Nordex SE · XETR:NDX1
Nordex — FY2015 Earnings Presentation
33 slides from Nordex's earnings presentation, March 2016
Slide 1: Nordex SE – Analyst Call, Final results 2015
Nordex SE – Analyst Call Final results 2015 March 2016 1
Slide 2: Agenda
AGENDA 1. Highlights – At at a glance 2. Operational Highlights 2015 3. Financial Highlights 2015 4. Market Update and Outlook 5. Status Merger AWP 6. Summary & Outlook 2016 7. Appendix Final results 2015 | Nordex SE | March 2016 2
Slide 3: Operational Highlights 2015
OPERATIONAL HIGHLIGHTS 2015 Significant milestones BCA with achieved to form a Acciona Windpower NDX1: +118% global onshore player +118% 225% Market share growth Record in Germany despite installations Launch of N131/3300 market decrease of 1.7 GW +34% in Large 175% projects production Lars Bondo Kr
Slide 4: Financial Highlights 2015
FINANCIAL HIGHLIGHTS 2015 EUR 2.47 bn Book-to-bill at 1.11 Order Intake +40% 5.2% Sales increase EBIT-margin in line with guidance Earnings per share EUR 0.65 +34% -1.2% Net profit W/C-Quota Free cashflow at EUR 94.6mn Net liquidity position of EUR 322mn Bridge loan for acquisition financing secured
Slide 5: Agenda
AGENDA 1. Highlights – At at a glance 2. Operational Highlights 2015 3. Financial Highlights 2015 4. Market Update and Outlook 5. Status Merger AWP 6. Summary & Outlook 2016 7. Appendix Final results 2015 | Nordex SE | March 2016 5
Slide 6: Strong Order Intake Momentum Continues
STRONG ORDER INTAKE MOMENTUM CONTINUES Order intake WTG 2013 – 2015 (in EUR mn) Order intake per country/region 2015 Americas +41% DE 10% 2,471 EMEA other 25% 37% Q4 6% 1,753 FIN 8% 14% 1,503 Q3 FR TR Q4 Q4 Order intake per WTG type 2015 Q3 Q2 N131/3000; 3300 Q3 N90/2500 Q2 Delta N117/3000 10% N100/
Slide 7: Order Backlog as Strong Basis for 2016
ORDER BACKLOG AS STRONG BASIS FOR 2016 Firm order backlog development 2013 - 2015 Order backlog (WTG only) per region (WTG only; in EUR mn) 31.12.2015 +14% Americas 1,668 9% 1,462 1,259 EMEA* 91% YE 2013 YE 2014 YE 2015 *Pakistan reported in EMEA since 2015 ■ Firm order backlog (WTG only) increase o
Slide 8: Production Performance Backed by Nacelle Assembly
PRODUCTION PERFORMANCE BACKED BY NACELLE ASSEMBLY Nacelle assembly 2013 - 2015 (in MW) Blade production 2013 - 2015 (in #blades) +34% -29% 1,899 519 1,417 366 1,243 326 FY 2013 FY 2014 FY 2015 FY 2013 FY 2014 FY 2015 ■ Nacelle assembly up 34% - line production in full swing ■ Joint series production
Slide 9: Installations Up 14% - Market Position Strengthened
INSTALLATIONS UP 14% - MARKET POSITION STRENGHTHENED IN A COUPLE OF MARKETS Market shares in selected markets (in MW) ■ Installations up 14% - record Onshore market share Europe installations of 1.7 GW 12.9 10.5 9.5 ■ Installations in 14 countries ■ More than 100 MW installed each in six countries (
Slide 10: Recent Installations and High Renewal Rate Leading to Service Sales Increase
RECENT INSTALLATIONS AND HIGH RENEWAL RATE LEADING TO SERVICE SALES INCREASE Service sales 2013 - 2015 (in EUR mn) Service KPIs 2015 +18% KPI FY 2015 Trend 197 167 Order backlog EUR 997mn +29% 145 Renewal rate 93% +3.0%pts Availability 97.4% -0.5%pts. Stable TOP4-position in BWE customer satisfactio
Slide 11: Product Development to Achieve Further CoE Reductions: N131/3300
PRODUCT DEVELOPMENT TO ACHIEVE FURTHER COE REDUCTIONS - CASE IN POINT: N131/3300 DE Introduction of the N131/3300 Facts and figures N131/3300 Target market Germany Rated power 3.3 MW Rotor diameter 131 m Swept area 13,478 m² Hub hights 134m; 164m Noise level 104.5 dB(A) Tip speed 70.5 m/s Operationa
Slide 12: Agenda
AGENDA 1. Highlights – At at a glance 2. Operational Highlights 2015 3. Financial Highlights 2015 4. Market Update and Outlook 5. Status Merger AWP 6. Summary & Outlook 2016 7. Appendix Final results 2015 | Nordex SE | March 2016 12
Slide 13: 2015 Results Met or Exceeded the Guidance
2015 RESULTS MET OR EXCEEDED THE GUIDANCE in EUR mn 01.01.-31.12.2015 01.01.-31.12.2014 Δ in % Sales 2,430.1 1,734.5 40.1 Total revenues 2,416.1 1,739.5 38.9 Cost of materials (1,879.8) (1,342.7) 40.0 Gross Profit 536.3 396.8 35.2 Personal costs (197.3) (167.7) 17.7 Other operating (expenses)/income
Slide 14: Balance Sheet Remains Solid
BALANCE SHEET REMAINS SOLID In EUR mn 31.12.15 31.12.14 31.12.15 31.12.14 Liquid funds 529.0 388.4 Trade payables 254.9 177.5 Trade receivables and 275.5 185.5 Current bank 6.6 0 future receivables borrowings Net inventories 218.6 273.9 Other financial liabilities 184.2 25.7 incl. bond Other Current
Slide 15: Balance Sheet Net Cash Positive – Maturity Profile
BALANCE SHEET NET CASH POSITIVE – MATURITY PROFILE WILL CHANGE AFTER THE LAUNCH OF THE PROMISSORY NOTE (SCHULDSCHEIN) Net cash position (in mEUR) Debt maturity profile 31.12.2015 (in mEUR) +39% + 322 156.25 232 140 6.25 6.25 6.25 6.25 6.25 6.25 6.25 FY 2013 FY 2014 FY 2015 2016 2017 2018 2019 2020 2
Slide 16: Further Increase of Free Cashflow
FURTHER INCREASE OF FREE CASHFLOW Key figures cash flow statement (in EUR mn) Changes in working capital (in EUR mn) In EUR mn 01.01.- 01.01.- In EUR mn 01.01.- 01.01.- 31.12.15 31.12.14 31.12.15 31.12.14 Cash flow from 168.0 160.3 Consolidated profit 115.5 84.5 operating activities + d/a Change in
Slide 17: Financial Summary: 2015 Fully in Line with Guidance
FINANCIAL SUMMARY: 2015 FULLY IN LINE WITH GUIDANCE KPI MAR/MAY AUG NOV Actual 2015 2015 2015 2015 Order intake 1.8 – 2.0 2.1 – 2.3 2.3 – 2.4 2.47 √ (EUR bn) Sales (EUR bn) 1-9 – 2.1 2.0 – 2.2 2.3 – 2.4 2.43 √ EBIT margin (in %) 5-6 5-6 5-6 5.2 √ CAPEX (EUR mn) 50 - 60 60 - 65 65 - 70 75.1 W/C-ratio
Slide 18: Agenda
AGENDA 1. Highlights – At at a glance 2. Operational Highlights 2015 3. Financial Highlights 2015 4. Market Update and Outlook 5. Status Merger AWP 6. Summary & Outlook 2016 7. Appendix Final results 2015 | Nordex SE | March 2016 18
Slide 19: Grid-Connections 2016 Dominated by China – Medium-Term CAGR Stable
GRID-CONNECTIONS 2016 DOMINATED BY CHINA – MEDIUM-TERM CAGR STABLE Global Onshore grid-connections Global Onshore grid-connections; ex-CN (in GW) (in GW) CAGR+6% 62 60 14 53 53 47 18 CAGR +7% 36 14 13 Americas 11 12 32 31 30 27 4 14 18 13 13 13 14 13 EMEA 14 Americas 11 5 5 5 APAC w/o CN 4 33 14 13
Slide 20: Americas Driven by the US Market
AMERICAS DRIVEN BY THE US MARKET – BUT ALSO CA, BRA, MX ARE GW-MARKETS UNTIL 2018 Onshore grid-connections in the Americas (in GW) Market snapshots: ■ Strong installation growth in the Americas based on the US market 17,8 CAGR +13% (+79% yoy) ■ US market offers more predictability after PTC extensio
Slide 21: Growth Drivers of EMEA Region Mainly in Africa and Middle East
GROWTH DRIVERS OF EMEA REGION MAINLY IN AFRICA AND MIDDLE EAST Onshore grid-connections in the Americas Market snapshots: (in GW) ■ Comparably flat development in CAGR +2% EMEA until 2019 13.9 13.2 ■ Run rate for Germany “post EEG 12.7 12.7 regime” still in discussion – MAKE 11.9 3.2 assumptions of
Slide 22: A View on Germany – EEG Amendment Discussion
A VIEW ON GERMANY – CURRENT DISCUSSION PROCESS OF THE EEG-AMENDMENT “EEG-Referentenentwurf”: Impact Market volume estimated at 2.9 GW p.a. Minimum capacity not yet defined in the Market volume in 2016 and 2017 expected draft (prev. Eckpunkte paper: 2.0 GW p.a.) above 3 GW Three auction round
Slide 23: Agenda
AGENDA 1. Highlights – At at a glance 2. Operational Highlights 2015 3. Financial Highlights 2015 4. Market Update and Outlook 5. Status Merger AWP 6. Summary & Outlook 2016 7. Appendix Final results 2015 | Nordex SE | March 2016 23
Slide 24: Antitrust Approval Achieved – Final Conditions Precedent in Implementation
ANTITRUST APPROVAL ACHIEVED – FINAL CONDITIONS PRECEDENT CURRENTLY IN IMPLEMENTATION • All antitrust approvals achieved • No concerns from the EU, US, PK, TR and RSA • Only RSA had required a deeper evaluation phase – final approval without any Antitrust conditions • Remaining conditions precedent (
Slide 25: Agenda
AGENDA 1. Highlights – At at a glance 2. Operational Highlights 2015 3. Financial Highlights 2015 4. Market Update and Outlook 5. Status Merger AWP 6. Summary & Outlook 2016 7. Appendix Final results 2015 | Nordex SE | March 2016 25
Slide 26: Summary of an Eventful 2015
SUMMARY OF AN EVENTFULL 2015 Topline and order intake above targets Firm order backlog of EUR 1.7 bn EBIT-margin in line with the guidance range despite quality issues for blades Strong balance sheet with net cash position Further increase of free cashflow to EUR 94.6mn Leading edge in IEC 3 thanks
Slide 27: EUR >4.2bn Sales in 2018 with Increased Profitability Targeted
EUR >4.2BN SALES IN 2018 WITH INCREASED PROFITABILITY TARGETED Overview of the new medium-term Targets until 2018 ■ Significant sales 2014 2015 Target 2018E increase based on Sales (EUR bn) 1.7 Nx: 2.43 4.2-4.5 strengths in growth AWP: 0.95 markets and highly competitive products EBITDA margin 7% Nx
Slide 28: 2016 to Be a Further Step to Reach 2018 Targets
2016 TO BE A FURTHER STEP TO REACH 2018 TARGETS Outlook for 2016 Outlook 2016 ■ Change of profitability KPI towards EBITDA due to PPA of AWP assets Order intake EUR >3.4 bn ■ Order Intake outlook based on orders from Germany, South Africa, USA as well Sales EUR >3.4 bn as from India and Mexico ■ Sal
Slide 29: Q&A – Time for Your Questions
Q&A – TIME FOR YOUR QUESTIONS ■ Annual report (pdf and online) available on our webside on March 21st, 2016 ■ Print version on request from mid of April 2016 Final results 2015 | Nordex SE | March 2016 29
Slide 30: Agenda
AGENDA 1. Highlights – At at a glance 2. Operational Highlights 2015 3. Financial Highlights 2015 4. Market Update and Outlook 5. Status Merger AWP 6. Summary & Outlook 2016 7. Appendix Final results 2015 | Nordex SE | March 2016 30
Slide 31: Financial Calendar 2016
FINANCIAL CALENDAR 2016 (STATUS MARCH 2016) Date Event 7-8 January Investor Conference Lyon (Oddo) 19 January Investor Conference Frankfurt (Kepler) 2 February Investor Conference Frankfurt (HSBC) 16 February Investor Conference Frankfurt (Oddo Seydler) 26 February Preliminary Results 2015 21 March
Slide 32: Disclaimer
DISCLAIMER This presentation was produced in March 2016 by Nordex SE solely for use as a source of general information regarding the economic circumstances and status of Nordex SE. It does not constitute an offer for the sale of securities or an invitation to buy or otherwise acquire securities in t
Slide 33: Contact
CONTACT Contact Ralf Peters (Head of Corporate Communications) Oliver Kayser (Investor Relations) Rolf Becker (Investor Relations) Nordex SE Langenhorner Chaussee 600, 22419 Hamburg, Germany +49 (0) 40 30030 1000 info@nordex-online.com Investor-relations@nordex-online.com www.nordex-online.com Final