Nordex Se · XETR:NDX1
Nordex — Non-Deal Roadshow (May 2006)
31 slides from Nordex's roadshow presentation, May 2006
Slide 1: Investor Presentation Nordex AG
Investor Presentation Nordex AG May 2006
Slide 2: Disclaimer
Disclaimer This document is made by Nordex AG solely for use at the presentation held to you by Nordex AG in April/May, 2006. It is furnished to you solely for your information, should not be treated as giving investment advice and may not be copied, distributed or otherwise made available to any ot
Slide 3: Nordex Management Team
Nordex Management Team Thomas Richterich Dr. Hansjörg Müller Carsten Pedersen CEO / CFO COO Board Member Head of Sales Previous positions with MAN, Previous positions with Managing Director of Nordex Ferrostaal and Babcock Siemens and Roland Berger Energy GmbH since 1987 Borsig Since 2004 Nordex boa
Slide 4: Nordex at a Glance
Nordex at a Glance Installed Base by Geography Headquarter: Norderstedt, Germany Founded in 1985 in Denmark Other Europe 30% Establishment of production operations Germany 44% in Germany (1992) and China (1998) America 2% Africa 4% IPO in 2001 Asia 20% Global manufacturer of wind energy Installed Ba
Slide 5: Investment Highlights
Investment Highlights Attractive fast growing end-markets Well positioned for strong growth Technology leader Well-positioned across the value chain Positioned in high-growth product segments International expansion Successful completion of turnaround Momentum generation & further upside potential S
Slide 6: Attractive Fast Growing End-Markets: Growing Importance of Wind Energy
Attractive Fast Growing End-Markets: Growing Importance of Wind Energy CAGR 15E: 15.8% 350.0 CAGR 2006E – 20 ‘05 – ‘10 ‘10 – ‘15 28.6% CAGR 1995-2005: 2.9% 2.7% 20% 13% 300.0 2.4% 2.1% 276.6 1.9% 1.6% 53% 17% 1.4% 1.2% 246.9 250.0 1.1% 0.9% 0.6% 0.7% 29% 17% 0.4% 0.5% 219.5 0.3% 0.3% 0.1% 0.1% 0.2%
Slide 7: Attractive Fast Growing End-Markets: Key Growth Drivers
Attractive Fast Growing End-Markets: Key Growth Drivers Demand for wind energy driven by renewables regulations, price competitiveness of wind energy and strong worldwide energy demand World demand for primary energy increased by Generation Cost in €/MWh over 4% in 2004, world petrol demand by 1.5%
Slide 8: Well Positioned for Strong Growth: Technology Leader
Well Positioned for Strong Growth: Technology Leader Nordex track record of technological innovation Current R&D Initiatives New drive train concept with Launch of serial differential gearbox production of (N90/2500) 90m class 2.5 Upgrade yaw system MW wind Installation of turbine Upgrade pitch syst
Slide 9: Well Positioned Across the Value Chain
Well Positioned for Strong Growth: Well Positioned Across the Value Chain Project Wind farm development Technical Wind farm Service and system marketing realisation operation maintenance planning financing Market leader in Micrositing of 100% Core business: Additional service 2200 turbines are Franc
Slide 10: Positioned in High-Growth Product Segments
Well Positioned for Strong Growth: Positioned in High-Growth Product Segments Nordex is growing faster than the market and has established a proven technological position in the MW turbine class CAGR ‘01-’05 by MW class Newly installed MW p.a. 12,000 % 11,203 : 12.2 CAGR NM 10,000 8,305 8,153 +39.9%
Slide 11: Nordex Has Grown Faster Than the Market
Nordex Has Grown Faster Than the Market Leading to Recovery of Market Share Market Growth in 2005 Nordex’ World Market Share Recovery in 2005 7% 3% 2% Market GE 120% 3% Share Suzlon 117% Nordex’ Newly Installed Capacity in MW 500 Nordex 60% Repower 30% 60% Siemens 24% 300 Enercon 17% 250 190 Vestas
Slide 12: Well Positioned for Strong Growth: International Expansion
Well Positioned for Strong Growth: International Expansion As of Mar-2006 Nordex has installed 1,543 turbines outside Germany (56% of total installed base) and is further expanding its international operations. Country Activity China: Foundation of rotor blade production (4,000 sqm) for N60/1,300 kW
Slide 13: Successful Completion of Turnaround
Successful Completion of Turnaround Monthly Performance Since 2005 Revenues (in €m) EBITDA (in €m) May-2005 May-2005 Financial Financial 7.0 Restructuring 62.7 Restructuring Completed Completed 52.1 44.9 41.9 3.1 3.1 35.9 35.2 2.2 2.6 11.2% 2.3 1.9 1.7 27.0 27.8 1.3 8.8% 1.0% 23.9 7.4% 4.8% 7.9% 6.1
Slide 14: Momentum Generation: Continuously Increasing Order Intake
Momentum Generation: Continuously Increasing Order Intake Order Intake by Order Intake Above Budget in 2005 and 1Q 2006 Region in 1Q-2006 Asia 1% 450 Q1-4: Germany 400 €395m 16% 350 Rest of Europe Q1-3: +67% 300 Q1/2006: €280m 83% €263m Total: €263m 250 Q1-2: Order Intake by €158m Product in 1Q-2006
Slide 15: Further Upside Potential: EBIT Improvement Plan
Further Upside Potential EBIT Improvement Plan EBIT Improvement Plan EBIT Improvement Plan Targets Operative restructuring completed in Mar-2005 ~10% 1.5-2% Subsequently EBIT Improvement Plan launched with a focus on 2-3% Service Performance Procurement & Logistics 1.5-2% Technology Aim of the plan
Slide 16: Increase of EBIT Margin Expected Due to Improvement Plan
Increase of EBIT Margin Expected Due to Implementation of Improvement Plan Examples of Measures Cumulative Sustainable Cost Savings (in €m) Development of lighter tower for weak wind 70.0 sites Steps of implementation: – Specification – Prototyping – Certification 38.6 – Implementation in series pro
Slide 17: Further Upside Potential: Enhanced Outlook 2006
Further Upside Potential: Enhanced Outlook 2006 2006E (old) 2006E (new) Order Intake >€450m ≥€600m (Y-on-Y) +14% +50% Revenues >€400m ≥€460m (Y-on-Y) 30% +50% EBIT Margin 2.5% ≥3.0% Projected revenues secured by order volume: 100% of 2006 revenues secured by unconditional orders Unconditional and co
Slide 18: Opportunities for and Limitations of Growth Beyond Plan
Opportunities for and Limitations of Growth Beyond Plan Opportunities Limitations 1. Markets Recovery of market share, New set-up in 1-2 markets p.a. target > 5% Cautious towards offshore 2. Core components International supply Production capacity gear boxes and blades 2-3 supplier strategy 3. Produ
Slide 19: Investment Highlights
Investment Highlights Attractive fast growing end-markets Well positioned for strong growth Technology leader Well-positioned across the value chain Positioned in high-growth product segments International expansion Successful completion of turnaround Momentum generation & further upside potential S
Slide 20: Appendix
Appendix Page 20
Slide 21: Price Development of Fossil Fuels
Price Development of Fossil Fuels in % 250 200 150 100 50 Q1/2004 Q2/2004 Q3/2004 Q4/2004 Q1/2005 Q2/2005 Q3/2005 Q4/2005 Q1/2006 Steam Coal ARA $/MT Natural Gas $/MMBTU Crude Oil WTI Spot U$/BBL Increasing prices of fossil fuels have made wind more competitive Source: ARA, WTI, Datastream Page 21
Slide 22: Spot Market Price in 2005 (EEX)
Spot Market Price in 2005 (EEX) Euro/MWh Jan-2005 Feb-2005 Mar-2005 Apr-2005 May-2005 Jun-2005 Jul-2005 Aug-2005 Sep-2005 Oct-2005 Nov-2005 Dec-2005 Peakload EEG max. remuneration (85.9 EUR/MWh) Baseload EEG basic remuneration (53.9 EUR/MWh) Market power price was considerably in excess of the EEG t
Slide 23: The Nordex Group's Restructuring Concept was based on Five Core Elements
The Nordex Group’s Restructuring Concept was based on Five Core Elements 1 2 Focus on attractive core markets Regaining technical position in Concentration on foreign growth upper market segment markets Elimination of existing deficiencies Improved marketing efficiency and lowering production costs
Slide 24: 2005 Recapitalisation and Current Shareholder Structure of Nordex
2005 Recapitalisation and Current Shareholder Structure of Nordex Recapitalisation Completed in May 2005 Current Shareholder Structure Share • Reverse split 10 : 1 Capital Cash Capital • €41.6m Increase • Capital increase with pre-emptive rights for existing shareholders Freefloat • All shares from
Slide 25: Product Overview
Product Overview Type Capacity Regulation Certification Nordex N60 1,300kW stall GL1/GL2 Nordex S70/77 1,500kW pitch GL2/IEC 3a Nordex N80 2,500kW pitch IEC 1a Nordex N90 2,300kW pitch GL2 Nordex N90 2,500kW pitch IEC 1b (HS) IEC 2a (LS) Page 25
Slide 26: Production Facilities
Production Facilities Yinchuan: 99 blades/year S70/77 JV NR-34/37 120 blades/year 8-10 WTG MW- 2 WTG 600 kW- class/week class/week NR-40/45 180 blades/year Page 26
Slide 27: Income Statement (IFRS)
Income Statement (IFRS) 01-Oct-2003- 01-Jan-2005- €m 30-Sep-2004 31-Dec-2005 ∆ Sales 221.6 309.0 87.4 39.4% Total Revenues 218.8 319.4 100.6 46.0% Cost of materials (173.3) (251.3) 78.0 45.0% as a percentage of total revenues 79.2% 78.6% Personnel costs (34.5) (34.1) (0.4) (1.3)% as a percentage of
Slide 28: Balance Sheet (IFRS)
Balance Sheet (IFRS) €m 31-Dec-2004 31-Dec-2005 31-Dec-2004 31-Dec-2005 Fixed assets 54.2 55.4 Shareholder‘s equity 2.5 63.5 Current assets 106.1 150.0 Provisions 62.1 55.8 Net inventories 47.5 71.1 Liabilities 105.2 115.3 Receivables 49.2 59.4 Banks 37.6 7.1 and other assets Trade payables 39.8 64.
Slide 29: Cash Flow Statement (IFRS)
Cash Flow Statement (IFRS) 01-Oct-2003- 01-Jan-2005- €m 30-Sep-2004 31-Dec-2005 Net income/loss (33.5) (8.2) Depreciation 12.2 11.7 Change in provisions (4.6) (6.3) Change in inventories 41.8 (23.5) Change in trade receivables and other assets (6.6) (12.6) Change in trade payables and other liabilit
Slide 30: Contact
Contact Nordex AG Ralf Peters Bornbarch 2 Head of Corporate Communication/ Investor 22848 Norderstedt Relations Germany Phone: +49 (0)40/500 98 522 Fax: +49 (0)40/500 98 333 www.nordex-online.com eMail: [email protected] Page 30
Slide 31: Financial Calendar
Financial Calendar Annual general meeting in Rostock May 15, 2006 Report on the first quarter of 2006 May 30, 2006 Report on the first half of 2006 August 25, 2006 Report on the third quarter of 2006 November 23, 2006 Report on fiscal 2006 April 26, 2007 Page 31