Picture new turbines/ products/ flagship product. Strategy update Medium term targets The path to profitable growth

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1 Picture new turbines/ products/ flagship product Strategy update Medium term targets The path to profitable growth Senvion S.A. Analyst presentation, 16 th March 2017

2 Disclaimer This presentation (the Presentation ) has been prepared by Senvion S.A. ( Senvion and together with its subsidiaries, we, us or the Group ) solely for informational purposes and has not been independently verified, and no representation or warranty, express or implied, is made or given by or on behalf of the Group. Senvion reserves the right to amend or replace this Presentation at any time. This Presentation is valid only as of its date, and Senvion undertakes no obligation to update the information in this Presentation to reflect subsequent events or conditions. This Presentation may not be redistributed or reproduced in whole or in part without the consent of Senvion. Any copyrights that may derive from this Presentation shall remain the sole property of Senvion. This Presentation does not constitute or form part of, and should not be construed as, an offer or invitation or inducement to subscribe for, underwrite or otherwise acquire, any securities of Senvion, nor should it or any part of it form the basis of, or be relied on in connection with, any investment decision with respect to securities of Senvion or any other company. Certain statements in this Presentation are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. Actual results may differ from those set forth in the forward-looking statements as a result of various factors (including, but not limited to, future global economic conditions, changed market conditions affecting the wind industry, intense competition in the markets in which the Group operates, costs of compliance with applicable laws, regulations and standards, diverse political, legal, economic and other conditions affecting the Group s markets, and other factors beyond the control of the Group). Neither Senvion nor any of its respective directors, officers, employees, advisors, or any other person is under any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak of the date of this Presentation. Statements contained in this Presentation regarding past trends or events should not be taken as a representation that such trends or events will continue in the future. In particular, no statements in this Presentation should be construed as concrete guidance as to the results of operations, cash-flows, balance sheet data or any non-financial metrics as of or for the financial year ending December 31, 2016 or any subsequent financial period. Certain financial data included in the presentation consists of non-ifrs financial measures. These non-ifrs financial measures may not be comparable to similarly titled measures presented by other companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. You are cautioned not to place undue reliance on any non-ifrs financial measures and ratios included herein. This Presentation does not constitute or contain any investment, legal, accounting, regulatory, taxation or other advice. Due to rounding, numbers presented through out this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 1

Strengthened management team Management Board Jürgen M.

of Sales Manav Sharma CFO Joined in Jan.

in earth sciences at the University of Würzburg, Germany Doctorates, in

2016 22 years experience in product development and industrialization including 6

and Université du Québec à Montréal Joining Senvion in June 2017 27 years

3 Strengthened management team Management Board Jürgen M. Geissinger CEO Christian Roth COO Servet Sert Head of Technology David Hardy Head of Sales Manav Sharma CFO Joined in Jan years of experience in aerospace and steel and forging industry Graduated in earth sciences at the University of Würzburg, Germany Doctorates, in conjunction with the Fraunhofer Institut in Dortmund, Germany Joined in Oct years experience in product development and industrialization including 6 years in wind Six Sigma Black Belt Executive MBA from Université Paris-Dauphine and Université du Québec à Montréal Joining Senvion in June years experience in the industry sector Worked for Vestas for 7 years and for GE for 10 years Mechanical Engineering and holds a MBA in Finance & Management, North Carolina and New York 2

4 Agenda Key industry trends Strategic roadmap and outlook Our path to profitable growth a. b. c. Sales growth across segments Leveraging on competitive product portfolio Enhancing efficiency 4 5 Financial targets Key takeaways 3

5 Industry trends Senvion s market environment Three key trends 1. Wind in long term growth cycle with markets growing at different pace 2. Markets moving towards auctions 3. Fast falling Levelized Cost of Energy (LCoEs) 4

6 Industry trends 1. Wind in long term growth cycle Growing energy demand with increasing share of wind World energy production rising. Energy production by region..with Wind as major contributor Cumulative global electricity generation by source (GW) OECD countries European Union US China India Others Billion toe % Onshore Wind 278 1, % Offshore Wind PV 109 1, Other Renewables Conventional Sources 1,242 2,153 3,945 5, % Source: BP Energy outlook 2017 Source: New Energy Finance Conventional sources include nuclear, coal, gas and oil capacities Other renewables include Geothermal, Hydro and others 5

7 Industry trends 1. Wind markets grow at different pace Growth shifting to newer markets Senvion present in 7 out of 10 largest markets up to date Cumulative installations as of 2016 (GW) China 13.7 ( ) ( ) Our current markets vs our new markets growth (GW) 8.4 Senvion markets ( ) New market entries US Germany India Spain UK France Canada Brazil Italy Senvion s strategy Penetrate in low wind areas and maintain presence in current markets Average annual installation (GW) Senvion s strategy Focus on new growth markets Current markets New markets Current markets: Austria, Belgium, Canada, Germany, France, Italy, Netherlands, Poland, Portugal, UK New Markets: Australia, Eastern EU countries, Egypt, India, Ireland, Japan, LatAm excl. Brazil, Middle East North Africa region (MENA), Nordics, Serbia, US Source: 1 GWEC (2016) 2 MAKE Q market outlook 6

8 Industry trends 2. Wind markets move to market based mechanisms Increasingly subsidy free business model Italy 2014: 110.5/MWh 2016: 66/MWh Key trends Mexico 2016: $55/MWh 2016: $36/MWh Morocco 2016: $30/MWh India 2016 Avg. Rs4-5/KWh 2017: Rs3.46/KWh Wind markets are shifting to market based mechanisms Prices and margins to adapt to auctions Peru 2010: $80/ MWh 2016: $37.2/ MWh Chile 2015: $ 79.34/MWh 2016: $ 47.59/MWh Argentina 2016: $59/MWh 2016: $53/MWh Egypt 2015: $41/50/MWh South Africa 2015: $38.32/MWh Winning factor is LCoE leadership Market-based mechanisms e.g., auctions, certificate schemes, renewable portfolio standards Feed-in tariff/premiums Senvion s recent success in Chile auctions show ability to adapt quickly Source: Bloomberg & MAKE, 2016 & price indication based on lowest winning bid 7

9 Industry trends 3. Softening Levelised Cost of Energy Wind already one of the cheapest sources Conventional Renewables Marine wave Marine tidal Solar thermal parabolic trough Solar thermal tower Solar thermal LFR Biomass gasifiation Geothermal binary Biomass incineation PV thin film Wind offshore Landfill gas PV tracking PV no tracking Municipal solid waste Geothermal flash Wind onshore Biomass anaerobic digestion Small hydro Large hydro Nuclear CHP Combined cyc e gas Coal ($/MWh) 1, Estimated global LCOE range Country LCOEs H benchmark H benchmark Fossil technologies: US China Europe Australia Increase in market demand for wind once grid parity reached Source BNEF H LCoE update 8

10 Industry trends 3. Grid Parity already reached in some markets Others to follow driven by technology Winning auction bids for Mexico, Peru & Chile wind projects ranged from $37.7/MWh to $55.5/MWh, almost 50% below regional levelised cost of electricity baselines Source MAKE report Sept 2016 Impact Electricity prices and levelised turbine prices will continue to drop Onshore turbine prices drop in 7 years H H Senvion s strategy LCoE leadership via (26%) Turbine Prices ( /MW) (42%) Levelised Turbine Prices ( /MWh) * Product innovations and AEP increase Cost outs and organisational efficiency Levelized Turbine Prices: Turbine price divided by Annual Energy production, Source - BNEF H Wind Turbine Price Index 9

11 Industry trends Offshore Growing market with deeper depth Current bids require efforts to reach grid parity Limited offshore experience but huge growth expected and bids falling rapidly Global installed capacity (GW) Onshore 472 Total Offshore Above 5MW Global installed capacity (GW) Horns Rev II, Dong: /MWh Borssele I+II, Dong: 72.7 /MWh Borssele III+IV, Shell: 54.5 /MWh Kriegers Flak, Vattenfall: 49.9 /MWh UK, Germany Auctions Europe New markets Industry trends Senvion strategy Global offshore demand expected to increase LCoEs continue to decline all projects beyond 2020 Trend towards bigger turbines Low industry experience in 5MW+ category Senvion with one of the largest track records Short-term: 1. Focus on executing current order book until Exploit floating offshore opportunities Medium-term: 1. Launch 10MW+ turbine Source: Onshore and Total Offshore installations from GWEC Global wind statistics 2016 & above 5 MW+ from BNEF H offshore Wind Market Outlook October 2016, MAKE Q market outlook 10

12 Agenda Key industry trends Strategic roadmap and outlook Our path to profitable growth a. b. c. Sales growth across segments Leveraging on competitive product portfolio Enhancing efficiency 4 5 Financial targets Key takeaways 11

Outlook 2019 Senvion has made strong progress since 2015 and more in the pipeline March 2015 Current status March 2017 1. Largely German management team with similar background 2.

Nordics, Serbia, Japan 3. Lacking key products including 2MW variants and 3 MW low wind product 3 Product portfolio complete 3.4M140 and 3.

13 Outlook 2019 Senvion has made strong progress since 2015 and more in the pipeline March 2015 Current status March Largely German management team with similar background 2. Pure European 1 player with limited international reach 1 2 Management team strengthened with diverse industry backgrounds and proven record 1Bn+ orders in new markets: Chile Australia, India and Nordics, Serbia, Japan 3. Lacking key products including 2MW variants and 3 MW low wind product 3 Product portfolio complete 3.4M140 and 3.6M140 launched Industry leading wind turbines for low and medium wind sites Acquisition of 2 MW products from Kenersys 4. High working capital leading to weaker cash position 4 Stronger balance sheet Second best working capital level in industry: turn around in working capital (from +8% to -3.7%) Sound cash position and balance sheet: From net debt ( 274m 2 )to net cash of 27m Note: 1) European refers to current markets of Senvion; 2) Pro forma capital structure at the time of High Yield Bond issuance of 400m 12

14 Outlook 2019 Senvion 2019 target Achieving profitable growth Transition phase Guidance Growth phase 2019 targets 2.21bn bn* bn Revenue Adj. EBITDA Margin 9.3% 206mn ~ %* ~9.5%-10.5% Absolute adj. EBITDA bn Min 1.0x On-shore Book to Bill Firm Order intake 1.3bn * - Potential delays in the conversion of the 300 MW Chile order beyond couple of months may lead to a partial (or full) shift of revenues and corresponding EBITDA to The exact impact on financials can be ascertained once the order becomes firm. 13

15 Outlook 2019 Path to growth in 2019 New markets drive international expansion Transition phase Growth phase 2019 A Onshore sales (Current markets) Revenue 1.6bn Revenue* ~ 1.1bn Revenue ~ 2.1bn B Onshore sales (new markets) Revenue 0.0bn Revenue ~ 0.4bn C Service Revenue 0.28bn Revenue ~ 0.31bn Revenue ~ 0.38bn D Offshore Revenue 0.3bn Revenue ~ 0.3bn Revenue ~ bn Total 2.2bn bn bn *Base case: Incl. Chile, excluding upside potential from floating offshore opportunities, M&A activities Current markets: Austria, Belgium, Canada, Germany, France, Italy, Netherlands, Poland, Portugal, UK, New Markets: Australia, Eastern EU countries, Egypt, India, Ireland, Japan, LatAm excl. Brazil, MENA, Nordics, Serbia, US 14

16 Agenda Key industry trends Strategic roadmap and outlook Our path to profitable growth a. b. c. Sales growth across segments Leveraging on competitive product portfolio Enhancing efficiency 4 5 Financial targets Key takeaways 15

17 Sales growth across segments Senvion in transition Two-fold sales approach Two-fold sales approach A Maintain and grow market share in current markets B Enter new growth markets with good fit to Senvion s products Onshore revenue development ( bn) ~1.1 ~ FY14 CY15 CY16 Germany France CY17e CY19e UK Others (1) FY14 Australia India CY15 CY16 South Cone Nordics CY17e CY19e Basket of smaller markets Strategy Further penetrate existing markets through market share growth in low & medium wind speed segments Rollout new 3.XM and 2.XM products Holistic solutions for key accounts Strategy Deploy proven new market entry approach (Canada, Australia, Chile, etc.) Launch product variants for new markets Adapt supply chain towards new geographic composition (1) Others - Italy, Portugal, Austria, Belgium, Canada *Nordics 360MW+, India 500MW, Australia 300 MW, Serbia 42 MW 16

18 Sales growth across segments A Germany Win back market share with 3.xM14x Onshore Installations Market specific trends Shift to auction will limit market volumes (2.8 GW/p.a.) More installations expected in Southern Germany, currently not covered by Senvion CY14 CY15 CY16 CY19 Source: Historical data from MAKE, CY19 estimate as per Govt cap Mid size developers and larger utilities likely to play bigger role Increase in repowering projects due to aging fleet Market share Senvion Strategy 14% CY14 20% CY15 CY16 Proj South North 15-20% CY19 target Source: MAKE database North: North Germany defined according to grid definition with yearly restriction of 900 MW Maintain market share in North Germany Participate in bids in South Germany from Mid 2017 Build significant market share with 3.XM14x Co-financing and auction support Upfront selling (e.g. Framework Agreements, codevelopment) Maintain healthy relationship with key accounts mid size players and large utilities 17

19 Sales growth across segments A The path to growth in 2019 Maintaining strong sales in other current markets France UK Other current Markets Onshore Installations (GW) Onshore Installations (GW) Great Britain including North Ireland Onshore Installations (GW) Italy, Portugal, Austria, Belgium, Canada, Netherlands CY14 CY15 CY16 CY19 CY14 CY15 CY16 CY19 CY14 CY15 CY16 CY19 Onshore Market share target Onshore Market share target Revenues ( mn) 19% 17% ~ 15-20% 45% ~30% % CY14 CY15 CY16 Proj Senvion strategy Strategic partnership with existing and new customers CY19 New products including newly acquired 2 MW products Source MAKE Q4/2016 Total Market Outlook, e CY14 CY15 CY16 Proj Senvion strategy Executing the existing pipeline Leveraging UK team to focus on Irish markets Offer new products in the 3 MW platform CY19 CY15 CY16 Senvion strategy Revenues from Portugal via Frame agreement with EDPR Leverage on customer relationships Target Corporate PPAs CY19 2 MW and 3 MW new variants subject to hub height and tip height restrictions 18

20 Sales growth across segments B Our new markets Volumes to grow substantially Australia* South Cone Nordics Onshore Installations (GW) Onshore Installations (GW) Onshore Installations (GW) LatAm ex Brazil Norway, Finland, Sweden CY 14 CY 15 CY 16 CY 19 CY 14 CY 15 CY 16 CY 19 CY 14 CY 15 CY 16 CY 19 Market share target Market share target Market share target 19% CY14 60% CY15 CY16 Proj Senvion strategy 30%+ CY19 Market for medium wind class (existing 3M114/140 and new 3.6M140) Support client to sell Power Purchase Agreements (Co-)development with customer Financial advisory roles in some cases 0% CY14 0% CY15 0% CY16 Proj Senvion strategy Flexible product solutions Leverage volume effects of projects 5-10% CY19 Support existing customers and expand relationship to local customers Source MAKE Q4/2016 Total Market Outlook, e * - We consider Australia as a renewed market, given no activity in last 2 years in the market 0% CY14 0% CY15 0% CY16 Proj Senvion strategy Great product fits Focus on large scale projects Customer specific approach Cold climate products 15-20% CY19 Project advisors in selected cases (planning, financing, risk analysis) 19

Sales growth across segments B India: Acquisition of Kenersys assets Successful, accelerated and capital efficient India entry Market One of the fastest growing markets globally Markets favoring

21 Sales growth across segments B India: Acquisition of Kenersys assets Successful, accelerated and capital efficient India entry Market One of the fastest growing markets globally Markets favoring large, sophisticated IPPs Market size to reach 4 GW in medium term From accelerated entry Asset acquisition 250 MW nacelle facility Low cost, low wind, 2 MW product portfolio and local supply chain Running Operating and Maintenance operations to products and orders From Kenersys to Senvion Framework agreement signed 500 MW Large IPP as customer Kenersys products now part of Senvion 2MW platform to taking off Market share target 2019 Peers 90% Next steps 75.0% Senvion 10% 1. Upgrade of 2.XM products 2. Potential further localization of supply chain 3. Leverage products in further new markets Signed framework agreement reflects potential from acquired products 20

22 Sales growth across segments B Basket of other smaller markets To deliver steady revenues Japan Onshore Installations (GW) CY14 CY15 CY16 Ireland Onshore Installations (GW) CY Market entry strategy 1. Market entry and penetration strategy customized for individual markets 2. Focus on niche markets with good product fit 3. Building on existing relationships and cross selling First milestones reached CY14 CY15 CY16 CY19 Successful relationship building in Japan MENA + East EU Onshore Installations (GW) (Ex Poland) CY14 CY15 CY CY19 Japan 24MW firm order and conditional orders for MM platform 42 MW conditional order in Serbia Advanced negotiation opportunities in MENA Source MAKE Q4/2016 Total Market Outlook, e 21

23 Sales growth across segments B Case study: 112 MW order in Norway Customer centric flexible approach Project New client Customized solution 3 strategic pillars Long-term orientation Project specific foundation Partnership approach 112 MW 33x Installation 2017 Challenging topography: steep, rocky mountains Independent renewable energy company Strong track record and >330MW development pipeline solution for WTG foundation on rock Project specific tower: Adaption of 93m tower for better AEP Strong relationship with sponsor Cooperation agreement with NVE concerning pipeline Cost efficient solution Unique proposition to customer 22

24 140m 140m Sales growth across segments B Case study: 302MW* order from Nexif in Australia Product leadership and customer focused solutions Project Glenn Innes Lincoln Gap Location New South Wales South Australia Volume 90 MW 212 MW Senvion turbines 25 x 3.6M 59 x 3.6M Installation End of 2017 Beginning of Turbine power upgrade Optimised product for better site suitability Power upgrade AEP: +3% Higher AEP 2. EPC solution Minimisation of interfaces Proven and experienced team in Australia Same tower design 3.4M M Tailor made delivery schedule Faster to the market Accelerated revenue generation for customer Underpins Senvion s execution strength and success of new products * Conditional AEP = Annual energy production 23

25 Sales growth across segments C Highly efficient and growing service business With attractive margins Revenue growing. Efficiency improving Availability on par ( M) MW / Employees Availability in 2016 consistently above 97% 29% % % % 98% 97% Mar-14 Dec-15 Dec E Mar-12 Mar-14 Dec-16 96% 95% Jan. May MM Sep. 3.XM Dec. Key highlights Best in class service metrics Industry leading tenor of >10 years 80+% renewal rate for 3 years Strategy 1. Customer-oriented and flexible service options 2. Introducing new data driven upgrades and leverage 3. Cost optimized service business with locations in Poland as well as Germany 24

26 Sales growth across segments D Offshore strategy Leveraging on 6MW platform before launch of 10MW+ Senvion offshore installations Short-term Cumulative Installed Capacity (MW) Full order book until Trianel Nordsee One 1, ,492 1,695 Promising floating opportunities Potential beyond 2025 Early mover advantage Smaller turbines required (6MW still competitive) High governmental support Sep-15 Dec-16 Dec-17 Dec-19 Market share in 5MW+ segment Senvion 10% Adwen 6% 37% BARD 19% Siemens Others 28% Medium-term Trigger investment phase for 10MW+ Feasibility study complete Product design and power curve in 2017 Market feedback before triggering next phase of investment Targeting to participate in 2018 German offshore auction Target to launch a market leading product built on our current track record Source: BNEF H Offshore Wind Market Outlook October

27 Agenda Key industry trends Strategic roadmap and outlook Our path to profitable growth a. b. c. Sales growth across segments Leveraging on competitive product portfolio Enhancing efficiency 4 5 Financial targets Key takeaways 26

28 Offshore 5MW+ class Onshore 3MW class 2MW class Leveraging on competitive product portfolio Senvion today Competitive portfolio for all wind classes Platform development with significant AEP 1 improvement to lower customer LCoE (Acquired in 2016) CY16: 148MW Total: 2.9GW CY16: 617MW Total: 6.4GW CY16: 150MW Total: 0.5GW (Acquired in 2016) Total: 0.1GW CY16: 160MW Total: 0.2GW CY16: 136 MW Total: 1.2GW CY16: 112 MW Total: 0.8GW High wind Medium wind Low wind Introduced in last 2 years Installations Introduced 7 new product variants in 2 years - Testament of our capabilities Notes: 1) Annual energy production; Further 440MW were installed in 2016based on 3.0M122, 3.2M122, 3.2M114 27

29 Leveraging on competitive product portfolio Driving down LCoE with product upgrades and cost reduction Specific example 3.XM EBC product in typical low wind site, Germany Levers Modularization A Cumulative energy yield improvement in % Multiple rotor diameters Increased rated power Multiple hub heights Plan until 2019 Advanced turbine control Improved turbine operation ~ 14 18% LCoE Reduction B Cumulative cost reduction in % Levers Implementation of new technologies across platforms Supply chain optimisation Project-specific solutions Global sourcing Target costing Value engineering Medium term plan for LCoE reduction in place to win in auctions 28

30 104m 114m 122m 140m Leveraging on competitive product portfolio A Product portfolio moving towards modularisation Standardization with customization and flexibility From sequential individual turbines to modular turbines Large number of products Individual variants for specific markets and conditions Longer R&D cycles No scale effect in sourcing Less products with multiple variants Reduction of R&D cycles Higher quality by re-use of proven and validated technology Cost savings by standardisation Towers Benefits Variable heights Project specific towers Optimised supply chain, logistics and installation Higher AEP Weight reduction Modular tower sections Some examples Blades Multiple blade lengths for variety of sites Configurable product portfolio allows best LCoE for each wind site 29

31 122m 140m (= 30% more area) 140m Leveraging on competitive product portfolio A Case study: Modularisation Senvion with tailor made solutions to market needs Power upgrade Longer blades AEP: +20%+ Power upgrade AEP: +3% Same tower design Same tower design 3.2M M M140 Challenge Blades Increase of weight and load Tower Prevent costs for new tower design Electrical system Ensuring minimal costs with upgraded AEP Solution Modular blade architecture Advanced control technology Dynamic and adaptive control Modular electrical system to contain cost Australian 302MW order confirms product strategy of 3.6M140 30

32 Leveraging on competitive product portfolio A New products in pipeline Higher AEP through innovation Current product Upgraded product Available for sale Installation Markets XM Mid 2017 H1/2018 Power upgrade Rotor upgrade Wind class upgrade 2 3.XM H2/2017 H Power upgrade Rotor upgrade 3 2.XM H2/2017 H1/2018 Power upgrade Rotor upgrade Wind class upgrade 4 2.XM H2/2017 H2/2018 Rotor upgrade 5 10MW Rotor upgrade Power upgrade 31

33 Leveraging on competitive product portfolio B Operational excellence enabling significant cost reduction across the value chain 1 Cost reduction across the value chain Working capital optimization 2 Best cost country sourcing Reduction of lead times Economies of scale Make-to-order Part reduction on latest 3MW developments Differentiation of inventories 3 Global Sourcing Dual / Multiple sourcing Enabling Levelized cost of Energy reduction Supplier Management Make or Buy 4 Local content as Sales enabler Forward sourcing Asset-light manufacturing footprint In-house blade production at low cost region Supplier involvement in Service Strategy 32

34 Leveraging on competitive product portfolio B Asia sourcing Cost saving potential across key components Nacelle Benefit in costs Few examples Main Carrier Gearbox Housing and Blocks Main bearing Pitch drives Yaw drives Fabrications Blades Blade casting Hub casting Tower Project specific landed cost approach Gearbox Savings potential 100% -20% ~80% Current cost in Europe Asia sourcing - Landed cost in Europe Blade material Savings potential 100% -13% ~87% Current cost in Europe Asia sourcing - Landed cost in Europe Blade bearing Savings potential 100% -20% ~80% Current cost in Europe Asia sourcing - Landed cost in Europe Ramp up in sourcing from Asia 50% 0% Ramp up in sourcing from Asia 50% 0% Ramp up in sourcing from Asia 100% 50% 0% Asia Sourcing enables incremental cost savings of up to 20% 33

35 Maturity level Leveraging on competitive product portfolio B Creating value with products and operations Multistep approach with multiple value driving levers From technology evolution to driving scale Modularisation Modular turbines Partial standardisation To Driving scale Data analytics Data driven turbine performance improvement New and extensive use of data in service Industry maturity level Long time to go before the technology curve flattens in the sector Opportunity for smaller players to compete on production innovations Limited scale benefits available in sourcing today (Limited to few components) From Technology evolution. Rotor sizes, hub heights changing New materials being tested Better turbines coming up Senvion s approach Modularisation as product philosophy Off the shelf component sourcing in some cases One mould multiple blades for efficient use Time Opportunities for technology driven companies remain in medium term 34

36 Agenda Key industry trends Strategic roadmap and outlook Our path to profitable growth a. b. c. Sales growth across segments Leveraging on competitive product portfolio Enhancing efficiency 4 5 Financial targets Key takeaways 35

4 Move Forward Some of key initiatives already under

modules Product competitiveness Organisational

Being implemented Being implemented Some examples: 1.

Efficiency gains in Opex and HR costs 2.

37 4 Move Forward Some of key initiatives already under way and early successes visible Sales Success Five modules Product competitiveness Organisational efficiency Operational efficiency Quality Key levers Being implemented Being implemented Some examples: 1. Production footprint optimisation 2. Nearshoring 3. Right sizing certain departments 4. Offshoring some non core R&D functions Benefits 1. Efficiency gains in Opex and HR costs 2. Faster and project driven organisation 3. R&D budget and new product development cycles optimised 36

38 Enhancing efficiency Effects of our first initiatives under MOVE FORWARD 4,662 ~780 Employee Base -14% Key target areas ~Employees mostly, in Germany Reductions in German production facilities at Husum, Trampe and Bremerhaven Reductions via efficiency gains in headquarter and R&D offices ~50 employees outside of Germany ~~120 ~4,100 Adding ~100 employees in Portugal Readjusting capacities for increased production Employees at Jan 17 Reductions planned New personnel to support growth Targeted after this initiative Adding new mould lines in our extremely efficient blade facilities Adding ~20 employees in new markets Target reductions of ~14% across the board for improving our fixed cost base 37

39 Enhancing efficiency Production footprint optimisation Faster production cycle and leaner manufacturing From Germany focused to globally streamlined footprint Key benefits Reducing complexity by consolidating global production facilities Nacelle Blades Nacelle Blades Generating synergy effects and benefitting from scale Bremerhaven Husum Trampe Oliveira de Frades Bremerhaven Vagos Bremerhaven Oliveira de Frades Baramati Vagos Ustron, Warszovice Realizing shorter production cycle times Leveraging capacities in low cost countries 3.6 GW Nacelle capacity CY16 installations 1.7 GW 2.7 GW Nacelle capacity Sufficient capacity for growth 38

Enhancing efficiency Transformation towards a lean and process optimized organisation Specific examples 1

standardized and integrated Clear defined targets Lean organisation with faster responses to the market 2 Efficiency

which are better than benchmark Insourcing service employees in some regions 3 Warehouse management Downsizing

40 Enhancing efficiency Transformation towards a lean and process optimized organisation Specific examples 1 Streamlining of processes Core value-driving processes identified Definition of cross-functional processes Fully standardized and integrated Clear defined targets Lean organisation with faster responses to the market 2 Efficiency gains in services Consolidation of service sites in central Europe Definition of work packages with standard times which are better than benchmark Insourcing service employees in some regions 3 Warehouse management Downsizing number of warehouses for O&M Service center harmonization Reduction of working capital while maintaining high level of service quality 39

41 Agenda Key industry trends Strategic roadmap and outlook Our path to profitable growth a. b. c. Sales growth across segments Leveraging on competitive product portfolio Enhancing efficiency 4 5 Financial targets Key takeaways 40

42 Financial targets Senvion From a local company to a global player Transition Growth Building brand name and expertise 3.7% 5.1% 7.5% 9.1% 9.3% 8.1% 3.4% 7.1% 7.5% 9.8% 9.3% % 9.5%-10.5% , , , , * 2, , ,922 2,139 2,210 2,000-2,100 25%+ 2,600-2, CY06 CY07 FY09 FY10 FY11 FY12 FY13 FY14 FY15 CY15 CY16 CY17 CY19 Revenues Adj. EBITDA * - EBITDA lower due to non profitable US business Note Figures prior to FY13 have not been restated post accounting policy change in revenue recognition 41

43 Financial targets Transformation fully reflected in sales by CY19 Revenue evolution ( M) 2,600-2,700 2,210 2,000-2,100 Current markets Current markets Current markets New Markets New Markets Service Service Service Offshore Offshore Offshore CY16 CY17 CY18 CY19 Current Markets Germany, France, UK, Italy, Belgium, Portugal, Canada New Markets India, ANZ, LatAm (ex Brazil), Scandinavia, Ireland, Japan etc Current markets Germany Market share to grow in Southern Germany France Maintaining market share of 20% New markets Australia Leveraging 3.xM products increase in activity India Growth in market share based on frame agreement and progress in order negotiations South Cone/Nordics Maintaining decent market shares in auctions and targeting large projects Focusing on other smaller markets with good turbine fit 42

44 Financial targets The path to higher profitability in the medium-term EBITDA development and improvement levers 1 Pricing 2 Organisational efficiency 3 Competitive pressures Optimised Opex Product cost out Production footprint Lean processes Low cost sourcing Lean structures Value engineering Other measures Product Innovations via modularisation Better quality management Suppliers renegotiations Better inventory management Volume effect Benefit of operating leverage New markets growth 206m m m CY16 Volume effect Pricing net of cost outs Service margins Lower OPEX Footprint & Efficiency consolidation improvements CY17 Volume effect New products Pricing net of cost outs & product improvements Service margins Fixed cost Continuous increase efficiecy and to support quality growth improvements CY19 Margin improvement driven by growth effects and efficiency measures 43

45 Financial targets Fixed costs Opex rationalisation already under way Quarterly Opex run rate ( m) Some examples: Insourcing of R&D Best cost country sourcing Reduction of consultancy and legal costs Nearshoring of admin functions Optimising manufacturing footprint Q1 16 Q2 16 Q3 16 Q4 16 Q4 17 Q4 19 Streamlining IT services and tendering processes Quarterly Employee costs run rate ( m) 62 Q Q2 16 Q3 16 Q4 16 Q4 17 Q4 19 <> Some examples: Reduction in headcount in 2017 due to optimized footprint Transformation to a flatter organization Streamlining processes in sales, project realization and services Nearshoring R&D services supporting volume growth and new product variants 44

46 Financial targets Capex and R&D targets Investments in 16/17 trigger growth from 2019 onwards Total tangible capex 1 outlook ( m) Key highlights 2.6% 2.2% 1.4% % 60 Slight increase in 2017 reflects internationalisation and product ramp-up Capex to shrink by CY19 Mar-14 Mar-15 PF adj CY15 CY16 CY17 CY19 R&D expense outlook( m) 2.6% 3.0% 3.1% 3.5% R&D spent increased post IPO Likely to continue at 3.5% in medium term Mar-14 Mar-15 PF adj CY15 CY16 CY17 CY19 % of revenue 1) Excluding capitalised R&D Exp. R&D Cap. R&D 45

47 Financial targets Path to free cash flow by CY19 Expected free cash flow profile* ( M) 32 Free cash flow generation from 2018 onwards Increase in cash to be triggered by new market entries and higher sales CY16 CY17 CY18 CY19 Capex expected to be reduced * - without the effects of new offshore platform R&D, capex costs Cash flow generation based on stable working capital levels Profitable growth by 2019 to lead to free cash flow generation 46

48 Financial targets Sound balance sheet Net working capital development ( m) Mar-13 Mar-14 Mar-15 Dec-15 Dec Net working capital NWC % of trailing LTM Within our WC guidance thanks to consistent working capital management 9.2% 9.2% 12.1% 12.1% 8.3% 8.3% (4.7%) (3.7%) Sustainable WC target of +2% to -4% Target range reflects business cyclicality and market entries Senvion GmbH Senvion S.A. (101) (83) Net Debt/EBITDA (0.01) (0.14) CY15 CY16 CY19 <1x Target to keep leverage under 1x 0 Evaluating options for refinancing of High yield bonds and LG facilities Strong balance sheet to support growth 47

49 Financial targets Key upsides and risks Possible upsides 1. 1 Gaining market share in the US 2. 2 Less pricing pressure than anticipated currently Key risks 1. 1 Delay in Chile order conversion Risk of revenues delayed to Delays in order intake conversion 3. 3 Any potential collaboration in offshore 4. 4 Grid parity to be reached sooner than expected, opening new opportunities 3. 3 Managing supply chain specially for blades 4. 4 Delays in product announcements 5. 5 Effects from saving programme taking more time than expected 6. 6 Any other unforseen expenses and risks in new markets 48

50 Agenda Key industry trends Strategic roadmap and outlook Our path to return to growth a. b. c. Sales growth across segments Leveraging on competitive product portfolio Enhancing efficiency 4 5 Financial targets Key takeaways 49

51 Key takeaways 1 Senvion well prepared to leverage opportunities in subsidy free world 2 Path to profitable growth by 2019 backed by detailed plans 3 Supported by efficient modular products in key markets 4 in less complex, more responsive organisation with smarter spending 50

52 Thank you for your participation Senvion S.A. All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photography, recording, or any information storage and retrieval system, without permission from Senvion S.A.

Execution according to plan More to come. Markus Tacke, CEO Wind Power and Renewables Capital Market Day Energy and Oil & Gas Houston, June 29, 2016

Execution according to plan More to come Markus Tacke, CEO Wind Power and Renewables Capital Market Day Energy and Oil & Gas siemens.com/investor Notes and forward-looking statements This document contains