PNE AG — Investor Presentation 2018

May 9, 2018

PNE WIND Investor Relations

Presentation

May 9, 2018

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.

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.

I.	Company Profile & Business Model	5
II.	Market & Strategy	12
III.	Highlights Q1 2018 & Financials	26

I.	Company Profile & Business Model	5
II.	Market & Strategy	12
III.	Highlights Q1 2018 & Financials	26

WE ARE A LEADING DEVELOPER OF WIND ENERGY PROJECTS…

• PNE WIND Group, consisting of the companies PNE WIND AG and WKN AG, is a leading wind farm developer located in Northern Germany >2,600 MW realised onshore

• Nr. 2 player in operations &

• Germany's most successful project developer with 8 Offshore projects sold totalling 2,852 MW

• > € 9bn Euros of investment done or initiated • Active in 13 countries

on 3 continents

… WITH A STRONG MARKET POSITION – NATIONALLY AND INTERNATIONALLY

WHO WE ARE

WE HAVE A DEDICATED & EXPERIENCED MANAGEMENT TEAM

• Seasoned wind energy pioneers with strong industry knowledge and large network

Markus Lesser

Chairman of the Board (CEO)

• CEO since May 2016
• COO 2011 2016
• Industry experience since 2000

• Sales, M&A, Procurement, Offshore, Human Resources, Communication

• CFO since April 2011

• Industry experience since 1999
• Finance and Accounting, Controlling, Risk Management, Legal

Kurt Stürken

Chief Operating Officer (COO)

• COO since September 2016
• Industry experience since 1995
• Project Development, Implementation, International Markets

WHAT WE DO

WE HAVE A SUCCESSFUL BUSINESS MODEL

WE GENERATED STRONG EARNINGS FROM 2011 – 2017…

Ø EBIT of € 28.1m - In average, an EBIT of € 28.1m was achieved per year

Ø EPS of € 0.29 - Over the last six years, PNE WIND's average EPS was € 0.29 Ø Dividend of € 0.08/share

• An average dividend of € 0.08/share was paid per year

…AND CONSISTENTLY DELIVERED ON OUR TARGETS

GUIDANCE	GOAL	ACHIEVED
2011 – 2013	€ 60 – 72m	€ 64m
2014 – 2016	€ 110 – 130m	€ 110m
2017	€ 17 – 23m (old: 0 – 15m)	€ 23.1m

FINANCIALS IMPROVED SIGNIFICANTLY SINCE 2011

• ✓ Equity increased by more than € 150m
• ✓ Solid equity ratio despite volatile earnings
• ✓ Total output clearly increased
• ✓ Ø EBIT of more than € 28m between 2011 and 2017
• ✓ Cumulative EBIT of ca. € 130m over the last three years

✓ Continuous increase of liquidity

TRACK RECORD

MAJOR DEALS IN RECENT YEARS

I.	Company Profile & Business Model	5
II.	Market & Strategy	12
III.	Highlights Q1 2018 & Financials	26

MARKET & GROWTH DRIVERS

MARKETS ARE BECOMING MORE INTEGRATED…

Source: e/m/w 2017, PNE WIND AG

AUCTION SYSTEMS BECOME THE NORM…

Global overview of renewable energy auctions

Countries with auctions or renewable energy tenders in use or planned

• Onshore wind bids
• Solar PV bids

Challenges in the current market

• Regulatory uncertainties
• Auctions for grid connections and tariffs
• Growth (in MW) in established markets is stagnating, returns are decreasing

Source: Bloomberg New Energy Finance

MARKET & GROWTH DRIVERS

… AND ARE SIGNIFICANTLY IMPACTING PROJECT PRICING

• Increasing market competition, also between various technologies in the renewable energy sector
• Fast decreasing tariffs in auctions Solar PV is catching up
• Current price trends in tender markets partly anticipate future technological developments and cost reduction effects
• Larger projects require higher security deposits and greater need for pre-financing

0 20 40 60 80 100 120 140 160 180 2012 2013 2014 2015 2016 2017 2018 2019 2020 USD/MWh Onshore wind average auction price Solar PV average auction price

Announced wind and solar PV auction prices by commissioning date

Source: Renewables 2017, IEA

…BUT GROWTH DRIVERS ARE FULLY INTACT

ELECTRICITY PRICES WILL INCREASE

• Electricity prices will increase as nuclear power plants will go offline in Germany and France
• Prices of CO2 certificates will increase
• This will open up new business opportunities (e.g. project sold in Sweden relies solely on forecasted energy pricing)

Electricity prices Germany

WHILE ESTABLISHED MARKETS ARE STAGNATING,

MARKET & GROWTH DRIVERS

GROWTH WILL BE MAINLY DRIVEN BY EMERGING MARKETS

• By 2020 more than 40 countries could each install >1GW of wind energy
• Diverse development stages in the different markets offer different risk / reward profiles
• Emerging Markets will experience a strong increase in energy demand due to growing populations und economies
• Ca. 7,200 GW are necessary by 2040 to meet increasing electricity demand and planned power plant shutdowns

GROWTH TREND OF RENEWABLE ENERGIES REMAINS UNBROKEN AND WILL CONTINUE IN THE FUTURE

• Wind and Solar PV will grow significantly and offer huge market potential in the short, mid and long term
• Will increasingly replace electricity generation from conventional energy sources

Global electricity production by generation type

WE ARE SETTING THE COURSE FOR THE FUTURE:

We are developing into a Clean Energy Solution Provider

STRATEGY "SCALE UP"

WE CAPITALIZE ON OUR CORE COMPETENCIES…

Strategic Portfolio

• Build-up of an onshore project portfolio of ca. 200 MW in Europe by end of 2020
• Optimization and sale partially or completely
• Acquisition of existing wind farms over 15 years old for repowering and acquisition of already well developed projects

Project development

• Will remain core business
• Significant volume increase above 400 MW p.a. across various technologies in the mid term
• International markets will drive growth
• Combination of new technologies and markets creates huge market potential

Services

• Grow O&M business to >2200 MW under operational management
• Start smart energy supply management
• Expand consulting solutions and deliver everything necessary around operation and optimization for wind farms

… TO OPEN UP FURTHER ELEMENTS OF THE VALUE CHAIN

STRATEGY "SCALE UP"

WE WILL DRIVE DOWN COSTS…

• 1. Economies of Scale
• Increase development output to 400 MW p.a. across all technologies
• Increase Strategic Portfolio size to 200MW
• Increase MW under operational management to >2,200
• 1. Cost Reductions
• e.g. through cooperations with wind turbine manufacturers
• DEVEX
• CAPEX
• OPEX
• 1. Higher Energy Output
• More efficient wind turbines

Reduction of Project costs Reduction of Overhead costs

• Reduction of personnel costs
• Reduction of other expenses
• Procurement synergies
• Strengthening of core processes
• New IT solutions to improve efficiency and communication

STRATEGY "SCALE UP"

…AND INVEST TO INCREASE OUR COMPETITIVENESS

Smart Capital Allocation Investment

• Optimisation of financing structure
• € 25m <4% for wind farm equity
• € 25-50m additional growth financing
• Reduction of overall financing costs by 50% targeted, resulting in savings of € >4m
• Increase of recurring revenue basis, leading to improved credit terms
• Higher margin potential in emerging markets, especially with government funding and loans (EKF, KfW, Hermes, EIB, Weltbank, IPEX etc.)
• Partnering / Cooperations with partners who guarantee low refinancing costs

Investment of € 10m p.a. on average for:

• Acquisitions of companies at attractive multiples before synergies
• Acquisition of project rights to expand the pipeline
• Investment in high potentials and experts in markets and technologies
• Investment in additional (regional) offices and equipment

Additional Investment:

• Acquisition of projects as a basis for repowering
• Participation in citizen wind energy projects

I.	Company Profile & Business Model	5
II.	Market & Strategy	12
III.	Highlights Q1 2018 & Financials	26

OPERATIONAL HIGHLIGHTS Q1 2018

Successes in the onshore business

• Projects completed: Looft, St. Martin-L'Ars
• Projects under construction: Gerdau-Schwienau, Laxaskogen, 19,2 MW project in France
• New permits received in Germany (21 MW) and France (7 MW)

Successes in the offshore business

• Gode Wind 4 successful in first German Offshore tender in 2018
• Construction of Borkum Riffgrund 2 started

Progress in build up of new Wind Farm Portfolio 2020

• Repowering project Gerdau-Schwienau (21,6 MW) successful in first German onshore tender in 2018, construction has already started

Strategy SCALE UP

• First successes in the service segment, e.g. construction management and financing for the project Wangerland

FINANCIAL HIGHLIGHTS Q1 2018

Corporate bond placed successfully

• € 50m corporate bond placed in the market at an attractive coupon of 4%

Strong financial basis

• Gross cash position at € 189.3m, Net cash position of € 0.6m
• Equity ratio remains solid at 47%

Q1 results according to plan – impacted by preparations and portfolio build up

• EBITDA at € 2.1m (€ 1.7m), EBIT bei € -0.2m (€ 0.3m)
• Operating performance and earnings situation in Q1 were influenced by preparations for project implementation and the sale of project rights for the remaining nine months of the fiscal year as well as
• the development of the "wind farm portfolio 2020", since complete or partial sales to third parties will be postponed due to the expansion of the portfolio, and thus also the Group's earnings from these sales

Positive outlook for FY 2018 confirmed

• EBIT of € 10-16m, EBITDA of € 20-26m expected

PNE WIND II Investor Relations Presentation II May 9, 2018 28

PNE WIND

ONSHORE

Land	I-II	III	IV	Total MW
Germany	1392	90	22	1504
Bulgaria	121	0	0	121
France	317	132	29	478
United Kingdom	43	0	0	43
Italy	102	14	0	116
Canada	505	0	0	505
Poland	223	42	0	265
Romania	54	102	0	156
South Africa	230	30	0	260
Sweden	0	158	0	158
Turkey	629	71	0	700
Hungary	0	42	0	42
USA	232	200	0	432
Total	3848	881	51	4780

Phase I – II = Exploration & Development Phase III = Planning Phase IV = Implementation till handover

As of March 31, 2018

Q1 2018 Highlights:

• Germany

• Repowering project Gerdau-Schwienau (21,6 MW) successful in first German onshore tender in 2018, construction has already started
• Repowering project Looft (16,5 MW) completed in Q1
• Wind farm Wangerland: construction is underway
• Permit for project Kittlitz (21 MW) received

• Increasing activities in France

• Permit for project Dargies 2 (7,05 MW) received
• Wind farm Saint-Martin-L'Ars (10,3 MW) put in operation
• Construction has started of another wind farm in Eastern France (19,2 MW)

• Progress in Sweden

• Project Laxaskogen (25,2 MW) under construction
• Start of operation expected in Q1 2019
• 69 MW of own wind farms currently in operation

OFFSHORE

Zone	Sold projects	Phase	#WET	Total MW	Sold to
1	Borkum Riffgrund I	8	78	312	Ørsted (DONG)
1	Borkum Riffgrund II	6	56	448	Ørsted (DONG)
1	Gode Wind 1 & 2	8 / 8	55 + 42	582	Ørsted (DONG)
1	Gode Wind 3 & 4	5 / 4	14 + 42	450	Ørsted (DONG)
2	Atlantis I	3	73	584	Vattenfall
4	HTOD5 (Nautilus II)	2	68	476	Ventizz/Hochtief
Total			428	2,852

Phase 2 = Application conference held, 3 = Hearing held,

• 4 = Approval granted, 5 = Grid connection, 6 = Investment decision,
• 7 = Under construction, 8 = In operation

Q1 2018 Highlights:

• Gode Wind 4 successful in offshore tender [April 2018]
• Construction of Borkum Riffgrund 2 has started
• Active as service provider for projects sold
• Consultant agreements in place with Ørsted (DONG) and Vattenfall
• Further milestone payments expected
• Up to € 24m from Borkum Riffgrund 2 and Gode Wind 3 and 4
• Regulatory Changes: Constitutional complaint filed
• According to WindSeeG all projects in Zone 3 to 5 will be brought into the "Central Model" to be tendered off by the government
• Legal opinions conclude that parts of WindSeeG are unconstitutional
• A constitutional complaint has been filed in the end of July 2017 together with others

INCOME STATEMENT (IFRS)

Q1 2018 Highlights:

• Q1 results according to plan
• Operating performance and earnings situation in Q1 were influenced by
• preparations for project implementation and the sale of project rights for the remaining nine months of the fiscal year
• the development of the "wind farm portfolio 2020", since complete or partial sales to third parties will be postponed due to the expansion of the portfolio, and thus also the Group's earnings from these sales
• The earnings before taxes accrued in the "wind farm portfolio 2020" to date – eliminated at the Group level – amount to approx. € 3.7m in Q1 2018 (accumulated since 2017, approx. € 16.1m).
• Total output at € 15,7m (€ 24,6m)
• Power generation segment contributed approx. € 3.9m to Group sales
• EBITDA at € 2,1m (€ 1,7m)

In € m	Q1 2018	Q1 2017
Sales	10.9	20.4
Work in progress	4.2	3.6
Other income	0.6	0.6
Total output	15.7	24.6
Cost of materials	-3.7	-12.3
Personnel	-5.6	-6.3
Others	-4.2	-4.3
EBITDA	2.1	1.7
Depreciation	-2.3	-1.4
EBIT	-0.2	0.3
Financial result	-3.7	-2.4
EBT	-3.9	-2.6
Taxes	0.5	-0.5
Non-controlling interests	-0.4	-0.6
Net income	-3.0	-2.0
EPS (in €)	-0.04	-0.03
EPS (in €) Diluted	-0.04	-0.02

BALANCE SHEET (IFRS)

Q1 2018 Highlights:

• Property, Plant and Equipment at € 98.3m

• Transformer stations € 12.7m
• Land and building € 11.6m
• Own wind farms € 67.3m
• Inventories at € 98.3m
• Offshore € 24.3m
• Onshore Germany € 22.7m
• Onshore International € 40.4m

• Strong liquidity position still at very high level at € 189.3m

• Strong basis to fund future developments

	490,6 (493,3)	490,6 (493,3)
Intangible Assets	66,6 (66,8)
Property, plant and equipment	98,3 (103,9)	229,5 (235,2)	Equity
Other	15,5 (14,2)
Inventories	98,3 (86,4)
Receivables and other assets	22,6 (28,0)	80,2 (78,9)	Non-current debt
Cash	189,3 (194,0)	180,9 (179,2)	Current liabilities
	Assets	Equity and Liabilities

in € m as of March 31, 2018 (as of December 31, 2017) (rounding differences possible)

• Equity at € 229.5m • Equity ratio remains very solid at 47% (48% as of 31 December 2017) • Non-current debt at € 80.2m

• 2014/19 convertible bond

• € 6.4m
• Liabilities to banks € 67.3m, which is mainly project financing (non recourse)

• Current liabilities at € 180.9m

• 2013/18 corporate bond (€ 100m) is being accounted for under current liabilities as due date is May 2018
• Liabilities to banks € 13.7m, which is mainly project financing (non recourse)
• Net cash at € 0.6m

OUTLOOK

Onshore wind power – Good start into the year 2018

• Further projects far advanced in the permitting process, being prepared for upcoming tender rounds
• Continue build up of Wind Farm Portfolio 2020
• Continue to ride momentum in key international markets France and US
• Examination of entrance into new markets (e.g. Asia, Latin America)

Offshore wind power

• Ongoing consultant agreements with DONG and Vattenfall
• Explore new markets (e.g. USA)

SCALE UP strategy

• First cooperation already started with VPC related to regional clean energy solutions
• First new products/services to become available in 2018
• Significant improvement of financing structure after successful completion of refinancing process
• Examine opportunities for anorganic growth and cooperations

Positive outlook for FY 2018 confirmed

• EBIT of € 10-16m, EBITDA of € 20-26m expected

PNE WIND GROUP

STOCK & BONDS

135		5,5
125	Anleihe 2013/2018	5
	Wandelanleihe 2014/2019	4,5
115		4
105		3,5
95		3
85		2,5
		2
75		1,5
65		1
	06.05.2013 06.05.2014 06.05.2015 06.05.2016 06.05.2017

WKN / ISIN	AOJBPG / DE000A0JBPG2
Number of shares (30 April 2018)	76,556,026
Market capitalization (30 April 2018)	€ 189m
Free Float	Approx. 79%
Market segment	Prime Standard
Indices	CDAX Technology, ÖkoDAX
Designated Sponsors / Market Maker	Commerzbank, ODDO Seydler Bank
Reuters / Bloomberg	PNEGn / PNE3

Corporate bond 2018/2023	Coupon 4%
(WKN: A2LQ3M)	Total volume € 50m
Corporate bond 2013/2018	Coupon 8%
(WKN: A1R074)	Total volume € 100m
Convertible bond 2014/2019	Coupon 3.75%, Strike price €3.18
(WKN: A12UMG)	Total volume €6.6 m

Calendar

Annual General Meeting	June 6, 2018
Publication of Q2 Financial Report	August 9, 2018
Publication of Quarterly Statement Q3	November 8, 2018
Analyst Conference	November 2018

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

Christopher Rodler

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