PNE AG — Investor Presentation 2012

Mar 28, 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, 180 employees as at December 31, 2012
• Guidance: cumulative EBIT of at least € 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
• Approvals granted for four offshore 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 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 at March 26, 2012
Onshore projects realized since founding 814 MW
Under development Germany - onshore >1,100 MW
Under development Germany - offshore
	3,315 MW
Under development international projects
2,086 MW
300 MW 600 MW 900 MW 1,200 MW 0 MW	3,300 MW

Onshore

• National and international total of around 3,200 MW under development

Offshore

• Projects with total of 3,315 MW currently under development
• Approvals have been achieved for four offshore wind farms
• Offshore business is growth driver of the future

Current onshore projects – Germany

Onshore projects – Germany

• Overall above 1,100 MW under development as at December 31, 2011
• Wind farm "Kemberg II" with 10 MW completed in 2012
• 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

Current offshore projects – Germany

Current offshore projects – Germany

Offshore projects – Germany

Project	Phase	Location	WT up to	Total MW (up to)	Nominal capacity per turbine
Gode Wind I	4	North Sea	54 REpower	332	6.15 MW
Gode Wind II	4	North Sea	84 Vestas	252	3.0 MW
Gode Wind III	1	North Sea	15 Vestas	105	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**
Nautilus II *	2	North Sea	80	560	7.0 MW**
Borkum Riffgrund I *	4	North Sea	77 Siemens	277	3.6 MW
Borkum Riffgrund II *	4	North Sea	97 Siemens	349	3.6 MW
Total:			647	3,315
Phase 1 = Project identification phase Phase 3 = Hearing held

Phase 2 = Application conference held Phase 4 = Approval granted

* PNE WIND AG acts as service provider ** expected

PNE WIND II 13

Current offshore projects – Germany

• Approval granted from the BSH
• PNE WIND AG Components, transformer station, park design, financing strategy
• Project status: PNE WIND AG had submitted the necessary documentation and fulfilled all of the four criteria to obtain of the unconditional commitment for the grid network connection. Unconditional grid connection expected in 2012 from TenneT
• Turbines: Repower has been selected to supply 332 MW using 6,15 MW turbines

Gode Wind III

• Project identification phase
• Up to 15 wind turbines possible
• Planned as reference area for new Vestas offshore turbine (expected: 7 MW)

Current offshore projects – Germany

Gode Wind II

• Current negotiations regarding project sale in the near future
• Approval granted
• Supply contract for 84 Vestas type V112 wind energy systems
• Preliminary contracts for the supply of 84 monopile foundations, the internal wind farm cabling and the wind farm's transformer station
• Grid connection secured by TenneT
• PNE WIND AG expects significant contributions to EBIT depending on outcome of the sales negotiations, as well as possible further milestone payments and regular payments for services provided

Offshore wind farm

Current offshore projects – Germany

Borkum Riffgrund I + II

• PNE WIND AG acting as service provider for DONG Energy
• Start of construction of "Riffgrund I" expected in 2013: this will be the first offshore wind farms build which was developed by PNE Wind
• "Riffgrund II" received approval by BSH at the end of 2011, which triggered a € 6.0m milestone payment due to PNE Wind in 1H12
• PNE WIND AG expects further milestone payments depending on the projects' progress as well as current remuneration for provided services

Offshore wind farm

Current 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 regarding this project depending on the project's progress

Offshore wind farm

Current projects – international

Onshore projects – international

Country	Number of projects	MW up to
USA	10	352
Canada	7	575
UK	21	591
Turkey	2	93
Hungary	2	78
Romania	2	143
Bulgaria	7	248
Total:	51	2,086

Investment criteria:

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

Current projects – international

Onshore projects – international

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

Current projects – international

Onshore projects – international

UK

• PNE WIND UK founded as Joint Venture with New Energy Developments Limited (PNE WIND AG holds a majority interest of 67.5%)
• Opening of new office in Edinburgh, Scotland
• 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 with potential of 100-200 MW
• Development and implementation of wind farm projects for up to 591 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 by 2012/2013 planned

Bulgaria

• Joint Venture with several partners
• Projects with up to 248 MW under development

Romania

• Joint venture with local partner in Bucharest
• Projects with up to 143 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 2011, 979 old plants with 450 MW capacity were removed and replaced with 541 modern units with a total nominal output of 1,163 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

Fiscal Year 2011

in € million	Jan. 1 to Dec. 31, 2011	Jan. 1 to Dec. 31, 2010
Revenue	48.6	65.6
Total operating revenue	53.9	80.0
Cost of materials	-28.7	-42.7
Personnel expenses	-11.5	-10.2
Other	-8.5	-12.7
EBIT	0.1	9.5
Interest income	0.9	0.5
Interest and similar expenses	-5.8	-4.6
EBT	-4.9	5.4
Net income	-3.9	7.9
EPS (in €)	-0.09	0.17

• Revenues from wind farm development lower due to 10 MW under construction in 2011 vs. 32 MW erected in 2010
• Milestone payments of €12.7m booked to "Borkum Riffgrund II" offshore wind project
• High average wind speeds drove electricity sales up by 9.6% y-o-y to €9.1m
• Cost control keeps EBIT positive despite lower revenues
• COGS and other expenses decline with lower number of MWs realised in 2011
• Onshore and offshore projects are expected to positively contribute to EBIT in short and mid-term

Financials

Key balance sheet ratios

Balance sheet in € million as at December 31, 2011 (as at December 31, 2010)
		Assets		Equity and liabilities
Intangible assets Property, plant and		39.8 [40.0]		74.7	Equity
equipment Gode Wind I+II: Altenbruch II: Silbitz:	20.5 33.9 6.9			[81.7]	Non-Current debt
Land and Buildings: Transformer Stations: Other:	13.6 7.7 11.2	93.8 [85.2]		74.0	Altenbruch II: 27.9 Silbitz: 4.0 Building Finance: 4.0
Other		0.9(1.2)		[77.4]	Convertible 28.5 Bond: Other: 9.6
Current assets		57.8 [73.7]		1.9[2.6] 41.7 [38.5]	Provisions Current debt
		192.3 (200.2)		192.3 (200.2)
Differences from rounding off possible

• Ample liquidity provides resources to continue to develop projects as well as sufficient time to identify new buyer for "Gode Wind II" project
• Year end cash position of €19.4m and available credit lines bring Group liquidity position to €39.3m
• PP&E primarily represents our existing wind farms and investments in offshore and international projects
• Intangible assets represents wind farm projecting and project rights from the first consolidation of "Gode Wind I"
• Debt to equity ratio of 46.7% remains comfortably below group target of not exceeding 80%

Financials

Cash flow

Fiscal Year 2011

in € million	Jan. 1 to Dec. 31, 2011	Jan. 1 to Dec. 31, 2010
Consolidated net loss/income for the period	-5.1	7.1
Amortization/Depreciation	5.2	5.0
Δ Provisions	-0.6	-1.6
Δ Non-cash expenses/income	0.5	-10.7
Δ Working capital	-1.4	-7.5
Cash flow from operating activities	-1.4	-7.7
Cash flow from investing activities	-14.1	-16.6
Cash flow from financing activities	-4.2	21.9
Cash and cash equivalents – end of period	19.4	39.2

• Cash flow from operations is negative with receipt of payment for a portion of 2011 sales expected in 1H12
• Commissioning of onshore project "Kemberg II" and the milestone payment from DONG Energy to have positive cash effects in 1H12
• Cash flow from investing activities illustrates continued investments in our wind farm activities
• Cash flow from financing activities includes repayment of loans as well as dividend
• Despite net cash outflow, cash position at €19.4m remains high

Financials Forecast

Financials

• In the short and medium term, significant income from offshore 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 and key data

Price performance since Jan. 3, 2011

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	45,777,960
Market capitalization as per March 16, 2012	€ 84.2 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
• Partnership with leading manufacturers of wind energy plants
• 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
• 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.