Nordex Se · XETR:NDX1
Nordex — FY2023 Earnings Presentation
32 slides from Nordex's earnings presentation, Feb 29, 2024
Slide 1: Nordex SE – Full year 2023
› Classification: Public | Nordex Group Nordex SE – Full year 2023 29th February 2024 FY figures 2023 | 29 February 2024
Slide 2: Disclaimer
› Classification: Public 2| Disclaimer › All financial figures within this presentation are final and audited. › This presentation was produced in February 2024 by Nordex SE solely for use as a source of general information regarding the economic circumstances and status of Nordex SE. It does not co
Slide 3: Agenda
› Classification: Public 3| Agenda Introduction José Luis Blanco Markets and orders Patxi Landa Financials Dr Ilya Hartmann Sustainability Dr Ilya Hartmann Operations and technology José Luis Blanco Guidance and Outlook José Luis Blanco Q&As All Key takeaways José Luis Blanco FY figures 2023 | 29 Fe
Slide 4: Executive summary FY 2023
› Classification: Public 4 | Introduction Executive summary FY 2023 FY 2023 Results Commentary › Nordex consistently #1 in order intake (MW) in Europe in 2022 and 2023 Sales: › Strong order intake of 2.5 GW in Q4/2023; +30% vs 1.9 GW Q4/2022 › FY order intake of 7.4 GW; +16% vs 6.3 GW in FY 2022 6.5
Slide 5: Nordex makes top 3 worldwide in 2023 for order intake (ex China)
› Classification: Public 5 | Introduction Nordex makes top 3 worldwide in 2023 for order intake (ex China) ONSHORE MARKET SHARE BASED ON MW ORDERS Global market share EMEA 2023 (c.43 GW order intake) (c.16 GW order intake) Nordex 2023: #1 Group Nordex Group 2022: #1 40% 36.0% 17% 17.6% #4 #3 17.0% A
Slide 6: Agenda
› Classification: Public 6| Agenda Introduction José Luis Blanco Markets and orders Patxi Landa Financials Dr Ilya Hartmann Sustainability Dr Ilya Hartmann Operations and technology José Luis Blanco Guidance and Outlook José Luis Blanco Q&As All Key takeaways José Luis Blanco FY figures 2023 | 29 Fe
Slide 7: Order intake increased by 16% in 2023
› Classification: Public 7 | Markets and orders Order intake increased by 16% in 2023 Order intake turbine (in GW) Order intake turbine by regions (in GW in %) Europe North America Latin America RoW +16% 7.4 6.3 73% 86% 6% 21% 4% 2% 8% FY 2022 FY 2023 FY 2022 FY 2023 › Order intake in Q4/2023: 2.5 G
Slide 8: Service business constantly growing
› Classification: Public 8 | Markets and orders Service business constantly growing Service revenues (EUR m) and EBIT margin Comments EBIT % +18% › Service sales aggregate to 10.5% of group sales in 679 the reporting year 574 › Service EBIT margin sequentially improved in Q4 to 17.3% 468 › Full year
Slide 9: Increase of combined order book to EUR 10.5bn
› Classification: Public 9 | Markets and orders Increase of combined order book to EUR 10.5bn Order book turbines (EUR bn) Order book service (EUR bn) +6% +11% 6.9 3.6 6.5 3.3 12M/2022 12M/2023 12M/2022 12M/2023 › Healthy growth of the order book to EUR 6.9bn › Growing fleet of 11,400 WTGs under ser
Slide 10: Agenda
› Classification: Public 10 | Agenda Introduction José Luis Blanco Markets and orders Patxi Landa Financials Dr Ilya Hartmann Sustainability Dr Ilya Hartmann Operations and technology José Luis Blanco Guidance and Outlook José Luis Blanco Q&As All Key takeaways José Luis Blanco FY figures 2023 | 29
Slide 11: Income statement FY 2023
› Classification: Public 11 | Financials Income statement FY 2023 in EUR m FY 2023 FY 2022 abs. change Comments (rounded figures) Sales 6,489 5,694 795 › Strong sales growth of 14% to EUR Total revenues 6,551 5,991 560 6.5bn in FY 2023 due to consistent good order intake momentum Cost of materials -
Slide 12: Income statement Q4/2023
› Classification: Public 12 | Financials Income statement Q4/2023 in EUR m Q4/2023 Q4/2022 abs. change Comments (rounded figures) Sales 2,012 1,820 192 › As anticipated, sales further improved Total revenues 2,127 2,099 28 to EUR 2bn in Q4/2023 Cost of materials -1,752 -2,052 300 › Q4 gross margins
Slide 13: Balance sheet FY 2023
› Classification: Public 13 | Financials Balance sheet FY 2023 in EUR m 31.12.23 31.12.22 abs. change Comments (rounded figures) Non-current assets 1,869 1,795 74 › Very robust liquidity levels of ~EUR 1bn including cash facility under MGF at the end Current assets 3,553 2,961 592 of FY 2023 Total a
Slide 14: Working capital development FY 2023
› Classification: Public 14 | Financials Working capital development FY 2023 Working capital ratio (in % of sales)* Working capital development (in EUR m)* FY 2023 guidance: below -9% 21 39 -69 -9.6 -639 -10.2 -10.2 -97 -10.6 -11.5 -746 Q4/ Q1/ Q2/ Q3/ Q4/ Q3/ Receiva- Inven- Prepay- Pay- Q4/ 2022 2
Slide 15: Cash flow statement FY 2023
› Classification: Public 15 | Financials Cash flow statement FY 2023 Comments in EUR m (rounded figures) FY 2023 FY 2022 › Cash flow from operating activities Cash flow from operating activities -6 -373 positively influenced by strong before net working capital working capital development Cash flow
Slide 16: Total investments FY 2023
› Classification: Public 16 | Financials Total investments FY 2023 CAPEX (in EUR m) Comments Property, plant, equipment Intangible assets › The overall capex spend was lower during the FY 2022: EUR 205m 47.8 year mainly due to tighter capex management FY 2023: EUR 131m and partly due to some investm
Slide 17: Capital structure FY 2023
› Classification: Public 17 | Financials Capital structure FY 2023 (Net debt)/net cash* Equity ratio (in %) 700 631 22 600 500 20 20.7 400 360 344 18 18.5 18.8 18.0 300 244 16 200 104 14 15.0 100 0 12 Q4/ Q1/ Q2/ Q3/ Q4/ Q4/ Q1/ Q2/ Q3/ Q4/ 2022 2023 2023 2023 2023 2022 2023 2023 2023 2023 › Strong
Slide 18: Agenda
› Classification: Public 18 | Agenda Introduction José Luis Blanco Markets and orders Patxi Landa Financials Dr Ilya Hartmann Sustainability Dr Ilya Hartmann Operations and technology José Luis Blanco Guidance and Outlook José Luis Blanco Q&As All Key takeaways José Luis Blanco FY figures 2023 | 29
Slide 19: Implementation of Nordex sustainability strategy 2025 on track
› Classification: Public 19 | Sustainability Implementation of Nordex sustainability strategy 2025 on track Together for change – Wind for a sustainable future Main targets › Provide fully recyclable blades by 2032 “ongoing activity” › Decrease carbon footprint of our turbines by 25% › Define scie
Slide 20: Nordex activities have a very high EU Taxonomy-alignment; ESG ratings above industry average
› Classification: Public 20 | Sustainability Nordex activities have a very high EU Taxonomy-alignment; ESG ratings above industry average EU Taxonomy Eligibility and Alignment Nordex ESG Rating Scores Nordex contributes to the environmental objective “climate change mitigation” with the following ma
Slide 21: Agenda
› Classification: Public 21 | Agenda Introduction José Luis Blanco Markets and orders Patxi Landa Financials Dr Ilya Hartmann Sustainability Dr Ilya Hartmann Operations and technology José Luis Blanco Guidance and Outlook José Luis Blanco Q&As All Key takeaways José Luis Blanco FY figures 2023 | 29
Slide 22: Installations increased by 39% to 7.3 GW compared to previous year
› Classification: Public 22 | Operations and technology Installations increased by 39% to 7.3 GW compared to previous year Installations (GW) Production 2022 FY 2022: 5.2 GW Turbine assembly (GW) Total blade production (#) 2023 FY 2023: 7.3 GW In-house outsourced +7% 2.4 8.0 -3% 7.5 4,774 4,635 1.8
Slide 23: Agenda
› Classification: Public 23 | Agenda Introduction José Luis Blanco Markets and orders Patxi Landa Financials Dr Ilya Hartmann Sustainability Dr Ilya Hartmann Operations and technology José Luis Blanco Guidance and Outlook José Luis Blanco Q&As All Key takeaways José Luis Blanco FY figures 2023 | 29
Slide 24: Guidance for FY 2023 delivered
› Classification: Public 24 | Guidance and Outlook Guidance for FY 2023 delivered 2023 Guidance 2023A Sales: EUR 5.6bn – 6.1bn EUR 6.5bn EBITDA margin: -2% to +3% 0% Working capital ratio: Below -9% -11.5% CAPEX: Approx EUR 200m EUR 131m FY figures 2023 | 29 February 2024
Slide 25: Nordex is progressing as communicated
› Classification: Public 25 | Guidance and Outlook Nordex is progressing as communicated Our communication in 2022 Mid-term drivers Europe is growing with Nordex 1 increasing its market share Order book quality improves 2 gradually, but substantially Growing Service business with 3 margins reverting
Slide 26: Key market Europe is growing
› Classification: Public 26 | Guidance and Outlook Key market Europe is growing 1 Onshore capacity addition – Global (ex China)1 Key takeaways Europe RoW › Strong growth expected in onshore wind demand driven by +13.5% Europe and the US 66 70 › EU onshore wind installations need to double by 2030 to
Slide 27: Better quality order book and improving service business to drive overall margin improvement
› Classification: Public 27 | Guidance and Outlook Better quality order book and improving service business to drive overall margin improvement 2 Improving order book margin (€bn) Key takeaways Contribution margin % Europe RoW › Significant margin improvement in the order book as share 4 to 5% impro
Slide 28: Guidance for FY 2024
› Classification: Public 28 | Guidance and Outlook Guidance for FY 2024 2024 guidance Mid-term target Sales: EUR 7.0 – 7.7bn EBITDA margin: 2.0% to 4.0% 8% EBITDA margin Working capital ratio: below -9% CAPEX: approx. EUR 175m FY figures 2023 | 29 February 2024
Slide 29: Update on green hydrogen initiatives
› Classification: Public 29 | Guidance and Outlook Update on green hydrogen initiatives › Global hydrogen demand likely to grow by 7x over the next 30 years Long Term › Green hydrogen production expected to grow to c. 40mtpa* by 2030 from <1mtpa in 2020 Trends › Nordex is making inroads with a clear
Slide 30: Your questions / Financial dates 2024
› Classification: Public 30 | Your questions / Financial dates 2024 FINANCIAL CALENDAR 2024 Event Date Publication Annual Report FY 2023 29th February QUESTIONS Annual General Meeting 23rd April & Publication Q1/2024 14th May ANSWERS Publication Q2/2024 25th July Publication Q3/2024 14th November FY
Slide 31: Key takeaways
› Classification: Public 31 | Key takeaways Key takeaways › Ambitious wind targets across the EU and our home market Germany in particular, keep 1 strengthening the case for the wind industry over the medium term › 2023 results show steady and consistent progress with stabilizing margins and positiv
Slide 32: Contact details
› Classification: Public 32 | Contact details IF YOU HAVE ANY QUESTIONS PLEASE CONTACT: Felix Zander phone: +49 152 0902 40 29 email: fzander@nordex-online.com Tobias Vossberg phone: +49 173 4573 63 3 email: tvossberg@nordex-online.com Torben Rennemeier phone: +49 152 3461 79 54 email: trennemeier@n