Nordex SE · XETR:NDX1
Nordex — H1 2008 Earnings Presentation
20 slides from Nordex's earnings presentation, Aug 21, 2008
Slide 1: Nordex AG Conference Call H1 2008
Nordex AG Nordex AG Conference Call Nordex AG Q1 2008 Conference H1 2008 Call August 21, 2008 May 26, 2008 Page 1
Slide 2: Highlights in Q2/2008
Highlights in Q2/2008 Sales growth accelerated in Q2, growing by 33% compared to Q1-08 and 55% compared to Q2/07 Profit did not increase as quick as sales due to high expenditures in new structures Nordex UK, Italy, China, USA Rotor blade production Germany and China New major shareholder (SKion) bo
Slide 3: Sales by Quarter 2008 vs. 2007
Sales by Quarter 2008 vs. 2007 2008e: EUR 1.1 bn 2007: EUR 747 mn Q1: 18% Q1: 20% Q4: 34% Q2: 24% Q2: 23% Q3: 23% 2nd half: 58% 2nd half: 57% Page 3
Slide 4: Core Sales Markets in H1/2008
Core Sales Markets in H1/2008 Country Sales H1-08/H1-07 Remuneration Capacity Factor Italy EUR 119mn/53mn 18 €ct/kwh 22.8% UK EUR 105mn/47mn 10-15 €ct/kwh 30.0% China EUR 51mn/2mn 5-6 €ct/kwh 22.8% France EUR 51mn/91mn 8.2 €ct/kwh 24.0% Sweden EUR 33mn/0mn 7.6 €ct/kwh 24.0% Spain EUR 28mn/15mn 9.3 €
Slide 5: Strong market outlook
Strong market outlook Policy & Regulatory Initiatives Growth Projection of new MW installed by Region China Price increases in tender process ~ 20% 50,785 seen : AGR 44,835 New target of 20 GW in 2010 C 39,455 31% United States 32,295 20% wind in 2030 26,565 Extension of PTC pending 29% 19,791 32% 2
Slide 6: Output increased by 48%
Output increased by 48% Output turbine assembly (MW) 280 8% +4 200 Three-fold increase in rotor blade production Rostock (GER) 210 132 Q1/2007 Q2/2007 Q1/2008 Q2/2008 Page 6
Slide 7: Key figures P+L: H1-2008
Key figures P+L: H1- 2008 (€ million) Q2/2008 YoY H1/2008 YoY Sales 266.5 55% 465.9 44% Total revenues 252.4 42% 483.7 46% Costs of materials (197.1) 44% (383.5) 31% Personnel costs (18.7) 45% (35.7) 44% Other op. exp. / inc. (23.0) 88% (40.5) 72% EBIT 9.7 0% 16.2 6% Net financial result 0.7 n.a. 1.
Slide 8: Key Figures Balance Sheet: H1/2008
Key Figures Balance Sheet: H1/2008 (€ millions) 30-Jun-2008 31-Dec-2007 30-Jun-2008 31-Dec-2007 Liquid funds 191.7 212.2 Trade payables 88.9 78.9 Trade receivables and 117.9 99.2 Provisions 48.2 37.0 future receivables Net inventories 318.1 231.8 Prepayments received 300.8 233.9 Other current assets
Slide 9: Working Capital Development
Working Capital Development 136% 138% 267 254 133% 199 116% 121% 127% 135% 172 171 151 140 21.1% 9.8% 7.8% 7.1% 4.8% 2.3% 2.3% 31-Dec-06 30-Mar-07 30-Jun-07 30-Sep-07 31-Dec-07 31-Mar-08 30-Jun-08 Revenues (mn. €) WC / Revenues Advanced payment ratio Page 9
Slide 10: Cash Flow Statement: H1/2008
Cash Flow Statement: H1/2008 (€ million) H1 2008 H1 2007 Net profit/loss 13.4 13.6 Depreciation 7.8 6.5 Change in provisions 11.5 (1.2) Change in inventories (86.2) (-24.2) Change in trade receivables and other assets (21.3) 14.6 Change in trade payables and other liabilities 82.7 (49.5) Change in d
Slide 11: Order intake at record high
Order intake at record high New orders (2006, 2007, H1/ 2008) By region in 6M 2008 (€ Mio.) 1,400 GER 3% 1,300 1,200 12M: USA RoE €1.2bn 32% 1,100 007 61% 1,000 2 China 900 9M: 6M: €823m 4% 12M: 800 €717m €767m 6 700 200 By product in 6M 2008 6M: 600 3M: €683m €406m 9M: S70 / S77 5% 500 €515m 8 200
Slide 12: Order Backlog at All-Time-High
Order Backlog at All-Time-High (as of 30/6/08) ~ €3.3bn 3500 Conditional orders 3000 Binding contract in force 2500 Advance payment / reservation fee received 2000 2000 ~ €1.7bn Firm orders 1500 Binding contract in force 804 Building permit received 1000 Grid contract in force 1300 500 912 Finance a
Slide 13: Challenges
Challenges Investments People & Organization Procedures & Processes Investments Supply Chain Page 13
Slide 14: Opportunities
Opportunities Strong Market Outlook Double Digit Market Share (Country by Country) Economies of Scale Page 14
Slide 15: Outlook 2008
Outlook 2008 1,100 Sales (m EUR) EBIT (m EUR) 60-66 747 40 514 309 17 +/-0 2005 2006 2007 2008e 2005 2006 2007 2008e 2,600 Order Backlog (m EUR) 3,600 Headcount 2,900 1,600 1,000 1,200 800 500 2005 2006 2007 2008e 2005 2006 2007 2008e Page 15
Slide 16: Conclusion
Conclusion • Good sales performance in Q2 • Profit in line with our expectations • Measures to improve project execution in new markets are being implemented • EBIT margin of close to 7% expected in the second half • Driven by economies of scale and a declining other operating expense ratio Nordex i
Slide 17: Appendix
Appendix Page 17
Slide 18: Shareholder Structure of Nordex
Shareholder Structure of Nordex Shareholder structure as of 31/7/08 CMP Freefloat 25.6% 43,2% Shareholder group which intend to sell Goldman 20% of subscribed Sachs 16.7% capital to SKion (subject to anti- trust clearance) HypoVereinsbank 4.1% HSH Nordbank 3.6% Nordvest 3.5% BlackRock 3.3% Page 18
Slide 19: Contact
Contact Nordex AG Ralf Peters Bornbarch 2 Head of Corporate Communications 22848 Norderstedt Phone: +49 (0)40/500 98 522 Germany Fax: +49 (0)40/500 98 333 www.nordex-online.com eMail: rpeters@nordex-online.com Page 19
Slide 20: 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