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Nordex SE

Quarterly Report Nov 17, 2021

309_10-q_2021-11-17_8d86e2ad-258e-496f-b902-13f86dfd53d0.pdf

Quarterly Report

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Q3 2021

INTERIM REPORT FROM THE PERIOD FROM 1 JANUARY TO 30 SEPTEMBER 2021

KEY FIGURES AT A GLANCE

Nordex Group key figures

3,956.2 3,167.4 24.9%
3,584.9 3,107.6 15.4%
100.7 70.8 42.2%
–9.6 –43.9 n/a
23.2 –378.2 n/a
112.2 108.6 3.3%
–103.7 –107.5 n/a
–0.79 –1.01 n/a
2.5 2.2 + 0.3 PP
–7.7 –5.7 –2.0 PP
4,263.8 4,410.1 –3.3%
1,217.2 773.5 57.4%
28.5 17.5 11.0 PP
8,795 8,469 3.8%
348.2 313.7 11.0%
8.8 9.9 –1.1 PP
3,218.8 2,641.7 21.8%
4,858.0 3,319.2 2 46.4%
EUR million
EUR million
EUR million
EUR million
EUR million
EUR million
EUR million
EUR
%
%
EUR million
EUR million
%
EUR million
%
EUR million
MW

1 Earnings per share = based on a weighted average of 131.885 million shares (previous year: 106.681 million shares)

2 Previous year's figure adjusted

CONTENT

01 Content 02 Letter to the Shareholders

To our shareholders Group Interim Management Report

04 Group Interim Management Report

Interim Consolidated Financial Statements

Notes to the Consolidated Financial Statements

22 Notes to the consolidated financial statements for the interim period from 1 January to 30 September 2021

Other information

LETTER TO THE SHAREHOLDERS

José Luis Blanco Chief Executive Officer

Dear Shareholders, Business Partners and Friends of the Company,

Like almost every industry, the global wind sector was increasingly hit by instability in the logistics markets and further knock-on effects of the coronavirus pandemic from the summer of 2021 onwards. Huge increases in commodity prices and logistics costs, particularly for shipping, put a significant strain on businesses especially in the third quarter. The need to manage and absorb the operational and organizational restrictions on our day-to-day business caused by coronavirus, as well as frequent delivery delays, are placing our entire company under particular pressure.

Despite this, the Nordex Group was able to construct a total of 1,216 wind turbines in 22 countries with a total output of 4.9 GW in the first nine months of 2021. This represents an increase of 27.3 percent (in MW) compared to the prior-year period. We were able to increase consolidated sales by almost a quarter year-on-year to just under EUR 4 billion in the first nine months. This is a success. Sales performed better than expected, while our initiatives to improve our operating processes and expand our capacity further were also successful. Yet this was not enough to fully offset rising materials and logistics costs, particularly the increase in shipping costs during the third quarter. Earnings before interest, taxes, depreciation and amortization (EBITDA) reached EUR 100.7 million during the period under review, up from EUR 70.8 million in the same period of 2020. As a result, the operating margin only improved slightly from 2.2 to 2.5 percent.

We expect the specific pressures detailed above to continue having an adverse impact on results in the fourth quarter of 2021 as well as in 2022. Prices of raw materials and logistics, shipping costs in particular, have continued to increase to unprecedented levels. We have adjusted our guidance for the 2021 financial year to take into account the developments in the third quarter and the outlook for the fourth quarter. Driven by high demand and strong performance in project execution, the Nordex Group now anticipates consolidated sales of EUR 5.0 to 5.2 billion for 2021 and an EBITDA margin of around 1.0 percent.

Although price pressures are currently placing us under significant strain, we expect to benefit from the fundamentals shaping the industry and return to more positive business performance in the medium term. As a result, the Nordex Group continues to be optimistic about future business performance, which will be driven by the global momentum for renewable energy, the very low cost of energy of onshore wind and strong demand for the highly competitive Delta4000-series.

The Nordex Group entered the 6 MW+ class during the third quarter of 2021. This represents another milestone on our strategic path to profitable growth. We want to be one of the top three companies in the global onshore sector, and we remain focused on achieving this goal. We strengthened the Group's balance sheet and significantly improved the Company's flexibility by successfully completing a capital increase in July, making Nordex more crisis-resistant. The confidence our shareholders placed in us by participating in this corporate action is a major source of motivation for the entire Nordex team while at the same time reminding us of our responsibility to lead our company to a successful future. We are doing everything we can to make this a reality, day in and day out. We hope you will continue to place your trust in us.

Kind regards, José Luis Blanco

Chief Executive Officer

Hamburg, November 2021

GROUP INTERIM MANAGEMENT REPORT

For the period ended 30 September 2021

BUSINESS PERFORMANCE

Despite persistently strong demand, the market environment for manufacturers of wind power systems such as the Nordex Group deteriorated very quickly and more sharply than expected in the third quarter of 2021. The growing instability and extreme volatility on the global logistics markets in particular have had a noticeable impact on the international wind industry and its value chain from the summer months onwards. The resulting increases in commodity prices and logistics costs put companies under significant pressure. Shipping costs in particular have exploded. In addition to other after-effects of the coronavirus pandemic, which need to be considered, for example, in processes in the production, transport and installation of wind turbines, delivery delays for raw materials and precursors also had a negative impact in some cases.

Despite this challenging environment, the Nordex Group further cemented its global market positioning in the third quarter – something that can be seen at an operating level in its consistently good order books, for example. The Nordex Group also reached important milestones that will support its growth trajectory in the medium term, both strategically by entering into a new collaboration and technologically by entering the 6 MW+ class.

The Nordex Group thus achieved outstanding market success. In Australia, Nordex secured orders for two wind farms with an aggregate total output of more than 1 GW. For the MacIntyre project alone (over 923 MW), firm orders were placed for 162 N163/5.X wind turbines from Nordex's Delta4000 series. This is the largest single project for this turbine to date.

The Group's entry into the 6 MW+ class is a special technological milestone. By adding the N163 / 6.X turbine to its product portfolio, Nordex is following up its successful approach started with the introduction of the Delta4000 series of offering a flexible power range of wind turbines in the 6 MW+ class. Compared to its sister model in the 5 MW class, the N163 / 6.X is able to produce an up to 7% higher annual energy yield thanks to its considerably higher nominal output. The proven logistics and installation processes for the turbines in the Delta4000 series can be utilized as before.

Over and above this, the Nordex Group succeeded in strengthening its balance sheet and increasing its financial flexibility with the capital increase that was successfully completed in July. The total gross volume of the capital increase was over EUR 586 million (cash proceeds of nearly EUR 390 million, non-cash contribution from Acciona of approximately EUR 197 million). Among other things, the capitalization measure gave a substantial boost to the Nordex Group's liquidity and equity, both of which are important prerequisites for supporting its future profitable growth in view of the encouragingly strong order situation and the successful Delta4000 product portfolio. Nordex's falling net leverage will also reduce its interest expenditure.

SEGMENT PERFORMANCE

Segment performance key data

Projects Service Group
EUR million 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020
Order intake 3,219 2,642 422 477 3,641 3,119
Order book 5,006 5,138 2,953 2,768 7,959 7,906
Sales 3,632 2,852 332 318 3,956 3,167
EBIT 107 120 55 47 –10 –44

In segment reporting, sales, income and expenses that cannot be clearly allocated to the "Projects" or "Service" segments are reported separately as "Not allocated." The complete segment reporting can be found in the notes to the financial statements starting on page 26.

NEW ORDERS

In the first nine months of 2021, the Nordex Group in its Projects segment received orders for wind power systems valued at EUR 3,218.8 million (9M 2020: EUR 2,641.7 million) with a nominal output of 4,610.1 MW (9M 2020: 3,758.5 MW). At 62%, the majority of orders came from Europe, with 18% coming from Latin America. Australia ("Rest of the World" region) accounted for 20% of Nordex Group's total order intake over this period (measured in MW) due to a particularly large project. The orders won in the first three quarters of 2021 were spread across a total of 16 countries. The five largest individual markets were Australia, Brazil, Germany, Finland and Spain. The average selling price (ASP) per megawatt of output in euros in the reporting period was EUR 0.70 million/MW, which was on a par with the prior-year period (9M 2020: EUR 0.70 million / MW). With a share of around 80%, the current Delta4000 series continued to dominate the structure of new orders (9M 2020: 81%; each measured in MW).

The order book in the Projects segment as of 30 September 2021 decreased slightly by 2.6% to EUR 5,005.6 million as a result of the high number of installations (30 September 2020: EUR 5,137.5 million). A share of 68% of the order book was attributable to Europe, 19% to Latin America, 3% to North America, and 10% to the Rest of the World.

The book-to-bill ratio (i.e., the ratio of order intake to sales recognized in the Projects segment) stood at 0.89 for the first nine months of 2021 (9M 2020: 0.93).

At EUR 421.8 million, order intake in the Service segment in the first nine months of 2021 was still below the previous year's level (9M 2020: EUR 477.0 million), with an increase recorded in the third quarter. In this context, it should be noted that several significant service contracts were renewed last year. As of 30 September 2020, the service order book increased further by 6.7% to EUR 2,953.1 million (30 September 2020: EUR 2,768.0 million). At the end of September 2021, the Nordex Group supported a total of 9,773 wind turbines in its Service segment with a total output of 26.6 GW (30 September 2020: 8,192 turbines with an output of 21.1 GW).

PRODUCTION AND INSTALLATION

Production output

9M 2021 9M 2020 9M 2021 9M 2020
2,662.9 2,454.6 493 521
1,901.4 1,206.5 301 55
69.3 221.8 n / a n / a
172.9 497.3 157 194
n / a n / a 291 220
0.0 34.7 n / a n / a
4,806.5 4,414.8 1,242 990
Turbines (MW) Rotor blades (units)

Although operations continued to be impacted by the coronavirus pandemic and substantial disruptions in supply chains and value-added processes worldwide had a negative effect on almost all sectors of the economy in the third quarter, the Nordex Group was able to increase both production volumes and the number of installations compared to the previous year. The 1,068 turbines produced had a total output of 4,806.5 MW (9M 2020: 1,154 turbines with a total output of 4,414.8 MW). A total of 615 nacelles were produced in Germany, 398 in Spain, 35 in India and 20 in Brazil. The Nordex Group produced a total of 1,242 rotor blades in its own rotor blade plants in Germany, Spain, Mexico and India in the reporting period (9M 2020: 990 rotor blades). External suppliers also manufactured an additional 1,878 rotor blades according to Nordex's designs and specifications in the first nine months of 2021 (9M 2020: 2,065 rotor blades).

Installations

Installed capacity (MW)
9M 2021 9M 2020
Europe 2,747.9 1,663.4
North America 916.8 605.6 1
Latin America 610.6 870.3 1
Rest of world 582.7 180.0
Total 4,858.0 3,319.2 1

1 Previous year's figure adjusted

Installations rose very substantially in all reporting regions except Latin America in the first nine months of 2021. Around two thirds of the absolute growth in MW was achieved in the Europe region. The Nordex Group installed a total of 1,216 wind turbines with a total output of 4,858.0 MW in 22 countries during this period (9M 2020: 952 turbines with 3,319.2 MW). Europe accounted for 56% of the installations (by MW), North America for 19%, Latin America for 13%, and South Africa, Australia and India together for 12% ("Rest of the world" region).

RESULTS OF OPERATIONS, FINANCIAL POSITION AND NET ASSETS

Selected key data

01.01. –
30.09.2021
01.01. –
30.09.2020
Change
Sales (in EUR million) 3,956.2 3,167.4 +24.9%
EBITDA margin 1 (in %) 2.5 2.2 +0.3 PP
EBIT margin (in %) –0.1 –0.8 +0.7 PP
Capital expenditure (CAPEX) (in EUR million) 112.2 108.6 3.3%
Financial result (in EUR million) –98.1 –62.7 n / a
Consolidated net profit/loss (in EUR million) –103.7 –107.5 n / a
Earnings per share 2 (in EUR) –0.79 –1.01 n / a
Working capital ratio (in %, as of 30 September) –7.7 –5.7 –2.0 PP
Free cash flow (in EUR million) 23.2 –378.2 n / a
Equity ratio (in %, as of 30 September) 28.5 13.6 +14.9 PP

1 excluding depreciation and amortization from the purchase price allocation (PPA) for Acciona Windpower

2 based on a weighted average of 131.885 million shares (previous year: 117.349 million shares)

The Nordex Group's consolidated sales rose by 24.9% year-on-year to EUR 3,956.2 million in the first nine months of 2021 (9M 2020: EUR 3,167.4 million), largely due to the continuously high level of production and installation activity throughout the reporting period. Sales in the Projects segment rose by 27.3% to EUR 3,631.7 million (9M 2020: EUR 2,851.9 million), while sales in the Service segment grew by 4.2% to EUR 331.8 million (9M 2020: EUR 318.3 million). This brought sales in the Service segment to 8.4% of total sales in the first nine months of 2021.

Inventories were reduced primarily in the first half of 2021 in preparation for the sharp rise in installations. Inventories were also scaled back further in the third quarter, though to a lesser extent. Changes in inventories up until the end of September totaled EUR – 371.3 million, lifting gross revenue in the first three quarters by 15.4% to EUR 3,584.9 million (9M 2020: EUR 3,107.6 million). Gross profit (gross revenue less cost of materials) almost doubled to EUR 676.6 million in the reporting period (9M 2020: EUR 343.4 million), also driven by the upward trend in product margins. Structural costs (staff costs and net other operating income/expenses) increased by 111.3% to EUR 575.9 million (9M 2020: EUR 272.5 million). Here it is important to remember that the prior-year figure had benefited from the extraordinary income generated by the sale of the European project development portfolio to RWE (EUR 300.2 million). Staff costs rose by 11.0% to EUR 348.2 million, mainly due to the significant increase in production and installation activity and the larger workforce, and therefore remained below sales growth.

The Nordex Group's earnings before interest, taxes, depreciation and amortization (EBITDA) increased by a total of 42.2% to EUR 100.7 million (9M 2020: EUR 70.8 million). This improved the EBITDA margin slightly to 2.5%, up from 2.2% in the prior-year period. However, due to the sharp rise in raw material and also shipping costs, EBITDA fell significantly short of expectations. Depreciation and amortization amounted to EUR 110.4 million, down 3.8% on the prior-year period (9M 2020: EUR 114.7 million). This was mainly due to lower depreciation and amortization of EUR 7.5 million arising from the purchase price allocation (PPA) in connection with the acquisition of Acciona Windpower (9M 2020: EUR 18.8 million).

Earnings before interest and taxes (EBIT) rose to EUR – 9.6 million in the first nine months of 2021 (9M 2020: EUR – 43.9 million), giving an EBIT margin of – 0.2% (9M 2020: –1.4%). Adjusted for PPA-related depreciation and amortization, the EBIT margin was – 0.1% (9M 2020: – 0.8%). Excluding unallocated income and expenses, EBIT in the Projects segment amounted to EUR 107.5 million in the reporting period (9M 2020: EUR 119.6 million). EBIT in the Service segment increased to EUR 55.4 million during this time (9M 2020: EUR 47.0 million).

The financial result for the first nine months was EUR – 98.1 million, down on the prior-year period (9M 2020: EUR – 62.7 million). This was largely owing to higher interest expense mainly resulting from high utilization of the guarantee facility as well as from expenses in connection with the repayment of the revolving credit facility granted by the German government and the loan from the anchor shareholder. The shareholder loan was converted into equity in July 2021 in connection with the capital increase. Interest expense will thus fall appreciably from 2022 onwards. The income tax result for the reporting period was EUR 4.1 million (9M 2020: EUR – 0.9 million), giving a consolidated loss of EUR 103.7 million (9M 2020: consolidated loss of EUR 107.5 million). Earnings per share in the nine-month period came to EUR – 0.79 (9M 2020: EUR –1.01).

The working capital ratio was improved further to –7.7% as of 30 September 2021 (30 September 2020: – 5.7%) as a consequence of continuous working capital management. Above all, the reduction in receivables in connection with the high level of installation activity had a positive effect. Thus, the Nordex Group significantly increased its operating cash flow in the first nine months to EUR 127.5 million (9M 2020: EUR –281.0 million). Cash flow from investing activities rose slightly to EUR 104.3 million (9M 2020: EUR 97.2 million). With a swing of around EUR 400 million, the Group generated a net positive free cash flow of EUR 23.2 million in the first nine months (9M 2020: EUR – 378.2 million). Financing activities were dominated by substantial repayments of financial debt (bank loans, promissory notes) on the one hand and by cash inflows from the shareholder loan in the first quarter and from the capital increase in the third quarter on the other. Cash flow from financing activities totaled EUR 73.0 million in the first nine months (9M 2020: EUR 298.2 million).

Thanks to the capital increase, the Nordex Group had cash and cash equivalents of EUR 871.2 million as of 30 September 2021 (31 December 2020: EUR 778.4 million). In connection with the reduction of financial debt, the Group had net liquidity (liabilities to banks, and bond, shareholder loan and employee bond less cash and cash equivalents) of EUR 516.1 million as of the 30 September 2021 reporting date (31 December 2020: net debt EUR 40.9 million).

Total assets fell slightly to EUR 4,263.8 million at the reporting date, chiefly due to the cash inflow from the capital increase in July (31 December 2020: EUR 4,410.1 million). On the assets side, the increase in cash and cash equivalents was primarily offset by the growth-related reduction in inventories. The liabilities side saw a significant reduction in liabilities to banks. By contrast, the Nordex Group's equity increased by 57.4% to EUR 1,217.2 million (31 December 2020: EUR 773.5 million) in spite of the consolidated net loss. Due to the sharp rise in equity and the somewhat lower total assets, the equity ratio as of 30 September 2021 improved to 28.5% (31 December 2020: 17.5%).

Capital expenditure (CAPEX) rose marginally by 3.3% to EUR 112.2 million in the first nine months (9M 2020: EUR 108.6 million) due to the ongoing alignment of production to the new turbine and rotor blade types. Investments in property, plant and equipment at EUR 92.4 million (9M 2020: EUR 90.3 million) focused mainly on the establishment and expansion of blade production and the IT department in India, the expansion of rotor blade production facilities in Germany and the procurement of installation and transport equipment in Spain for international projects. Investments in intangible fixed assets came to EUR 19.8 million in the first nine months (9M 2020: EUR 18.3 million).

EMPLOYEES

As of the 30 September 2021 reporting date, the Nordex Group had a total of 8,795 employees (30 September 2020: 8,469 employees). Following a strong increase in employment figures, the size of the workforce is now at a high level, which enables the Group to efficiently ensure the growth of the Company in production and installation under high safety and quality standards despite the currently challenging operating environment.

OPPORTUNITIES AND RISKS

The negative effects of the coronavirus pandemic, with its varying international degrees of restrictions on ongoing business operations, and, above all, the consequences resulting from this, i.e. the substantial increase in shipping costs and the sometimes massive disruptions along the supply chains, again intensified significantly in the third quarter of 2021. This also applied to the wind industry. This means that the risks to the course of business arising from unplanned project delays or from cost explosions exceeding budgets have recently increased noticeably. From today's assessment, they are likely to remain high for at least the remainder of 2021 and are likely to have an impact in 2022 as well.

Apart from those mentioned above, no opportunities or risks affecting the business performance of the Nordex Group in 2021 arose in the first nine months of 2021 that deviate materially from the opportunities and risks presented in the 2020 Annual Report.

REPORT ON EXPECTED DEVELOPMENTS

The impacts of rising inflationary pressures, especially the current instability in logistics markets, as well as other after-effects of the coronavirus pandemic have been much larger than anticipated in the second half of the year.

The decrease in profitability is primarily a result of the effects of the increasing volatility in commodity and shipping costs, which adversely affected Nordex Group's EBITDA and are expected to further impact results in the fourth quarter of 2021 as well as 2022. Prices of raw materials and logistics, shipping costs in particular, continued to increase to unprecedented levels in recent months.

Against this background, the Nordex Group has revised its guidance for financial year 2021 taking into account developments in the third quarter and the outlook for the fourth quarter: Driven by high demand and strong performance in project execution, the Nordex Group now anticipates consolidated sales of EUR 5.0 – 5.2 billion (previously: EUR 4.7 – 5.2 billion) in 2021. Taking into account unexpected cost increases because of the unprecedented volatility in commodity and logistics markets, the expected operating (EBITDA) margin of previously 4.0 – 5.5 percent has been adjusted to around 1 percent. Expectations for capital expenditure (approx. EUR 180 million) and the working capital ratio (below minus 6 percent) remain unchanged.

However, the Group expects to overcome the current challenges and continues to aim for its strategic target of achieving an EBITDA margin of 8% in the medium term.

EVENTS AFTER THE END OF THE REPORTING PERIOD

No significant events after the end of the reporting period are known to the Group.

The present interim report for the first nine months ended 30 September 2021 (Group interim management report and condensed interim consolidated financial statements) were neither audited nor reviewed by an auditor.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As of 30 September 2021

ASSETS

EUR thousand Note 30.09.2021 31.12.2020
Cash and cash equivalents (1) 871,216 778,357
Trade receivables and contract assets from projects (2) 715,864 653,336
Inventories (3) 854,469 1,202,207
Income tax receivables 12,704 14,626
Other current financial assets (4) 39,521 47,212
Other current non-financial assets (5) 197,013 188,698
Current assets 2,690,787 2,884,436
Property, plant and equipment (6) 470,506 454,159
Goodwill (7) 547,758 547,758
Capitalized development expenses (8) 156,152 166,677
Prepayments made 1,702 1,706
Other intangible assets 14,828 18,240
Financial assets 3,568 3,571
Investments in associates 6,077 6,087
Other non-current financial assets (9) 13,057 8,589
Other non-current non-financial assets (10) 49,678 68,576
Deferred tax assets (11) 309,671 250,251
Non-current assets 1,572,997 1,525,614
Assets 4,263,784 4,410,050

EQUITY AND LIABILITIES

EUR thousand Note 30.09.2021 31.12.2020
Current liabilities to banks (12) 6,974 482,439
Trade payables (13) 1,038,709 1,095,563
Income tax payables 19,078 8,970
Other current provisions (14) 100,676 125,298
Other current financial liabilities (15) 42,803 43,850
Other current non-financial liabilities (16) 1,146,075 1,227,577
Current liabilities 2,354,315 2,983,697
Non-current liabilities to banks (12) 25,500 53,625
Pensions and similar obligations 2,438 2,425
Other non-current provisions (14) 20,543 22,107
Other non-current financial liabilities (17) 395,862 358,675
Other non-current non-financial liabilities (18) 141,327 129,062
Deferred tax liabilities (11) 106,592 86,926
Non-current liabilities 692,262 652,820
Subscribed capital 160,021 117,349
Capital reserves 1,328,227 795,698
Other retained earnings 50,976 50,976
Cash flow hedge reserve 3,505 9,341
Reserve for cash flow hedge costs 378 265
Foreign currency adjustment item –87,682 –65,531
Consolidated net profit carried forward –134,565 –134,565
Consolidated net profit/ loss –103,653 0
Share in equity attributable to parent company's shareholders 1,217,207 773,533
Equity (19) 1,217,207 773,533
Equity and liabilities 4,263,784 4,410,050

CONSOLIDATED INCOME STATEMENT

For the period from 1 January to 30 September 2021

EUR thousand Note 01.01.2021–
30.09.2021
01.01.2020–
30.09.2020
01.07.2021–
30.09.2021
01.07.2020–
30.09.2020
Sales (21) 3,956,209 3,167,379 1,259,645 1,119,507
Changes in inventories and
other own work capitalized
(22) –371,322 –59,798 776 –1,880
Gross revenue 3,584,887 3,107,581 1,260,421 1,117,627
Cost of materials (23) –2,908,261 –2,764,229 –1,068,279 –1,061,901
Gross profit 676,626 343,352 192,142 55,726
Other operating income (24) 25,209 347,127 2,581 335,172
Other operating expenses (24) –252,930 –305,954 –61,234 –138,757
Staff costs (25) –348,194 –313,680 –101,185 –110,509
Structural costs –575,915 –272,507 –159,838 85,906
EBITDA 100,711 70,845 32,304 141,632
Depreciation/amortization (26) –110,350 –114,740 –36,421 –39,162
Earnings before interest and taxes –9,639 – 43,895 –4,117 102,470
Profit/ loss from equity-accounting method –10 495 –214 –4
Impairment of financial assets and securities
classified as current assets
0 –121 0 –44
Other interest and similar income 3,129 3,227 1,331 846
Interest and similar expenses –101,211 –66,260 –44,726 –23,453
Financial result (27) –98,092 – 62,659 –43,609 –22,655
Net profit / loss from ordinary activities –107,731 –106,554 –47,726 79,815
Income tax (28) 4,078 –924 7,820 –7,267
Consolidated net loss –103,653 –107,478 –39,906 72,548
Of which attributable to
shareholders of the parent –103,653 –107,478 –39,906 72,548
Earnings per share (in EUR) (29)
Basic 1 –0.79 –1.01 –0.30 0.68
Diluted 2 –0.79 –1.01 –0.30 0.68

1 Based on weighted average of 131.885 million shares (previous year: 106.681 million shares)

2 Based on weighted average of 131.885 million shares (previous year: 106.681 million shares)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

EUR thousand 01.01.2021–
30.09.2021
01.01.2020–
30.09.2020
01.07.2021–
30.09.2021
01.07.2020–
30.09.2020
Consolidated net loss –103,653 –107,478 –39,906 72,548
Other comprehensive income
Items that may be reclassified to profit or loss
Foreign currency translation difference –22,151 –4,967 1,510 3,673
Cash flow hedges –8,582 1,787 1,290 6,153
Deferred taxes 2,746 –572 –413 –1,969
Cash flow hedge costs 166 1,596 160 –39
Deferred taxes –53 –511 –51 13
Consolidated comprehensive income –131,527 –110,145 –37,410 80,379
Of which attributable to
shareholders of the parent –131,527 –110,145 –37,410 80,379

CONSOLIDATED CASH FLOW STATEMENT

EUR thousand 01.01.2021–
30.09.2021
01.01.2020–
30.09.2020
Operating activities
Consolidated net loss –103,653 –107,478
+ Depreciation/amortization of non-current assets 110,350 114,861
= Consolidated net loss/profit plus depreciation/amortization 6,697 7,383
+/– Decrease/increase in inventories 347,738 –98,786
Increase in trade receivables and contract assets from projects –62,528 –339,774
+ Increase in trade payables –56,854 154,078
–/+ Decrease/increase in prepayments received –103,126 241,993
= Payments received from changes in working capital 125,230 – 42,489
Increase in other assets not attributed to investing or financing activities –43,706 –329,436
+/– Increase/decrease in pensions and similar obligations 13 –108
–/+ Increase/decrease in other provisions –26,186 44,804
Increase in other liabilities not attributed to investing or financing activities 54,721 26,436
+/– Increase/Decrease from the disposal of non-current assets 906 –1,277
Other interest and similar income –3,129 –3,227
+ Interest received 971 1,057
+ Interest and similar expenses 101,211 66,260
Interest paid –82,345 –73,085
+/– Income tax –4,078 924
Taxes paid –6,151 –155
+ Other non-cash expenses/income 3,350 21,933
= Payments made for other operating activities –4,423 –245,874
= Cash flow from operating activities 127,504 –280,980
EUR thousand 01.01.2021–
30.09.2021
01.01.2020–
30.09.2020
Investing activities
+ Payments received from the disposal of property, plant and equipment/intangible assets 8,737 14,022
Payments made for investments in property, plant and equipment/intangible assets –112,218 –108,570
+ Payments received from the disposal of long-term financial assets 21 3,029
Payments made for investments in long-term financial assets –874 –5,711
= Cash flow from investing activities –104,334 – 97,230
Financing activities
+ Payments received from capital increases 373,470 0
+ Bank loans received 4,596 338,410
Bank loans repaid –505,625 –29,586
+ Payments received from the issue of bonds 0 3,735
Cash repayments of bonds –78 0
+ Shareholder loan received 215,000 0
Lease liabilities repaid –14,334 –14,314
= Cash flow from financing activities 73,029 298,245
Net change in cash and cash equivalents 96,199 –79,965
+ Cash and cash equivalents at the beginning of the period 778,357 509,998
Exchange rate-induced change in cash and cash equivalents –3,340 –22,429
= Cash and cash equivalents at the end of the period (Cash and cash
equivalents as shown in the consolidated statement of financial position)
871,216 407,604

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

EUR thousand Subscribed
capital
Capital
reserves
Other
retained
earnings
01.01.2021 117,349 795,698 50,976
Capital increase
Payments received from capital increase 42,672 543,474 0
Costs from capital increase 0 –16,096 0
Income tax 0 5,151 0
Consolidated comprehensive income 0 0 0
Consolidated net loss 0 0 0
Other comprehensive income
Items that may be reclassified to profit or loss
Foreign currency translation difference 0 0 0
Cash flow hedges 0 0 0
Deferred taxes 0 0 0
Cash flow hedge costs 0 0 0
Deferred taxes 0 0 0
30.09.2021 160,021 1,328,227 50,976
Total Share in equity
attributable to
shareholders
of the parent
Consolidated
net profit/loss
Consolidated
net profit
carried forward
Foreign
currency
adjustment
item
Reserve for cash
flow hedge costs
Cash flow
hedge reserve
773,533 773,533 0 –134,565 – 65,531 265 9,341
586,146 586,146 0 0 0 0 0
–16,096 –16,096 0 0 0 0 0
5,151 5,151 0 0 0 0 0
–131,527 –131,527 –103,653 0 –22,151 113 –5,836
–103,653 –103,653 –103,653 0 0 0 0
–22,151 –22,151 0 0 –22,151 0 0
–8,582 –8,582 0 0 0 0 –8,582
2,746 2,746 0 0 0 0 2,746
166 166 0 0 0 166 0
–53 –53 0 0 0 –53 0
1,217,207 1,217,207 –103,653 –134,565 – 87,682 378 3,505

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

EUR thousand Subscribed
capital
Capital
reserves
Other
retained
earnings
Cash flow
Reserve for cash
hedge reserve
flow hedge costs
01.01.2020 106,681 606,820 –11,062 2,331
Consolidated comprehensive income 0 0 0 1,215
Consolidated net loss 0 0 0 0
Other comprehensive income
Items that may be reclassified to profit or loss
Foreign currency translation difference 0 0 0 0
Cash flow hedges 0 0 0 1,787
Deferred taxes 0 0 0 –572
Cash flow hedge costs 0 0 0 0
Deferred taxes 0 0 0 0
30.09.2020 106,681 606,820 –11,062 3,546
Total Share in equity
attributable to
shareholders
of the parent
Consolidated
net profit/loss
Consolidated
net profit
carried forward
Foreign
currency
adjustment
item
Reserve for cash
flow hedge costs
Cash flow
hedge reserve
745,387 745,387 0 57,308 –15,604 –1,087 2,331
–110,145 –110,145 –107,478 0 –4,967 1,085 1,215
–107,478 –107,478 –107,478 0 0 0 0
–4,967 –4,967 0 0 –4,967 0 0
1,787 1,787 0 0 0 0 1,787
–572 –572 0 0 0 0 –572
1,596 1,596 0 0 0 1,596 0
–511 –511 0 0 0 –511 0
635,242 635,242 –107,478 57,308 –20,571 –2 3,546

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

for the interim period from 1 January to 30 September 2021

ACCOUNTING POLICIES

BASIS OF PREPARATION

These unaudited and unreviewed condensed interim consolidated financial statements of Nordex SE and its subsidiaries for the first nine months of 2021 were prepared in accordance with the International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) as applicable in the European Union. All IFRSs and interpretations applicable as of 30 September 2021 have been observed, in particular IAS 34 Interim Financial Reporting.

These interim consolidated financial statements should be read in conjunction with the consolidated financial statements for the 2020 financial year. The accounting policies contained in the consolidated financial statements as of 31 December 2020 also apply to the interim consolidated financial statements as of 30 September 2021, unless explicit reference is made to changes. For more information on the applied accounting policies, see the consolidated notes for the financial year from 1 January to 31 December 2020. The consolidated financial statements for the financial year from 1 January to 31 December 2020 are available on the Internet at www.nordex-online.com under Investors.

The business results for the first nine months of 2021 are not necessarily indicative of the results expected for the year as a whole. Expenses incurred irregularly during the financial year have only been recognized or accrued in the interim consolidated financial statements to the extent that such recognition or accrual would also be appropriate at the end of the financial year.

The Nordex Group increased its consolidated sales by 24.9% year-on-year in the first nine months of 2021 to EUR 3,956,209 thousand (9M 2020: EUR 3,167,379 thousand). This sales growth is mainly attributable to the significant increase in installation figures and the higher production output in the Projects segment. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose to EUR 100,711 thousand (9M 2020: EUR 70,845 thousand), resulting in an EBITDA margin of 2.5% (9M 2020: 2.2%). This result has been impacted noticeably by the sharp rise in raw material and also shipping costs.

In the first nine months of 2021, the Nordex Group again increased its installation output and erected a total of 1,216 wind turbines in 22 countries with a total output of 4,858 MW (9M/2020: 1,052 wind turbines in 21 countries with a total output of 3,817 MW). This represents an increase of 27.3% (in MW) compared to the previous year. Europe accounted for around 57% of installations and non-European markets for around 43%. As a result of these installations, the Projects segment generated sales of EUR 3,631,665 thousand (9M 2020: EUR 2,851,859 thousand) during the reporting period, a year-on-year increase of 27.3%. Sales in the Service segment as of the end of September continued its growth, rising by 4.2% to EUR 331,836 thousand (9M 2020: EUR 318,310 thousand).

Total assets as of 30 September 2021 decreased from EUR 4,410,050 thousand to EUR 4,263,784 thousand compared with year-end 2020, with liabilities to banks being reduced significantly. This contrasts with a sharp increase in equity as a result of the capital increase completed in July 2021. As a result, the equity ratio rose considerably to 28.5% as of 30 September 2021 (31 December 2020:

17.5%). The net debt as of 31 December 2020 in the amount of EUR 40,911 thousand has turned into a net cash position of EUR 516,083 thousand. Furthermore, the working capital ratio in relation to consolidated sales improved to –7.7% (31 December 2020: – 6.3%) and thus remained below the target of – 6% set for the end of 2021.

FOREIGN CURRENCY TRANSLATION

The following table sets out the exchange rates against the euro of the Group's most important foreign currencies:

Average exchange rates
for the interim period
Closing rates
Exchange rates
EUR 1.00 equals
01.01. –30.09.2021 01.01. –30.09.2020 30.09.2021 31.12.2020
AUD 1.5762 1.6612 1.6095 1.5896
BRL 6.3709 5.6268 6.2631 6.3735
CLP 881.3075 900.7296 937.3828 872.5242
GBP 0.8639 0.8838 0.8605 0.8990
HRK 7.5328 7.5308 7.4889 7.5519
INR 88.0614 83.3092 86.0763 89.6604
MXN 24.0711 24.3021 23.7439 24.4160
NOK 10.2241 10.7921 10.1650 10.4703
PLN 4.5463 4.4201 4.6197 4.5597
SEK 10.1508 10.5576 10.1683 10.0343
TRY 9.6574 7.5167 10.2976 9.1133
USD 1.1964 1.1230 1.1579 1.2271
ZAR 17.4172 18.6753 17.5623 18.0213

FINANCIAL RISK MANAGEMENT

DEBT INSTRUMENTS

Corporate bond

On 2 February 2018, the Nordex Group successfully placed a corporate bond in the amount of EUR 275,000 thousand with a coupon of 6.5%. This bond was admitted to trading on the International Stock Exchange. The issuer of the fiveyear corporate bond is Nordex SE, with the main Nordex Group companies holding joint and several liability. As at 30 September 2021, the liability including accrued costs and interest recognized under other financial liabilities amounted to EUR 275,443 thousand (31 December 2020: EUR 278,385 thousand).

Shareholder loan

In addition, Acciona S.A. granted Nordex SE a shareholder loan of EUR 232,200 thousand. The loan was paid out in two tranches of EUR 17,200 thousand in August 2020 and EUR 215,000 thousand in March 2021. In June 2021, EUR 196,580 thousand of this amount was contributed to a capital increase as a non-cash contribution. The loan runs until 30 April 2025 at an interest rate of 10.0%. As at 30 September 2021, the liability including accrued costs and interest recognized under other financial liabilities amounted to EUR 43,263 thousand (31 December 2020: EUR 953 thousand).

Promissory note

On 6 April 2016, Nordex SE placed a promissory note with a volume of EUR 550,000 thousand for which Nordex SE&Co. KG is jointly and severally liable with national and international investors. After a further EUR 215,000 thousand was repaid in April 2021, the promissory note currently is comprised of tranches with original terms of seven and ten years, each subject to fixed or variable interest. Depending on the tranche, the interest rate is between 2.1% and 3.0%. As at 30 September 2021, the liability including accrued costs and interest recognized under liabilities to banks amounted to EUR 25,794 thousand (31 December 2020: EUR 242,443 thousand).

Employee bond

To strengthen employee loyalty while allowing them to make a profitable investment, the Nordex Group has launched a participation program for its employees in the French Val aux Moines wind farm developed and implemented by Nordex. Employees can participate by purchasing bonds issued by Nordex Employee Holding GmbH. The total volume is up to EUR 4,000 thousand with an annual interest rate of 6.0%. The term runs from 1 October 2020 to 30 September 2024. As at 30 September 2021, the liability including accrued costs and interest recognized under other financial liabilities amounted to EUR 3,953 thousand (31 December 2020: EUR 3,866 thousand).

Syndicated multi-currency guarantee facility

Nordex SE also has a syndicated multi-currency guarantee facility that runs until 9 April 2023 and has been increased from EUR 1,238,750 thousand to EUR 1,410,000 thousand in June 2021 and in which the main Nordex Group companies hold joint and several liability. This facility may be extended twice for one more year in each case. In addition, it has been agreed that an amount of up to EUR 100,000 thousand from this top-up will also be made available in the form of guaranteed cash credit lines. As at 30 September 2021, EUR 1,082,235 thousand (31 December 2020: EUR 1,066,862 thousand) of the syndicated multi-currency guarantee facility had been drawn down in the form of guarantees. Ancillary credit facilities have also been set up under the syndicated multi-currency guarantee facility. As at 30 September 2021, the cash drawdowns on these facilities recognized under liabilities to banks amounted to EUR 6,680 thousand (31 December 2020: EUR 1,896 thousand).

Revolving credit facility

The revolving credit facility for EUR 350,000 thousand granted under the German federal government's loan guarantee program with the participation of the states of Mecklenburg-West Pomerania and Hamburg to protect the Nordex Group from the effects of the COVID-19 pandemic has been canceled in June 2021 as part of the combined capital increase and debt transaction (31 December 2020: EUR 250,743 thousand).

Research and development loan

The research and development loan was also repaid in July 2021 (31 December 2020: EUR 40,982 thousand).

The combined capital increase and debt transaction carried out in June 2021 will strengthen Nordex's capital structure in a single step. Furthermore, Nordex will not incur interest expenses due to the partial contribution of the shareholder loan by Acciona. The increase in the guarantee credit facility including an additional cash credit facility will support the growth trajectory by providing additional flexibility. This in turn will ensure a stable positioning of the business for lower-risk, profitable future growth.

The syndicated multi-currency guarantee facility is further subject to uniform and agreed financial covenants such as equity ratio, leverage and interest coverage, compliance with which is confirmed in quarterly reports to the banks. The financial covenants were met in the first nine months of 2021.

The banks may only terminate the facilities for good cause, which includes breach of the covenants.

CAPITAL RISK MANAGEMENT

The main aims of capital risk management are to ensure sustained growth in enterprise value and to safeguard the Group's liquidity and credit rating. Equity stood at EUR 1,217,207 thousand as at 30 September 2021 (31 December 2020: EUR 773,533 thousand). The Group monitors its capital by means of the working capital employed. Working capital is defined as the sum total of trade receivables, contract assets from projects and inventories less trade payables and prepayments received:

EUR thousand 30.09.2021 31.12.2020
Trade receivables 158,051 121,805
Contract assets from projects 557,813 531,531
Inventories 854,469 1,202,207
Trade payables –1,038,709 –1,095,563
Prepayments received –949,942 –1,053,068
–418,318 –293,088
Sales 1 5,439,571 4,650,740
Working capital ratio –7.7% – 6.3%

1 30 September 2021: sales for the last twelve months, 31 December 2020: actual sales

GROUP SEGMENT REPORTING

In line with business activities, the reportable segments are the Projects and Service segments. Segment reporting follows the internal reports submitted to the chief operating decision maker, the Management Board of Nordex SE, on the basis of the accounting principles applied to the consolidated financial statements.

9M 2021 9M 2020
3,631,665 2,851,859
–367,981 –50,815
–2,730,687 –2,604,342
–425,551 –77,063
107,446 119,639
0 0
0 0
0 0
Projects

1 As in the previous year, intrasegment sales are exclusively attributable to the Service segment, whereas intrasegment cost of materials of EUR 7,833 thousand (Q3 2020: EUR 3,079 thousand) is attributable to the Projects segment and EUR 608 thousand (Q3 2020: EUR 679 thousand) to the Not-allocated segment.

Projects Service Not allocated Consolidation 1 Total
9M 2021
9M 2020
9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020
3,631,665
2,851,859
331,836 318,310 1,149 968 –8,441 –3,758 3,956,209 3,167,379
Changes in inventories and other own work capitalized
–367,981
–50,815
–638 –2,465 –2,703 –6,518 0 0 –371,322 –59,798
–2,730,687
–2,604,342
–134,085 –147,932 –51,929 –15,713 8,441 3,758 –2,908,261 –2,764,229
–425,551
–77,063
–141,752 –120,936 –118,963 –189,248 0 0 –686,265 –387,247
107,446
119,639
55,361 46,977 –172,446 –210,511 0 0 –9,639 –43,895
0
0
0 0 3,129 3,227 0 0 3,129 3,227
0
0
0 0 –101,211 –66,260 0 0 –101,211 –66,260
0
0
0 0 –10 374 0 0 –10 374

Non-current assets and sales break down by region as follows:

Non-current assets 1 Sales
EUR thousand 30.09.2021 31.12.2020 01.01. – 30.09.2021 01.01. – 30.09.2020
Europe 516,774 544,087 2,445,187 1,651,263
Latin America 35,352 32,385 424,697 528,760
North America 17,964 17,511 792,786 707,204
Rest of world 73,098 46,799 293,539 280,152
643,188 640,782 3,956,209 3,167,379

1 Non-current assets include property, plant and equipment, capitalized development expenses, prepayments made and other intangible assets.

Further information can be found in the Group management report.

NOTES TO THE STATEMENT OF FINANCIAL POSITION

(1) CASH AND CASH EQUIVALENTS

Cash and cash equivalents amount to EUR 871,216 thousand (31 December 2020: EUR 778,357 thousand).

Pursuant to IFRS 7 and IFRS 9, cash and cash equivalents are classified as financial assets measured at amortized cost. Given the short residual terms to maturity, amortized cost would equal the fair value as in the previous year.

(2) TRADE RECEIVABLES AND CONTRACT ASSETS FROM PROJECTS

Trade receivables and contract assets from projects are comprised as follows:

EUR thousand 30.09.2021 31.12.2020
Trade receivables 158,051 121,805
Contract assets from projects 557,813 531,531
715,864 653,336

Trade receivables are not subject to interest and are generally due for settlement within 30 to 90 days.

Pursuant to IFRS 7 and IFRS 9, trade receivables and contract assets from projects are classified as financial assets measured at amortized cost. Amortized cost equals the fair value, as in the previous year.

(3) INVENTORIES

Inventories break down as follows:

EUR thousand 30.09.2021 31.12.2020
Raw materials and supplies 492,054 434,937
Work in progress 294,646 684,699
Prepayments made 67,769 82,571
854,469 1,202,207

Work in progress relates to wind power systems under construction as well as advance outlays for project development, rights and infrastructure.

Raw materials and supplies primarily comprise production and service material.

(4) OTHER CURRENT FINANCIAL ASSETS

Other current financial assets mainly comprise forward exchange transactions of EUR 9,116 thousand (31 December 2020: EUR 16,999 thousand), creditors with debit accounts of EUR 7,401 thousand (31 December 2020: EUR 6,606 thousand), fixed-term deposits of EUR 6,120 thousand (31 December 2020: EUR 0 thousand) and advance payments to secure supplier capacities of EUR 3,747 thousand (31 December 2020: EUR 4,643 thousand).

Pursuant to IFRS 7 and IFRS 9, the balances not relating to forward exchange transactions reported under other current financial assets are classified as financial assets measured at amortized cost. Given the short residual terms to maturity, amortized cost amounting to EUR 30,405 thousand (31 December 2020: EUR 30,213 thousand) equals the fair value as in the previous year.

Pursuant to IFRS 7 and IFRS 9, the forward exchange transactions reported in other current financial assets in the scope of hedge accounting (cash flow hedges) are classified as effective hedging instruments measured at fair value through other comprehensive income. The fair value amounts to EUR 9,024 thousand (31 December 2020: EUR 13,157 thousand).

Pursuant to IFRS 7 and IFRS 9, the other forward exchange transactions reported under other current financial assets are classified as financial assets measured at fair value through profit or loss. The fair value amounts to EUR 92 thousand (31 December 2020: EUR 3,842 thousand). The forward rates and prices are calculated on the basis of the spot price on the reporting date in the light of any discounts or premiums for the remaining term of the contract.

(5) OTHER CURRENT NON-FINANCIAL ASSETS

Other current non-financial assets mainly comprise current tax assets of EUR 178,607 thousand (31 December 2020: EUR 162,411 thousand), prepaid expenses of EUR 9,854 thousand (31 December 2020: EUR 19,127 thousand) and contract assets from services of EUR 6,293 thousand (31 December 2020: EUR 5,712 thousand).

The current tax assets mainly concern current input tax assets.

Prepaid expenses chiefly comprise costs pertaining to other periods for the multi-currency guarantee facility and license fees.

The contract assets from services concern maintenance contracts where the percentage of completion exceeds the payments received.

(6) PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment breaks down as follows:

EUR thousand 30.09.2021 31.12.2020
Technical equipment and
machinery
177,066 171,668
Land and buildings 159,394 169,720
Other fixtures and fittings,
tools and equipment
87,135 83,155
Assets under construction 41,045 25,476
Prepayments made 5,866 4,140
470,506 454,159

Land and buildings, and other fixtures and fittings, tools and equipment include lease assets.

Additions and carrying amounts as of 30 September 2021 are as follows:

30.09.2021
EUR thousand Additions Carrying
amount
Land and buildings – lease assets 3,989 78,570
Other fixtures and fittings, tools and
equipment – lease assets
3,164 10,409
7,153 88,979

The capitalized right-of-use assets from leases relate mainly to administrative and production buildings, warehouses, company vehicles and production equipment (e.g. lifting platforms).

Cash outflows for leases in the current financial year amounted to EUR 16,734 thousand as at 30 September 2021 (1 January to 30 September 2020: EUR 17,060 thousand).

For a detailed overview of movements in property, plant and equipment we refer to the statement of changes in property, plant and equipment and intangible assets attached to the notes to the consolidated financial statements.

(7) GOODWILL

As in the previous year, goodwill amounts to EUR547,758 thousand, with EUR 504,595 thousand in the Projects CGU and EUR 43,163 thousand in the Service CGU. EUR 537,798 thousand thereof results from the purchase price allocation for Acciona Windpower.

For a detailed overview of goodwill we refer to the statement of changes in property, plant and equipment and intangible assets attached to the notes to the consolidated financial statements.

(8) CAPITALIZED DEVELOPMENT EXPENSES

As at the reporting date, development expenses of EUR156,152 thousand (31 December 2020: EUR166,677 thousand) were capitalized. In the first nine months, development expenses of EUR 19,370 thousand (31 December 2020: EUR 24,714 thousand) were capitalized. Additions comprise in particular the enhancement of the Generation Delta wind turbines. Additional development expenses of EUR 21,682 thousand also arising in the first nine months (31 December 2020: EUR 22,962 thousand) did not meet the criteria for capitalization and were therefore recognized in profit or loss. The capitalization ratio therefore amounts to 47.18% (31 December 2020: 51.84%).

For a detailed overview of capitalized development costs we refer to the statement of changes in property, plant and equipment and intangible assets attached to the notes to the consolidated financial statements.

(9) OTHER NON-CURRENT FINANCIAL ASSETS

Other non-current financial assets mainly comprise receivables from non-consolidated affiliated companies, associates and other long-term equity investments in the amount of EUR 7,409 thousand (31 December 2020: EUR 6,567 thousand).

Receivables from non-consolidated affiliated companies, associates and other long-term equity investments concern the financing of project companies in particular.

Pursuant to IFRS 7 and IFRS 9, the balances not relating to forward exchange transactions reported under other non-current financial assets are classified as financial assets measured at amortized cost. Given that market interest rates apply, amortized cost amounting to EUR 13,057 thousand (31 December 2020: EUR 8,589 thousand) equals the fair value as in the previous year.

(10) OTHER NON-CURRENT NON-FINANCIAL ASSETS

Other non-current non-financial assets comprise contract assets from services of EUR 24,791 thousand (31 December 2020: EUR 22,718 thousand), prepaid expenses of EUR 12,969 thousand (31 December 2020: EUR 16,227 thousand) and tax assets of EUR 11,918 thousand (31 December 2020: EUR 0 thousand).

The contract assets from services concern maintenance contracts where the percentage of completion exceeds the payments received.

Prepaid expenses chiefly comprise costs pertaining to other periods for license fees and the multi-currency guarantee facility.

Tax assets concern input tax assets.

(11) DEFERRED TAX ASSETS AND TAX LIABILITIES

As of 30 September 2021, a rounded tax rate of 32.00% (31 December 2020: 32.00%) was applied for the purpose of calculating domestic deferred taxes.

The changes in deferred taxes break down as follows:

EUR thousand 2021 2020
Amount on 01.01. 163,325 126,347
Recognized through
profit or loss
28,517 54,872
Recognized in capital reserves 5,151 0
Recognized in other
comprehensive income
2,693 –3,917
Currency translation 3,393 –13,977
Amount on 30.09. /31.12. 203,079 163,325

(12) LIABILITIES TO BANKS

More detailed information on the liabilities to banks is provided in the section on debt instruments.

Pursuant to IFRS 7 and IFRS 9, liabilities to banks are classified as financial liabilities measured at amortized cost. The fair value amounts to EUR 32,393 thousand (31 December 2020: EUR 534,788 thousand), of which EUR 7,337 thousand (31 December 2020: EUR 482,335 thousand) would be classified as current.

(13) TRADE PAYABLES

Trade payables amount to EUR 1,038,709 thousand (31 December 2020: EUR 1,095,563 thousand).

Pursuant to IFRS 7 and IFRS 9, trade payables are classified as financial liabilities measured at amortized cost. Given the short residual terms to maturity, amortized cost equals the fair value as in the previous year.

(14) OTHER PROVISIONS

Movements in other provisions break down as follows:

EUR thousand 01.01.2021 Utilization Reversals Additions 30.09.2021
Warranties 90,135 –22,441 –27,424 65,379 105,649
Others 57,270 –41,784 –7,600 7,684 15,570
147,405 – 64,225 – 35,024 73,063 121,219

The provisions for warranties predominantly cover risks arising from possible claims for damages in the service and project business.

Other provisions chiefly concern other service and project risks, costs of preparing the annual financial statements, legal uncertainties and supplier risks.

(15) OTHER CURRENT FINANCIAL LIABILITIES

Other current financial liabilities mainly comprise leases of EUR 17,984 thousand (31 December 2020: EUR 18,104 thousand), guarantee commissions of EUR 10,160 thousand (31 December 2020: EUR 10,008 thousand), forward exchange transactions of EUR 6,760 thousand (31 December 2020: EUR 2,804 thousand) and the corporate bond of EUR 2,979 thousand (31 December 2020: EUR 7,349 thousand).

The amount of lease liabilities corresponds to the present value of future lease payments.

More detailed information on the corporate bond is provided in the section on debt instruments.

Pursuant to IFRS 7 and IFRS 9, the balances not relating to forward exchange transactions reported under other current financial liabilities are classified as financial liabilities measured at amortized cost. Given the short residual terms to maturity, amortized cost amounting to EUR 36,043 thousand (31 December 2020: EUR 41,046 thousand) equals the fair value as in the previous year. Also included are current lease liabilities that are not allocated to any measurement category. Pursuant to IFRS 7 and IFRS 9, the forward exchange transactions reported in other current financial liabilities in the scope of hedge accounting (cash flow hedges) are classified as effective hedging instruments measured at fair value through other comprehensive income. The fair value amounts to EUR 2,836 thousand (31 December 2020: EUR 786 thousand).

Pursuant to IFRS 7 and IFRS 9, the other forward exchange transactions reported under other current financial liabilities are classified as financial liabilities measured at fair value through profit or loss. The fair value amounts to EUR 3,924 thousand (31 December 2020: EUR 2,018 thousand). The forward rates and prices are calculated on the basis of the spot price on the reporting date in the light of any discounts or premiums for the remaining term of the contract.

(16) OTHER CURRENT NON-FINANCIAL LIABILITIES

Other current non-financial liabilities mainly comprise prepayments received of EUR 949,942 thousand (31 December 2020: EUR 1,053,068 thousand), other tax liabilities of EUR 76,438 thousand (31 December 2020: EUR 77,523 thousand), accrued liabilities of EUR 75,477 thousand (31 December 2020: EUR 60,807 thousand) and contract liabilities from services of EUR 35,172 thousand (31 December 2020: EUR 28,187 thousand).

The other tax liabilities mainly relate to value-added tax.

Accrued liabilities mainly comprise trailing project costs and staff costs.

The contract liabilities from services concern maintenance contracts where the degree of completion is lower than the billed amount.

(17) OTHER NON-CURRENT FINANCIAL LIABILITIES

Other non-current financial liabilities mainly comprise the corporate bond of EUR 272,463 thousand (31 December 2020: EUR 271,036 thousand), the shareholder loan of EUR 43,263 thousand (31 December 2020: EUR 953 thousand), leases of EUR 72,947 thousand (31 December 2020: EUR 79,506 thousand) and the employee bond of EUR 3,728 thousand (31 December 2020: EUR 3,805 thousand).

More detailed information on the corporate bond, the shareholder loan and the employee bond is provided in the section on debt instruments.

The amount of lease liabilities corresponds to the present value of future lease payments.

Pursuant to IFRS 7 and IFRS 9, the balances not relating to forward exchange transactions reported under other non-current financial liabilities are classified as financial liabilities measured at amortized cost. Based on the corporate bond's share price as at the reporting date, the fair value would be EUR 401,456 thousand (31 December 2020: EUR 382,386 thousand). Also included are non-current lease liabilities that are not allocated to any measurement category.

Pursuant to IFRS 7 and IFRS 9, the forward exchange transactions reported in other current financial liabilities in the scope of hedge accounting (cash flow hedges) are classified as effective hedging instruments measured at fair value through other comprehensive income. The fair value amounts to EUR 305 thousand (31 December 2020: EUR 358 thousand).

(18) OTHER NON-CURRENT NON-FINANCIAL LIABILITIES

Other non-current non-financial liabilities mainly comprise contract liabilities from services of EUR 138,612 thousand (31 December 2020: EUR 126,206 thousand).

The contract liabilities from services concern maintenance contracts where the payments received exceed the percentage of completion.

(19) EQUITY

Equity breaks down as follows:

EUR thousand 30.09.2021 31.12.2020
Subscribed capital 160,021 117,349
Capital reserves 1,328,227 795,698
Other retained earnings 50,976 50,976
Cash flow hedge reserve 3,505 9,341
Reserve for cash flow
hedge costs
378 265
Foreign currency
adjustment item
–87,682 –65,531
Consolidated net profit/ loss
carried forward
–103,653 –134,565
Consolidated net profit/ loss 1 0
Share in equity attributable to
parent company's shareholders
1,217,207 773,533
1,217,207 773,533

1 Consolidated net profit/loss as at 31 December 2020 amounts to EUR 0 thousand due to the allocation to other retained earnings and the withdrawal from consolidated net profit/loss carried forward.

On 30 June 2021, the Management Board of Nordex SE, with the approval of the Company's Supervisory Board, adopted a resolution to implement a rights issue from authorized capital against cash contributions and a non-cash contribution from Acciona S.A. Of the 42,672,276 new shares, 98.2% were issued at a price of EUR 13.70 per share, which gives a total gross transaction volume of EUR 586,146 thousand, consisting of cash proceeds of EUR 389,566 thousand and an equivalent value of EUR 196,580 thousand of the loan receivable from the shareholder loan contributed by Acciona S.A.

Further details of the changes in the individual equity items can be found in the attached consolidated statement of changes in equity.

(20) ADDITIONAL DISCLOSURES ON FINANCIAL INSTRUMENTS

The following table shows the financial assets and liabilities as well as their fair values and their allocation to the fair value hierarchy defined in IFRS 13 that should be applied when determining the fair value of a financial instrument:

2021
EUR thousand
Level 1 Level 2 Level 3 Total
Financial assets
Forward exchange transactions in the scope
of hedge accounting (cash flow hedges)
0 9,024 0 9,024
Other forward exchange transactions 0 92 0 92
Financial liabilities
Liabilities to banks 0 32,393 0 32,393
Corporate bond 275,443 0 0 275,443
Shareholder loan 0 43,263 0 43,263
Employee bond 0 3,953 0 3,953
Forward exchange transactions in the scope
of hedge accounting (cash flow hedges)
0 3,141 0 3,141
Other forward exchange transactions 0 3,924 0 3,924
2020
EUR thousand
Level 1 Level 2 Level 3 Total
Financial assets
Forward exchange transactions in the scope
of hedge accounting (cash flow hedges)
0 13,157 0 13,157
Other forward exchange transactions 0 3,842 0 3,842
Financial liabilities
Liabilities to banks 0 534,788 0 534,788
Corporate bond 286,316 0 0 286,316
Shareholder loan 0 17,091 0 17,091
Employee bond 0 3,866 0 3,866
Forward exchange transactions in the scope
of hedge accounting (cash flow hedges)
0 1,144 0 1,144
Other forward exchange transactions 0 2,018 0 2,018

The corporate bond is allocated to Level 1 because it has been admitted to trading at the International Stock Exchange.

Liabilities to banks as part of financial liabilities, the employee bond and the shareholder loan are allocated to Level 2. The same applies to forward exchange transactions.

There were no reclassifications between levels, neither in comparison with the previous year nor during the year under review.

NOTES TO THE INCOME STATEMENT

(21) SALES

Sales comprise income from the completion of construction contracts for customers, the sale of wind power systems and income from service contracts.

In the case of project contracts, sales are recognized either at a point in time using the milestone method or over time using the cost-to-cost method, depending on the respective scope of the contract.

Sales for standardized turbine types are recognized at a point in time when control of the fully operational turbine is transferred to the customer. Control is deemed to have been transferred at the time the turbine is fully erected. Costs are recognized in inventories until sales are recognized at a point in time.

Sales for customer-specific installations for which there is no alternative use and for which there is an enforceable right to payment for the service provided are recognized over time.

The sales generated from service contracts will be recognized over time and distributed across the years covered by the contract in line with a distribution of costs typical of the contract (schedule). The schedule for determining the degree of completion of individual service contracts is based on historical data. A contract asset (liability) for service contracts is recognized to the extent the degree of completion exceeds (falls below) the amount billed.

Sales break down to the Projects and Service segments as follows:

Projects 3,631,665 2,851,859 Service 331,836 318,310 Not allocated 1,149 968 Intrasegment consolidation –8,441 –3,758

01.01.– 30.09.2021

3,656,209 3,167,379

01.01.– 30.09.2020

EUR thousand

(23) COST OF MATERIALS

The cost of materials breaks down as follows:

EUR thousand 01.01.–
30.09.2021
01.01. –
30.09.2020
Cost of raw materials
and other supplies
2,031,499 1,915,282
Cost of services purchased 876,762 848,947
2,908,261 2,764,229

The timing of sales recognition from projects is as follows:

EUR thousand 01.01.–
30.09.2021
01.01. –
30.09.2020
Project sales recognized
at a point in time
1,409,426 1,783,153
Project sales recognized
over time
2,222,239 1,068,706
3,631,665 2,851,859

The increase in consolidated sales is attributable to the higher installation figures compared with the prior-year quarter.

(22) CHANGES IN INVENTORIES AND OTHER OWN WORK CAPITALIZED

Own work capitalized is measured at EUR 18,732 thousand (1 January to 30 September 2020: EUR 17,222 thousand) and, as in the previous year, relates to capitalized expenses for developing and enhancing new and existing wind turbines.

Changes in inventories stand at EUR – 390,054 thousand (1 January to 30 September 2020: EUR –77,020 thousand) and reflect the higher volume of installations.

Cost of raw materials and other supplies mainly comprise expenses for construction components.

The cost of purchased services primarily results from thirdparty freight, third-party services and commissions for order processing and order provisions.

(24) OTHER OPERATING INCOME / OTHER OPERATING EXPENSES

Other operating income/expenses mainly comprise the share in the profit of the Arcadis Ost 1 offshore wind farm of EUR 7,500 thousand (1 January to 30 September 2020: EUR 0 thousand), indemnity of EUR 5,213 thousand (1 January to 30 September 2020: EUR 892 thousand), currency translation losses/forward exchange transactions of EUR –14,822 thousand (1 January to 30 September 2020: EUR –24,868 thousand), leases of EUR –17,186 thousand (1 January to 30 September 2020: EUR –10,587 thousand), travel expenses of EUR –19,666 thousand (1 January to 30 September 2020: EUR –20,735 thousand), maintenance of EUR –26,156 thousand (1 January to 30 September 2020: EUR –25,285 thousand), legal and consulting costs of EUR –29,096 thousand (1 January to 30 September 2020: EUR – 32,839 thousand) and other staff costs of EUR –77,460 thousand (1 January to 30 September 2020: EUR – 82,566 thousand).

Staff costs break down as follows:

01.01.–
30.09.2021
01.01. –
30.09.2020
283,342 258,061
55,619
348,194 313,680
64,852

(26) DEPRECIATION / AMORTIZATION

Depreciation and amortization breaks down as follows:

EUR thousand 01.01.–
30.09.2021
01.01. –
30.09.2020
Depreciation of property,
plant and equipment
76,308 72,669
Amortization of capitalized
development expenses
29,936 34,277
Amortization of other
intangible assets
4,106 7,794
110,350 114,740

The Group headcount was as follows:

01.01.–
30.09.2021 1
01.01.–
30.09.2020
Change
Reporting date
Office staff 3,801 3,441 360
Technical staff 4,994 4,848 146
8,795 8,289 506
Average
Office staff 3,611 3,264 347
Technical staff 4,742 4,349 393
8,353 7,613 740

1 Working students, trainees and employees on leave have not been included in the number of employees since 30 September 2021. The previous year's figure has been adjusted accordingly.

The increase in the number of employees is mainly due to the Nordex Group's increased business volume.

Depreciation includes EUR 15,561 thousand for depreciation of lease assets (1 January to 30 September 2020: EUR 15,767 thousand); of this amount EUR 10,502 thousand (1 January to 30 September 2020: EUR 10,853 thousand) concern land and buildings and EUR 5,059 thousand (1 January to 30 September 2020: EUR 4,914 thousand) other fixtures and fittings, tools and equipment.

(27) FINANCIAL RESULT

The financial result breaks down as follows:

EUR thousand 01.01.–
30.09.2021
01.01. –
30.09.2020
Profit/loss from equity-ac
counting method
–10 495
Impairment of financial assets 0 –121
Net profit / loss
from investments
–10 374
Other interest and
similar income
3,129 3,227
Interest and similar expenses –101,211 –66,260
Interest result –98,082 – 63,033
–98,092 – 62,659

Net gains / losses from valuation using the equity method reflect the share of profit of associates.

Interest income and expense arises primarily from deposits with banks, and from guarantee commissions, the shareholder loan, the revolving credit facility and the corporate bond. Of the interest expense, EUR 2,399 thousand (1 January to 30 September 2020: EUR 2,745 thousand) is attributable to leases.

(28) INCOME TAX

Income tax breaks down as follows:

EUR thousand 01.01.–
30.09.2021
01.01. –
30.09.2020
Current income tax –24,439 –13,850
Deferred taxes 28,517 12,926
Through profit or loss 4,078 – 924
Deferred taxes 7,844 –1,083
Currency translation 3,393 –12,406
Not through profit or loss 11,237 –13,489
15,315 –14,413

(29) EARNINGS PER SHARE Basic

01.01.–
30.09.2021
01.01. –
30.09.2020
Consolidated net loss
for the year
EUR
thou
sand
–103,653 –107,478
of which shareholders
of the parent company
EUR
thou
sand
–103,653 –107,478
Weighted average
number of shares
131,885,468 106,680,691
Basic earnings per share EUR –0.79 –1.01

Diluted

Diluted earnings per share also stand at EUR – 0.79 (1 January to 30 September 2020: EUR –1.01).

OTHER FINANCIAL OBLIGATIONS AND CONTINGENT LIABILITIES

There are no future cash outflows from leases which the Nordex Group has entered into but which have not yet begun.

Moreover, principally in the real estate segment there are lease contracts with extension and termination options. However, these are not considered to be reasonably certain and therefore have not been recognized. However, utilization of these extension and termination options is reviewed annually and they will be recognized in the statement of financial position in case of a change of view.

The Nordex Group has contingent liabilities arising from pending litigation in connection with its operating business; as the probability of an outflow of resources as of the reporting date was not sufficiently determinable, no provisions have been set aside in this connection.

There are also guarantees in the amount of EUR 954 thousand (31 December 2020: EUR 954 thousand) vis-à-vis affiliated, non-consolidated project companies, which are not expected to be utilized; there are no contingent liabilities to associates.

RELATED PARTY DISCLOSURES

As at the reporting date, Acciona S.A. held a 33.6% (31 December 2020: 36.6%) share in Nordex SE.

The balances and transactions with companies from the Acciona Group are set out in the following table:

Balances outstanding
Receivables (+) / liabilities (–)
Transaction amount
Income (+) /expense (–)
EUR thousand 30.09.2021 31.12.2020 01.01.–30.09.2021 01.01.–30.09.2020
Acciona Energia Chile SpA 163,983 / 164,970 / 2,420 / 0 /
–419 –156,711 –1,255 –570
Acciona Energia Mexico S.r.l. 2,042 / 1,232 / 0 / 0 /
–21 –44 0 0
Acciona Energia S.A. 116,694 / 69,304 / 52,703 / 24,004 /
–34,050 –33,011 –459 –589
Acciona Energia Servicios Mexico 140,277 / 139,351 / 228 / 29,627 /
S. de RL de C.V. –139,902 –131,456 –5,527 –515
Acciona Energy Australia Global 0 / 0 / 27 / 0 /
Pty. Ltd. –9,047 0 0 –753
Acciona Energy Oceania Construc 113,216 / 48 / 120,262 / 790 /
tion Pty Ltd. –111,377 –106,372 –4,018 –1,096
Acciona Forwarding S.A. 93 / 0 / 46 / 1,358 /
0 –977 –7,844 –1,035
Acciona S.A. 0 / 0 / 0 / 0 /
–43,398 –1,088 –15,193 –56
Other 679 / 779 / 743 / 1,084 /
–326 –291 –774 –2,027

During the first nine months of 2021, orders to deliver and assemble wind power systems in the amount of EUR 507,723 thousand (1 January to 30 September 2020: EUR 0 thousand) were placed by Acciona Energía S.A.

In 2014, Supervisory Board member Jan Klatten indirectly acquired an interest of 44.20% in the Polish wind farm company C&C Wind Sp. z o.o. in a market-wide tender process. The Nordex Group holds a 40.00% share of this company. Accordingly, C&C Wind Sp. z o.o. is classed as an associated company. As in the previous year, there were no business transactions with Mr. Klatten or companies attributable to him.

In addition, the shares in GN Renewable Investments S.a.r.l. (30.00%) are also classified as associated companies.

The balances and transactions with these companies are set out in the following table:

Balances outstanding
Receivables (+) / liabilities (–)
Transaction amount
Income (+) /expense (–)
EUR thousand 30.09.2021 31.12.2020 01.01.–
30.09.2021
01.01.–
30.09.2020
C&C Wind Sp. z o.o. 698 / 363 / 602 / 804 /
0 0 –4 0
GN Renewable Investments S.a.r.l. 0 / 0 / 0 / 0 /
0 0 –6 –6

CONSOLIDATED CASH FLOW STATEMENT

Of the cash flow from operating activities in the amount of EUR 127,504 thousand (1 January to 30 September 2020: EUR –280,980 thousand) an amount of EUR 6,697 thousand (1 January to 30 September 2020: EUR 7,383 thousand) is attributable to the consolidated net loss including depreciation, amortization and impairment. Changes in working capital resulted in payments received of EUR 125,230 thousand (1 January to 30 September 2020: payments made of EUR 42,489 thousand). Payments made for other operating activities stand at EUR 4,423 thousand (1 January to 30 September 2020: EUR 245,874 thousand). This means that cash flow from operating activities has been influenced significantly by the positive development of working capital.

Cash flow from investing activities amounted to EUR –104,334 thousand (1 January to 30 September 2020: EUR – 97,230 thousand). Investments of EUR 92,441 thousand (1 January to 30 September 2020: EUR 90,294 thousand) were made in property, plant and equipment, which mainly related to the establishment and expansion of blade production and the IT department in India and to the procurement of installation and transportation equipment in Spain for international projects.Development projects of EUR 19,371 thousand (1 January to 30 September 2020: EUR 17,356 thousand) were capitalized.

Cash flow from financing activities amounted to EUR 73,029 thousand (1 January to 30 September 2020: EUR 298,245 thousand) and is mainly attributable to the capital increase and the granting of the revolving credit facility. Repayment of the revolving credit facility, promissory note, the research and development loan, and lease liabilities had an offsetting effect.

EVENTS AFTER THE REPORTING DATE

There were no significant events after the end of the reporting period.

Nordex SE Rostock, November 2021

José Luis Blanco, Chairman of the Management Board

Dr. Ilya Hartmann, Member of the Management Board

Patxi Landa, Member of the Management Board

STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

Cost
EUR thousand Opening
balance
01.01.2021
Additions Disposals Reclassi
fications
Currency
translation
Closing
balance
30.09.2021
Opening
balance
01.01.2021
Property, plant and equipment
Technical equipment and machinery 389,281 43,825 9,997 2,805 2,392 428,306 217,613
Land and buildings 246,090 4,419 1,242 191 1,030 250,488 76,370
Other fixtures and fittings,
tools and equipment
177,394 29,143 2,860 14 564 204,255 94,239
Assets under construction 25,476 17,908 0 –3,026 687 41,045 0
Prepayments made 4,140 4,299 2,620 0 47 5,866 0
Total 842,381 99,594 16,719 –16 4,720 929,960 388,222
Intangible assets
Goodwill 552,259 0 0 0 0 552,259 4,501
Capitalized R&D expenses 468,823 19,370 0 0 42 488,235 302,146
Prepayments made 1,706 1 0 –5 0 1,702 0
Other intangible assets 155,309 406 104 21 2,329 157,961 137,069
Total 1,178,097 19,777 104 16 2,371 1,200,157 443,716
Carrying amount Depreciation/amortization/impairment losses
31.12.2020 30.09.2021 Closing
balance
30.09.2021
Reclassi
fications
Disposals Additions
171,668 177,066 251,240 1,293 5,123 37,457
169,720 159,394 91,094 398 750 15,076
83,155 87,135 117,120 310 1,204 23,775
25,476 41,045 0 0 0 0
4,140 5,866 0 0 0 0
454,159 470,506 459,454 2,001 7,077 76,308
547,758 547,758 4,501 0 0 0
166,677 156,152 332,083 1 0 29,936
1,706 1,702 0 0 0 0
18,240 14,828 143,133 2,061 103 4,106
734,381 720,440 479,717 2,062 103 34,042

RESPONSIBILITY STATEMENT

To the best of our knowledge, and in accordance with the applicable reporting principles for interim reporting, the interim consolidated financial statements for the first nine months as at 30 September 2021 give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the group, together with a description of the material opportunities and risks associated with the expected development of the group for the remaining months of the financial year.

Nordex SE, Rostock, November 2021

José Luis Blanco, Chief Executive Officer

Dr. Ilya Hartmann, Member of the Management Board

Patxi Landa, Member of the Management Board

FINANCIAL CALENDAR, PUBLISHING INFORMATION AND CONTACT

FINANCIAL CALENDAR (PRELIMINARY)

Datum
19 March 2022 Analyst conference, Frankfurt, and publication of Annual Report
12 May 2022 Quarterly financial report (31 March 2022)
2 June 2022 Annual General Meeting
15 August 2022 Half-yearly financial report (30 June 2022)
15 November 2022 Quarterly financial report (30 September 2022)

PUBLISHING INFORMATION AND CONTACT

Published by

Nordex SE Investor Relations Langenhorner Chaussee 600 22419 Hamburg Germany

Telephone + 49 40 30030–1000 Fax + 49 40 30030–1101

www.nordex-online.com [email protected] Investor Relations-Team Felix Zander Telephone + 49 40 30030–1116

Tobias Vossberg Telephone + 49 40 30030–2502 Editing&Text Nordex SE, Hamburg

Photography Nordex SE, Hamburg

Consulting, Concept&Design Silvester Group www.silvestergroup.com

Disclaimer

This Interim Report contains forward-looking statements that relate to macroeconomic developments, the business and the net assets, financial position and results of operations of the Nordex Group. Forwardlooking statements by definition do not depict the past and are in some instances indicated by words such as "believe", "anticipate", "predict", "plan", "estimate", "aim", "expect", "assume" and similar expressions. Forward-looking statements are based on the Company's current plans, estimates, projections and forecasts, and are therefore subject to risks and uncertainties that could cause actual development or the actual results or performance to differ materially from the development, results or performance expressly or implicitly assumed in these forward-looking statements. Readers of this Interim Report are expressly cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this Interim Report. Nordex SE does not intend and does not undertake any obligation to revise these forward-looking statements. The English version of the Report constitutes a translation of the original German version. Only the German version is legally binding.

Nordex SE Investor Relations Langenhorner Chaussee 600 22419 Hamburg Germany

Telephone + 49 40 30030–1000 Telefax + 49 40 30030–1101

www.nordex-online.com [email protected]

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