PNE AG — Investor Presentation 2014

Mar 22, 2014

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.

HIGHLIGHTS

• PNE WIND greatly expands its operations with the acquisition of wind project developer WKN AG and three offshore projects in the planning stage
• Acquisitions financed through the successful placement of a corporate bond with gross proceeds of €100m
• Operations performed well with the Group completing or beginning construction on 43 MW in Germany
• Successful start to 2014: approx. 100 MW of German projects under construction
• Internationally, the Group sold a 12 MW project in France, received permits for two projects with 20 MW in the UK and a 32 MW project in Poland
• In the offshore sector, €45m payment was received at end of 2013
• Financially, we record our best ever year with an EBIT of €45m and an EPS of €0.86
• With a 3 year cumulative EBIT of €65.5m during the 2011-13 time period, we fulfill our guidance of €60-72million in EBIT
• We propose to share our success with our shareholders and intend to raise the dividend to €0.10 + special dividend of €0.05 per share
• Looking forward, we forecast a 3 year cumulative EBIT of €110-€130m for the 2014-2016 period

TABLE OF CONTENTS

PNE WIND GROUP

• 1. AT A GLANCE
• 1. CORE COMPETIENCIES
• 1. FINANCIALS

MARKET & STRATEGY

• 1. WORLD FORECASTS
• 1. REGULATORY GOALS

CAPITAL MARKETS & CONTACT

• 1. STOCK INFORMATION
• 1. CONTACT

PNE WIND & WKN

• PNE WIND GROUP consists of the companies PNE WIND AG and WKN AG
• Development and implementation of wind farm projects in Germany and abroad, both onshore and offshore
• Active in 14 different countries
• More than 400 employees
• Onshore: wind farms with a nominal capacity of approx. 4,800 MW in development
• Offshore: 12 projects with a total nominal capacity of approx. 4,744 MW in development / thereof six own projects
• Operation and Maintenance (O&M) services of wind turbines support through commercial and technical management

MANAGEMENT

Martin Billhardt Chief Executive Officer (CEO)

Jörg Klowat Chief Financial Officer (CFO)

Markus Lesser Chief Operating Officer (COO)

• Experienced management team with more than 45 years of cumulative experience creates a strong foundation for future growth
• Successful track record based on organic and inorganic growth

REFERENCES

• Onshore wind farms with a nominal capacity of 1,977 MW installed
• Projects successfully completed in Germany, Italy, Poland and France
• 6 offshore projects sold with a total nominal capacity of up to 2,104 MW

CORE COMPETENCIES

• Development, financing and construction of wind farms
• After-sales support through commercial and technical management services
• Criteria for wind farm development:
• 1. Wind in m/sec
• 1. Likelihood for permitting
• 1. Grid connection availability
• 1. Stable regulatory environment

CORE COMPETENCIES

• PNE WIND generates value especially ahead of implementation phase
• Chance of successful project development increases with each phase of project; capital at risk mirrors this development

ONSHORE PROJECTS

• With WKN AG transaction, PNE WIND gains access to 6 new markets and is now present 14 different countries
• Of the 35,467 MW of newly installed global capacity, 64% of these installations took place in the markets were the Group is now active

PNE ONSHORE PIPELINE

Land*	I-II	III	IV	Total MW
Germany	888	193	11	1092
Bulgaria	121	0	0	121
Romania	55	102	0	157
Turkey	300	0	0	300
UK	710	40	0	750
Hungary	0	78	0	78
USA	169	183	0	352
Canada	575	0	0	575
Total	> 2,500	596	11	>3,100
Phase I – II = Exploration & Development		Phase III = Planning

• In Germany,
• 1. PNE WIND constructed or began construction on 35 MW worth of projects in 2013
• 1. Building permits for additional projects with 58 MW of capacity on hand; projects are all under construction as of March 2014
• 1. Debt financing has been secured for 160 MW of projects which are permitted or nearly permitted at year end
• In the USA, PNE WIND fulfills requirement to secure PTC by breaking ground on the Chilocco wind farm with up to 153 MW
• In the UK, permits attained for the Tralorg wind farm in 2014 with 20 MW
• In Romania, 2 projects with 102 MW of capacity are in sales process after permits were attained

*Per 31.12.13

Phase IV = Implementation

WKN ONSHORE PIPELINE

Land	I-II	III	IV	Total MW
Germany	140	70	0	210
Italy	480	40	0	520
France	140	10	12	162
Poland	250	32	0	282
UK	0	66	0	66
South Africa	130	0	0	130
Sweden	240	0	0	240
Ukraine	230	0	0	230
USA	78	0	0	78
Total	> 1,500	218	12	> 1,700
Phase I – II = Exploration & Development		Phase III = Planning

• In Germany, 41 MW of projects sold in second half of 2013 – projects to be commissioned in 2014
• WKN AG sold the rights for 12 MW wind farm in France in September 2013
• WKN AG was issued a permit for 32 MW wind farm in Poland
• In the UK, the Highland Council issued a permit for a 66 MW project
• In South Africa, WKN AG is participating in the current tender process

Phase IV = Implementation

OFFSHORE PROJECTS

• 6 offshore projects sold with a total nominal capacity of up to 2,104 MW
• Borkum Riffgrund and Gode Wind projects sold to DONG Energy
• Total output of 6 own projects in planning 2,640 MW

OFFSHORE PROJECTS

Project	Phase	WT	Total MW
Borkum Riffgrund I *	6	77	277
Borkum Riffgrund II *	5	97	349
Gode Wind I *	6	54	324
Gode Wind II *	6	84	504
Gode Wind III *	1	15	90
Nautilus II *	2	80	560
Nemo	2	80	480
Jules Vernes	2	80	480
Nautilus I	2	80	480
Atlantis I	2	80	400
Atlantis II	2	80	400
Atlantis III	2	80	400
Total		887	4,744
Phase 1 = Project identification	Phase 4 = Approval granted
Phase 2 = Application conference Phase 5 = Grid connection
Phase 3 = Hearing			Phase 6 = Investment decision

* PNE WIND AG acts as service provider

• "Borkum Riffgrund I" (sold to DONG Energy) under construction since mid 2013
• DONG Energy made Final Investment Decision (FID) for "Gode Wind" I and II
• EUR 129 million, of which EUR 45 million in December 2013, received from "Gode Wind" transaction since August 2012. EUR 25 million in milestone payments due
• "Nautilus II" sold to SSP Technology Holding ApS, a Ventizz portfolio company
• "Atlantis" offshore projects acquired in September 2013
• Total output of 6 own projects in planning 2,640 MW

O&M SERVICES

• Operation and Maintenance (O&M) services
• Yield optimization and reduction of downtime and operating costs
• Currently 650 wind turbines with 1,070 MW in care (AN Bonus / Siemens, DeWind, Enercon, Fuhrländer, Nordex / Südwind, Vestas)

PROFIT & LOSS (IFRS)

In €m	2013	2012
Sales	144.0	84.4
Total performance	162.1	94.3
Cost of materials	-71.9	-44.6
Personnel	-21.6	-13.5
Depreciation	-6.2	-5.3
Others	-17.4	-10.3
EBIT	45.0	20.4
Net interest	-9.2	-5.3
EBT	35.8	15.1
Net income	40.7	17.0
EPS ( in €)	0.86	0.37
EPS diluted ( in €)	0.81	0.31

• Sales at PNE WIND AG were mainly attributable to the Zernitz II, Langwedel II, and Calau II onshore projects (€46m), milestone payments from offshore projects (€45m) and electricity sales (€11m)
• WKN AG contributed €30m to Group sales
• Personnel costs rise with 411 employees at year end compared to 186 last year.
• EBIT pegged at €45m, of which €2m is attributable to electricity generation and €1m to WKN AG
• Net interest rises primarily with €100m corporate bond
• Net income of €41m translates into an EPS of €0.86

• Record net income, bond placement and inclusion of WKN AG are primary drivers to changes to balance sheet

• The intangible assets rise to €56m, consolidation of WKN AG brings about €32m in goodwill
• Property, Plant and Equipment rises to €76m primarily driven by Passauer Land Solar project (€10m). PP&E is mainly composed of €18m in land and buildings & €52m in technical equipment
• Inventories rise by €118m; driven by acquired offshore projects (€26m), prepayments (€13m) and investments made in projects in development and currently under construction
• Receivables rise on the net effect of receipt of milestone payment (€27m) in 1Q13, increase in long term construction contacts (€21m) & other receivables (€24m)
• Cash position rises to €77m up from €37m last year

BALANCE SHEET ASSETS (IFRS)

• Equity increases by €64m to €151m with retained earnings up by €35m, conversion of bond into shares (€20m)
• Equity ratio at 35% at year-end
• The long term liabilities increased from €69m at the end of 2012 to €175m mainly due to the corporate bond whilst maintaining scheduled debt repayments
• Net debt rises year on year to €134m up from €39m per year end 2012

BALANCE SHEET LIABILITES (IFRS)

financial loans

made for WKN AG acquisition

• CF from operating activities at -€1m with positive net

capital. Inventories rose by €118m during the year

• Cash flow from investing primarily reflects payments

• Cash flow from financing primarily influenced by bond proceeds (€100m less direct costs of €5.1m) dividend payment (€-4.2m) and balance of taking and paying

income being offset primarily by investments in working

CASH FLOW (IFRS)

In Mio. €	2013	2012
Net income	38.5	15.2
Interest (net) and tax net	-5.1	2.8
Depreciation and non-cash items	5.7	5.1
Provisions	10.5	0.8
Disposal of assets	0	-18.3
Change in working capital	-50.7	-30.2
CF from operating activities	-1.0	-25.2
CF from the investing activity	-61.3	39.6
CF from financing activities	95.5	2.8
Change in liquid funds from consolidation	7.6	-0.1
Liquid funds end of the period	77.4	36.6

MARKET & STRATEGY

WORLD INSTALLATION

• Demand for renewable energy is based on:
• 1. Growing population
• 1. Increasing demand for energy
• 1. Scarcity of fossil fuels
• 1. Lowering CO2 emissions
• 1. Energy security
• Double-digit growth rates with a doubling of current installed capacity until 2020

MARKET & STRATEGY

ENERGY SURCHARGE

• Wind energy is very cost effective compared to other renewable energy sources
• 43% of the electricity generated from renewable energy comes from wind power, but represents only 19% of the EEG costs

WKN	AOJBPG / DE000A0JBPG2
Number of shares	54,862,810
Market capitalization (March 21, 2014)	€ 148.1m
Free Float	Approx. 80%
Market segment	Prime Standard
Indices	CDAX Technology, ÖkoDAX
Designated Sponsors / Market Maker	Commerzbank VEM Aktienbank Close Brother Seydler Bank
Reuters / Bloomberg	PNEGn / PNE3

Convertible bond 2009/2014 (WKN: A0Z1MR) Coupon 7.0%, Strike price €2.50, 38,500 bonds placed @ €100 a piece (€ 3.8m open as per December 31, 2013)

Convertible bond 2010/2014 (WKN: A1EMCW) Coupon 6.5%, Strike price €2.20, 260,000 bonds placed @ €100 a piece (€ 6.0m open as per December 31, 2013)

Participation certificate 2004/2014 (WKN: A0B9VG) Coupon 7-10%, (Volume € 0.8m as per December 31, 2013)

Corporate bond 2013/2018 (WKN: A1R074) Coupon 8%, Prime Standard, Total volume € 100m.

THANK YOU

CONTACT

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

cometis AG

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