $€ 159$ $m$ in Q3, leading to break even in free cash flow for the first nine months 2024

Total investments 9M/2024

CAPEX (in $€$ m)

Property, plant, equipment
Intangible assets

Comments

• CAPEX spending in line with expectations:
• Investments in blade and nacelle production facilities, moulds and tooling
• Investments in installation and transport tooling and equipment for projects
• CAPEX for the re-opening of mothballed lowa facility and the new US turbine variant covered within guidance
• Full Year CAPEX expected to be around $€ 175 \mathrm{~m}$

Solid capital structure in Q3/2024

(Net debt)/net cash (in $€$ m)*

Q3/	Q4/	Q1/	Q2/	Q3/
2023	2023	2024	2024	$\mathbf{2 0 2 4}$

Net cash levels further increased towards the end of Q3/2024

Equity ratio (in \%)

Q3/	Q4/	Q1/	Q2/	Q3/
2023	2023	2024	2024	$\mathbf{2 0 2 4}$

Equity ratio increased in Q3 to $18.5 \%$ due to positive net income and ongoing stable operational performance

Operational performance 9M/2024

Installations (MW)

Total installations of 944 WTGs in 24 countries in 9M/2024 (1,090 WTGs in 9M/2023)
Installations of 2,010 MW in Q3/2024; run rate improved QoQ

Geographical split (MW) in 9M/2024: 73\% Europe, 15\% Latin America, 5\% North America and 7\% RoW

Production

Turbine assembly output amounted to 867 units in 9M/2024: 344 in Germany, 201 in China, 197 in India, 119 in Spain and 6 in Brazil

Inhouse blade production of 1,138 units in 9M/2024: 854 in India, 272 in Spain and 12 in Germany

2024 guidance confirmed

	$9 M / 2024$	2024 guidance
Sales:	€5,105 m	€7.0 - 7.7 bn
EBITDA margin:	$3.7 \%$	$3.0 \%$ to $4.0 \%$
Working capital ratio:	$-7.3 \%$	below -9\%
CAPEX:	€ 110 m	approx. €175 m

Time for your questions

Key takeaways

(1)Ambitious wind targets across our core markets underpin the sustainable case for the wind industry in the mid- to long-term
(2) Substantial order intake pipeline for Nordex with stability in selling prices, supply chain and cost base
(3) Consistently improving EBITDA margins showcase fundamental profitability improvements
(4) Full year results likely to deliver positive free cash flow
(5) Margin outlook improved for 2024, building confidence in mid-term margin target achievement

Appendix

• Quarterly order intake and installations
• Quarterly order book development
• Quarterly income statement
• Quarterly balance sheet development
• Quarterly cash flow development

Quarterly order intake and installations

Order intake development in MW

FY 2022: 6,326 MW

Installations in MW
FY 2022: 5,221 MW
FY 2023: 7,253 MW
9M/2024: 4,981 MW

Quarterly order book development

Order book development in $€ \mathrm{~m}$

Quarterly income statement development

Quarterly balance sheet development

Quarterly cash flow statement development
in € m (rounded figures) Q1/2023 Q2/2023 Q3/2023 Q4/2023 Q1/2024 Q2/2024 Q3/2024

Cash flow from operating activities before net working capital	-133	-112	-6	244	65	79	193
Cash flow from changes in working capital	57	-31	35	106	-267	51	-9
Cash flow from operating activities	-76	-143	29	350	-203	130	184
Cash flow from investing activities	-39	-24	-31	-47	-51	-36	-25
Free cash flow	-115	-167	-2	303	-254	94	159
Cash flow from financing activities	3	305	-8	-14	-8	-9	-16
Change in cash and cash equivalents*	-112	138	-10	289	-262	85	144

Abbreviations

• FCF - Free Cash Flow
• YoY - Year over Year
• QoQ - Quarter over Quarter
• m - millions
• bn - billions
• GW - Gigawatts
• MGF - Multi Guarantee Facility
• MW - Megawatts
• FY - Financial Year ending December
• ASP - Average Selling Price (Calculated as price/MW)
• W/C ratio - Working Capital ratio

Nordex publication dates \& events in 2024 and 2025

Contact details

IF YOU HAVE ANY QUESTIONS PLEASE CONTACT:

Anja Siehler
Head of Investor Relations
phone: +49 (0)1623515334
email: asiehler@nordex-online.com

Tobias Vossberg

Director Investor Relations
phone: +49 (0)1734573633
email: tvossberg@nordex-online.com

Nordex SE

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