Nordex Se · XETR:NDX1
Nordex — Q3 2016 Earnings Presentation
23 slides from Nordex's earnings presentation, Nov 10, 2016
Slide 1: Nordex SE Conference Call Q3 2016
Nordex SE Conference Call Q3 2016 Hamburg, 10 November 2016
Slide 2: Agenda
Agenda 1 Key messages 2 Operating performance 3 Financials 9M 2016 4 Market developments, outlook and guidance 5 Q&A Analyst Call Q3/2016 10 Nov. 2016 2
Slide 3: Today's key messages
1 Key messages Today’s key messages Order intake: good Order intake guidance remains momentum in Q3. unchanged Challenging Q4 but doable Revenues and EBITDA narrowed Revenues: delayed order to lower end of guided range intake resulting in top-line shift to 2017 2018 plan remains unchanged Analyst Ca
Slide 4: Good order momentum in Q3
2 Operating performance Good order momentum in Q3 Turbine orders 9M 2016 vs. 9M 2015 Order intake (Projects segment) by (in EUR mn) country 9M 2016 30% of order intake attributable to AW Strong German demand (EUR 741 mn brand order intake) Non-recurring large orders from URU and Q3: Positive develop
Slide 5: Significant orders in Q3, examples
2 Operating performance Significant orders in Q3, examples Project size: 168 MW order, 56 x AW125/3000 Customer: Acciona Energia (IPP) Country: Mexico Project size: 126 MW order, 42 x AW 125/3000 Customer: Utility Country: Peru Project size: 111 MW order, 37 x N117/3000 Customer: Eksim (IPP) Country
Slide 6: Shift in order backlog to the Americas
2 Operating performance Shift in order backlog to the Americas Order backlog Projects segment Order backlog Projects segment by (in EUR mn) regions Book-to-bill ratio of 1.0 indicates stable Americas share of order backlog increases business from 12% to 28% yoy (30.9.2015 vs. Realization of Q4 order
Slide 7: New installation record
2 Operating performance New installation record Installations (in MW) Gamma: 60%, Delta: 20%, AW3000: 20% Installation of 764 WTG in 13 countries Main markets: GER (522 MW), TUR (238 MW) and BRA (180 MW) +75% 2,025 AWP Q2+Q3 1,158 +40% 9M 2015 9M2016 Analyst Call Q3/2016 10 Nov. 2016 7
Slide 8: Increased activity level in Spanish factories
2 Operating performance Increased activity level in Spanish factories Turbine assembly (in MW) Partial stop of Spanish factories during summer used to increase efficiency (~20% improvement in man-hours per turbine) Also Rostock (GER) with improved processes, e.g. at hub line Production of first WTGs
Slide 9: Spanish blade production driven by strong demand in Americas
2 Operating performance Spanish blade production driven by strong demand in Americas Blade production (in #) Increasing production of NR 65.5 blades in Rostock (GER) blade facility Blade production in Lumbier (ESP) increased by 58% qoq in Q3 in line with project execution +84% 480 AWP Q2+Q3 261 +48%
Slide 10: Service revenues grow by 28%
2 Operating performance Service revenues grow by 28% Service sales (in EUR mn) Service KPIs +28% KPI 30.09.2016 30.09.2015 189 +11% AWP Q2+Q3 Renewal rate 67% 95% 148 (LTM) Availability 97.4% 97.7% (LTM) Order backlog EUR 1.6 bn* n/a LTM – Last Twelve Months *including “AW” service fleet for the 1st
Slide 11: Service order backlog of EUR 1.6 bn
2 Operating performance Service order backlog of EUR 1.6 bn Service order backlog (in EUR mn) Development 1st time consolidation of “AW” turbines service order backlog of EUR 341 mn leads to overall number of EUR 1,594 mn 1,594 +10% Service order backlog for “Nordex” brand 341 fleet increased by 10
Slide 12: Income statement: margin improvement in 9M 2016
3 Financials 9M 2016 Income statement: margin improvement in 9M 2016 in EUR mn 1.1.-30.9.2016 1.1.-30.9.2015 Δ in % Sales 2,339.5 1,786.1 31.0 Total revenues 2,360.7 1,769.9 33.3 Cost of materials -1,788.9 -1,389.0 28.7 Gross profit 571.8 380.8 50.1 Personal costs -205.2 -143.4 43.1 Other operating
Slide 13: Cash flow statement: negative FCF due to acquisition of AWP
3 Financials 9M 2016 Cash flow statement: negative FCF due to acquisition of AWP and increased working capital Key figures cash flow statement Working capital ratio (in % of sales) in EUR mn 1.1.- 1.1.- 30.9.16 30.9.15 6.8 Net profit plus 142.5 85.8 dep./amortization 4.4 FY guidance <5 % Cash flow f
Slide 14: Balance sheet: remains strong after consolidation of AWP
3 Financials 9M 2016 Balance sheet: remains strong after consolidation of AWP in EUR mn 30.9.16 31.12.15 30.9.16 31.12.15 Liquid funds 430.6 528.9 Trade payables 428.9 254.9 Trade receivables and 596.3 275.4 Current bank borrowings 12.8 6.6 future receivables Net inventories 338.1 218.6 Other financ
Slide 15: Update on our US and German businesses
4 Market developments, outlook and guidance Update on our US and German businesses Focus on “Safe Harbor” deals Rally to exploit current to tap 2016 PTC renewable energy legislation Good momentum towards “Safe Harbor” Market characterized by high activity – transactions since CMD installation record
Slide 16: Relevant developments in other markets
4 Market developments, outlook and guidance Relevant developments in other markets Europe Argentina France: Renewables energy target More than 700 MW wind power projects 2018/23 of 27% confirmed but awarded in the first auction round (original implementation is lagging behind plan, plan: 600 MW) nee
Slide 17: A back-end loaded order year – full year target EUR >3.4 bn
4 Market developments, outlook and guidance A back-end loaded order year – full year target EUR >3.4 bn – challenging but doable Staircase to achieve planned Q4 order intake (in EUR bn) Q4 2016 AW brand EUR 1.2 bn order intake Nordex brand targeted in Q4 Order pipeline remains 1.2 >3.4 New orders ro
Slide 18: Guidance confirmed but narrowed
4 Market developments, outlook and guidance Guidance confirmed but narrowed Outlook for 2016 EUR Old New Some delays in RSA, partially compensated by other Order >3.4bn >3.4bn markets intake Positive impact from Safe Harbor transactions in US Order delays will shift some project revenues to 2017 Sal
Slide 19: Q&A – Time for your questions
5 Q&A Time for your questions Analyst Call Q3/2016 10 Nov. 2016 19
Slide 20: Disclaimer
Disclaimer This presentation was produced in November 2016 by Nordex SE solely for use as a source of general information regarding the economic circumstances and status of Nordex SE. It does not constitute an offer for the sale of securities or an invitation to buy or otherwise acquire securities i
Slide 21: The management team – Creating a global leader in the wind industry
Appendix The management team – Creating a global leader in the wind industry Lars Bondo José Luis Blanco Christoph Patxi Landa Krogsgaard COO, Deputy Burkhard CSO CEO CEO CFO Chief Customer CEO Acciona CFO Siemens Business Officer Nordex Windpower Wind Power Development CEO EMEA Various Sen. Offshor
Slide 22: Financial Calendar 2016
Appendix Financial Calendar 2016 (status: October 2016) Date Event 7-8 January Investor Conference Lyon (Oddo) 19 January Investor Conference Frankfurt (Kepler) 2 February Investor Conference Frankfurt (HSBC) 16 February Investor Conference Frankfurt (Oddo Seydler) 26 February Preliminary Results 20
Slide 23: Together on the same course
Together on the same course Ralf Peters (Head of Corporate Communications) Rolf Becker (Investor Relations) Nordex SE Langenhorner Chaussee 600 22419 Hamburg Germany Tel: +49-40-30030-1000 Fax: +49-40-30030-1333 Email: [email protected] Web: www.nordex-online.com