Nordex SE Conference Call 9M Hamburg, 14/11/2011

Transcription

1 Nordex SE Conference Call 9M 2011 Hamburg, 14/11/2011

2 OVERVIEW Q in line with expectations; despite high structural costs and pricing pressure Construction delays in Q due to more difficult project financing Reducing guidance 2011 on sales and EBIT Strong order intake: guidance for full year revised up to EUR 1.1 bn Strategic initiatives: Cost cutting measures are being implemented according to plan, full benefit in 2012 Search and negotiations on JV for Nordex China and Offshore proceeding as planned New CEO appointed, other changes in management completed 2

3 DEVELOPMENT WIND ENERGY INDUSTRY 2011 New installations +11 % (yoy) expected in 2011 Core markets in Central Europe on track (Fukushima effect), but growing uncertainty in other EU states Nordex: European order intake increased by 75% to EUR 648 mn Americas installations forecast 2011: + 28%; US + 22% Weak economic growth, expiry of cash grant (2011) and PTC (2012) US installations increased by 75% to 3,355 MW in 9M 2011 Nordex: significant inflow of new orders expected in Q China new installed MW to decrease significantly in 2011 Development caused by limited grid integration capacities and stricter approval procedures Nevertheless China will remain the biggest volume market in the coming years Nordex: first major order from Pakistan (250 MW) Source: MAKE Consulting, HSBC, AWEA, Nordex 3

4 ORDER INTAKE DEVELOPMENT Development of firm order intake in EUR mn New orders up 34 % in 9M 2011 vs. 9M % of new orders from Europe, 6 % from the US and 3 % from Asia Strong development of European business (+ 75 %), especially in Sweden, UK, France and Germany Nordex will start 2012 with the highest order backlog since H

5 REBOUND IN ORDER INTAKE BUILDS THE BASIS FOR TOP LINE GROWTH IN 2012 Improved book-to-bill ratio leads to higher firm order backlog (all figures in EUR mn) Order backlog Firm order backlog Order intake Sales Book to bill ratio Q3: Book-to-bill ratio remains at > 1; order backlog at EUR 515 mn, which is expected to rise to EUR 700 mn end of

6 INCOME STATEMENT In EUR mn 9M M 2010 Sales Total revenues Cost of materials (505.9) (465.0) Gross profit Personnel costs (102.6) (87.0) Other operating (exp.)/inc. (55.8) (50.3) EBITDA Depreciation (19.7) (14.8) EBIT Net financial result (10.5) (5.1) EBT Tax (1.1) (3.7) Net profit (0.6) 8.5 Δ in % (4.4) 33.1 (36.4) > (95.9) (70.3) -- Increase in sales (8.8%) thanks to strong US business development (+ 115 %) Gross margin still high (27.2 %) EBIT margin of 3.7 % in Q3; pressure on margin due to structural costs (personnel and depreciation in particular) 6

7 INVENTORIES AND WORKING CAPITAL DEVELOPMENT Inventories in EUR mn WC including reservation fees (WC to total revenues) Decrease in working capital by EUR 58 mn in Q Working capital ratio* at 34.2 % (2010: 24.3%) * Based on sales target

8 CASH FLOW STATEMENT In EUR mn 9M M 2010 Net result (0.6) 8.5 Depreciation Change in provisions (18.0) (2.8) Change in working capital (73.7) (26.9) Other cash outflow from operating activities Cash flow from operating activities (62.8) (0.8) Cash flow from investing activities (34.5) (59.4) Cash flow from financing activities Change in liquidity from cash flows 70.6 (43.6) Liquidity beginning of period Other (0.7) 4.9 Liquidity end of period Q3: Strong cash flow from operating activities of EUR 59.6 mn Q4: Further decrease in operating cash flow Negative operating cash flow expected for the year as a whole 8

9 BALANCE SHEET In EUR mn 9M M Liquid funds Current bank borrowings Trade receivables and future receivables Trade payables Net inventories Prepayments received Other current assets Other current liabilities Current assets Current liabilities Deferred tax assets Non-current bank borrowings Other non-current assets Deferred tax liabilities Other non-current liabilities Shareholders equity Total assets 1, Total assets 1, Liquid funds increased by 50 % to EUR 211 mn (mainly due to capital measures 2011) Positive operating cash flow in H will lead to an further increase of liquidity in December Equity ratio at 38.9 % (2010: 37.6 %) 9

10 10 KEY MEASURES TO INCREASE COMPETITIVENESS Core Challenges for Nordex Key Measures to strengthen our Business Model Market Approach Business Segments Products Structure/ Organization 1. Sales: Strong European base with focused market approach 4. Leverage own project development for order intake baseline 7. Launch products with superior energy yield and performance 9. Clear Management structure reflecting challenges & new business targets 2. Asia: Joint Venture 3. Americas: Continue market penetration 5. Enhance Service business 6. Market entry offshore (JV) 8. Continue successful path to further drive WTG cost down 10.Reduce cost structure to safeguard profitability 10

11 SAVINGS ON STRUCTURAL COSTS 220 Europe Personnel Target: 250 FTE in Europe (thereof 217 FTE in Germany) Measures: voluntary programme, transitional company (tbd), layoffs (tbd) Other operating expenses Europe 140 Reduced warranty costs Travel costs Other Targeted cost cutting measures Lease rental charges Temporary workers USA Asia Offshore USA Asia Offshore Consulting costs 2011e 2012e All figures in EUR mn Implemented in 2011, full P&L effect in 2012 Reorganization costs will be shown as one-off items in

12 NORDEX EFFICIENCY PROGRAMME Global wind class market Efficiency programme 2011/12 Competitive position 40% IEC3 N100/2500 N117/2400 Series start 7/ % AEP 3, , , , , N100/2500 N117/2400 2, , , Full load hours (Gross p.a.)* Target: 43% IEC2 N90/2500 N100/2500 Series start 7/ % AEP Efficiency programme 2013/2014: Double digit increase in AEP 17% IEC1 N80/2500 N90/2500 Series start 7/ % AEP * Benchmarking of N117/2400 on light wind conditions (6.5 m/s at hub = IEC3) vs. N100/2500 and 8 competitors

13 REALIGNMENT OF GLOBAL REACH Status China Joint Venture: MoU signed with domestic state owned group Potential JV partner belongs to one of the biggest wind farm operators in China with a strong project pipeline Presentation held on August 11, 2011 Status Offshore Joint Venture: Negotiations proceeding on schedule First discussions with possible JV partners with strong balance sheet 13

14 NEW ORGANIZATION OF MANAGEMENT COMPLETED Dr. Jürgen Zeschky will be the new CEO of Nordex : Executive Vice President VOITH TURBO, Heidenheim, Germany : Director of Operations MANNESMANN DEMAG DELAVAL, Trenton, NJ, USA (acquired by Siemens in 2000) : Manager of Engineering and Procurement MANNESMANN DEMAG, Simmern, Germany CEO Clear focus on strategy & products : Product Manager MANNESMANN DEMAG VERDICHTER, Duisburg, Germany B. Schäferbarthold Dr. M. Sielemann L. B. Krogsgaard CFO No major changes COO Focus on technology Exchange of some responsibilities (e.g. service) CSO CSO Focus on customers

15 TURBINE PRICES TO RECOVER FROM 2013 ONWARDS Expected turbine prices (EUR mn/mw) vs. Nordex gross margin development Gross margin (%) Cost cutting fully effective in 2012 Growing importance of offshore market (higher pricing level) Reduced over capacities will lead to a more balanced market Source: Bloomberg New Energy Finance 15

16 OUTLOOK NORDEX 2011e: Project delays in Q4 will led to lower sales and earnings than previously forecast 2011 Guidance Old New Order intake ~ EUR 1,000 mn ~ EUR 1,100 mn Revenues ~ EUR 1,000 mn ~ EUR 920 mn EBIT (before one-offs) Operating profit ~ EUR 10 mn More optimistic for 2012: Order intake + 30% (yoy) and EUR 700 mn firm order backlog in 2011e Cost cutting programme and product development proceed in plan Slight top line growth and return to profit target for

17 SHAREHOLDER STRUCTURE OF NORDEX SE SKion/momentum capital 24.99% Freefloat 75.01% On the basis of mn shares, as of November

18 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 other unpredictable risks should arise, it cannot be ruled out that the actual financial results of the company will differ substantially from the targeted goals as laid out in this document. In this respect Nordex SE is unable to give a guarantee that the actual financial results of the company will not differ from any forecasts or guidance given. 18

19 Contact Ralf Peters Head of Corporate Communications Phone: +49 (0) Fax: +49 (0) Nordex SE Langenhorner Chaussee 600, Hamburg, Germany 19