PNE AG — Investor Presentation 2016

Sep 15, 2016

PNE WIND AG

Investor Relations Presentation September 15, 2016

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 presentation 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.

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TABLE OF CONTENTS

PNE WIND GROUP

• 1. AT A GLANCE
• 1. CORE COMPETENCIES
• 1. TRACK RECORD

1H-2016 HIGHLIGHTS

• 1. ONSHORE PIPELINE
• 1. WIND FARM-PORTFOLIO
• 1. OFFSHORE PIPELINE
• 1. FINANCIALS
• 1. OUTLOOK

MARKET & STRATEGY

• 1. GLOBAL TRENDS
• 1. MARKET TRENDS
• 1. STOCK AND BOND CHARTS

Wind – a domestic energy source generating value locally

AT A GLANCE

Leading wind farm developer

• Onshore and offshore

Projects in 13 different countries

• Europe, North America, South Africa

Comprehensive project pipeline - 4,700 MW onshore, 5,000 MW offshore

2,160 MW offshore realized

• Gode Wind and Borkum Riffgrund sold to DONG Energy

2,385 MW onshore realized

• Sold as turnkey projects or as project rights

Wind farm services covering 1,400 MW

• Commercial and technical management services

CORE COMPETENCIES

Actual time to develop may take longer, in particular in the international markets

The entire value chain - From a single source
Bankable projects - Germany and International
Turnkey projects - General contractor and construction site management
Strong demand for wind farms - By infrastructure investors and utilities
Wind farm services - Commercial and technical management services

TRACK RECORD

MANAGEMENT SHAREHOLDER EQUITY

Kurt Stürken DIVIDEND HISTORY (EUR) COO

2011	2012	2013	2014	2015
0.04	0.10	0.15	0.04	0.04

REFERENCES

Offshore: Pipeline deal	Onshore: UK Pipeline deal	Onshore: Turkey Pipeline deal	Onshore: Various Project sales	Windfarm portfolio	Energy Consult
DONG ENERGY	BROOKFIELD	STEAG	INVESTORS	150 MWs	O&M SERVICES
Gode Wind ~ 924 MW • Payments of € 129 million received • Up to € 25 million due as milestone payments Riffgrund ~ 760 MW	PNE WIND UK ~ 1200 MW of projects • GBP 40 million upfront payment • Up to GBP 63 million in milestones due till 2021	JV for 230 MW of projects • Projects being prepared for tenders	• KGAL • CEE • CHORUS • ALLIANZ • ENBW • ENEL • JOHN LAING	98.4 MW of projects in operation • Portfolio target size of up to 150 MW by end of 2016 • Portfolio transaction planned in 2016	Approx. 1.400 MW under management in Germany

Markus Lesser CEO

Jörg Klowat CFO

Per Hornung Pedersen (Interim)

TABLE OF CONTENTS

PNE WIND GROUP

• 1. AT A GLANCE
• 1. CORE COMPETENCIES
• 1. TRACK RECORD

1H 2016 HIGHLIGHTS

• 1. ONSHORE PIPELINE
• 1. WIND FARM-PORTFOLIO
• 1. OFFSHORE PIPELINE
• 1. FINANCIALS
• 1. OUTLOOK

MARKET & STRATEGY

• 1. GLOBAL TRENDS
• 1. MARKET TRENDS
• 1. STOCK AND BOND CHARTS

Wind – a domestic energy source generating value locally

1H - 2016 HIGHLIGHTS

OPERATIONAL AND FINANCIAL

Project implementation according to plan

• 97.8 MW completed, sold or under construction

142.5 MW of own wind farms

• 98.4 MW commissioned, 38.1 MW under construction and 6 MW permitted in July
• Electricity generation segment EBITDA doubles to € 8.3m

Milestone payment of € 3.2m to be received

• DONG reached FID for offshore project Borkum Riffgrund II

Wind Farm-Portfolio build-out affects EBIT

• EBIT at € 1.4m down from € 24.0m in 1H-2015
• Results in 1H-2015 driven by UK pipeline transaction

WKN's working capital credit line repaid

• New credit line of € 30m secured in July + €10m guarantee

Annual General Meeting

• Dividend of € 0.04 per eligible share distributed
• Three members elected to board

CEO elected to Management board

• Markus Lesser became CEO on May 26, 2016

ONSHORE PIPELINE

Country	I-II	III	IV	Total MW
Germany	1,207	94	82	1,383
Bulgaria	121	0	0	121
United Kingdom	43	0	0	43
Italy	242	14	0	256
France	256	123	0	379
Poland	223	42	0	265
Romania	55	102	0	157
South Africa	100	30	0	130
Sweden	99	86	0	185
Turkey	700	0	0	700
Hungary	0	42	0	42
USA	337	180	0	517
Canada	555	0	0	555
Total	3,938	713	82	4,733

Phase I – II = Exploration & Development Phase III = Planning

Phase IV = Implementation till handover

As per June 30: 82 MW in operation or under construction

• Köhlen 21.3 MW
• Holzthaleben 4.8 MW
• Altenbruch-Repowering 27 MW
• Westerengel 23.1 MW
• Apensen 6.0 MW

New permits received or finalized

• Germany, 12 MW of which 6 MW sold as project rights
• France, 2 projects with 31.9 MW

• Poland 132 MW, environmental permit

• Sweden 99 MW, environmental permit

Framework deal with John Laing

• France 21.6 MW, construction expected to start in 2016
• Poland 42 MW, project being prepared for tender

Ongoing tenders and preparation for

• South Africa, Poland, Turkey, Italy

WIND FARM-PORTFOLIO

Project	Location	Status	MW	Scheduled completion
Altenbruch II	Lower Saxony	Commissioned	25.8	2009
Chransdorf	Brandenburg	Commissioned	57.6	2015
Waldfeucht	North Rhine Westphalia	Commissioned	9.0	2015
Apensen II	Lower Saxony	Commissioned	6.0	2016
Köhlen	Lower Saxony	Under construction	21.3	Second half 2016
Holzthaleben	Thüringen	Under construction	4.8	Second half 2016
Altenbruch Repowering	Lower Saxony	Under construction	12.0	Second half 2016
Total			136.5

As at 30 June 2016

Wind Farm-Portfolio Strategy - Started in 2014, realization planned for end of 2016

136.5 MW + 6 MW internally held

• 98.4 MW commissioned, 38.1 MW under construction
• In July, 6 MW were permitted for Altenbruch Repowering

Energy segment EBITDA up to € 8.3m - From € 3.8m in 1H-2015

Structured process underway

• IPO listing or direct sale to an investor

OFFSHORE PROJECTS

Projects developed and sold by PNE WIND belong to the first operational offshore wind farms

• Borkum Riffgrund I with 312 MW produces energy for 320,000 households
• Gode Wind 1 and 2 with 582 MW produces energy for 600,000 households

Germany targets 15,000 MW offshore - By 2030, up from 3,295 MW in 2015

OFFSHORE PROJECTS

Own Projects	Zone	Phase	# WTG	Total MW
Nemo	4	2	80	480
Jules Verne	4	2	80	480
Nautilus I	4	2	80	480
Atlantis I	2	3	73	584
Atlantis II	3	2	80	400
Atlantis III	3	2	80	400
Total			473	2,824
Sold Projects	Zone	Phase	# WTG	Total MW
Borkum Riffgrund I	1	8	78	312
Borkum Riffgrund II	1	6	56	448
Gode Wind 1 & 2	1	8 / 8	55 + 42	582
Gode Wind 3 & 4	1	3 / 4	15 + 42	342
HTOD5 (Nautilus II )	4	2	68	476
Total			356	2,160
Phase 2 = Application conference held Phase 3 = Hearing held Phase 4 = Approval granted Phase 5 = Grid connection			Phase 6 = Investment decision Phase 7 = Under construction Phase 8 = In operation

Milestone payment of € 3.2m to be received

• DONG reached FID for offshore project Borkum Riffgrund II

Up to € 29m in milestones expected

• From Borkum Riffgrund II and Gode Wind 3 and 4

Atlantis I being prepared for tender in 2017

• Project size increased to 584 MW from 400 MW

Regulatory Changes

• Options for projects in Zone 3 and 4 are being evaluated

INCOME STATEMENT (IFRS)

Build-out of Wind Farm-Portfolio is main factor behind results during 1H-2016

• Total output and sales driven by stage of completion of wind farms and timing of sales
• Total output in 1H-2016 at € 61.1m vs. € 89.8m last year
• Sale of UK pipeline in 2Q-2015 drives sales and earning with transaction generating € 35m in EBIT

EBIT at - € 1.4m (€ 24.0m in 1H-2015)

• Build-out of Wind Farm-Portfolio leads to deferral of sales and earnings

Net income at - € 7.8m (€ 18.4m in 1H-2015)

• EPS of - € 0.10 down from € 0.25 last year

Full year guidance of up to € 100m confirmed

• Earnings generated from Wind Farm-Portfolio, but eliminated within the scope of consolidation, total € 33.1m since 2014

In EURm	1H 2016	1H 2015	2015
Sales	44.8	71.9	109.5
Work in progress	12.2	15.8	116.1
Other income	4.1	2.0	7.7
Total output	61.1	89.8	233.3
Cost of materials	-32.4	-35.6	-154.9
Personnel	-13.1	-13.8	-29.3
Depreciation	-6.0	-3.9	-9.9
Others	-11.0	-12.5	-29.5
EBIT	-1.4	24.0	9.8
Net interest	-8.0	-5.7	-14.6
Participations	0.0	-0.1	-0.2
EBT	-9.5	18.1	-5.0
Taxes	-0.1	-0.1	3.6
Minorities	-1.8	-0.4	-4.9
Net income	-7.8	18.4	3.5
EPS (in €)	-0.10	0.25	0.05
EPS (in €) Diluted	-0.10	0.24	0.05

BALANCE SHEET (IFRS)

Balance sheet developments primarily driven by investments in Wind Farm-Portfolio

Property, Plant and Equipment at € 162.0m

• Commissioned wind farms € 126.6m
• Transformer stations € 10.7m
• Land and buildings € 16.3m

Inventories at € 162.5m

• Offshore € 44.0m
• Onshore Germany € 46.5m
• Onshore International € 47.3m
• Prepayments € 24.7m

Good liquidity position to fund future developments

• Cash position at € 39.4m

Balance sheet in € million as at June 30, 2016 (as at December 31, 2015)
	Assets	Equity and liabilities
Intangible assets	63.0 (63.1)	152.8 [165.9]
Property, plant and equipment	162.0
Windfarms · 126.6	[167.4]
Land and 16.3 Building:
Transformer Station: 10.7
Silbitz: 4.3		228.1
Other	22.8 (21.7)	[237.5]
Inventories	162.5 (121.2)
Receivables and
other assets	32.1 (28.8)	100.9
Cash	39.4 [86.1]	[84.9]
Rounding differences possible	481.8 [488.3]	481.8 [488.3]

BALANCE SHEET (IFRS)

OUTLOOK

Wind – a domestic energy source generating value locally Wind energy – the driving force for PNE WIND

EBIT in 2016 up to € 100m

• Based primarily on Wind Farm-Portfolio transaction

Wind Farm-Portfolio grows to 142.5 MW

• Conditions necessary for sale / placement are met

Atlantis I is being prepared for upcoming tender in 2017

• Offshore project size has been increased to 584 MW

Good relationship with banks

• New line of credit totaling € 30m secured in July + €10m guarantee facility

CFO board position reconfirmed

• Jörg Klowat's contract has been extended till March 31, 2020

TABLE OF CONTENTS

The 2015 Paris agreement delivers a global acknowledgement that climate change is a reality

PNE WIND GROUP

• 1. AT A GLANCE
• 1. CORE COMPETENCIES
• 1. TRACK RECORD
• 1H- 2016 HIGHLIGHTS
• 1. ONSHORE PIPELINE
• 1. WIND FARM-PORTFOLIO
• 1. OFFSHORE PIPELINE
• 1. FINANCIALS
• 1. OUTLOOK

MARKET & STRATEGY

• 1. GLOBAL TRENDS
• 1. MARKET TRENDS
• 1. STOCK AND BOND CHARTS

GLOBAL TRENDS / OUTLOOK

REGULATORY TRENDS

COP21 Paris Agreement

• All necessary measures should be taken to keep global temperatures from rising more then 2 °C

Legislation passed to support agreement

• Germany, renewable energy in el. mix should nearly double to 55-60 percent by 2035 from 34 percent in 2015
• France, renewable energy in el. mix should climb to 40 percent by 2030 from 15 percent in 2015
• USA , Production Tax Credits extended to end of 2019 and covers projects completed prior to end of 2021

EEG 2017 - ONSHORE

Tenders beginning in 2017

• 2,800 MW will be allocated per year during 2017-19

Transitional period

• Projects with planning permission before Jan 1, 2017 and commissioned before Jan 1, 2019 may choose between feedin-tariff regime and tender

Limited grid capacity regions

• Due to underinvestment in the grid, new wind build will be limited in these areas to 58% of the amount installed during the 2013-15 time period

EEG 2017 - OFFSHORE

Germany targets 15,000 MW offshore

• By 2030, up from 3,295 MW in 2015

Transitional period

• Offshore wind farms, which are commissioned before the end of 2020, fall under previous fixed feed-in-tariff regime

Two tenders totaling 3,100 MW

• In March 2017 and 2018, tenders with 1,550 MW each will be held for projects to be completed during 2021-25
• Atlantis I is being prepared for the tenders

Danish Model

• After the two tender rounds, a government body (BSH) will takeover the development of future offshore projects. These areas will then be auctioned off for the period after 2025
• If there are no changes to the legislation, the projects Atlantis II and III, Jules Verne, Nemo and Nautilus may be negatively affected

ENERGY TRENDS

Wind power is competitive

• In comparison to coal, gas and nuclear

Improving wind technology

• Leads to higher output at lower costs
• Wind LCOE (Levelized Cost of Energy) has fallen by 50 percent since 2009 – Bloomberg New Energy Finance

STOCK & BONDS

WKN / ISIN	AOJBPG / DE000A0JBPG2
Number of shares (31 July 2016)	76,556,026
Market capitalization (10 August 2016)	EUR 156.2 m
Free Float	Approx. 82%
Market segment	Prime Standard
Indices	CDAX Technology, ÖkoDAX
Designated Sponsors / Market Maker	Commerzbank, Dero Bank,ODDO Seydler Bank
Reuters / Bloomberg	PNEGn / PNE3

Corporate bond	Coupon 8%, Prime Standard, Total
2013/2018	volume
(WKN: A1R074)	EUR 100 m
Convertible bond 2014/2019 (WKN: A12UMG)	Coupon 3.75%, Strike price EUR 3.18 Total volume EUR 6.6 m

CALENDAR

Third	November
quarter	9, 2016
Analyst	November
Conference Frankfurt	21-23, 2016

THANK YOU

CONTACT

Harnessing the power of the wind means for us E-mail: scott.mccollister@pnewind.com connecting environmental responsibility with corporate success

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