Nordex SE Conference Call Q Frankfurt/M. November 14, 2013

Transcription

1 Nordex SE Conference Call Q Frankfurt/M. November 14, 2013

2 AGENDA Speaker: Dr. Jürgen Zeschky, CEO 1. Highlights 2. Market update 3. Business performance 4. Financials 5. Outlook and guidance 6. Appendix 2

3 1. HIGHLIGHTS All major KPIs developing according to plan Order intake momentum still strong OI guidance raised to EUR 1.4 bn EUR 1.5 bn Strategy implementation on track Product development intensified IEC 3 WTG of Generation Delta will be launched soon ( leading light wind efficiency ) 3

4 2. MARKET UPDATE FORECAST AND HIGHLIGHTS Regional development (grid connections in GW) e +4% e e e Sources: GWEC; MAKE Consulting September 26, Americas e Asia-Pac. Europe RoW Market highlights Recent MAKE forecast downgraded but global WTG installations to grow with a mid-term CAGR of ~4% Demand in Northern European focus markets in line with or above global average Southern and Eastern Europe with difficult market dynamics but overall volume stable thanks to Turkey and France Americas: US market as main reason for global market decline in 2013 and increase in 2014; ambitious renewable targets set for LatAm (e.g. recent upgrade in Chile) Asian volume driven by China despite grid connection bottlenecks - Tier II markets slowly developing RoW: tender round 3 in South Africa resulted in >750 MW wind capacity (financial close due in summer 2014) Onshore WTGs account for ~90 % of the market potential 4

5 APAC Americas EMEA 2. MARKET UPDATE CURRENT NX DEVELOPMENTS Continuing demand for N117/2400 in EMEA core markets Installations of Generation Delta in Finland (CC version) First eleven WTGs installed in South Africa third tender round closed High production capacity utilization in nacelle assembly in Rostock Set up of partnership with TPI for NR 58.5 blades in Turkey on track Organizational adjustments in the US implemented Assembly of nacelles for remaining projects end of production and closure of the factory in Jonesboro planned for Q First WTGs in Uruguay installed Ongoing project development and sales activities in LatAm (esp. Uruguay, Chile, Honduras) and the USA Organizational adjustments in China implemented End of production and closure of the factory in Yinchuan Third Pakistan project converted into firm order intake (50 MW) Ongoing sales focus outside China (esp. Pakistan, Philippines, Vietnam, Thailand) 5

6 3. BUSINESS PERFORMANCE ALONG THE VALUE CHAIN Order backlog EUR 1,292 mn (+23 % vs. YE 2012; +76 % yoy) Sales target 2013 fully covered by existing backlog Installations 924 MW (+61 % yoy) already above FY 2012 (920 MW) Major markets in EMEA: Germany (169 MW), Turkey (132.5 MW) and UK (105 MW) Service Sales up 15 % (9m 2013: EUR mn vs 9m 2012 EUR 87.2 mn) Performance in line with budget (sales and EBIT) Global WTG availability >98 % Production Turbine production: 1,002 MW (+64 % yoy) Blade production: 165 MW (-15 % yoy) due to changeover to NR 58.5 blade type 6

7 3. BUSINESS PERFORMANCE R&D FOCUS REMAINS STRONG in EURmn R&D spending EUR p.a. Current R&D focus Successful launch of Generation Delta (IEC 1+2) in H Three test WTGs with different configurations installed, milestone certificates received Further WTGs installed in Finland (CC version): R&D incl. expenditure on tools to develop new products (NXT 8.2; NXT-GEN) will remain the major focus of CAPEX 7

8 3. BUSINESS PERFORMANCE LEADING LIGHT WIND EFFICIENCY IN GENERATION DELTA Product development for NXT 8.2 well on track New Generation Delta WTG for IEC3 sites Strengthen leading position in light wind Teaser campaign started official launch will follow soon 8

9 4. FIRM ORDER INTAKE Development of firm order intake 9m 2013 vs. 9m 2012 (in EUR mn) Order intake distribution 9m % APAC 9% Americas 12% 640 EMEA 79% 9m m 2013 Strong trend remains with a more steady order inflow compared to order intake in total EUR 1,186 mn (+85 % yoy) 79 % from EMEA main markets Germany, Turkey, Scandinavia, S.Africa Bestselling turbine N117/2400 with a share of >50 % 9

10 4. FIRM ORDER BACKLOG Development of firm order backlog 2012 Q (in EUR mn) +23% >1, Q YE 2012 Q YE 2013e Firm order backlog at EUR 1,292 mn ( : EUR 735 mn) Thereof >80 % EMEA but low exposure to Southern European countries affected by the debt crisis (<5% ) 10

11 4. INCOME STATEMENT In EUR mn 9m m 2012 in % Sales 1, Total revenues 1, Cost of materials (844.6) (576.0) 46.6 Gross profit Personnel costs (113.0) (103.6) 9.1 Other operating (expenses)/income (68.7) (45.7) 50.3 EBITDA >100 Depreciation (29.0) (22.8) 26.6 EBIT >100 Net financial result (20.2) (17.8) 13.5 EBT 10.8 (15.5) n.m. Tax (5.5) (0.1) (>100) Net Profit 5.3 (15.6) n.m. Sales increase of 47 % due to strong business in EMEA (share of 91 %) Improved EBIT due to higher efficiency - Increase in structural costs (+22 % yoy; without depreciation) well below sales increase, despite additional costs for new country organisations (RSA, UY) and increased activity level Profitable order backlog and full effect of lower cost of materials expected for

12 4. GROSS MARGIN DEVELOPMENT AND SELECTED KPIS Gross margin development Q FE2013e (in %) Development of selected KPIs yoy Headcount 0% Personnel costs +9% 17.4 Structural costs +22% Production Output +64% Installations +61% Q Q Q Q FY 2013e Steady gross margin improvement over the last four quarters full year target of 22.5 % Increase in nacelle production output and installed MW with a stable headcount and a disproportional lower increase in structural costs 12

13 4. INVENTORIES AND WORKING CAPITAL DEVELOPMENT Quarterly development of inventories (EUR mn) and working capital ratio (%) 2010 Q EUR mn W/C ratio in % % 400 Inventories in EUR mn % Q Q Q Q Q Improved working capital management resulted in a low working capital ratio of 11.2 % despite high business volume Inventories decreased by 10 % yoy despite higher level of production and installation 13

14 4. CASH FLOW STATEMENT In EUR mn 9m m 2012 Net result 5.3 (15.6) Cash flow from operating activities (58.1) (32.7) Cash flow from investing activities (46.8) (40.0) Cash flow from financing activities (25.7) (20.2) Change in liquidity from cash flows (130.6) (92.9) Liquidity beginning of period Other (5.6) 1.2 Liquidity end of period Higher cash outflow due to increased volume of projects in execution and run-up phase for large projects correction by further operational efficiency and cash inflow expected until the end of the year Investment focus on product development, upgrade of the German plants for the Generation Delta and NR 58.5 blade Higher cash outflow from financing activities due to a redemption payment (credit facility in China) 14

15 4. BALANCE SHEET In EUR mn 9m 2013 YE m 2013 YE 2012 Liquid funds Current bank borrowings Trade receivables and future receivables Trade payables Net inventories Other current liabilities Other current assets Current assets Current liabilities Property, plant, equipment Non-current bank borrowings Capitalized R&D expenses Deferred tax liabilities Deferred tax assets Bond Other non-current assets Other non-current liabilities Non-current assets Non-current liabilities Shareholders equity Total assets 1, ,066.1 Total liabilities 1, ,066.1 Equity ratio slightly improved to 27.7 % ( : 26.2%) Net debt position at a low level of EUR 54 mn 1 Bond incl. accrued interest 15

16 5. SUMMARY AND GUIDANCE m 2013 fully in line with our recently upgraded guidance Order intake momentum still very strong in Nordex focus markets such as Germany, UK, Ireland and Turkey Sales target 2013 fully covered by strong order backlog A yield-driven product mix (esp. N117/2400), improvements in cost-cutting (CORE 15) as well as improved operational excellence support the EBITmargin Guidance 2013 Upgrade Q Order Intake EUR bn EUR 1.4 bn 1.5 bn Sales EUR bn EBIT % Working capital ratio % 16

17 5. OUTLOOK AND TARGETS 2015 Nordex has almost reached its targeted top line level of EUR 1.5 bn and will grow further at a more moderate rate and with more emphasis on profitability Diversification of installations towards LatAm and APAC from ~5% to >20% Sales: Increased sales visibility due to high order backlog EBIT: Strategic measures (esp. CORE 15, operational excellence) with a positive impact on profitability CAPEX: R&D programme with a focus on NXT 8.2 and NXT-Gen ( Tech Boost ) Targets 2015 Sales >EUR 1.5 bn EBIT 5 % CAPEX EUR mn Free Cash flow positive 17

18 6. FINANCIAL CALENDAR 2013 / 2014 (PRELIMINARY) Date Event 14 November 2013 Interim report for the third quarter 2013; Analyst Call & November 2013 Roadshow Frankfurt, London, Paris 28 November 2013 HSBC Zurich Conference 18 March 2014 Publication of preliminary figures March 2014 Publication of the Annual Report 2013 including Press Conference 14 May 2014 Interim report for the first quarter 2014; Analyst Call 3 June 2014 Annual General Meeting 2014 in Rostock 13 August 2014 Interim report for the first half-year 2014; Analyst Call 13 November 2014 Interim report for the third quarter 2014; Analyst Call 18

19 6. SHAREHOLDER STRUCTURE OF NORDEX SE Skion/momentum capital 24.99% JPMorgan Chase 4.89% Free float 70.12% On the basis of mn shares, as of October,

20 DISCLAIMER The targeted goals in this document reflect forward looking statements which are based solely on estimates and not on predictable risks. Should the estimates with regard to the successful integration of acquisitions and the future internal growth of the company not to be realized or if other unpredictable risks should arise, it cannot be ruled out that the actual financial results of the company will differ substantially from the targeted goals as laid out in this document. In this respect Nordex SE is unable to give a guarantee that the actual financial results of the company will not differ from any forecasts or guidance given. 20

21 MANY THANKS FOR YOUR ATTENTION. Ralf Peters Head of Corporate Communications Phone: +49 (0) Fax: +49 (0) Oliver Kayser Investor Relations Manager Phone: +49 (0) Fax: +49 (0) Nordex SE Langenhorner Chaussee 600, Hamburg, Germany NDX1 ISIN: WKN: ISIN: WKN: DE000A0D6554 (share) A0D655 (share) XS (bond) A1H3DX (bond) 21