Nordex Se · XETR:NDX1
Nordex — Investor Presentation (July 2015)
37 slides from Nordex's investor presentation, July 2015
Slide 1: Nordex SE Investor Presentation
Nordex SE Investor Presentation Hamburg July, 2015
Slide 2: Agenda
AGENDA 1. Intro and corporate strategy 2. Markets and market success 3. Products and R&D 4. Financials 2014 & outlook 5. Appendix (shareholder structure) Investor Presentation | Nordex SE | July 2015 2
Slide 3: Company Profile Nordex SE
1. COMPANY PROFILE NORDEX SE Nordex at a glance Installed capacity (10.7 GW) Global manufacturer of wind energy systems America Africa 8% 2% with a focus on turbines in the 2-3 MW class Asia 10% Germany Most extensive and consistent use of platform technology in the industry; variants 23% for di
Slide 4: Management Structure
1. MANAGEMENT STRUCUTURE New structure to increase operational and strategic responsibility of top managers Supervisory Board Lars Bondo Bernard Board Krogsgaard Schäferbarthold Executive 7 top managers with ~70 Board + Committee years of experience in wind Investor Presentation | Nordex SE | July
Slide 5: Introduction to Strategy
1. INTRODUCTION TO STRATEGY Strategy implementation: Nearly all targets reached one year earlier Turnaround (Phase I) successfully managed – “delivered as promised” Start of Phase II: Stronger focus on margin improvement Underlying measures for all main functions defined and partly initiat
Slide 6: Change of Priorities: From Top-Line Growth to Focus on Profitability
1. CHANGE OF PRIORITIES: FROM STRONG TOP-LINE GROWTH TO FOCUS ON PROFITABILITY Phase 1: Reaching critical top-line Phase 2: Margin improvement (Revenues in bn EUR) (EBIT margin in %) 1.7 1.7 1.4 1.1 0.9 7-8% 0,9 4-5% 2011 2012 2013 2014 2014 2015 2016 2017E Investor Presentation | Nordex SE | July 2
Slide 7: Phase I (2012-2014): Overview
1. PHASE I (2012 -2014): OVERVIEW Key strategy areas Main Financial targets identified in 2012 Focused sales and service CMD CMD Current strategy 2013 2014 Guidance Timeframe 2015 2017 2015 Improved operational Order Intake EUR 1.5bn n/a EUR 2.1 – excellence 2.3bn Sales EUR 1.5bn EUR 2.0bn EUR 2
Slide 8: Main Focus Areas of the New Strategy (Phase 2)
1. MAIN FOCUS AREAS OF THE NEW STRATEGY (PHASE 2) PROFITABLE GROWTH HIGH VALUE PRODUCTS PROJECT DRIVEN COMPANY BUSINESS MODEL EXPANSION Investor Presentation | Nordex SE | July 2015 8
Slide 9: Agenda
AGENDA 1. Corporate Strategy 2. Markets and market success 3. Products and R&D 4. Financials 2014 & outlook 5. Appendix (Shareholder structure) Investor Presentation | Nordex SE | July 2015
Slide 10: Differentiation Pays Off
2. DIFFERENTIATION PAYS OFF Doing Things Differently Competitor´s developments ~20 focus markets Broad global market approach Strong focus on small/midsized Strong focus on utilities/big IPPs customers Onshore and offshore Onshore only Narrow scope Broad scope Low complexity Acce
Slide 11: Focused Sales Approach Leads to Double Digit Market Shares
2. FOCUSED SALES APPROACH LEAD TO DOUBLE DIGIT MARKET SHARES IN MANY FOCUS MARKETS Currently focused on ~20 countries – onshore market position 2014 UK Sweden Finland Market share 2014: 10% Market share 2014: 10% Market share 2014: 40% Order intake: +58% Order intake: +52% Germany Ireland Market sha
Slide 12: Order Intake
2. ORDER INTAKE Order intake H1/15 vs. H1/14 Order intake by areas H1/15 (in EUR mn) +49% 1,354 RoW other 6% Americas Germany 19% GER 30% 909 FIN TRK FR RSA 12% 25% Turkey EMEA other 8% France H1 2014 H1 2015 Order intake of EUR 1.4 bn Generation Delta accounts for ~20% of new orders; bestsellin
Slide 13: Growth in Nordex Markets Expected
2. GROWTH IN NORDEX MARKETS EXPECTED Order intake 2013 and 2014 by markets (in EUR) +28% 2013 2014 +67% +200% +61% +52% >100% Germany Turkey France UK/IRL Finland Lithuania Past Success Factors Future Success Factors Highly competitive N117/2400 for low-wind sites N131/3000 next stage of evoluti
Slide 14: Order Book
2. ORDER BOOK Development of the firm order book* 2013 – H1 2015 (in EUR mn) +21% 1.769 +16% 1.462 1.259 1.34 1.17 1.13 Book-to- bill ratio* FY 2013 FY 2014 H1 2015 EMEA currently accounts for 78% of the firm order book, Americas 15% and Asia 7% Book-to-bill ratio* improvement to 1.34 (H1 2014:
Slide 15: A Closer Look at France and Germany
4. A CLOSER LOOK AT FRANCE AND GERMANY Installations France H1: Installations Germany H1: 524 MW onshore ~1,200 MW onshore OEM 5 Nordex OEM 4 12% 6% 6% Nordex 28% OEM 3 16% 18% 26% OEM 2 88% OEM 1 Others (not discolsed) Gains in market share: 11.8 % French market picking up – on the way back to
Slide 16: Unwavering Support for Wind in Germany
2. UNWAVERING SUPPORT FOR WIND IN GERMANY “Onshore is the backbone of the Highlights of the expected Energiewende“ S. Gabriel* development in Germany in MW 5000 4000 Government remains committed to the “Energiewende” 3000 cap on- shore Developer/investor visibility improved 2000 with new legisla
Slide 17: Demand Outlook in GW per Region
4. DEMAND OUTLOOK IN GW PER REGION 2015/2016: +4% Global onshore growth of ~16 % expected in 2015. Clean energy 61 spending still at a high level 58 57 2016 dip mainly caused by China 55 52 15 and the US 51 49 12 14 Through 2020: 13 12 13 Germany: continues on a high level EMEA 13 (~3 GW p.a.)
Slide 18: Global Demand Outlook per Region
2. GLOBAL DEMAND OUTLOOK PER REGION Global growth of 13 % expected in 2015. Clean energy spending still at a high level Northern Europe: Nordex core markets provide stable foundation for our business - gains in market share targeted Southern Europe: High demand in Turkey and France will boost
Slide 19: Agenda
AGENDA 1. Corporate Strategy 2. Markets and market success 3. Products and R&D 4. Financials 2014 & Outlook 5. Appendix (Shareholder structure) Investor Presentation | Nordex SE | July 2015 19
Slide 20: Highly Competitive Product Portfolio for All Wind Classes
3. HIGHLY COMPETITIVE PRODUCT PORTFOLIO FOR ALL WIND CLASSES Rotor- diameter 131 m N131/3000 117 m N117/2400 N117/3000 100 m N100/2500 N100/3300 90 m N90/2500 6,0 6,5 7,0 7,5 8,0 8,5 9,0 9,5 10,0 Wind speed [m/s] IEC 3a IEC 2a IEC 1a Investor Presentation | Nordex SE | July 2015
Slide 21: Status N131/3000
3. STATUS N131/3000 Update Installation of the first turbine completed in Janneby, Germany 30 WTGs on order for 2015 projects in Germany and Finland Myllykangas II Successful completion of IEC design evaluation conformity statements (DECS) and DIBt type approvals Kooninkallio- Awarded Windpo
Slide 22: Agenda
AGENDA 1. Corporate Strategy 2. Markets and market success 3. Products and R&D 4. Financials 2014 & Outlook 5. Appendix (Shareholder structure) Investor Presentation | Nordex SE | July 2015 22
Slide 23: Highlights on FY 2014
4. HIGHLIGHTS ON FY 2014 … 2014 was a very good year Strong demand in focus markets Sales + 21%, EBIT + 1.4 ppt to 4.5%, free cash flow of EUR 89m Order intake + 17% Successful market launch of the new Generation Delta N131/3000 Implementation of medium-term strategy going according to p
Slide 24: ... and on H1 2015
4. ... AND ON H1 2015 Nordex in good shape Good H1 results Strong increase in revenues and order intake EBIT margin up to 5.6% Positive free cash flow Largest single order in Nordex history so far (Pampa, Uruguay) Strategic projects on track Guidance for FY 2015 raised for sales and
Slide 25: Business Performance Along the Value Chain
4. BUSINESS PERFORMANCE ALONG THE VALUE CHAIN Production – Installations - Service Turbine assembly: 1.013 MW (+ 75% yoy) – assembly of turbines for installations in H2 Blade production: 165 blades (- 29% yoy) – extension of facility in Rostock, ramp-up of NR 65.5 Installations: 611.2 MW (-8% yoy) –
Slide 26: Group Income Statement H1 2015
4. GROUP INCOME STATEMENT H1 2015 In EUR millions H1 2015 H1 2014 ∆ in % Sales 1,100.3 815.4 34.9 Total revenues 1,083.8 774.5 39.9 Cost of materials (847.9) (597.7) 41.9 Gross profit 235.9 176.8 33.4 Personnel costs (93.4) (81.0) 15.3 Other operating (expenses)/income (54.6) (40.0) 36.5 EBITDA 87.9
Slide 27: Development of Gross Margin and Productivity
4. DEVELOPMENT OF GROSS MARGIN AND PRODUCTIVITY Development of gross margin Gross profit per employee (in TEUR) Q1 2014 – H1 2015 (in %) 27.2 +5% 24.0 22.8 84 21.5 21.8 81 19.8 20.4 Q1 Q2 Q3 Q4 Q1 Q2 H1 H1 2014 H1 2015 2014 2014 2014 2014 2015 2015 2015 Based on sales Some volatility of gross marg
Slide 28: Group Balance Sheet H1 2015
4. GROUP BALANCE SHEET H1 2015 In EUR millions H1 2015 FY 2014 H1 2015 FY 2014 Liquid funds & fixed-term 433.2 388.4 Trade payables 314.5 177.5 deposits Trade receivables and future 268.6 185.5 Bond1 151.6 0 receivables Net inventories 263.2 273.9 Other current liabilities 436.4 451.8 Other current
Slide 29: Working Capital
4. WORKING CAPITAL Development of working capital 2013 – H1 2015 40 2,2 3 20 1,0 2 W/C ratio 1 W/C (EUR mn) 0 0 -20 -1 -40 -1,4 -2 -60 -2,1 -3,4 -2,3 -3 -80 -4 -4,8 -100 -5 FY 2013 Q1 2014 H1 2014 Q3 2014 FY 2014 Q1 2015 H1 2015 Working capital ratio well below the target (<5%) Volatility reflec
Slide 30: Operating Cash Flow and Free Cash Flow
4. OPERATING CASH FLOW AND FREE CASH FLOW Key figures cash flow statement H1 2015 Key figures cash flow statement H1 2014 in EUR mn in EUR mn Cash flow from operating 73.4 Cash flow from operating 91.2 activities activities Cash flow from investing (31.5) Cash flow from investing (21.2) activities a
Slide 31: Guidance 2015
4. GUIDANCE 2015 2014A 2015 old 2015 update Order intake EUR 1.75 bn EUR 1.8 – 2.0 bn EUR 2.1 – 2.3 bn Sales EUR 1.73 bn EUR 1.9 – 2.1 bn EUR 2.0 – 2.2 bn EBIT margin 4.5 % 5–6% 5–6% Working capital - 2.3% < 5% <5 % ratio Investment EUR 76.3 m ~ EUR 50 - 60 m ~EUR 60 – 65 m Guidance update trigger
Slide 32: Medium-Term Direction 2017
4. MEDIUM-TERM DIRECTION 2017 Strong demand Positive momentum Solid order book for Nordex Measures to improve operating efficiency High growth brings its own challenges Implementation of operational improvement according to plan, impact not yet fully reflected in financial results Stro
Slide 33: Agenda
AGENDA 1. Corporate Strategy 2. Markets and market success 3. Products and R&D 4. Financials 2014 & outlook 5. Appendix (Shareholder structure) Investor Presentation | Nordex SE | July 2015 33
Slide 34: Appendix: Shareholder Structure Nordex SE
5. APPENDIX: SHAREHOLDER STRUCTURE NORDEX SE SKion/momentum capital 22.79 % JPMorgan 5.02 % DWS 4.73 % Free float 67.46% Based on 80.882.447 shares, as of July 2015 Investor Presentation | Nordex SE | July 2015 34
Slide 35: Appendix: Financial Calendar 2015
5. APPENDIX: FINANCIAL CALENDAR 2015 Date Event 30 July H1 2015 results and analyst call 2 September HSBC Industrials Conference (London) 10 September Commerzbank Sector Conference (Frankfurt) 21-22 September Goldman Sachs & Berenberg German Corporate Conference (Munich) 15 October Capital Markets D
Slide 36: Disclaimer
5. DISCLAIMER This presentation was produced in July 2015 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 in
Slide 37: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION. Nordex SE Ralf Peters Head of Corporate Communications Oliver Kayser Senior Manager Investor Relations Langenhorner Chaussee 600, 22419 Hamburg, Germany Phone: +49 (0)40 30030 1000 Fax: +49 (0)40 30030 1333 eMail: [email protected] NDX1 ISIN: DE000A0D