Company Presentation Conference Call Q1 2005, May 13 REpower Systems AG

Transcription

1 Company Presentation Conference Call Q1 2005, May 13 REpower Systems AG

2 Speakers today Prof. Dr. Fritz Vahrenholt Pieter Wasmuth CEO & Corporate Strategy Finance & Personnel Former member of the board of Deutsche Shell, responsible for the Renewable energy sector Former minister of environmental affairs in Hamburg Chairman of the supervisory board of HEW (Vattenfall Europe) Sole Director of BELLEVUE and MORE AG Member of the Managing Board of TOMORROW Internet AG Active in various finance and controlling functions at Deutsche Shell most recently as Divisional Manager Auditing Manager for Price Waterhouse GmbH 2

3 First three Months 2005 at a Glance % increase of rated output: 61.0 megawatts compared to 30.0 megawatts in % growth in gross revenue: EUR 50.5 million compared to EUR 41.2 million in 2003 EBIT EUR -4.7 million in comparison with previous year figure of EUR -3.3 million. Order backlog of 244 turbines (454.5 MW) Implementation of the restructuring plan REact Successful construction and commissioning of the 5M-Prototype Further progress in international orders Overview REpower is anticipating a noticeable growth of sales with a simultaneous realisation of the turnaround on EBIT basis for 2005 Involvement of the Portuguese steel and metal construction company, Martifer, as a major investor with 19.5 per cent of the equity 3

4 Restructuring Plan REact Overview Streamlining the management work Reconstruction of functional process chains, i.e. marketing, purchasing, project management/production, services Strengthening the project management Higher degree of transparency in finance and accountancy via introducing decentralised controlling Conducting service division as an own profit centre Increased efficiency through focussing on core markets and products REact is fully approved by supervisory board First measures have been implemented, e.g. management board is reduced from five to three members 4

5 Key Figures REpower Systems Group Key figures for Group in accordance with IFRS 01/01/05 31/03/05 01/01/03 31/03/04 Revenue in thousand EUR Gross revenue in thousand EUR EBIT in thousand EUR Result before income taxes and minority interest in thousand EUR Result before minority interest in thousand EUR Net loss in thousand EUR 55, , , , , , ,6-3, ,365,0-2, , ,318.1 Key figures for Group in accordance with IFRS Total assets in thousand EUR Shareholders equity in thousand EUR Equity ratio in % Number of no-par value shares Earnings per share in EUR Closing price on March 31, 2005 in EUR 249, , ,401,

6 Development of the Number of installed WTs and overall Performance in MW in Germany in Q Developments on the German market As of March 31, 2005: 140 wind turbines with a rated power of megawatts were installed in Germany (previous year period: 215 wind turbines with a rated power of megawatts); this means again a decline of more than 30 % in market growth compared with 2004 In total, 16,683 wind turbines with a total rated output of 16, megawatts were installed in Germany at the end of March 2005 For the overall year an increase in installed performance of approx. 1,700 megawatts is expected Newly published draft of the Act to Improve local Tax Conditions will be an added burden on German wind industry, as closed-end media and energy funds in particular will be affected (REpower as a mere turbine manufacturer, whose customers are rarely fund companies, is expected not to be affected by these developments) Source: Dewi

7 REpower R&D Programme Progress steps All the essential assembly work on the REpower 5M and commissioning process had been successfully completed: approx. 3 million kilowatt-hours produced since electricity first fed into the grid on February 2th., 2005 Preparatory measures were taken for the implementation of the DOWNVinD project of Talisman Energy using two turbines of the REpower 5M type Development of the new MM92 turbine has been on schedule: all components of the prototype were ordered in Q1 and are now in forward planning so that establishment of the turbine can be expected in the summer of 2005 New control system REguard has left prototype status at the end of Q1 2005, all software routines were tested and optimised 7

8 Staff Development No. of employees (as of March 31, 2005) REpower Systems Group Qualification of employees (as of March 31, 2005) REpower Systems AG 590 4% 9% 22% % % 520 Engineering Technical 510 March 31, 2004 March 31, 2005 Administration Other Qualifications Other Academics Every fifth employee has an engineering degree Planning for 2005: Replacement of job positions only in line with the REact restructuring plan 8

9 Development of the REpower Systems Group (IFRS) (in million EUR) 2001 Consolidated 2002 Consolidated 2003 Consolidated 2004 Consolidated 01/01/05-31/03/05 Consolidated Gross revenue Growth yoy in % Operating result (EBIT) Margin in % Net income / loss* Margin in % Total assets Shareholders equity Capex (net) ** Shareholders equity ratio % Cash flow * After Minorities ** First consolidation of project companies 9

10 Installed Wind Turbine for Q and Q Q I 2005 Q I 2004 Jan. 1 - March 31 Jan. 1 - March 31 Wind turbine model No. MW No. MW MM MM MD MD / Due to a higher share of internationally installed turbines in Q1 2005, thus smoothing seasonal swings of the national market, installation figures increased in Q in comparison with the previous year 10

11 Income Statement* Proforma w/o D&W AG Income statement (in EUR) Revenue Changes in inventories of finished goods and work in progress Gross revenue Other operating income Cost of purchased materials and services Personell expenses Depreciation on property, plant and equipment and intangible assets Amortization of goodwill Other operating expenses Operating result Interest income/expenses Interest from investments Result before income taxes (and minority interest) Taxes on income Other taxes Result before minority shares Minority shares Net loss Result per share -0,62-0,27-0,43 Average number of shares in circulation * German figures 11

12 Balance Sheet I* Assets ( in EUR ) Current assets Liquid assets Shares in project corporations Future accounts receivable from contract orders Trade accounts receivable Intragroup receivables Accounts receivable from project corporations Inventories Short-term prepaid expenses and other deferred charges Total current assets Non-current assets Property, plant and equipment Intangible assets Goodwill Financial assets Borrowings Deferred taxes Long-term prepaid expenses and deferred charges Total non-current assets Total assets * German figures

13 Balance Sheet II* Liabilities in EUR Short-term liabilities Short-term loans and short-term percentage of longterm loans Trade accounts payable Intragroup liabilities Accounts due to project corporations Advance payments received Provisions Deferred sales Income tax liabilities Other short-term liabilities Total short-term liabilities Long-term liabilities Long-term loans Capital from profit participation rights Deferred taxes Total long-term liabilities Minority interests Equity capital Subscribed capital Capital rserve Balance-sheet profit/loss Total equity capital Total liabilities * German figures 13

14 Cash Flow Account* Cash flow account in EUR in EUR Cash flow from business activities: Annual result ,0 Adaptations for: Minority shares ,7 Depreciation on property, plant and equipment ,5 Deferred taxes ,0 Increase/decrease of reserves and valuation reserves ,2 Change in long-term prepaid expenses and deferred charges ,7 Change in working capital ,9 Funds achieved/applied from operational activities ,0 Cash flow from investment activities Acquisition of assets ,8 Funds achieved/applied from investment activities ,8 Cash flow from financing activity Payments in from raising long-term loans ,0 Payments from repaying loans ,6 Funds achieved/applied from financing ,4 Increase/reduction of liquid funds ,4 Liquid funds at the beginning of the period ,3 Liquid funds at the end of the period ,7 Cash in bank ,0 Short-term bank liabilities ,7 Liquid funds at the end of the period ,7 * German figures 14

15 REpower s constant high Order Backlog Mar. 31, 2005 Mar. 31, 2004 Wind Number of Total Number of Total turbine model wind output in MW wind output in MW turbines turbines MM MM MD MD / Order backlog of megawatts in 2005 corresponds to a total volume of EUR million 15

16 Involvement of the Martifer Group Old shareholder structure 5.05% New shareholder structure 19.5% 28.99% 14.5% 65.96% 66% Martifer RE-DKW Freefloat Martifer RE-DKW Freefloat The Portuguese steel and metal construction company, Martifer Construções Metalomecânis, has increased its share from 5.05 per cent to 19.5 per cent Acquisition of a block of shares from the ELBE Betreuungs- und Verwaltungsgesellschaft mbh Martifer belongs to the stock exchange-listed Mota-Engil Group, one of Portugal s largest construction companies It is also well known for constructing sport stadiums for the European Football Championship in Porto and Lisbon 16

17 Outlook on 2005 Noticeable growth of sales with a simultaneous realisation of the turnaround on EBIT basis for 2005 In view of a steadily high order backlog on hand, the establishment of approximately 200 turbines are to be erected in 2005, 50 % outside Germany Establishment of 70 turbines is planned for the first six months of 2005 Major order from RWE subsidiary npower renewables for delivery of 16 MM70 turbines with a rated output of 2-megawatt turbines for the Ffynnon Oer project Order with REpower partner Dongfang Steam Turbine Works of seven turbines (1.5 megawatt technology) to be delivered to Rongcheng Planned joint venture with the new major investor Martifer in Portugal 17

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