Nordex AG Nordex AG Conference Call Q1 2008 Nordex AG Conference Call Q1 2008 May 26, 2008 May 26, 2008 Page 1
Highlights in Q1/2008 Financial highlights Total revenue up 50% in Q1/08 compared to Q1/07 (thereof EUR 30mn unfinished goods) EBIT rose by 18% to EUR 6.6mn Working capital ratio stands at a low level of 7.8% Order book increased by 136% to EUR 3.3bn More than 50% of the business volume is expected be generated in the 2. half of 2008 Revenue target of EUR 1.1bn and EBIT margin target of 7% for the full year Business highlights First major orders from USA received: EUR 232mn Successful market entry in Poland: EUR 80mn order intake in Q1/2008 Credit lines almost doubled CTO Dr. Voss appointed New Nordex Academy established Page 2
Key Figures P+L: Q1/2008 ( million) Q1/2008 YoY Q1/2007 Sales 199 32% 151 Total Revenues 231 50% 154 EBIT 6.6 18% 5.6 % RoS 3.3% 3,7% Net Profit 5.7 21% 4.7 EPS 0.09 13% 0.08 Page 3
Sales by Quarter 2008 vs. 2007 2008e: EUR 1.1 bn 2007: EUR 747 mn Q1: 18% Q4: 34% Q1: 20% Q2: 23% Q3: 23% 2 nd half: > 60% 2 nd half: 57% Page 4
Output Q1/2008 increased by 59% Output by quarter in MW CAGR: 77% 210 132 132 38 Q1/05 Q1/06 Q1/07 Q1/08 Page 5
Key Figures Balance Sheet: Q1/2008 ( millions) 31-Mar-2008 31-Dec-2007 31-Mar-2008 31-Dec-2007 Liquid funds 176.4 212.2 Trade payables 110.8 78.9 Trade receivables and future receivables 155.2 99.2 Provisions 40.5 37.0 Net inventories 289.1 231.8 Prepayments received 260.9 233.9 Other current assets 37.5 36.1 Other current liabilities 62.0 52.3 Current assets 658.2 579.3 Current liabilities 475.1 401.9 Non-current assets 82.6 74.2 Non-current liabilities 17.5 11.7 Deferred tax assets 51.2 50.3 Deferred tax liabilities 20.6 18.2 Shareholders equity 278.8 271.8 Total Assets 792.0 703.8 Total liabilities and equity 792.0 703.8 Page 6
Working Capital Development 138% 254 133% 135% 140 127% 151 116% 172 121% 171 21.1% 199 7.1% 9.8% 7.8% 2.3% 2.3% 31-Dec-06 30-Mar-07 30-Jun-07 30-Sep-07 31-Dec-07 31-Mar-08 Revenues (mn. ) WC / Revenues Advanced payment ratio Page 7
Cash Flow Statement: Q1/2008 ( million) Q1 2008 Q1 2007 Net profit/loss 5.7 4.7 Depreciation 3.9 3.1 Change in provisions 0.7 0.8 Change in inventories (57.3) (16.0) Change in trade receivables and other assets (56.7) (6.4) Change in trade payables and other liabilities 73.9 (12.7) Change in deferred taxes 1.5 0.7 Cash flow from operating activities (28.3) (25.8) Cash flow from investing activities (13.0) (3.2) Cash flow from financing activities 5.5 6.9 Change in liquidity (35.8) (22.0)¹ Liquidity beginning of period 212.2 131.9 Liquidity end of period 176.4 109.9 ¹ Figures may not add due to rounding Page 8
The Development of three regional Markets 2006: BTM 5 year forecast 2007: BTM 5 year forecast 2008: BTM 5 year forecast Europe RoW 1% America Europe RoW 1% America Europe RoW 1% America 53% 23% 46% 26% 38% 29% 23% Asia 27% Asia 30% Asia Offshore: 9% Offshore: 5% Offshore: 4% Page 9
Re-entry into the US Market First N90 installed in 2007 First major project (62.5 MW) in 2008, followed by a 150 MW farm in 2009 Product focus: N90, N100 (2,500 kw) Set-up full operation structures (including nacelle in 2009 and blade production in 2010) Investment of ~ USD 100 million (1/3 nacelle, 2/3 blades) Headcount in 2011e: > 600 USA New MW - 2012: 43,500 CAGR 15% Nordex s market share: 2007 2012e 0% ~ 7% 800 700 Local production / installation in USA (MW) 600 500 400 300 Output blades Output nacelles Installed 200 100 2008e 2009e 2010e 2011e 2012e May 2007: Hewitt, Minnesota, 1st N90/2.5 U.S. Page 10
Order intake at record high New orders (2006, 2007, Q1/ 2008) By region in Q1 2008 ( Mio.) 1,400 GER 6% 1,300 1,200 1,100 1,000 900 800 700 6M: 683m 9M: 823m 2007 + ~60% 2006 12M: 1.2bn 12M: 767m USA 57% RoE 30% China 8% By product in Q1 2008 600 500 400 300 200 100 0 2008 3M: 406m 3M: 361m 6M: 400m 9M: 515m Jan Feb März Apr Mai Jun Jul Aug Sep Okt Nov Dez S70 / S77 9% N80/90/100 91% Total: 406 Mio. Page 11
Order Backlog at All-Time-High (as of 31/3/08) 3500 3.3bn 3000 2500 2000 1500 1000 500 1.4bn 594 763 2100 1200 Conditional orders Binding contract in force Advance payment / reservation fee received Firm orders Binding contract in force Building permit received Grid contract in force Finance approved Advance payment received 0 Mar-2007 Mar-2008 Page 12
Outlook Full year 2008 Revenue target of 1.1bn and EBIT margin target of 7% Revenues in the second half 2008 will be relatively higher compared to the second half of 2007 Profitability in the second half will be boosted by revenues from projects nearing completion and for which the costs are being incurred in the first half of this year Medium-term 50% growth in revenues under the precondition of: Markets Product Capacities Financing Process stability 2007 2008 (strong outlook) (2.5 MW) (high quality steel) (credit lines doubled) (increasing pressure) Page 13
Appendix Page 14
Shareholder Structure of Nordex Shareholder structure as of 20/5/08 Freefloat 42.8% CMP 25.6% Goldman Sachs 16.7% HypoVereinsbank 4.1% BlackRock 3.3% HSH Nordbank 3.6% Nordvest 3.9% Page 15
Nordex Management Team T. Richterich B. Schäferbarthold Dr. H. Müller Dr. E. Voss C. Pedersen CEO CFO COO CTO COO Sales Previous positions with MAN, Ferrostaal and Babcock Borsig Nordex CFO 2002-2007 CEO since 2005 Previous positions with Warth & Klein as auditor and accountant Since 6/2005 Head of Finance & Accounting with Nordex AG Since 4/2007 Nordex CFO Previous positions with Siemens and Roland Berger Since 2004 Nordex board member for Operations Previous positions with WIND-consult Since 2003 Head of R&D and Managing Director of Nordex Energy GmbH CTO since 3/2008 Managing Director of Nordex Energy GmbH since 1987 and Board Member of Nordex Responsible for Sales since 2001 Page 16