PNE AG — Investor Presentation 2012

Dec 11, 2012

Agenda

1. PNE WIND AG at a glance

• 1. Business model
• 1. Market and strategy
• 1. Financials
• 1. PNE WIND AG share
• 1. Investment highlights

Overview

• Development and implementation of wind farm projects in Germany and abroad, both onshore and offshore
• Core competence: development, project planning, implementation and financing of wind farms
• Sale of wind farms with after-sales technical and commercial support service
• Company based in Cuxhaven, 186 employees as at September 30, 2012
• Guidance: cumulative EBIT of € 60 to 72 million for fiscal years 2011 to 2013 expected

Management

Martin Billhardt Chief Executive Officer (CEO)

• Industry experience since 1995
• CEO since June 2008
• Areas of responsibility: strategy, investor relations, acquisitions, sales, human resources, legal affairs, investment

Jörg Klowat Chief Financial Officer (CFO)

• Working for PNE WIND AG since 1999
• CFO since April 2011
• Areas of responsibility: finance and accounting, controlling, risk management

Markus Lesser Chief Operating Officer (COO)

• Over 10 years experience in the Renewable Energy project planning industry
• COO since May 2011
• Areas of responsibility: project development and wind farm implementation onshore and offshore

References

• Since foundation in 1995 development of onshore wind farms
• Offshore: Approvals granted for four projects
• Reference list onshore: 98 wind farms
• 568 wind turbines (WT) with a total output of 814 MW installed

• PNE WIND AG is therefore one of the most experienced wind farm developers

• Extensive know-how upon site acquisition, wind analysis and erection of wind farms all over Germany

• Long-term partner for wind farm operators with comprehensive network to decision makers
• Trustful cooperation with leading manufacturers such as Siemens, Vestas, Nordex, Enercon and REpower

Agenda

1. PNE WIND AG at a glance

2. Business model

• 1. Market and strategy
• 1. Financials
• 1. PNE WIND AG share
• 1. Investment highlights

Value chain

• Development, financing and construction of wind farms through to commissioning
• Criteria for wind farm development: Wind in m/sec, probability of approval, assured grid connection
• After completion: complete handover to buyer
• After-sales support service in the management ensures customer retention and guarantees recurring revenues

Financial value chain

• PNE WIND AG generates value especially ahead of implementation phase
• When selling the project right after obtaining approval: attractive returns combined with low revenues and very limited capital requirements
• When selling wind farms after completion: attractive returns and high revenues, but yet much higher capital requirements
• Project business: successive invoicing after construction progress (milestone payments)

Project pipeline

Projects	As of November 5, 2012
Under development Germany - onshore
>1,100 MW
Under development Germany - offshore
	3,579 MW
Under development international projects
2,000 MW
0 MW 300 MW 600 MW 900 MW 1,200 MW	3,500 MW

Onshore

• National and international total of around 3,100 MW under development

Offshore

• Projects with total of 3,579 MW currently under development
• Approvals have been achieved for four offshore wind farms
• Three own offshore projects under development
• Offshore business is growth driver of the future

Current offshore projects – Germany

Project	Phase	Location	WT up to	Total MW (up to)	Nominal capacity per turbine**
Borkum Riffgrund I *	6	North Sea	77	277	3.6 MW
Borkum Riffgrund II *	4	North Sea	97	349	3.6 MW
Gode Wind I *	5	North Sea	54	332	6.15 MW
Gode Wind II *	5	North Sea	84	516	6.15 MW
Gode Wind III *	1	North Sea	15	105	7.0 MW
Nautilus II *	2	North Sea	80	560	7.0 MW
Nemo	2	North Sea	80	480	6.0 MW
Jules Vernes	2	North Sea	80	480	6.0 MW
Nautilus I	2	North Sea	80	480	6.0 MW
Total:			647	3,579
Phase 1 = Project identification phase			Phase 4 = Approval granted

* PNE WIND AG acts as service provider ** expected

Phase 2 = Application conference held Phase 5 = Grid connection guaranteed

Phase 3 = Hearing held Phase 6 = Final investment decision (FID)

Offshore project overview

Offshore timeline – Germany

Planning, implementation and operation overview

PNE WIND II 14

Business model

Gode Wind offshore projects

Gode Wind I and II

• Building permits from the Federal Office for Shipping and Hydrographics (BSH) secured
• Unconditional grid connection commitments from the transmission network operator TenneT has been issued
• Grid connection is secured through the 900 MW "DolWin2" transformer station, which will be delivered by ABB and is scheduled to be commissioned in 2015
• Gode Wind" I and II are now 100% owned by DONG Energy

Gode Wind III

• The project is in the planning and application stage of development
• When successfully completed there will be 15 wind power turbines
• "Gode Wind III" remains in PNE WIND AG ownership until BSH building permit is issued; expected in 2013

Offshore wind farm

Gode Wind projects sold to DONG Energy

The transaction:

The "Gode Wind" I, II and III projects sold for approximately €157 million

• First payment of euro 57 million already received
• Additional milestones totaling approximately euro 100 million to be received

Main milestones:

• Offshore studies: Payment in beginning of 2013
• Permit Gode Wind III: expected 2013
• FID Gode Wind I: expected 2013/14
• FID Gode Wind II: expected 2013/14
• Service related fees expected during 2012-17 timeframe: €5m up to €8.5m

The deal builds on the excellent relationship which began with our "Borkum Riffgrund" projects

Offshore wind farm

Borkum Riffgrund projects sold to DONG Energy

Borkum Riffgrund I and II

• DONG Energy has reached final investment decision for "Borkum Riffgrund I" and construction is expected to start in 2013 with the wind farm first supplying power in 2014
• The 800 MW grid transmission link named the "DolWin1", is being completed by ABB and is expected to be commissioned in 2013
• DONG Energy sold 50 percent of "Borkum Riffgrund I" to KIRKBI A/S, and the Oticon Foundation
• The BSH issued the building permit for "Riffgrund II" in December 2011 which triggered a milestone payment
• DONG Energy put "Riffgrund II" temporarily on hold due to no scheduled grid connection through TenneT
• PNE WIND AG remains active as a service provider and expects further milestone payments in the mid single digit million range Offshore wind farm

Other offshore projects – Germany

Nautilus II

• Project sold to Ventizz portfolio company SSP Technology Holding ApS
• PNE WIND AG acting as service provider: "Nautilus II" will be jointly developed
• PNE WIND AG expects further milestone payments as the project progresses through development stages
• The building permit is expected from the BSH in 2014
• Ventizz and Hochtief form a Joint Venture to realise offshore projects

Nautilus I, Nemo & Jules Vernes

• Projects in the building application stage

Offshore wind farm

Current projects

Opportunities in Germany, Eastern Europe, North America and the UK

Country	Number of projects	MW up to
Germany	75	1,144
USA	10	352
Canada	7	575
UK	21	591
Turkey	2	93
Hungary	2	78
Romania	2	143
Bulgaria	7	248
Total:	126	~3,100

Investment criteria:

• Country credit rating
• Attractive, reliable feed-in system
• Local JV-partner

Current onshore projects – Germany

Onshore projects – Germany

• Around 1,100 MW currently under development as at 30 September, 2012
• "Kemberg II" wind farm with 10 MW completed in 2012
• "Zernitz II" wind farm with 6 MW under construction
• Approval for two wind farms with a nominal output of 14 MW obtained
• Additional approvals for construction of onshore wind farms in Germany are expected on short notice
• Portfolio of wind farm projects in Germany and UK with a nominal output of approx. 180 MW to be offered to investors during first half of 2013

Current projects – international

Onshore projects USA

• Foundation of US subsidiary PNE WIND USA, Inc. in October 2008 (based in Chicago)
• Significant progress has been made with the 70 MW project Chilocco (Oklahoma)
• Progress in the development of wind farms in Belle Fourche (South Dakota), project with 20 MW planned, Austin (Minnesota), project with 30 MW planned and Johnson County (Iowa), project with 30 MW planned
• Currently 352 MW under development
• Objective: active development of further wind farm projects for approval and realization

Current projects – international

Onshore projects UK

UK

• PNE WIND UK founded as Joint Venture with New Energy Developments Limited (PNE WIND AG holds a majority interest of 67.5%)
• Offices in Brighton and Edinburgh
• Appointed as a preferred development partner to the Forestry Commission Scotland
• Wind farm sites on the National Forest Estate in Argyll and Bute, West Dunbartonshire, Stirling, Perth and Kinross as well as Angus in Scottish national forest with potential of 100-200 MW
• Development and implementation of wind farm projects for up to 591 MW
• Four projects have reached the community information stage: Brunta Hill with 23 MW, Tralorg with 20 MW, Kennoxhead with 50 MW and Hill of Braco with 30 MW

Current projects – international

Onshore projects – Southeast Europe

• Hungary
• PNE WIND AG holds 100% of interests in Hungarian company
• First successes: Two wind farms with 32 wind turbines and 78 MW approved

• Both wind farm projects for implementation or sale planned

• Joint Venture with several partners

• Projects with up to 121 MW under development

Romania

• Joint venture with local partner in Bucharest
• Projects with up to 160 MW under development

Turkey

• Cooperation with Türkwind Energie Ltd.
• Development and realization of wind park projects of up to 93 MW planned

Agenda

1. PNE WIND AG at a glance

2. 1. Business model
3. 3. Market and strategy
4. 1. Financials
5. 1. PNE WIND AG share
6. 1. Investment highlights

Global development of wind power

• Increased international demand for renewable energy is based on:
• Growing population
• Increasing demand for energy
• Scarcity of fossil fuels
• Prevention of CO2 emissions
• Security of supply
• Wind energy is the most technologically advanced of these and the most economically efficient technology
• Double-digit growth rates forecasted until 2015 (CAGR 2010-2015: 18.2%)

Offshore Europe and Germany

• Offshore wind energy as a key growth driver for national and international wind energy markets
• 40,000 MW installed wind power capacity by 2020 as a target to achieve climate objectives of the EU
• Objective of the German Federal Government: installed offshore capacity of 20,000 to 25,000 MW by the year 2030

Wind power in Germany: Status quo and forecast

Energy Concept 2050

• The German Federal Government adopted the "Energy Concept 2050" in September 2010
• Key points of the Energy Concept:
• 1. Promotion of offshore wind energy by special credit program with a volume of € 5 billion
• 1. Identification of additional sites to be designated for onshore wind farm construction and operation
• 1. The expansion of onshore wind through adopting more favourable terms for extending the lives of existing wind farms (repowering):
  2. Essential factor for the further development of wind energy and increased energy output
  3. By the end of H1 2012, 1.085 old plants with 519 MW capacity were removed and replaced with 620 modern units with a total nominal output of 1,349 MW
  4. For repowering experts predict a potential total installed capacity of around 30,000 MW by 2020

Source: BMU (Energy Concept 2050); DEWI, 2012; KPMG study, 2009

Growth strategy PNE WIND AG

• Growth through development of new markets and new projects
• Expansion abroad into selected countries with a basic legal framework in place (comparable with the EEG) and attractive prospects
• Consistent exploitation of market opportunities in all areas of wind power

Agenda

1. PNE WIND AG at a glance 2. Business model 3. Market and strategy 4. Financials 5. PNE WIND AG share 6. Investment highlights

Financials

Key performance indicators

Q1-Q3 2012

in € million	Jan. 1 to Sep. 30, 2012	Jan. 1 to Sep. 30, 2011
Revenue	80.9	33.1
Total operating revenue	86.1	36.3
Cost of materials	-39.6	-18.1
Personnel expenses	-10.0	-8.7
Other	-11.7	-10.2
EBIT	24.9	-0.7
Interest and similar income	0.2	0.8
Interest and similar expenses	-4.1	-4.6
EBT	21.0	-4.5
Net income	22.0	-4.0
EPS (undiluted, in €)	0.48	-0.09

• "Gode Wind" offshore wind farm sets the stage to reach 3 year guidance
• "Gode Wind" drives earnings: third quarter EBIT of €31.1m
• Upfront payment of €57m received and next payment due beginning of 2013
• Tax loss carry forwards reduce tax expense
• Financial position supports expansion of development activities and continuation of dividend policy

Financials

Key balance sheet ratios

• "Gode Wind" deal significantly de-risks balance sheet
• Cash balance rises to €51.7m
• PNE WIND AG's "Altenbruch II" wind farm generates substantial cash flows
• Equity ratio increased substantially to around 49% from around 39%

Financials Cash flow

Q1-Q3 2012

in € million	Jan. 1 to Sep. 30, 2012	Jan. 1 to Sep. 30, 2011
Consolidated earnings for the period	20.8	-4.7
Amortization/Depreciation	4.1	3.8
Δ Provisions	-0.1	-0.8
Δ Non-cash effective expenses/income	-0.4	-0.1
Δ Earnings/losses from fixed asset disposals	-18.3	0.0
Δ Working capital	-18.3	4.5
Cash flow from operating activities	-12.1	2.8
Cash flow from investing activities	40.0	-8.2
Cash flow from financing activities	4.4	-7.0
Cash and cash equivalents – end of period	51.7	26.8

• "Kemberg II", "Riffgrund II" and "Gode Wind" drive cash flow from operations
• Investments in working capital to improve with receipt of next milestone payment
• Cash flow from investing: net effect of "Gode Wind" and "Kemberg II"
• Cash flow from financing: net effect of loans to finance "Kemberg II", dividend payments and retirement of loans
• Cash balance rises to €51.7m from €26.8m in 2011

Financials Forecast

Financials

• In the short and medium term, significant income from further milestones of offshore projects as well as sale of onshore projects affecting EBIT positively
• Cumulative EBIT guidance for fiscal years 2011 to 2013 of at least € 60 to 72 million confirmed

Operative

• Further operational improvement planned in coming years due to extensive pipeline
• Onshore outlook: National and international medium term target of 10,000 MW
• Offshore outlook: medium term target 5,000 MW

Buchholz wind farm

Agenda

1. PNE WIND AG at a glance

2. 1. Business model
3. 1. Market and strategy
4. 1. Financials
5. 5. PNE WIND AG share
6. 1. Investment highlights

PNE WIND AG share

Price performance since Jan. 3, 2011

Price and key data

PNE WIND AG is the largest listed wind farm developer in Germany

Key data

WKN (German Securities Code Number)	AOJBPG
ISIN	DE000A0JBPG2
Number of shares	45,785,869
Market capitalization as per November 5, 2012	€ 98.4 million
Free float	97%
Market segment	Prime Standard
Indices	CDAX Technology, ÖkoDAX
Designated Sponsors/ Market Maker	Commerzbank VEM Aktienbank Close Brother Seydler Bank
Reuters	PNEGn
Bloomberg	PNE3

Agenda

1. PNE WIND AG at a glance

2. 1. Business model
3. 1. Market and strategy
4. 1. Financials
5. 1. PNE WIND AG share

6. Investment Highlights

Investment Highlights

• Successful project developer of wind farms onshore and offshore, nationally and internationally
• Attractive growth opportunity through strong starting position taken in the repowering sector as well as excellent positioning in the offshore sector
• Cooperation with leading manufacturers of wind turbines
• Increased expansion of international business activities, particularly in Eastern Europe, the UK and North America
• Preferred development partner to the Forestry Commission Scotland for the development of wind power schemes in Central Scotland
• "Gode Wind" sales transaction generated significant cash inflow resulting in cash balance of € 51.7 million and is linked to future milestone payments
• Guidance: cumulative EBIT of at least € 60 to 72 million for fiscal years 2011 to 2013

Contact

PNE WIND AG Rainer Heinsohn Head of Communication Tel: +49 (0) 47 21 – 7 18 - 453 Fax: +49 (0) 47 21 – 7 18 - 373 E-mail: rainer.heinsohn@pnewind.com

Scott McCollister Head of Investor Relations Tel: +49 (0) 47 21 – 7 18 - 454 Fax: +49 (0) 47 21 – 7 18 - 373 E-mail: scott.mccollister@pnewind.com

Investor Relations cometis AG Ulrich Wiehle / Janis Fischer Tel: +49 (0) 611 – 205855 - 64 Fax: +49 (0) 611 – 205855 - 66 E-mail: fischer@cometis.de

Company headquarters, Cuxhaven

Disclaimer

This presentation is for information purposes only and does not constitute a public offer or invitation to subscribe for or purchase any securities of PNE WIND AG and neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. This representation is being furnished to you solely for your information and may not be reproduced or redistributed to any other person in whole or in part.

All information contained herein has been carefully prepared. Nevertheless, we do not guarantee its accuracy or completeness.

The information contained in this presentation is subject to amendment, revision and updating. Certain statements contained in this presentation may be statements of future expectations and other forward-looking statements that are based on the company's current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those in such statements as a result of, among others, factors, changing business or other market conditions and the prospects for growth anticipated by the management of the Company. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The distribution of this document in other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of applicable Securities Laws.