Nordex Se · XETR:NDX1
Nordex — H1 2009 Earnings Presentation
27 slides from Nordex's earnings presentation, Aug 25, 2009
Slide 1: Nordex AG Conference Call H1/2009
Nordex AG Conference Call H1/2009 August 25, 2009 Page 1
Slide 2: Overview
Overview • Satisfying financial interim result despite continuing credit crunch Sales +10% yoy in H1/2009; 43% of full year-sales target achieved EBIT - 5% in Q2 yoy – effect of cost cutting measures • Strong balance sheet and solid cash position • Sufficient funds and credit lines available to fina
Slide 3: Wind market forecast upgrade 2009
Wind market forecast upgrade 2009 USA • New installations up by 38% in H1/2009 compared to previous year • Low level of new orders in H1; pipeline has dried up • Upgrade of FY 2009 forecast from 6,000 MW to 7,200 MW • Recovery in new business expected in Q4 2009 China • Market continues to boom • Fo
Slide 4: Turkey – a promising new wind market
Turkey – a promising new wind market High potential for wind energy Nordex Turkey • Turkey imports nearly 65% of primary • Entered the market in 2007 and energy to meet its requirements established a local company in Istanbul in April 2009 • Energy demand has significantly risen over the past few ye
Slide 5: Global demand forecast 2009e - 2013e
Global demand forecast 2009e - 2013e New MW 60.000 53,530 MAKE forecast upgrade for R: FY 2009 from -6% to +8% CAG 47,250 50.000 +16% 41,390 18,870 40.000 34,630 17,000 29,730 15,430 30.000 27,532 13,870 16,610 8,711 12,500 14,850 20.000 11,940 10,310 9,171 8,370 10.000 17,450 13,620 14,950 9,476 8,
Slide 6: H1/2009 overview
H1/2009 overview • Solid growth in sales • Profitability of installed projects at same level as in 2008 • Substantial expenditure on new structures • Cost-cutting measures have already begun to take effect • Strong balance sheet & solid cash position Page 6
Slide 7: Development of sales H1/2009
Development of sales H1/2009 H1/2008 H1/2009 Total: EUR 465.9 million Total: EUR 512.5 million 8% <1% 11% 12% +10% 89% 80% Europe America Asia • Total sales increase by 10% to EUR 512.5 million in H1/2009 thanks to positive performance in USA (>100% yoy) and stable performance in Europe • Nordex wel
Slide 8: Output development in H1/2009 (in MW)
Output development in H1/2009 (in MW) 490 -2% 482 • Turbine production output at previous year’s level -25% 268 • Decrease in rotor blade production 200 reflects build-up of inventory ahead of production changeover this year 113 78 48 42.5 H1/2008 H1/2009 WTG China Rotor Page 8
Slide 9: Key figures P+L H1/2009
Key figures P+L H1/2009 In € mn H1/2009 H1/2008 ∆ in % Q1/2009 Q2/2009 ∆ in % Sales 512.5 465.9 10.0 233.3 279.2 19.7 Total revenues 521.2 483.7 7.8 245.1 276.0 12.6 Costs of materials (409.4) (383.5) 6.8 (193.4) (216.0) 11.7 Gross profit 111.8 100.2 11.6 51.7 60.0 16.1 Personnel costs (52.6) (35.7)
Slide 10: Fixed costs declining as a result of cost-cutting measures
Fixed costs declining as a result of cost-cutting measures Total: EUR 65.1 mn Total: EUR 51.3 mn Total: EUR 51.0 mn -21% 36.7 -1% 20.2 19.6 5.1 4.7 3.6 24.8 26.0 26.7 Q4/2008 Q1/2009 Q2/2009 Personnel Depreciation Net other operating expenses All figures in EUR million Page 10
Slide 11: Key figures balance sheet H1/2009
Key figures balance sheet H1/2009 H1 H1 In € mn 2008 In € mn 2008 2009 2009 Liquid funds 106.4 111.7 Current bank borrowings 39.0 15.8 Trade receivables 75.3 103.4 Trade payables 96.8 132.6 and future receivables Net inventories 391.9 372.2 Prepayments received 156.9 176.6 Other current assets 77.8
Slide 12: Development inventories and working capital
Development inventories and working capital Inventories WC including reservation fee (WC to total revenues) 405.6 391.9 372.2 340.8 318.1 289.1 231.8 221.6 25% 165.4 157.2 20% 15% 10% 5% Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/2009 2009e Working capital management will make a signif
Slide 13: Cash flow statement H1/2009
Cash flow statement H1/2009 In € mn H1/2009 H1/2008 Net profit/loss 2.3 13.4 Depreciation 9.8 7.8 Change in provisions (12.9) 11.5 Change in working capital (60.0) (24.8) Change in deferred taxes 3.0 4.3 Other non-cash expenses 3.4 0.0 Cash flow from operating activities (54.4) 12.2 Cash flow from i
Slide 14: CAPEX 2009 financing fully assured
CAPEX 2009 financing fully assured Set up U.S. manufacturing plant Other Product development Extension Chinese production facility Extension rotor blade production HRO CAPEX total amount: EUR ~ 70 million Page 14
Slide 15: 2009 – Preparing for further growth
2009 – Preparing for further growth Suppliers Customers • Setup of international supply chain • Strengthening of customer relationships in US • Flexible purchase coordination market • Integrated logistics process • Building relationship with utilities & IPPs Products & Production Structures & Proces
Slide 16: Order intake since January 2007
Order intake since January 2007 New firm orders (12 month rolling average) EUR m 120 H1/2009 H2/2009 100 80 ? 60 40 Stabilisation Effect of the at reduced 20 Growth level: Recovery? financial crisis “new floor” 2007 2008 2009e EUR 1,221 mn EUR 876 mn > EUR 876 mn Uptick in order intake in March and
Slide 17: Order Backlog in EUR mn as of H1/2009
Order Backlog in EUR mn as of H1/2009 3,044 2,470 • Total order backlog at high level, even in -24% current financial market turmoil 2,220 • High volatility in order intake during the 1,679 course of H1/2009 • More than 100% of the sales target for 2009 already secured by H1 sales results and firm o
Slide 18: Conclusion
Conclusion • Confirming guidance: sales growth to approx. EUR 1.2 billion expected • Positive net profit for 2009 as whole, albeit lower than in 2008 Positive impact from higher sales volume in the second half Fixed costs to remain at the same level as in Q1/2009 This means that the operating margin
Slide 19: Appendix
Appendix Page 19
Slide 20: Development of global wind asset finance Q1 2004 – Q1 2009
Development of global wind asset finance Q1 2004 – Q1 2009 USD bn New build Acquisition Refinancing 20 15 10 5 0 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 Q Q Q Q Q Q Q Q Q Q
Slide 21: Strong political support for future electricity generation by renewable sources
Strong political support for future electricity generation by renewable sources The U.S. market • USD 112 bn green stimulus package (USD 40 billion earmarked for clean energy) Target 2012: 10% renewables • Production Tax Credit (PTC) extended to Target 2025: 25% renewables 2012 • New investment tax
Slide 22: Set up of the first US manufacturing plant
Set up of the first US manufacturing plant • Location: “Craighead Technology Park”, Jonesboro, Arkansas • Two phase construction: Nacelle assembly plant Rotor blade manufacturing facility • Nacelle assembly will be ramping up in the second half of 2010 (full scale operating in 2012 with an annual pr
Slide 23: Strong political support for future electricity generation by renewable sources
Strong political support for future electricity generation by renewable sources The Chinese market • USD 585 billion stimulus package (8% of which is intended for the environment) Target 2012: 30,000 MW WTG • China is poised to become the biggest Target 2020: 15% renewables growth market for wind-po
Slide 24: Strong political support for future electricity generation by renewable sources
Strong political support for future electricity generation by renewable sources The European market • USD 54 billion green stimulus package (6% renewable, 68% energy efficiency) Target 2020: 20% renewables • EU Target of 20% renewable electricity agreed for 2020 New installed MW (Europe) • Germany:
Slide 25: Shareholder Structure of Nordex
Shareholder Structure of Nordex Skion / momentum capital / Klatten 21.83% Freefloat 50.59% CMP-Fonds I GmbH 24.05% Thereof 10.65% Stichting Administratiekantoor GS NDX Investment Trust CJ Holding ApS* 3.53% * Controlling company of Nordvest A/S On the basis of 66.845 mn shares, as of August 2009 Pag
Slide 26: Contact
Contact Nordex AG Ralf Peters Bornbarch 2 Head of Corporate Communications 22848 Norderstedt Phone: +49 (0)40 30030 1522 Germany Fax: +49 (0)40 30030 1333 www.nordex-online.com eMail: [email protected] Page 26
Slide 27: Disclaimer
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 ot