Nordex : Presentation Updated guidance 2022

Nordex Group

Nordex SE -Updated guidance 2022

25 May 2022

2| Updated Guidance 2022	› Classification: Public

Update on the cyber security incident

Details of the incident

• On 31 March 2022, Nordex detected a cyber security intrusion in an early stage
• Nordex initiated its security protocols, immediately shutting down various IT systems across different business units out of precaution

Impact assessment

• Delay in reporting our results as various IT systems were shut down and are being cleansed as a precaution
• • Nordex turbines continued operating without restrictions
  • Wind farm communication with grid operators and energy traders was and remains unaffected
  • No indication that the incident spread to any third- party assets or otherwise beyond Nordex' internal IT infrastructure
  • Some delays in production and commissioning experienced due to unavailability of online applications, databases

Nordex response

• Incident response team of internal and external security experts set up immediately
• As part of instantly initiated business continuity measures alternative infrastructure has been ramped-up (critical business functions)
• Extensive investigations and forensic analysis in close cooperation with relevant authorities results in fully understanding of the attack
• Recovery activities and significant hardening of IT systems and IT infrastructure ongoing, majority of services back in operation

3| Updated Guidance 2022	› Classification: Public

Ambitious targets set in RePowerEU and by the German government aim on strengthening energy security

EU annual wind installation forecasts vs the targets (GW)

Onshore wind Offshore Wind

										2.3x		48
										28		30
			21	21
14	16
17	17
12
	12
				3			5
	3
						Annual
2020	2021e	Annual	EU Green deal	RePowerEU
							average	average	avg GW pa	avg GW pa
							2022-2024E	2025-2030E

Germany annual wind installation forecasts vs the targets (GW)

Onshore wind

		2x	110					2x	6,2
54						3,3	3,3
	56				1,6
Cum.		Add'l	2030		Yearly	Yearly	Yearly	Avg. GW
onshore	needed			average	average	average	needed
wind 2021						2019-2021e	2022-2024e	2025-2030e	based on the
										national
										target

• Annual wind installation in the EU is expected to be significantly below the ambitious target of 48 GW by 2030
• Recent policies are expected to have a positive effect on the development of the renewable energy demand in the mid-term
• Germany's target of 80% renewables share by 2030, requires 110 GW of onshore wind installments until 2030
• Current installation rate is substantially below the requirement as per the forecasts

Sources: REpowerEU, Q4/21 Wood Mackenzie Power & Renewables Report, 1. Nordex analysis

4| Updated Guidance 2022	› Classification: Public

While the long term prospects are ever improving, multiple external headwinds will impact margins in the short term

Impact assessment from macro headwinds and internal reconfiguration (% of sales)1

	Likely spend up to	Likely impact	Likely cost impact	Total impact of
Likely impact of up to 3%	estimated	under 1%	around 5%
	1.5%	around 4%

Direct impacts - Ukraine Indirect impacts / supply Footprint Reconfiguration	Margin impacts
chain disruptions	from known
	external events

Anticipated cost impacts in March 2022

Covid-19 lockdown in Total likely impact in FY22 China + Impact from

Cyber incident

Further headwinds in 2022

• Conflict in Ukraine:
• • 280 MW of projects in revenue planning
  • Up to EUR 20m in working capital
  • Shortages of ships and reliability continues to be challenging
  • Steel price inflation and availability issues affecting towers and other components
  • Risk of re-negotiations with smaller suppliers

• Footprint reconfiguration
• • Closing down blade factory in Germany
  • Closed down nacelle assembly in Spain
  • Cost savings to cover the costs in 2-3 year timeframe

• • Covid-19 driven lock-down in Shanghai impacting supply chains globally, especially sub component suppliers

• Cyber security incident in Nordex leading to production delays during Q2, but customer data/turbines remain un-affected

1 Based on best high level estimates available today

5 | Updated Guidance 2022	› Classification: Public

New guidance for FY 2022

		2022 guidance		Updated 2022
				guidance
	Before any costs related to footprint
		reconfiguration and geopolitical		All inclusive
		events
Sales:		EUR 5.4 - 6.0bn		EUR 5.2 - 5.7bn

EBITDA margin:	1.0 - 3.5%	-4% - 0%

Working capital ratio:	below -7%	below -7%

CAPEX:	approx. EUR 180m	approx. EUR 180m

Please note the assumptions underlying the guidance are subject to greater uncertainties than normal