Nordex Se · XETR:NDX1

Nordex — FY2013 Earnings Presentation

32 slides from Nordex's earnings presentation, Mar 24, 2014

  1. Slide 1: Nordex SE Annual Results 2013

    Nordex SE Annual Results 2013 Frankfurt 24 March 2014

  2. Slide 2: Agenda

    AGENDA 1. Highlights 2013 Dr. Jürgen Zeschky 2. Market success and operating milestones Dr. Jürgen Zeschky 3. Business development and key figures 2013 Bernard Schäferbarthold 4. Market outlook Dr. Jürgen Zeschky 5. Key priorities for action 2014 Dr. Jürgen Zeschky 6. Outlook 2014 Dr. Jürgen Zeschky

  3. Slide 3: Agenda

    AGENDA 1. Highlights 2013 Dr. Jürgen Zeschky 2. Market success and operating milestones Dr. Jürgen Zeschky 3. Business development and key figures 2013 Bernard Schäferbarthold 4. Market outlook Dr. Jürgen Zeschky 5. Key priorities for action 2014 Dr. Jürgen Zeschky 6. Outlook 2014 Dr. Jürgen Zeschky

  4. Slide 4: 1. Highlights 2013

    1. HIGHLIGHTS 2013  Strategic reorientation concluded – successful implementation of the turnaround  Results 2013 fully in line with guidance:  Record order intake: +19 % to more than EUR 1.5 bn  Record production and installation volume: Output well over 1.2 GW  Record sales: +33 % to over EUR

  5. Slide 5: Significant increase in market shares in important focus markets

    2. SIGNIFICANT INCREASE IN MARKET SHARES IN IMPORTANT FOCUS MARKETS Overview of onshore market shares 2013 (2012) UK Norway Sweden Finland Market share: 14% (11%) Market share: 52% (32 %) Market share: 10% (10 %) Market share:17% (-) Germany Ireland Market share: 8% (4 %) Market share: 19% (36%) Pol

  6. Slide 6: Return to the top 10 OEMs

    2. RETURN TO THE TOP 10 OEMS  Global TOP 7 without Chinese manufacturers Return to  One of just two TOP 10 Western OEMs Onshore OEMs with gains in (previously in Market 2008) global market share share global:  Largest market Onshore ~3.7 % share gains market among OEM‘s in share Europe EMEA: ~10.

  7. Slide 7: Service business as margin and growth driver

    2. SERVICE BUSINESS AS MARGIN AND GROWTH DRIVER Selected Service KPIs 2012/2013 Contract renewal rate in % +6pp. 71 77  Sales increase by 17 % to EUR 140 mn with above-average margin  Increase in order book by 27 % due to improved contract renewal rate (+6 percentage points (pp)) 2012 2013  Avail

  8. Slide 8: Output 2013 at record level

    2. OUTPUT 2013 AT RECORD LEVEL Production and Installations 2011-2013 in MW Turbine production +48% 1,342  Increase in global production efficiency as a result of concentration 909 on the Rostock plants 779  Significant increase in operating output:  Increase in production by 48 % 2011 2012 2013

  9. Slide 9: Further decrease in product costs and significantly improved project management

    2. FURTHER DECREASE IN PRODUCT COSTS AND SIGNIFICANTLY IMPROVED PROJECT MANAGEMENT Operational Excellence Reduction in product costs „CORE 15“  Significant improvement in project  Measures to reduce the cost of materials management and supplier management – savings programme „WTG 100“ (punctuality

  10. Slide 10: Competitive product portfolio for all wind classes

    2. COMPETITIVE PRODUCT PORTFOLIO FOR ALL WIND CLASSES Launch: November 2013 First turbine: Q4 2014e Rotor R&D phase diameter 131 m Launch: February 2013 First turbine: Summer 2013 Delta N131/3000 In series production 117 m Launch: February 2013 First turbine: Summer 2013 Gamma N117/2400 Delta N117/3

  11. Slide 11: Successful launch of Generation Delta

    2. SUCCESSFUL LAUNCH OF GENERATION DELTA February 2013 9x Launch of the N100/3300 and the N117/3000 for IEC 1+2 locations 11x 24x June 2013 Installation of the first three turbines IEC Design Evaluation (DECS) DIBt type certification 20x 19x January 2014 Start of series production March 2014 6x Orde

  12. Slide 12: Agenda

    AGENDA 1. Highlights 2013 Dr. Jürgen Zeschky 2. Market success and operating milestones Dr. Jürgen Zeschky 3. Business development and key figures 2013 Bernard Schäferbarthold 4. Market outlook Dr. Jürgen Zeschky 5. Key priorities for action 2014 Dr. Jürgen Zeschky 6. Outlook 2014 Dr. Jürgen Zeschky

  13. Slide 13: Continuing strong momentum in order intake

    3. CONTINUING STRONG MOMENTUM IN ORDER INTAKE Order intake 2011 to 2013 (in EUR mn) Order intake 2013 by region +19% APAC 1.503 America 7% 1.268 11% 1.107 EMEA 82% 2011 2012 2013  Record order intake of EUR 1,503 mn (+19 % yoy)  82 % from the EMEA core region; main markets: Germany, Turkey, Scandi

  14. Slide 14: Order book strong basis for 2014

    3. ORDER BOOK STRONG BASIS FOR 2014 Development of the firm order book 2011 – 2013 (in EUR mn) +20% 1,259 1.049 698 2011 2012 2013  Firm order book EUR 1,259 mn (31.12.2012: EUR 1,049 mn) supports 2014 sales target – approx. 80 % of the order book will become sales in 2014  EMEA accounts for >80%

  15. Slide 15: Group income statement 2013

    3. GROUP INCOME STATEMENT 2013 In EUR millions 2013 20121 ∆ in % Sales 1,429.3 1,075.3 32.9 Total revenues 1,502.3 1,100.9 36.5 Cost of materials (1,163.0) (865.3) 34.4 Gross profit 339.3 235.6 44.0 Personnel costs (153.2) (140.2) 9.3 Other operating (expenses)/income (102.5) (87.2) 17.5 EBITDA 83.6

  16. Slide 16: Improvement in gross margin and productivity

    3. IMPROVEMENT IN GROSS MARGIN AND PRODUCTIVITY Development of gross margin Gross profit per employee (in TEUR) 2012 – 2013 / 2015e (in %) +43% +2.4pp +1.2pp 133 25.0 22.6 +4% 21.4 89 93 2012 2013 Target 2015e 2011 2012 2013  Improvement in gross margin to the target of >22.5% through the year – fu

  17. Slide 17: Operating cash flow and free cash flow positive in the last two years

    3. OPERATING CASH FLOW AND FREE CASH FLOW POSITIVE IN THE LAST TWO YEARS Key figures cash flow statement 2012 Key figures cash flow statement 2013 in EUR mn in EUR mn Cash flow from operating 141.1 Cash flow from operating 98.1 activities activities Cash flow from investing (56.1) Cash flow from inv

  18. Slide 18: Positive development of inventories and working capital ratio

    3. POSITIVE DEVELOPMENT OF INVENTORIES AND WORKING CAPITAL RATIO Development of inventories (in EUR mn) and working capital ratio (in %) 2010 – 2013 EUR mn % W/C ratio in % 400 37.3 40 350 35 310 +18% 293 300 273 275 275 279 281 27.7 30 267 257 264 250 235 240 25 227 224 228 25.2 205 200 20 150 15 1

  19. Slide 19: Group balance sheet 2013

    3. GROUP BALANCE SHEET 2013 In EUR millions 2013 2012 2013 2012 Liquid funds 333.0 274.8 Current bank borrowings 8.4 27.5 Trade receivables and future 214.0 245.9 Trade payables 190.3 189.4 receivables Net inventories 263.9 224.3 Other current liabilities 386.5 338.2 Other current assets 88.6 68.8 C

  20. Slide 20: Refinancing concluded successfully

    3. REFINANCING CONCLUDED SUCCESSFULLY Financing – successful conclusion of capital measures as an important basis for the confidence of customers, suppliers and banks in Nordex Syndicated credit guarantee facility Other components  14 Banks  Successful equity issue (gross  Volume: EUR 550 mn proc

  21. Slide 21: Agenda

    AGENDA 1. Highlights 2013 Dr. Jürgen Zeschky 2. Market success and operating milestones Dr. Jürgen Zeschky 3. Business development and key figures 2013 Bernard Schäferbarthold 4. Market outlook Dr. Jürgen Zeschky 5. Key priorities for action 2014 Dr. Jürgen Zeschky 6. Outlook 2014 Dr. Jürgen Zeschky

  22. Slide 22: Steady demand growth supports the implementation of the strategy

    4. STEADY DEMAND GROWTH SUPPORTS THE IMPLEMENTATION OF THE STRATEGY Regional development Market overview (New installations in GW)  Global growth of ~5 % CAGR 64  EMEA: market potential >12 GW p.a. – +5% Americas 60 highest growth rates in African markets; 55 11 Nordex focus markets stable overall

  23. Slide 23: Germany will remain a volume market in the medium term, despite the EEG reform

    4. GERMANY WILL REMAIN A VOLUME MARKET IN THE MEDIUM TERM, DESPITE THE EEG REFORM Comparison of European renumeration levels Onshore Installations 2000 - 2013 (in MW) (in EUR ct/kWh) 3.180 2.997 UK (FiT) from 2017 10,0 EEG expansion Netherlands 9,0 corridor between 2,400-2,600 MW Germany (new) 8,9 I

  24. Slide 24: Continuing stringent implementation of the strategy with a strong focus on costs

    5. CONTINUING STRINGENT IMPLEMENTATION OF THE STRATEGY WITH A STRONG FOCUS ON COSTS •Introduction of a Project Management Office for a structured approach to the operational implementation of strategy 2012 •Transparency and efficiency •Successful implementation of measures •Detailled management of t

  25. Slide 25: Product development as the basis for growth and earnings quality

    5. PRODUCT DEVELOPMENT AS THE BASIS FOR GROWTH AND EARNINGS QUALITY Research & Development – Reduction in the levelized cost of energy (LCOE) as the basis for sustainable growth € /MWh 110 100 Cost of Energy Measures 90 LCOE [€/MWh] 80 Light wind IEC3a  Generation Gamma: 70 Moderate wind 60 IEC2a 

  26. Slide 26: Optimisation of the manufacturing organisation – business unit blades

    5. OPTIMISATION OF THE MANUFACTURING ORGANISATION – BUSINESS UNIT BLADES Centre for rotor blades Blade assembly Rostock (GVZ) Strategic Partners / Suppliers  „Lead assembly“ to provide 20-30 %  Development partners with skills in of own requirements carbon technology  Focus on new generation blad

  27. Slide 27: Outlook 2014

    6. OUTLOOK 2014  Good start into the new year – strong order intake from various markets (Germany, Finland, France, Netherlands, UK)  Installed capacity exceeded 10 GW for the first time in early March 2014  Strong focus on improvement in gross margin and earnings quality  Consistent implementat

  28. Slide 28: Time for your questions

    7. TIME FOR YOUR QUESTIONS Annual Results 2013 | Nordex SE | 24 March 2014 28

  29. Slide 29: Appendix: Shareholder structure Nordex SE

    8. APPENDIX: SHAREHOLDER STRUCTURE NORDEX SE SKion/momentum capital 22.79% DWS 3.06% BlackRock 3.02% Free float 71.13% Based on 80.882.447 shares, as at March 2014 Annual Results 2013 | Nordex SE | 24 March 2014 29

  30. Slide 30: Appendix: Financial calendar

    8. APPENDIX: FINANCIAL CALENDAR As at March 2014 Date Event 24 March Annual results conference (Frankfurt) and analyst call FY 2013 25/26 March Roadshow London, Zürich 14 May Analyst call Q1 2014 3 June Annual General Meeting (Rostock) 11-13 June Deutsche Bank GSAC 2014 (Berlin) 13 August Analyst ca

  31. Slide 31: 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

  32. Slide 32: Thank you for your attention

    THANK YOU FOR YOUR ATTENTION. Nordex SE Langenhorner Chaussee 600, 22419 Hamburg, Germany Phone: +49 (0)40 30030 1000 Fax: +49 (0)40 30030 1333 eMail: info@nordex-online.com investor-relations@nordex-online.com NDX1 ISIN: DE000A0D6554 WKN: A0D655 www.nordex-online.com Annual Results 2013 | Nordex SE

Nordex — FY2013 Earnings Presentation on 6ix