NAME OF EVENT TITLE OF PRESENTATION - Nordex

Nordex SE

Capital Markets Day 2012

Frankfurt,

13/09/2012

1

Jürgen Zeschky

• Previously Executive Vice President of

Voith Turbo in Heidenheim, Germany

between 2003 - 2012

• A highly profitable „hidden

champion“ which produces drive

systems used in a broad range of

industries

• 1991-2003: Director Operations

Mannesmann Demag, incl. 6

years in US

• Clear management focus on strategy &

products

BOARD LED BY NEW CEO, JÜRGEN ZESCHKY

Capital Markets Day| Nordex SE | Frankfurt| September 13, 2012

AGENDA


1. Strategy Overview

2. Markets and Strategy in Sales, Service & Project Development

3. Wind Farms – a Cash Flow supporting Asset for Investors

4. Products and Operational Excellence

5. Financial Impact of the Strategy

6. Strategy Implementation and Conclusion

Jürgen Zeschky

Lars Bondo Krogsgaard

Robert A. Clover (MAKE)

Jürgen Zeschky

Bernard Schäferbarthold

Jürgen Zeschky

2

SITUATION …


Markets are challenging:

Strong order intake from Europe & RoW, but PRC not accessible

Double digit decrease in ASP in recent years, mainly in the US and China

Growing competition in WTG development

Uncertain remuneration in the US and Southern Europe

Profitability disappointing:

Under-utilization, esp. in the US and China

Some suppliers unreliable

Project delays due to financing issues

Concerns over working capital issues

3

… AND ACTION ITEMS

2. Operational Excellence needed

In project execution

Huge impact on costs

3. Reduction in cost of materials essential

Improve materials cost ratio from 78% to 75%

Further slight decline in turbine prices expected

4. Nordex has some excellent products

Focus on N117, next MMW-turbines

Improvement in towers and blades required

1. Sales Strategy

Focus

Differentiation


Mid-term targets EUR 1.5 bn; EBIT ≥5%, will define

R&D spending of EUR 50 mn p.a.

Project size 100 - 150 MW

5. Organization & Structure

4

1. SALES STRATEGY

Focus on key markets and customers – balancing volume / value-added Doing more turn-key projects

Increasing service revenues More sales in “Nordex project development”

Gaining market share in Germany

Being selective in order to reduce risk profile in order backlog

Capital Markets Day| Nordex SE | Frankfurt| September 13, 2012 5

2. OPERATIONAL EXCELLENCE

EBIT margin improvement of 1% in 2013 and 2014 each Profitability measures focused on towers, blades and logistics

Implementation through a collaborative project by engineering and purchasing

2013 2014

Tower EBIT margin improvement

+1%

EBIT margin improvement

+1%

Blades

Logistics


3. REDUCTION IN COST OF MATERIALS

“Design to cost” / “Design to value” efforts in engineering Supply from low cost countries

2nd phase of cost-out project “n-ergize”

in 2013 2012 - 2015

-EUR >0.1mn / WTG (= -4%)

-15% / WTG

(in total)


4. PRODUCT DEVELOPMENT

Nordex has developed a best in class WTG for light wind sites The N117/2400 was first installed in December 2011 on time & on budget

Launch of 2 WTGs in 2013 to achieve leading-edge position in IEC1 / 2 as well

Decrease development time to 18 – 24 months

2012 2013 2014

Start of serial production

N117 (IEC3)

NXT 8.1 (IEC1)

NXT 8.1 (IEC2)

Towers

NXT 8.2 (IEC3)

Blades

√


5. ORGANIZATION AND MANAGEMENT STRUCTURE


CEO

•Global Production and Supply Chain Management

•Purchasing

•Engineering

•Product Line Management

•Quality Management

•Health, Safety and Environment

CFO

•Controlling

•Finance

•Tax

•Accounting

•Treasury

•IT

•Legal

•HR

•Corporate Communications

•Corporate Development

CCO

•Sales

•Service

•Project Management

•Project Development

•Regional subsidiaries

9

5. REGIONAL STRUCTURE

2012e 2013e

Asia Turnover EBIT

EUR 50 mn EUR -9 mn

EUR 100 mn EUR 2-3 mn

USA Turnover EBIT

EUR 170 mn Break even

EUR 170 mn Break even


Stable situation in 2013 based on expected order intake

10

KEY PERFORMANCE DRIVERS WIND


Broad market access

Technology and R&D

Cost position

Financial resources

Nordex is focusing on its key performance drivers with a strategy reset and organizational adjustments

A partnership could be an additional game changer to leverage key performance drivers

11

NORDEX´ POSITION IN THE WIND INDUSTRY

There is a place for Nordex in the Market

Focus on small to mid-size customers and key markets

Expertise in technically demanding projects, customized solutions, high degree of flexibility and short reaction times

Nordex´ products and services focused on turn-key solutions, project development, broad service & maintenance offering

Excellent turbine platform (N117/2400) builds a strong basis for further product development


AGENDA








Lars Bondo Krogsgaard

13


~6%

RoW

Europe

Asia-Pac.

Americas

2016e

53

14

28

10

53

13

27

11

51

12

25

12 46

12

23

10

2012e

48

12

21

14

2011

41

10

21

9

2010

38

10

21

7

Forecast

Regional development Market highlights

Sources: 2010/ 2011 - GWEC; 2012-2016 - MAKE Consulting, July 2012; BWE; AWEA

Five year forecast downgraded but

global WTG installations to grow with

a CAGR of ~6%

Global growth in H1 2012 up by 20%;

Germany (+26% YoY) and USA (+37%

YoY) above average

Demand in Northern Europe and

Eastern Europe above average (CAGR

2011-16e +10%)

Southern Europe held back by the

credit crisis, but still growing slightly

mainly thanks to Turkey and France

USA will be the most volatile market due

to the uncertain PTC situation – but there

are proposals to extend it

Asian volume still driven by China but

currently affected by grid constraints

RoW South Africa as an emerging market

for wind

MARKET DEVELOPMENT H1 2012

14

NORTHERN EUROPE IS THE BACKBONE OF NORDEX´ SALES STRATEGY

EMEA North and Germany

Germany: Stable, mature market due to legal framework

and wind initiatives at federal level; attractive low wind

sites

Larger projects in Eastern Germany

U.K.: ROC reduction (-10%) in 2013; demand for turn-

key contracts.

Sweden/Norway: stable remuneration system, with

currently extremely low electricity prices (Sweden) and

certificate prices (both countries)

Finland: sprinter bonus leads to relatively strong outlook

for 2013/14; good Nordex-visibility due to large

framework contract (up to 111 WTGs)

Ireland: REFIT I not extended with REFIT II approved,

grid capacity/ connection being a major hurdle. Grid code

requirements constantly changing; demand for turn-key

contracts.

Region with robust market volume in Nordex´ focus

markets Germany, U.K., Ireland, Sweden, Norway and

new Finland

Strong demand for Cold-Climate-solutions and AIS in

combination with all WTG types.

Competitive high towers needed in Sweden, Finland and

Southern Germany for majority of projects.

1.800 1.800 1.800 1.800

2.770 2.7302.330

2.130

4.530

EMEA North

2014 2013 2012

4.570

Germany

3.930

2015

4.130

Based on MAKE Consulting; Market Outlook Q2 2012


new onshore installations in Nordex´ focus markets in MW

15

POTENTIAL IN EMEA SOUTH BACKED BY FRANCE, TURKEY AND SOUTH AFRICA

EMEA South

France: temporary interruption of market

dynamics in 2012 (H1 2012: -58% yoy in

installations) due to legal complaint (“Grenelle 2”)

– stable GW market until 2016; clean sale

expected to raise through N117 offering

Italy: Uncertainty due to change in incentive

system (reverse auction system introduced);

stable but lower volumes than in the past; more

price driven

Belgium/Netherlands: stable but low volumes

Turkey: significant growth driver; need for

additional generation capacity

South Africa: Potential volume market but tender

system still implies risks and uncertainties

Area: strongly suffering from sovereign debt crisis

(GR, PT, ES; also IT). France and Turkey likely to

account for significant part of market volume with

some promising outlook for South Africa

4.715

4.015

3.465

4.248

2015 2014 2013 2012




16

FOCUSED APPROACH IN EMEA EAST ON POLAND AND ROMANIA

EMEA East

Poland: uncertainty in 2012-13 driven by change

in Energy Law from certificates to a feed-in-tariff.

Recovering market growth expected after 2013.

Attractive market for foreign investors; utilities

expected to invest massively.

Romania: Attractive incentive system up to 2017

(two certificates per MWh, only one certificate per

MWh after 2017). Current uncertainty due to

political instability and meltdown of the banking

sector meltdown in Southern Europe; smaller size

projects expected, stable market.

Foreign utilities and IPP‟s investing

Most sites are IEC III very good fit with Nordex

WTGs; main competition now with Siemens and

Vestas.

NXD brings USPs and market knowledge

900

1.000

1.200

1.100

2015 2014 2013 2012




17

DEVELOPMENT IN AMERICAS DRIVEN BY HIGH US VOLATILITY

Americas

USA: large wind resources, heavy electricity

consumption, but political uncertainty and highly

competitive sources of energy (esp. shale gas);

PTC extension will push 2012 projects to 2013

with tight construction deadlines. Long term

demand driven by traditional economic market

drivers, new transmission lines and other fuel

source. Large projects likely to dominate. Market

will be led by developers with access to capital.

Canada: Hedge against weakness in the US.

Strong development expected, as Quebec and

Ontario drive 60% of build through 2016. Utilities-

driven PPA prices expected to remain high; local

content requirements in Ontario and Quebec are

challenging

LATAM: Demand driven by emerging renewable

energy policies, combined with growing economies

and development banks support. Very high

conventional electricity price levels are stimulating

the development of the wind project pipeline.

1.746

2.270

2.940

3.115

4.570

2013

6.070

3.800

2012

12.446

US

CA, UY

2015

6.955

3.840

2014

7.510

10.700




18

CHINA DOMINATING VOLUME BUT A COUPLE OF EMERGING MARKETS OFFER POTENTIAL

APAC

China: high volume market with fierce competition; market driven by initial purchase price considerations rather than life-time-cycle cost though increasing quality awareness; very limited access for non-Chinese OEMs; predominant wind class IEC III (75%), attractive IEC I segment (5-10%); “supply-only” market

Pakistan: Growth due to need for power and attractive feed-in-tariff; financing main and major hurdle for realizing growth; wind class high IEC III / low IEC II; turn-key market

Asean: growth markets with recently introduced attractive feed-in-tariffs; still small volumes; Philippines wind class IEC I; Thailand wind class IEC III, Vietnam wind class IEC I and II; turn-key market

Japan: growth market with recently introduced attractive feed-in-tariff; volume still small; all wind classes; supply-only as well as turn-key market; challenging for non-Japanese OEMs

523

675

625

800

2012

17.903

17.380

China

PK, PH, JP

2015

21.000

20.200

2014

20.225

19.600

2013

18.875

18.200




19

STRATEGY TO TARGET NORDEX´ FOCUS MARKETS


Nordex´ focus markets in Europe, Asia and Americas have significant sales and service potential

Most of Nordex´ focus markets are stable or

growing

Nordex has an established market position including sales and service structures

Nordex´ product portfolio is geared towards customer requirements in its focus markets

Double digit market shares and/or TOP3 positions in European onshore markets are realistic

Regular monitoring of emerging markets including analysis and definition of “watch list markets” to take advantage of opportunities

MORE NXD MAKES SENSE

NORDEX GOOD FIT SMALL TO MID-SIZED CUSTOMERS

BIG UTILITIES/

IPPs CHALLENGING

TURN-KEY MAKES SENSE FOR NORDEX

IT MAKES SENSE FOR NORDEX TO DO MORE IN GERMANY

NORDEX„ SERVICE

BUSINESS SHOULD BE DEVELOPED FURTHER

Low margins Base-load for

production Project refs.

High margins Value Nordex Drive service

Stable volume High margins „Quality seal“

High margins Nordex

experience Niche potential Complements

Nordex project development

Good customer fit

Growing segment

Drives service

Stable business High margins „By-itself-growth“,

good visibility

Business cornerstones Conclusion Nordex focus markets

20

THERE IS A PLACE IN THE MARKET FOR NORDEX

Why customers should buy Nordex?

MARKET POSITION

DEEP CUSTOMER UNDERSTANDING

the only OEM doing project development

TURN-KEY CAPABILITY

a highly competent provider of turn-key

solutions

SPEED AND ACCESS

the most easy-to-deal- with OEM

A SAFE CHOICE

well-proven German/Danish

engineering from one of the most experienced OEMs in the industry

>25 years of experience

Wind engineering heritage

Track-record for performance and quality

Availability and Credibility

Extensive turn-key experience

Comfortable with civil works and balance of plant (E-BoP) scopes

Turn-key projects in all sizes

Partner for custo-mers seeking to wrap risks

The most easy-to-deal-with OEM We interact as equals with customers, will not get „stuck in process“ Short transaction times, low transaction costs Easy-to-understand organization Access to management and specialists as required

See projects through customer eyes Ideal partner for investors seeking one-stop solutions

Some differentiation potential

Significant differentation potential


BUSINESS CORNERSTONES LEAD TO FIVE VALUE STREAMS…

…for which specific strategies have been developed

New unit sales

Volume sales

Value-added sales

Turn-key sales

Own develop-

ment

Service sales

Business area

Value stream

Business ratio-nales

Leverage unique NXD position and pipeline to drive project margins

Improve project margins through

sales to small and medium-sized „value-added customers“

Accept lower project margins in return for volume busines, cap sales to required base-

load

Leverage turn-key experience to drive project

margins. Enter small/mid-size project niche

Leverage Nordex WTG business to generate stable revenue stream, drive efficiency to improve margins

= Nordex strategy change

MORE NXD MAKES SENSE

NORDEX FITS WELL WITH SMALL

TO MID-SIZED COMPANIES

BIG UTILITIES/ IPPs ARE

DEMANDING, BUT PROVIDE USEFUL

VOLUME

TURN-KEY MAKES SENSE FOR

NORDEX

IT MAKES SENSE FOR NORDEX TO

DO MORE IN GERMANY

NORDEX„ SERVICE BUSINESS SHOULD BE DEVELOPED FURTHER

Corner-stones


TARGETS AND STRATEGIES FOR EACH VALUE STREAM HAVE BEEN DEFINED – EXAMPLE NXD

Own development (Nordex Development = NXD)

Business rationale

• Leverage unique NXD position and pipeline to drive project margins

Customers

• No risk investors buying at substantial completion stage

• Minimum risk investors buying at ready to build with turn-key scope or with WTG supply only scope

Markets

• France

• Poland

• Sweden

• USA

Products

• Developed project + WTG supply

• Additional balance of plant and civil works

• Full product range

• Broad and long service

Initiatives/ Projects

• Build up separate NXD organization incl. new P&L structure

• Expand project pipeline

• Establish finance vehicle to take assets of Nordex´ balance sheet


N117 – IEC3-BENCHMARK OF THE INDUSTRY

Prototype of N117/2400 installed in time (December 2011 in Stadum/ Flensburg, Germany)


SUMMARY SALES & SERVICE STRATEGY

Drive volume & margins through focus on value-added customers, NXD, service, N117/2400

There is a place for Nordex in the market (re-positioning and differentiation started) Focus on financial investors

Extend current order momentum1

Leverage product fit (N117/2400) to increase German sales

Must-have revenue line of around €1.5 bn has been validated against sales planning

Strategies around 5 value streams:

New unit sales: Volume New unit sales: Value-added New unit sales: turn-key Own project development Service Value streams are based on business cornerstones (Nordex strengths/business potential) Balanced value stream mix in order to optimize volume and profit requirements


1 H1 2012: firm order intake well above industry average (Nordex yoy: stable; industry yoy according to MAKE Consulting -30%)

25

E:/CMD 2012/N117_EN_120420_1280x720_H264.mov

Q&A SESSION I


AGENDA








Robert A. Clover (MAKE)

27

PRESENTATION BY ROBERT A. CLOVER (MAKE CONSULTING)


http://www.make-consulting.com/

AGENDA








Jürgen Zeschky

29

PRODUCTS, OPERATIONAL EXCELLENCE AND COST OF MATERIALS AS PROFITABILITY LEVERS

1. Nordex has a “best in class product” and a promising pipeline

2. Operational excellence – focus on further cost reductions esp. for

the main components tower and blades

3. Project WTG minus >100k (2nd phase “n-ergize”)

Further cost out per turbine

Alignment engineering and purchasing


1. PRODUCT STRATEGY 2012-2016: INCREASING COMPETITIVENESS IN ALL WIND CLASSES

Gradually moving product portfolio towards full grid parity by 2015/16

2012 2013 2014 2015 2016

NXT-8

NXT-6

NXT-GEN

NXT-8

NXT-6

NXT-GEN

NXT-8 Cost of energy reduction with minimal time to market

NXT-6.2 Ramp up N117/2400

NXT-GEN Technological innovation to reach full grid parity by 2015/16

Time-to-market

CoE (EUR/kWh): Proven technology

CoE (EUR/kWh): Innovation


Focus

31

Launch

Launch

Launch

Product Portfolio 2013/14

IEC 1a IEC 2a

NXT-8 WTG Types

Planned SOP (series)

End 2013 End 2013

1. CURRENT AND NEAR TERM PRODUCT PORTFOLIO

Current Product Portfolio 2012

IEC 1a IEC 2a IEC 3a

NXT-6 WTG Types

2500 2400 2500

+2

2%

AEP

+2

2%

AEP


NXT-8

NXT-6

Best in Class WTG for Light Wind

32

1. R&D BLUEPRINT N117/2400 – ECONOMICALLY ATTRACTIVE, HIGHLY EFFICIENT & LOW NOISE EMISSIONS

Scenario: IEC3a/ low wind – 6.5 m/s at 140m hub height, inland location, (Southern) Germany

Competitor WTG 3

Competitor WTG 2

Nordex N117/2400

Competitor WTG 1

WTG price [kEUR]

Net AEP [MWh p.a.]

105,0

Sound power level [db (A) max Lwa]

Invest factor [EUR/MWh p.a.]

Full load hours [MWh p.a./MW]

New for 2014 deliveries: Market leading Anti-Icing System also for N117/2400


Most efficient Light Wind Turbine in the market

Lowest Sound Power

Light Wind Turbine in the market

Best Economics Light Wind Turbine in the market

33

1. INCREASING IN GROSS MARGIN POSSIBLE … … DUE TO GAINING PRODUCT EFFICIENCY

Current product portfolio K08 GAMMA/NXT-6

Future product portfolio K08 DELTA/NXT-8

0

10

20

30

40

50

60

70

80

90

100

2011 2012 2013 2014 2015

€ / MWh

Peak load price

Base load price 0

10

20

30

40

50

60

70

80

90

100

2011 2012 2013 2014 2015

€ / MWh

Base load price

Peak load price

N90/2500

N100/2500

N117/2400

IEC2 NXT-8

IEC1 NXT-8

IEC3 NXT-8

Levelized Cost of Energy (LCOE) IEC1a 9.0m/s -N90/2500

LCOE IEC2a 8.0m/s - N100/2500

LCOE IEC3a 6.5m/s - N117/2400

LCOE IEC1a 6,50m/s IEC1 next gen

LCOE IEC2a 8.0m/s IEC2 next gen

LCOE IEC1a 9.0m/s IEC1 nest gen

Required cost down for N100/2500 to reach LCOE level of NXT-8 ~30%


Future product portfolio NXT-8

Low cost of energy at a grid parity level will minimize the reliance on incentives and offer margin potential


1. PRODUCT DEVELOPMENT APPROACH

Competitive Products

Portfolio Management

Innovation

Win

d c

lass

1

2

3

+

Performance

Time

Product development focused on wind classes and performance within the wind classes


2. COSTLY ISSUES WITH BLADES AND TOWERS DURING ORDER EXECUTION WILL BE ELIMINATED SYSTEMATICALLY

Cost over-run due to inefficiencies in project execution KEY ISSUE

ANALYSIS

TOWERS BLADES LOGISTICS/OTHER

~ -10 mn€ ~ -10 mn€ ~ -5 mn€ COST IMPACT

ACTION/ MEASURES

EBIT IMPACT

Quality problems, short term postponements

Late & expensive supplies Core: mismatch of supply footprint & demand

Inefficient erection & commisioning; problems with incomplete deliveries

GOAL

Proven supply chain with zero defects and timely delivery

Set up for regional production/ supplier bases

Fault free delivery & optimized erection & commissioning

Cross-functional project „Tower Excellence“

Project „Blade Excellence“

To be dealt with in n-ergize „Execution“

Improve supplier performance

Implement “first sample” –production for towers

Rework tower specs & instructions

Increase expediting capacity & capabilities in SQA

Match supply footprint to needs: Negotiations to increase

volume in EU Stabilize 24h cycle for existing

NR 58.5 supplier Start up US supply for N117 Adjust international footprint

& increase volume flexibility

Reduce man-hours & equipment effort for erection & commissioning

Optimize outbound logistics Improve quality of supplied

modules

+ 1% CM in 2013 +1% CM in 2014


2. DTV-PROJECTS SUCH AS FOR STEEL TOWERS CARRY SIGNIFICANT POTENTIAL FOR LOWER COSTS

Dimensioning of towers based on “eigenfrequency”


Advanced 120m tower 2nd source/concept 141m hybrid towers

2012 - 2014:

-15 to -20% cost reduction targeted depending on WTG type

Advanced design of steel towers

Significantly lower costs and dependency

2012 - 2013:

-10 to -20% cost reduction targeted depending on destination/ region

Supplier diversification

2012 2014

-10-20%

2012 2014

-15-20%

37


In-house blade production to grow 3rd party blade supply

2. FURTHER COST REDUCTION ON BLADES TO SECURE MARGIN IMPROVEMENT

2010- 2012: 24% cost reduction already achieved Further -28% targeted

Increasingly competitive to 3rd

party supply

Due to more efficient production process, lower costs of material

2008- 2011: 20% cost reduction already achieved Further reductions targeted

Due to low cost country supply / negotiation

2010 2011 2012e 2013e 2014e

-24%

-28%

2008 2009 2010 2011

-20%

38

3. COST REDUCTIONS CAN BE ACHIEVED IN ALL LARGE WTG PARTS

Nacelle

Blades

Target 2015

Target 2014

Target 2013

-2.5%

-9%

-16%

-3 to -5% p.a.

Tower

FC 2012 FY 2011 FY 2010 FY 2009

Future Past

Example N100/2500, R100; total cost reduction of ~30% between 2009-2015e


FURTHER COST REDUCTION OF MORE THAN EUR 100K PER WTG DRIVEN BY ENGINEERING AND PURCHASING

Design to Cost (DtC)

Design to Value (DtV)

Value Engineering

Benchmark functions

Benchmark components

Standards, processes, tools

Improved methods

Supply strategy

Low cost countries

80 / 20 volume allocation towards lead

supplier

Standards, processes, tools

Engineering Purchasing

Close collaboration Engineering – Purchasing - Production


Q&A SESSION II


AGENDA








Bernard Schäferbartold

42

NORDEX´ PATH TO EUR 1.5 BN REVENUE BACKED BY FIVE VALUE STREAMS


2012e

1,100

2015-17 New unit sales NXD

1,500

Service

Value added

Volume

Turn-key

Additional Revenue drivers in EUR mn

Revenue growth driven by: Volume sales in line with overall market development of 6% p.a. Value-added sales esp. in Germany and thanks to N117/2400 projects Turn-key excellence center NXD: Leverage growing maturity of own development pipeline and financial vehicle Service: Raising installation base, additional service products (e.g. for blades)

43

Additional Revenue drivers in EUR mn EBIT levers

NORDEX´ PATH TO A 25% GROSS PROFIT MARGIN AND A ≥5% EBIT MARGIN


≥5%

New products Material costs Op. excellence

price decr. 2012e 2015-17

1-3%

Tower

Logist.

Blade

Gross margin and EBIT margin improvement – despite pricing pressure – mainly driven by: Operational excellence Cost-down initiatives (>100 k/WTG) Price premium achievable with superior products due to lower CoE

44

OPERATIONAL EXCELLENCE / COST REDUCTION

EBIT margin improvement of 1% in 2013 and 2014 each Profitability measures focused

on towers, blades and logistics Implementing by a

collaborative project by engineering and purchasing

2013 2014

Tower


+1%


+1%

Blades

Logistics


“Design to cost” / “Design to value” efforts in engineering Supply from low cost countries

2nd phase of cost-out project

“n-ergize”

in 2013 2012 - 2015

-EUR >0.1mn / WTG

(= -4%)

-15% / WTG

(in total)

Operational Excellence Cost of Materials

45

COST REDUCTION IN TOWERS & BLADES


Advanced 120m tower 2nd source/concept 141m hybrid towers

2012 2014

-10-20%

2012 2014

-15-20%

46

In-house blade production to grow 3rd party blade supply

2010 2011 2012e 2013e 2014e

-24%

-28%

2008 2009 2010 2011

-20%


Future product portfolio K08 DELTA/NXT-8

0

10

20

30

40

50

60

70

80

90

100

2011 2012 2013 2014 2015

€ / MWh

Peak load price

Base load price 0

10

20

30

40

50

60

70

80

90

100

2011 2012 2013 2014 2015

€ / MWh

Base load price

Peak load price

N90/2500

N100/2500

N117/2400

IEC2 NXT-8

IEC1 NXT-8

IEC3 NXT-8


Future product portfolio NXT-8


NEW PRODUCTS WILL MINIMIZE RELIANCE ON INCENTIVES AND OFFER MARGIN POTENTIAL

47

STRICT CASH FLOW MANAGEMENT AND INNOVATIVE CORPORATE FINANCE STRUCTURES

Working Capital target of 10 – 15% of total revenues

Neutral free cash flow

Investment focus purely on R&D

No need for additional finance

Introduction of a Global Planning Office (GPO)

Introduction of new and innovative corporate finance instruments and

structures:

Finance vehicle for NXD

Professional sales support with tools and processes


WORKING CAPITAL REDUCTION REMAINS A MAJOR TARGET

Nordex´ working capital development with a top line at EUR 1.5 bn

0

50

100

150

200

250

300

0

5

10

15

20

25

30

WC in % total revenues WC in m EUR

T2015 T2014 T2013 B2012

18.4

2011

30.0

2010

25.2

2009

18.6

2008

15.1

WC in %

WC

Target:

Top line EUR 1.5 bn

Balanced free cash flow …

… require a working capital range of 10-15%

Measures:

Organizational responsibilities for major components of working capital

Global Planning Office

Working Capital Management Project started in 2012 will be continued


INTRODUCTION OF A GPO – GLOBAL PLANNING OFFICE

Engineering

Purchasing

Manufacturing/ SCM

Region Region Region Region . . .

P&L Sales

PM

Service

NXD

PLM

Global Planning Office (GPO)

Project Organisation

“Line” Organization

Strategic Planning

Financial Targets


New function GPO acts as central interface between customer facing functions and line organization

50

OPTIMIZED OPERATING PROCESSES REQUIRES A RELIABLE NORDEX VALUE CHAIN

Sales – OI volume and

erection dates

PM – Correct pick-up

dates for production

& purchasing

Production – Fulfill to

order (from PM) Service – Flawless

commissioning and operations

Purchasing– Focus on timely

delivery and quality


Target:

(Off balance) bridge finance for wind farm projects developed in-house

(Non-recourse) financing on project basis

Sale of projects at the point of substantial completion to match with

need of financial investors

Main Market: France

Volume: EUR 50 - 60 mn

Nordex JV-Partners:

State owned bank

Private equity fund

FINANCIAL VEHICLE FOR NXD PROJECTS


SUMMARY FROM THE FINANCIAL PERSPECTIVE

Targets 2015/2017

53 Capital Markets Day| Nordex SE | Frankfurt| September 13, 2012

Revenue target of EUR 1.5 bn

Gross profit margin target of 25%

EBIT margin target of ≥5%

Neutral free cash flow

No need for additional finance

AGENDA








Jürgen Zeschky

54

IMPLEMENTATION OF THE NEW STRATEGY

Implementation projects with clear board responsibilities started


CEO

•NXT 8.1 and NXT 8.2

•Optimization of Engineering and Purchasing

•Blade & Tower excellence project

•WTG EUR 100k cost down

CFO

•Global Planning Office (GPO)

•Working Capital Management

•Relationship proj. finance / ECA

• Interface to sales:

• Cash flow training

• Windmoney education

• Bridge finance NXD

• Support complex tenders

CCO

•Ramp up Sales Germany

•Ramp up NXD organisation

•Turn-key excellence center

•Fixed sales team

• Joint P&L responsibility for Sales and Project Management

•Processes (Windmoney, Gate process, SMEEP)

Strategy Implementation Office

55

STRATEGIC MEASURES IMPLEMENTATION LANDSCAPE – EXCERPT OF THE SALES STRATEGY

Areas for Action Strategic Lever Programme/

Measure Project/ Action

1. Sales Strategy

Area Strategies

Service

NXD

New Units

P&L Responsibilty

Implement Fixed Sales Teams

Focus & Differentiation

Finalize Detailed Area Strategies

Redesign Regional Responsibility (P&L)

Ramp up NXD

Provide Finance Vehicle

Increase Service Revenue

Drive Service Margin Improvement

Implement Service Account + Reg. Mgmt.

Implement Service Improvement Prg.

Build Service Sales Team

Establish Key Account Mgmt.

P&L / Mgmt. Accounting/ Controlling for CFF

Expand project pipeline

Enhance Must Win Program

Implement WindMoney Training

NXD Organisation & Team

Boost N117 Germany

Redesign GATE Process

SMEEP & Market Master Process

Strengthen Sales Team in Value Markets

Establish Turn-key Excellence Center(s)

New Organisation for „Extra Business“


STRATEGIC CONCLUSION – THERE IS A PLACE IN THE MARKET FOR NORDEX


Status Quo

Above average order momentum

Superior product launched (N117/2400)

Operational strategy in place

Sales strategy

Operational excellence

Cost of materials reduction

Product strategy

Structure

Aligned and fully committed management team

Ensure sustainable profitability in the US and China

Strategic options

57

Q&A SESSION III


Thank you very much for your attendance !


Have a safe trip home!

59

Documents

NAME OF EVENT TITLE OF PRESENTATION - Nordex