Pne – Pure new energy...Own wind farm asset base grows to 130.1 MW » Book value of own wind farms grows to €143.4m » Project financing related to own generation portfolio increases

| Investor Relations Presentation | March 2020

INVESTOR RELATIONS PRESENTATION

PNE – PURE NEW ENERGY

| Investor Relations Presentation | March 2020 x

This presentation is for information purposes only and does not constitute a public offer or invitation to subscribe for or purchase anysecurities of PNE AG and neither this presentation nor anything contained herein shall form the basis of any contract or commitmentwhatsoever. This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to anyother 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 thispresentation may be statements of future expectations and other forward-looking statements that are based on the company’s currentviews and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differmaterially from those in such statements as a result of, among others, factors, changing business or other market conditions and theprospects for growth anticipated by the management of the Company. These and other factors could adversely affect the outcome andfinancial effects of the plans and events described herein. The Company does not undertake any obligation to update or revise anyforward-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 documentcomes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute aviolation of applicable Securities Laws.

DISCLAIMER

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AGENDA

I.

II.

III.

IV.

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» > 25 years of industry experience

» Active in 14 countries on 3 continents

» Leading developer of wind farms in Germany

» Nr. 2 O&M manager in Germany with > 1,600 MW

» > 5,500 MW of renewable energy projects realized

» > € 10bn of investments initiated

» Attractive wind energy pipeline of > 5,000 MW

» First PV projects in development

PNE – FULL OF ENERGY

We develop and implement projects and

solutions for the planning, construction and

operation of renewablepower plants.


» CEO since May 2016» COO 2011–2016» Industry experience since 2000» Sales, M&A, Procurement, Offshore, Communication/IR» Associations: Member of the Board BDEW, Member

of the Board WAB, Chairman of Fachgruppe Energie und Umwelt des Wirtschaftsrates in Lower Saxony

» CFO since April 2011» Industry experience since 1999» Finance and Accounting, Controlling, Risk Management,

Legal, Human Resources

PIONEERS IN THE RENEWABLE ENERGY SECTOR

Jörg KlowatChief Financial Officer

(CFO)

Markus LesserChairman of the Board

(CEO)

5


*sale as turnkey project or project right, as single project or project portfolio

ROBUST BUSINESS MODEL THROUGH INTEGRATIONALONG THE VALUE CHAIN

IPPDevelopment Financing Construction ServiceSale*

» Acquisition of site» Analysis (wind / sun)» Selection of

equipment» Permits

» Financial analysis» Legal concept» Sales/marketing» Project financing

» Grid connection» Infrastructure» Assembly» Start-up of operations

» Utility» Infrastructure fund» Insurance companies» IPP

» Technical andcommercialmanagement

approx. 3 – 5 years 20 years

6

Wind Power-to-GasPV Storage


PROJECTSINVESTORSØRSTED

2017–19

ONSHORE

International projectsales

» France >100MW

» Poland ~174MW

» Sweden ~138MW

» USA ~80MW

2017

OFFSHORE

2016–17

ONSHORE

2012–19

ONSHORE

Various project sales

» KGAL» CEE» CHORUS» ALLIANZ» ENBW» ENEL» JOHN LAING» PATTERN ENERGY» QUAERO CAPITAL» STADTWERKE MÜNCHEN

2012

OFFSHORE

GODE WINDPipeline Deal

Gode Wind ~924 MW

» €142m received» Up to €15m due as

milestone payments

Borkum Riffgrund ~ 760 MW

ALLIANZ

Wind farm portfolio

~142MW

» Enterprise Value (EV) > €330m

» Sales price in 2016 €103m for 80%

» Subsequent sale price of €21m in 2017 and increase of EV to > €360m through optimisation of financing

VATTENFALL

ATLANTIS I

Atlantis I ~584 MW

» Low double-digit €m payment received

» Further milestone payments possible

UNIQUE TRACK RECORD

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» 4-year-time span better reflects the operative development and profitability of the project business than on a yearly basis

» EBITDA/EBIT impacted by investments in portfolio build-up

SUSTAINABLE GROWTH

* Adjusted for depreciation of inventories

8

EBITDA (4-year-average, in € m)


0

50

100

150

200

250

300

Equity» Equity increased by more than €130m since 2012» Solid equity ratio despite portfolio build-up and impact from

„IFRS 16 Leases“In € m

Liquidity» Liquidity increased by more than €70m since 2012 » Liquidity position remains on high level after redemption

of €100m corporate bond in 2018 and despite investments in portfolio build-up

COMFORTABLE BASIS FOR FURTHER GROWTH

9

Equity Equity ratio


» Own wind farm asset base grows to 130.1 MW» Book value of own wind farms grows to €143.4m» Project financing related to own generation portfolio increases to

€145.6m (non-recourse project financing incl. interim equityfinancing)

» Balance sheet total increases to €567.6m» Equity ratio decreases due to portfolio build-up and impact from

„IFRS 16 Leases“ (€39.4m) – still on solid level» Liquidity position remains on high level after redemption

of €100m corporate bond in 2018 and despite investments in portfolio build-up

OWN WIND FARM ASSET BASE GROWS

10

0

50

100

150

200

250

300Own wind farm assets (book value)Equity


LARGE 5 GW PIPELINE PROVIDES EXCELLENTVISIBILITY BEYOND 2020

» Onshore wind:Large, high-quality projectpipeline secures stable projectoutput

» PV: First projects under development in Germany, USA, Romania;further internationalisation planned

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* only wind onshore

CANADA505 MW*

SOUTH AFRICA530 MW*

USA432 MW*

EUROPEin MW*

DBGFUKIPROSTRH

1.612121532

4340

111156

59700

42PANAMA352 MW*


AGENDA

I.

II.

III.

IV.

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Key growth drivers:» Global commitment to reduce global warming and ambitious

political targets (e.g. COP21)» Renewable sourced electricity is key for decarbonisation/

CO2 reduction» Growing demand for renewable energy driven by economic

growth and geostrategic reasons» Competitive renewable energies due to heavily decreasing

technology costs» High demand especially for premium projects in low interest

environment» Increasing power prices driven by the nuclear phase-out

(Germany, France) and increasing prices for CO2 certificatesreduce dependency on subsidies

World electricity generation (GWh/yr)

STRONG GROWTH OF RENEWABLE ENERGY MARKET AHEAD

Source: DNV GL – Energy Transition Outlook 2018

13

0

10.000.000

20.000.000

30.000.000

40.000.000

50.000.000

60.000.000

70.000.000

1990 2000 2010 2020 2030 2040 2050

Coal Oil GasNuclear Other renewables HydroSolar Wind onshore Wind offshore


» Electricity prices will increase as nuclear power plants go offline in Germany and France» Prices of CO2 certificates will increase» This will open up new business opportunities

Power price scenario Germany

ELECTRICITY PRICES WILL INCREASE

14

0

10

20

30

40

50

60

70

80

90

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

EPEX Baseload Preisprojektion EPEX Day Ahead EEG Auction historical Auction modelledSource: PNE AG

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ModelledHistoric

May 2017, 5.78 ct/kWh

November 2017, 3.82 ct/kWh

February 2018, 4.73 ct/kWh

August 2018, 6.16ct/kWh

August / September / October 2019, 6.20 ct/kWh

May 2019, 6.13 ct/kWh

Electricity priceprojection

Spotelectricity price

EEGtariff

Tenderresults

Renumerationmodelled

initiated

EUR/MWh


Maximising project value through:» Focus on value chain after power generation» Combination of wind, PV and storage» Creating a new sales channel through the integration

of storage solutions (e.g. Power-to-Gas)» Offering solutions to bypass grid bottlenecks

NEW OPPORTUNITIES THROUGH INTEGRATION OF ENERGY MARKETS

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Solar PV Methanation

Natural gas drive

Wind

Power-to-heat

Electrolysis

E-Mobility

Households, businessesand industry

Hydrogendrive

Gas and steampower plantsCogenerationpower plants

Gas gridPower grid

Battery storage

Pump andcompressedair storage

Electrocity flowHydrogenHeat supply

CO2Artificial natural gas(generated through green electricity)

Source: e/m/w 2017


DEVELOPING INTO CLEAN ENERGY SOLUTION PROVIDERWITH „SCALE UP“ PROGRAMME

TECHNOLOGY- Wind - PV - Storage - Power-to-Gas

MARKETS- Established Markets- Emerging Markets

OPERATIONS- Power Generation - Smart EnergySupply Management

SOLUTIONS/CONSULTING- Engineering &Financing Solutions

- Repowering- O&M

TECHNOLOGY- Wind

MARKETS- EstablishedMarkets

OPERATIONS- Power Generation

SOLUTIONS/CONSULTING- Repowering- O&M

SCALE

»»»»»

16


47,8

» 1. Growth Increase of output in Project development as well as in wind farm management and reduction of cost by economies of scale

» 2. DiversificationIncrease of technological and geographical diversification and expansion along the value chain to secure attractive margins

» 3. VisibilitySignificant increase of stable, recurring earnings base and stable cash flows through organic and inorganic growth in Services business and build-up of own generation portfolio

CLEAR MID TERM TARGET: PROFITABLE GROWTH ANDREDUCED VOLATILITY

* +30–50% compared to average EBIT of 2011–2016

2023EBIT target

38–44*€ m

Increaseof own generation by 2023 to up to

500MWunder

management in O&M by 2023

>2,200MW

Increase of project output by 2023

>400MW p.a.

17


Strategy

Organisational & financial framework

Products

Processes & Tools

STEP BY STEP EXECUTION OF STRATEGIC AGENDA

» Newly defined andexpanded product range

» Profit center structure introduced» Newly defined processes» IT structure unified

» Financing optimised: € 100m corporate bond paid back, € 50m corporate bond placed

» Takeover of remaining WKN stake, transformation from AG to GmbH, cross-company standardisation of the organisational structure

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2017 2018 2019 20202023…

SCALE UP – EXECUTION FULLY ON TRACK

» Start of ramp-up phase

» Structures/ People/Processes

» Implement Smart Development Team Hamburg

» Start build-up of 200MW portfolio

» Completion of ramp-up phase

» First new products/servicesavailable

» First revenues with new products and services

» Partnering

» Improvement of financing structure

» Development of project pipeline in the 1st new market

» 1st PV project in development

» Provide additional services and expand consulting solutions

» Expansion of Offshore Development

» Sale of 200MW portfolio share*

» Completion and sale of 1st

developed project in new markets

» 1st PPA (Power Purchase Agreement) in foreign markets

» Market entrance 2nd market

» Sale of 1st Hybrid project

» Add further new products/services

» Product range of different Hybrid Power Plants is in place

» Start the build-up of next portfolio*

» Market entrance 3rd market

» Identify remaining white spots in regions, value chain and products

» Finalisation of SCALE UP

RAMP-UP TRANSFORM DELIVEREXECUTE

19

* Expansion of own power generation portfolio, envisaged sale of wind farm portfolio 2020 will not be continued


AGENDA

I.

II.

III.

IV.

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» 450.8 MW sold, put into operation or started construction(2018: 235.7 MW), highlighted by projects Jasna (132 MW)and Malarberget (113 MW)

» Tender successes in Germany (67.8 MW) and Poland (94.8 MW)» Assets of repowering project Papenrode (22.3 MW) acquired» Scale Up – Implementation fully on track» PV pipeline expanded in Germany and international markets» Service business internationalised and strengthened with new

products and acquisitions» Expansion of own power generation portfolio up to 500 MW by

2023 – strategy extension to minimize volatilityEnvisaged sale of wind farm portfolio 2020 will not be continued, projects to be kept in own generation portfolio

HIGH PROJECT ACTIVITY IN 2019

21

47,8

Sold,put in operation,

started construction

450.8MW

Own wind generation portfolio

130.1MW

Projectsunder construction

311.0MW

Tendersuccesses

162.6MW


» Guidance for FY 2019 (EBITDA € 25-30m, EBIT € 15-20m) achieved or slightly exceeded

» Total output (€ 174.0m, +55% yoy) and operating result (EBITDA +91% yoy, EBIT +143% yoy) clearly improved yoy –driven by international project sales

» Gross cash position very solid at € 111.9m» Equity increases to € 220.0m» Decrease of equity ratio to approx. 39% attributed to increase of

non-recourse project financing (portfolio build-up) and application of IFRS 16 Leases

» New segment reporting introduced

HIGH PROJECT ACTIVITY REFLECTED IN IMPROVED FIGURES

22

47,8

EBITDA

31.6€ m

Equity

220.0€ m

Cash

111.9€ m

EBIT

19.0€ m


Project MW State StatusKührstedt-Alfstedt 43.2 Lower Saxony in operation since Q4 2017

Gerdau-Repowering 21.6 Lower Saxony in operation since Q1 2019

Schlenzer 6.5 Brandenburg in operation since Q2 2019

Neuenwalde 7.2 Lower Saxony in operation since Q4 2019

Kittlitz 17.2 Brandenburg in operation since Q4 2019

Laubuseschbach 3.0 Hesse in operation since 2002

Pülfringen 6.5 Baden-Württemberg in operation since 2002

Erfeld 2.6 Baden-Württemberg in operation since 2002

Papenrode 22.3 Lower Saxony in operation since 2002

Total 130.1

» PNE Group will expand its own wind farm operations considerably in the future

» Changed framework conditions and favourable financing options led to decision

» Envisaged sale of wind farm portfolio 2020 will not be continued» Objective of stabilising sales and earnings at a high level» Aim is to achieve the medium-term EBIT target of € 38-44m*

until 2023 earlier» Individual projects, particularly abroad, will still be marketed» Own generation portfolio currently consists of 130.1 MW of

onshore wind projects» Power generation Total output** at €19.4m in FY 2019 (2018:

€18.2m), EBITDA** at €14.0m in FY 2019 (2018: €13.9m)

EXPANSION OF OWN POWER GENERATION

** incl. Silbitz

23

* as defined in Scale up strategy


Germany – Good activity despite delays in permitting process» Gerdau-Repowering (21.6 MW), Schlenzer (6.5 MW),

Kittlitz (17.2 MW) and Neuenwalde (7.2 MW) completed and put in operation

» Wölsickendorf (16.8 MW) sold to CEE GroupFrance – Strong momentum continues» Project Laperrière (19.2 MW) completedSweden – Project sold» Malarberget (113 MW) sold to Enlight Renewable Energy» Project Laxaskogen (25.2 MW) completedPoland – Project sold » Jasna (132 MW) sold to Stadtwerke München» Construction management for Barwice (42 MW)Panama – Pipeline acquired» 5 projects with approx. 352 MWUSA – Project sold» Burleigh sold to Burke Wind, LLC

WELL-FILLED PROJECT PIPELINE WIND ONSHORE

Country I – II III IV Total MW Sold/ Services

Germany 1,251 361 0 1,612 20Bulgaria 121 0 0 121 0France 271 261 0 532 0United Kingdom 43 0 0 43 0Italy 40 0 0 40 0Canada 505 0 0 505 0Panama 352 0 0 352 0Poland 92 19 0 111 174Romania 54 102 0 156 0South Africa 500 30 0 530 0Sweden 0 59 0 59 113Turkey 629 71 0 700 0Hungary 0 42 0 42 0USA 266 166 0 432 0Total 4,124 1,111 0 5,235 307Phase I – II = Exploration & DevelopmentPhase III = PlanningPhase IV = Implementation till handoverSold/Services = sold, but construction management services by PNE

As of December 31, 2019

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8 projects sold» 4 projects already in operationActive as service provider for projects sold» Consultant agreements in place with Ørsted & VattenfallFurther milestone payments expected» Up to € 15m from Gode Wind 4

FURTHER MILESTONE PAYMENTS EXPECTED FROM SOLD OFFSHORE WIND PROJECTS

*Project sold, PNE active as service provider

Phase 2 = Application conference held, 3 = Hearing held, 4 = Approval granted, 5 = Grid connection, 6 = Investment decision, 7 = Under construction, 8 = In operation

Zone Sold projects Phase #WEA Total MW Sold to1 Borkum Riffgrund 1 8 78 312 Ørsted (DONG)1 Borkum Riffgrund 2 8 56 448 Ørsted (DONG)1 Gode Wind 1 & 2 8/8 55 + 42 582 Ørsted (DONG)1 Gode Wind 3 & 4 5/5 30 242 Ørsted (DONG)2 Atlantis I 3 73 584 Vattenfall4 HTOD5 (Nautilus II) 2 68 476 Ventizz/Hochtief

Total 402 2,644

25

2

4

6

1

3

5

7

9

11

13

8

10

12


Improved conditions for PV projects» Photovoltaic installations have become increasingly cost-effective

and thus more marketable in the area of electricity generation» Legal and economic framework conditions for the development of

photovoltaic projects are in place in many countriesAdditional markets and projects are being evaluated» Numerous markets are currently being examined in detail and the

first rights are being secured» Particular attention will initially be paid to Germany, France, Italy,

Romania and the USA as well as other international markets

PROJECT PIPELINE PV

Country I – II III IV Total MWpGermany 10 0 0 10Romania 112 0 0 122USA 1 0 0 1Total 123 0 0 123

Phase I – II = Exploration & DevelopmentPhase III = PlanningPhase IV = Implementation till handover

As of December 31, 2019

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» FY 2019 result driven by international project sales and strategic expansion

» Total output increased by 55% yoy, EBITDA +91% yoy, EBIT +143% yoy

» Operating performance and earnings driven by:» International project sales in Poland and Sweden» Sale of project Wölsickendorf in Germany» Results from Power Generation and Service» Build-up of wind farm portfolio

» Financial result burdened by higher interest expenses due to valuation of interest rate swaps (€ 4.3m)

CLEARLY IMPROVED RESULTS

In € m FY 2019 FY 2018Sales 132.8 91.4Work in progress 36.6 15.1Other income 4.7 5.3Total output 174.0 111.8Cost of materials -93.0 -36.7Personnel -30.6 -27.8Others -18.9 -20.1Impairment on offshore inventories 0 -10.8EBITDA 31.6 16.5Depreciation -12.6 -8.7EBIT 19.0 7.8Financial result -11.7 -9.8EBT 7.3 -2.0Taxes -6.0 -0.4Non-controlling interests 0.7 -1.4Net income 0.7 -1.0EPS (in €) 0.01 -0.01EPS (in €) Diluted 0.01 -0.01

27


» Project development» Project development output grows to €154.4m (+57%),

primarily driven by international project sales» EBITDA grows to €25.5m (+221%)

» Services» Services output grows to €18.4m (+55%),

mainly driven by new service offerings» EBITDA increases to €5.2m (+29%), despite integration and

restructuring costs of acquired companies » Electricity generation

» Power generation output increases to €19.4m (+6%)» EBITDA increases slightly to €14.0m (+1%), due to increase

of own power generation capacities and despite positive one-off effect in 2018 (€4.2m)

GROWTH IN ALL BUSINESS SEGMENTS

* Comparability to previous year’s figures is limited due to new segment structure

FURTHER DIVERSIFICATION OF BUSINESS

28

Project Development

Services

Electricity Generation

Consolidation

-50,0

0,0

50,0

100,0

150,0

200,0

250,0

2018 2019

in E

uro

milli

on

-20,0

-10,0

0,0

10,0

20,0

30,0

40,0

50,0

2018 2019

in E

uro

milli

on

EBITDA* In € m

Total output* In € m


111.9 (129.1)

113.6 (94.3)

51.7 (25.1)

234.0 (142.0)101.4

(117.3)

220.0 (216.3)

24.4 (19.9)39.4 (0.0)

174.1 (96.1)

64.7(65.1)

Assets Equity andLiabilities

in €m as of December 31, 2019 (as of December 31, 2018) Equity» Equity ratio solid at 39%

Non-current debt » Corporate bond 2018/23 (€50m, 4%)» Liabilities to banks €135.6m,

mainly project financing (non recourse)» Liabilities from leasing contracts (rights of use)

€37.2m

Current liabilities» Liabilities to banks €10.3m, mainly project

financing (non recourse)» Liabilities from leasing contracts (rights of use)

€3.1m

BALANCE SHEET REMAINS ROCK SOLID

(rounding differences possible)

567.6 (452.6)

Intangible Assets

Property, plant and equipment

Rights of use

Inventories

Cash

Receivables and other assets

Equity

Non-currentdebt

Currentliabilities

Other

Property, Plant and Equipment» Transformer stations €13.2m» Land and building €11.2m» Own wind farms €143.4m

Rights of use » First time application of “IFRS 16 Leases”

Inventories » Advance payments €23.4m» Offshore €16.5m» Onshore Germany €33.8m» Onshore International €27.3m

Liquidity» Cash position €111.9m

29

Assets Equity and liabilities


» Increase own power generation portfolio in Germany (sale of wind farm portfolio 2020 will not be continued)

» Individual projects, particularly abroad, will still be marketed

» High project activity due to high number of MW under construction (311 MW)

» Well-filled project pipeline (5.235 MW wind, 123 MWp PV)

» Expand into new markets and services according to our Scale up milestones

» Guidance for FY 2020: EBITDA of € 15-20m and EBIT of € 5-10m

EARLY EXTENSION OF STRATEGY TOFURTHER REDUCE VOLATILITY

EBITDA

€15–20mEBIT

€5–10m

Guidance FY 2020:

iStock


AGENDA

I.

II.

III.

IV.

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40%60%80%

100%120%140%160%180%200%220%240%

PNE AG Aktie RENIXX ÖkoDAX

PNE vs. RENIXX vs. ÖKODAXIndexed to 100%

PNE SHARES

WKN/ISIN A0JBPG/DE000A0JBPG2Number of shares 76.603.334 Market capitalization approx. €295mMarket segment Prime StandardIndices CDAX Technology, ÖkoDAXDesignated Sponsors/Market Maker Commerzbank, Baader BankReuters/Bloomberg PNEGn/PNE3

32

Shares

Basic information*

Bank Recommen-dation Price target Analyst

M.M. Warburg Hold € 4,30 Jan BauerFirst Berlin Add € 4,00 Karsten v. BlumenthalSMC Hold € 4,30 Holger SteffenBaader Helvea Reduce € 4,20 Laura Lopez Pineda

Analyst recommendations*

* as of March 26, 2020


70

80

90

100

110

120

130Anleihe 2018/2023

Corporate bond

PNE BONDS

Corporate bond 2018/2023(WKN: A2LQ3M)

Coupon 4%Volume: €50m

33

Corporate bond 2018/2023


Rainer HeinsohnHead of CommunicationTel: +49 (0) 4721 – 718 - 453Fax: +49 (0) 4721 – 718 - 373E-Mail: [email protected]

Christopher RodlerHead of Investor RelationsTel: +49 (0) 40 879 331 14Fax: +49 (0) 4721 – 718 - 373E-Mail: [email protected]

Financial Calendar

CONTACT & FINANCIAL CALENDAR

Publication of Annual Report 31.03.2020Publication of Financial Report Q1 13.05.2020Publication of Financial Report Q2 12.08.2020Publication of Financial Report Q3 11.11.2020Analyst Conference/Frankfurt November 2020

34

Documents

Pne – Pure new energy...Own wind farm asset base grows to 130.1 MW » Book value of own wind farms grows to €143.4m » Project financing related to own generation portfolio increases