Nordex Se · XETR:NDX1
Nordex — 9M 2009 Earnings Presentation
27 slides from Nordex's earnings presentation, Nov 24, 2009
Slide 1: Nordex AG Conference Call 9M/2009
Nordex AG Conference Call 9M/2009 November 24, 2009 Page 1
Slide 2: Overview
Overview Good progress Significant reduction in working capital; positive operating and free in Q3 cashflow Wind energy continues to be one of the world’s major growth industries with CAGR of 14% for 2009e – 2014e Recovery from 2009 will not be a record year for the whole wind business industry H2/2
Slide 3: Quarterly highlights
Quarterly highlights China: First orders for N82/1.500 Introduction of first Chinese feed-in tariff Start of construction of US plant “Waxman-Markey bill” on carbon reduction passed by US Senate Product development on “Generation Gamma” of the 2.5 MW platform completed Page 3
Slide 4: Financials at a glance
Financials at a glance We are on track to achieve sales of around 1.2 billion EUR in 2009 We are aiming for an EBIT margin of 3% in 2009 We have succeeded in reducing working capital and recorded positive operating cashflow and free cashflow We have a strong balance sheet We expect a recovery in sal
Slide 5: Key figures P+L 9M/2009
Key figures P+L 9M/2009 In € mn 9M/2009 9M/2008 ∆ in % Sales 814.0 781.1 4.2 Total revenues 802.7 784.3 2.3 Costs of materials (623.4) (624.3) (0.1) Gross profit 179.3 160.0 12.1 Personnel costs (78.9) (56.9) 38.7 Depreciation (13.8) (12.3) 12.2 Other op. exp./inc. (64.8) (53.5) 21.1 EBIT 21.9 37.3
Slide 6: Inventories and working capital
Inventories and working capital Inventories WC including reservation fee (WC to total revenues) 405.6 391.9 372.2 357.1 340.8 318.1 289.1 231.8 221.6 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 Q3/2009 First positive effects of working capital managem
Slide 7: Cash flow statement
Cash flow statement In € mn 9M/2009 9M/2008 Net profit/loss 9.9 29.2 Depreciation 13.8 12.3 Change in provisions (1.5) 33.3 Change in working capital (19.6) (133.6) Change in deferred taxes 5.0 10.0 Other non-cash expenses (2.1) (12.2) Cash flow from operating activities 5.5 (61.0) Cash flow from in
Slide 8: Development of operating CF & free CF
Development of operating CF & free CF 59.9 40.5 + 44.3 + 20.4 1.5 7.3 - 17.2 - 2.7 - 28.3 - 41.3 - 61.7 - 73.2 - 72.5 - 91.9 Q1/2008 Q2/2008 Q3/2008 Q4/2008 Q1/2009 Q2/2009 Q3/2009 Operating cash flow Free cash flow All figures in EUR million Page 8
Slide 9: Key figures balance sheet
Key figures balance sheet 9M 9M In € mn 2008 In € mn 2008 2009 2009 Liquid funds 138.3 111.7 Current bank borrowings 27.8 15.8 Trade receivables 117.0 103.4 Trade payables 74.3 132.6 and future receivables Net inventories 357.1 372.2 Prepayments received 213.9 176.6 Other current assets 67.8 82.2 Ot
Slide 10: New firm orders
New firm orders 12 month rolling average EUR m 120 9M/2009 100 80 60 40 Effect of the Stabilisation at 20 Growth financial crisis reduced level 2007 2008 2009e EUR 1,221 mn EUR 876 mn < 876 mn Order intake has stabilized; but availability of project financing still limited Page 10
Slide 11: Order backlog
Order backlog EUR mn 3,044 2,299 -28% • Q3 order intake at previous quarter’s level (Turkey accounted for 33%, France for 2,220 25% and the UK for 14%) 1,595 • Two thirds of new orders from industrial customers (Utilities & IPP) • Book-to-bill ratio (new firm orders vs. total revenues) stands at 0.8
Slide 12: 2009 Guidance and 2010 Outlook
2009 Guidance and 2010 Outlook 2007 2008 9M/2009 2009e Sales in EUR mn 747.5 1,136 814 ~ 1,200 EBIT margin in % 5.0 5.3 2.7 ~3 WC (% sales) 2.3 14.0 17.4 15 Investments in 28.5 72.4 36.3 70 EUR mn Outlook 2010: Top-line growth in the single digits or low teens in tandem with an improved EBIT margin
Slide 13: Preparing Nordex for future growth
Preparing Nordex for future growth Customer structure Project Financial Utilities developers investors Focus on International utility groups customers International Increase Competition groups Market international protectionism presence Market Reshaping Nordex to deal ReshapingNordex Intensify prote
Slide 14: Reshaping Nordex for future growth: Customer structure
Reshaping Nordex for future growth: Customer structure Nordex today Tomorrow Utilities & ≥ 80% Industrial IPP`s Utilities, IPP`s > 70% Financial ≤ 10% investors Project developers < 30% Project ≤ 10% Developers requires Technical Global reach Local competence excellence Life time costs Global presen
Slide 15: Reshaping Nordex for future growth: Competition
Reshaping Nordex for future growth: Competition Today Tomorrow Individua- Cumulative Individua- Cumulative Group lized market market # Group lized market market # share share share share International Industrial Manufacturers ~ 20% ~ 20% 1 Groups 10 – 20% ~ 35% 2 National International Heroes ~ 3 –
Slide 16: Reshaping Nordex for future growth: Competition
Reshaping Nordex for future growth: Competition To grow faster than the market requires Nordex: Selective approach regarding Focused strategy products, markets & value chain Presence in Europe, Global reach North America and Asia Active in each segment Intensified product development > 5 GW p.a. Mor
Slide 17: Reshaping Nordex for future growth: the importance of the three major regions
Reshaping Nordex for future growth: the importance of the three major regions New MW 58,245 60,000 50,080 50,000 45,660 20,800 36% 40,230 40,000 18,350 33,425 16,500 29,703 15,030 30,000 27,532 13,270 40% 19,325 33% 8,711 12,250 16,290 14,350 20,000 11,950 9,171 10,025 30% 8,590 10,000 17,470 30% 14
Slide 18: Global efficiency: Matrix-Organization
Nordex is implementing a Matrix-Organization to address effectiveness and global efficiency Management Board Nordex AG EUROPE AMERICA ASIA Global functions CEO CEO CEO Global efficiency Production Production Production Production Products Procurement Procurement Procurement Quality … … … Other funct
Slide 19: Shaping Nordex for future growth: Product development
Shaping Nordex for future growth: Product development “Product variety, but internal standardization where possible” Standardized platforms Strong wind N80 N70 K8 Medium wind N90 N77 K7 Low wind N100 N82 Some shared components (e.g. control system) Offering products for each market segment bigger th
Slide 20: Shaping Nordex for future growth: Operations
Shaping Nordex for future growth: Operations Sourcing Supply chain Industrial … … Strategy Management Production Sourcing components not only from Europe but from Sourcing strategy regions where we assemble (Europe, Asia, North America) Supply chain Reducing order lead times and purchasing Managemen
Slide 21: Implementation of automated production of blades
Implementation of automated production of blades Evolution over 60 years in the automotive industry High-speed evolution at Nordex: From largely manual assembly to a more automated process Page 21
Slide 22: Summary
Summary We have made pleasing progress in terms of working capital reduction and cashflow generation in Q3 Market recovery expected from H2/2010 onwards We have laid the foundation for strong future growth: • Focus product and service offering on utilities requirements • Build-up international prese
Slide 23: Appendix
Appendix Page 23
Slide 24: Key figures P+L 9M/2009
Key figures P+L 9M/2009 In € mn Q1/2009 Q2/2009 Q3/2009 Q3/2008 ∆ in % Sales 233.3 279.2 301.5 315.2 (4.3) Total revenues 245.1 276.0 281.5 300.6 (6.4) Costs of materials (193.4) (216.0) (213.9) (240.9) (11.2) Gross profit 51.7 60.0 67.6 59.7 13.2 Personnel costs (26.0) (26.6) (26.2) (21.3) 23.0 Dep
Slide 25: Shareholder Structure of Nordex
Shareholder Structure of Nordex SKion / momentum capital 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 November 2009 Page 25
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: rpeters@nordex-online.com 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