Nordex SE · XETR:NDX1
Nordex — Investor Presentation (March 2007)
32 slides from Nordex's investor presentation, March 2007
Slide 1: Nordex AG Investor Presentation March 2007
Nordex AG Investor Presentation March 2007
Slide 2: Content
Content 1 Company Profile 2 Market Development 3 Business Performance in 2006 4 Outlook Page 2
Slide 3: Well Positioned for Strong Growth: Value Chain
Well Positioned for Strong Growth: Value Chain Project Wind farm development Technical Wind farm Service and system marketing realisation operation maintenance planning financing Market leader in Micrositing of Core business: Additional service 2200 turbines are France (high 100% of signed
Slide 4: Well Positioned for Strong Growth: Technology Leader
Well Positioned for Strong Growth: Technology Leader Nordex track record of technological innovation Launch of serial production of 90m class 2.5 MW wind Installation of turbine 1st Nordex Completion of offshore the world’s first turbine series of 80m class 2.5 MW Construction wind turbine of the wo
Slide 5: Nordex Worldwide
Nordex Worldwide Headquarter: Hamburg Production: Rostock Baoding Yinchuan Dongying Xi´an Nordex France: Paris Nordex UK: Manchester Nordex Italia: Milan Nordex Scandinavia: Kolding, Uppsala Nordex China: Beijing Nordex Iberica: Barcelona Page 5
Slide 6: Content
Content 1 Company Profile 2 Market Development 3 Business Performance in 2006 4 Outlook Page 6
Slide 7: Key Growth Drivers
Key Growth Drivers Demand for wind energy driven by renewables regulations, price competitiveness of wind energy and strong worldwide energy demand Generation Cost in €/MWh y Economic growth in 2006 expected to support oil Growing demand further (+2.2% vs. 2005 in volume terms) Photovoltaic Energy C
Slide 8: 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 9: Wind power cost and price comparison
Wind power cost and price comparison Generation costs compared – wind and thermal generation in 2006 150 €/ Offs MWh hore win d 100 Ons h ore w Nuclear ind 50 Coal Gas 0 6 m/s 7 m/s 8 m/s 9 m/s Prices paid for wind power China USA Ireland Denmark Germany France Greece Spain UK Italy Euro / 0 20 40 6
Slide 10: Change in Customer Structure leads to new Technological Trend
Change in Customer Structure leads to new Technological Trend Utilities & IPP counting for > 40% since 2003 Trend to even bigger turbines is slowing down in mature markets Operator Capacity FPL 3,500 MW 2500 Iberdrola 3,400 MW Acciona 1,700 MW 2000 B&B 1,180 MW Endesa 800 MW 1500 S. Power 750 MW EUR
Slide 11: Well Positioned for Strong Growth: High-Growth Product Segments
Well Positioned for Strong Growth: 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% 8.000 7.417 7
Slide 12: Content
Content 1 Company Profile 2 Market Development 3 Business Performance in 2006 4 Outlook Page 12
Slide 13: Highlights of the Year 2006
Highlights of the Year 2006 Major orders 1st Offshore Q1/06: Order Capital received from turbine intake increased issue 9-June: Nordex UK + Italy installed in to €263m completed: applied to the GER €70m TecDAX January February March April May June Around 300 MW to be installed by Nordex France in No
Slide 14: Financial Highlights on FY 2006 (preliminary)
Financial Highlights on FY 2006 (preliminary) • Order intake nearly doubled ⇒ € 767m (+94%) • Revenues still growing strong ⇒ € 514m (+66%) • Output of 584 MW at all time high • Order backlog of € 531m + € 674m conditional orders secure work load until mid of 2008 • ROS increased to 3.2%, net profit
Slide 15: Order Intake at All-Time High
Order Intake at All-Time High Order Intake by Order Intake Above Budget in 2005 and 2006 Region in 2006 800 Asia 6% 750 12M: Germany 700 €767m 14% 650 600 +94% Rest of 9M: 550 Europe €515m 80% 500 450 6M: Total: € 767m €400m Order Intake by 400 2005: 350 €395m Product in 2006 3M: 300 N60/N62 4% Sub-
Slide 16: Income Statement (IFRS) FY 2006 (preliminary)
Income Statement (IFRS) FY 2006 (preliminary) 01-Jan-2006- 01-Jan-2005- €m 31-Dec-2006 31-Dec-2005 Sales 513.7 309.0 Total Revenues 552.3 319.4 Cost of materials (446.7) (249.6) % of total revenues 80.9% 78.1% Personnel costs (41.8) (34.1) % of total revenues 7.6% 10.7% Depreciation/amortisation (13
Slide 17: EBITDA-Margin stabilized above 5%
EBITDA-Margin stabilized above 5% Revenues (million EUR) EBITDA (million EUR / % of sales) 68.6 62,7 8,9% 8,5% 7,9% 52,1 51,0 49,1 52,2 7,5% 5,8% 41,9 6,1% 6,0% 5,6% 6,2% 35,9 44,9 43,8 5,1% 37.8 5,1% 27,0 32,2 36,5 36,1 4,6% 4,7 5,2% 35,2 4,9% 4,9% 4,0% 27,8 4,0% 3,8% 3,1 2,7 3,0 2,7 2,5 2,6 2,5 19
Slide 18: Balance Sheet (IFRS) FY 2006 (preliminary)
Balance Sheet (IFRS) FY 2006 (preliminary) €m 31-Dec-2006 31-Dec-2005 €m 31-Dec-2006 31-Dec-2005 Liquid funds 132.0 19.5 Trade payables 66.5 64.1 Provisions 35.5 35.8 Trade receivables and 77.6 42.9 future receivables Prepayments received 139.4 16.3 Net inventories 141.2 71.1 Other current liabiliti
Slide 19: Cash Flow Statement FY 2006 (preliminary)
Cash Flow Statement FY 2006 (preliminary) 01-Jan-2006- 01-Jan-2005- €m 31-Dec-2006 31-Dec-2005 Net profit/loss 12.6 (8.2) Depreciation 14.9 11.9 Change in provisions (19.8) 8.1 Change in inventories (70.1) (23.5) Change in trade receivables and other assets (34.4) (12.6) Change in trade payables and
Slide 20: Successful Working Capital Management
Successful Working Capital Management Revenues (mn. €) WC-Ratio 140 (WC / total assets) 134 125 127 122 70 70 16.8% 17.8% 14.5% 13.1% 12.5%1 12.6%1 35 13.3% 7.1% 7.9%2 2.8%2 31-Mar-05 30-Jun-05 30-Sep-05 31-Dec-05 31-Mar-06 30-Jun-06 30-Sep-06 31-Dec-06 )1 before reservation fee )2 after reservation
Slide 21: Content
Content 1 Company Profile 2 Market Development 3 Business Performance in 2006 4 Outlook Page 21
Slide 22: Nordex has grown faster than the Market, Leading to Recovery of Market Share
Nordex has grown faster than the Market Leading to Recovery of Market Share Market Growth in 2005 Nordex’ World Market Share Recovery in 2005 and 2006e GE 120% 7% 3% 2% 3% ~4% Suzlon 117% Nordex’ Newly Installed Capacity in MW 500 500 Nordex 60% Repower 30% Siemens 24% 300 Enercon 17% 250 190 Vestas
Slide 23: Strong Market Outlook for 2007
Strong Market Outlook for 2007 • Market growth stabilized on high level (CAGR 2006-2011e: 16.4%) • Favourable regulatory environment • E.g.: PTC extended until 12/2008 • Rising energy costs • Prices for fossil fuels are expected to remain sustainable on a high level • Subsequent rise in costs for el
Slide 24: Strategy to Recover Market Share Pay Off
Strategy to Recover Market Share Pay Off • Double digit market share in Europe expected in 2007 • Among the top 5 player in European core markets • Measures to increase market share in Asia implemented • Re-entry in North America after successful recovery in Europe and Asia 7500 MW 6870 MW 6370 MW 5
Slide 25: Global Market Strategy
Global Market Strategy 1. Europe New MW -2011: 48,000 2. Asia CAGR 11% New MW -2011: 23,500 CAGR 16% 3. N. America New MW -2011: 28,000 CAGR 15% N80/N90 • 82% Balancing growth targets (+60%) and goals for internationalization • Implementation of value chain in each region Page 25
Slide 26: Order Intake Pushed by International Markets
Order Intake Pushed by International Markets Order Intake 2006 vs. 2007e Order Intake by 1000 Q4: Region in 2007e 950 €1000m America Asia 900 10% Q3: 10% 850 €800m 800 750 700 Europe 650 80% 600 Q2: €500m 550 Total: € 1000m 500 07e Order Intake by 450 Q1: 20 Product in 2007e 400 €300m 350 N60 & 6 20
Slide 27: Outlook 2006 / 2007
Outlook 2006 / 2007 2004 2005 2006 2007e Order Intake €230m €395m €767m €1000m (Y-on-Y) +55% +72% +94% +30% Revenues €222m €309m €514m ≥€750m (Y-on-Y) +13 +40% +66% ~+50% EBIT Margin - 12% 0,01% 3.0% ~6.0% Projected revenues in 2007 secured by conditional and unconditional orders Page 27
Slide 28: Assumptions on Outlook
Assumptions on Outlook • Sustainable growth of 50% - 60% y-on-y • To avoid risks in organically growth • Due to visible shortages on supply side in 2007 • Sales prices are expected to be stable • Increasing remuneration will compensate higher row material prices • First overbooking signs due to shor
Slide 29: Lifting Business Volume to €1 Billion
Lifting Business Volume to €1 Billion 300 Increase to 1000 MW p.a. 250 Revenues (in million EUR) 200 Reorganization of production flow 150 Recapitalization 100 Implementation of measures to improve production logistic 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2005 2006 2007 Page 29
Slide 30: EBIT development during 2007
EBIT development during 2007 Revenues and EBIT-margin by quarter (in million EUR / %) Revenues (€m) EBIT-margin (%) 230 250 10% 200 190 8% 180 ≥8% 150 150 ≥7% 6% 100 4% ≥4% 50 ≥3% 2% Q1/07e Q2/07e Q3/07e Q4/07e Economies of scale will lead to an increase in profitability Page 30
Slide 31: Main Drivers of Bottom-Line Growth
Main Drivers of Bottom-Line Growth 2006e 2007e 2008e Target EBIT margin ≥3.0% ~6.0% 6-10% (1) Higher utilization of capacity ~+4% + + (top line growth 50-60% y-o-y) (2) Increase in price per MW - due to shortages of WTG ~-1% + +/- (3) Increase in material costs (4) Expenditures in new markets ~-0.5%
Slide 32: Investment Case
Investment Case • Nordex continues fast track of growth • Order backlog secures growth targets in 2007 • Successful implementation of “double digit market share” strategy in Europe • Untapped growth potential in Asia and North America • Proven technology: 2800 turbines installed thereof more than 40