1 / 31

Investor Presentation Nordex AG

Investor Presentation Nordex AG. July 2006. Previous positions with MAN, Ferrostaal and Babcock Borsig CFO since 2002, CEO since 2005. Nordex Management Team. Thomas Richterich CEO / CFO. Dr. Hansjörg Müller COO. Carsten Pedersen Board Member Head of Sales.

ismet
Download Presentation

Investor Presentation Nordex AG

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Investor Presentation Nordex AG July 2006 nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  2. Previous positions with MAN, Ferrostaal and Babcock Borsig CFO since 2002, CEO since 2005 Nordex Management Team Thomas Richterich CEO / CFO Dr. Hansjörg Müller COO Carsten Pedersen Board Member Head of Sales • Previous positions with Siemens and Roland Berger • Since 2004 Nordex board member for Operations • Managing Director of Nordex Energy GmbH since 1987 and Board Member of Nordex • Responsible for Sales, since 2001 nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  3. Nordex at a Glance • Headquarter: Norderstedt, Germany • Founded in 1985 in Denmark • Establishment of production operations in Germany (1992) and China (1998) • IPO in 2001 • Global manufacturer of wind energy systems with a focus on turbines in the “MW class” • 2005 Sales of €309m • 721 employees • Main production sites in Rostock (Germany) and Baoding (China) Installed Base by Geography Other Europe 30% Germany 44% America 2% Africa 4% Asia 20% Installed Base by Segment Small WTG (<750 kW) 6% “MW Class”(1.5-2.5MW) 43% Mainstream(0.75-1.5MW) 51% • Total Base (as of Mar-2006): 2,738 nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  4. Investment Highlights • Attractive fast growing end-markets • Well positioned for strong growth • Technology leader • Well-positioned across the value chain • Positioned in high-growth product segments • International expansion • Successful completion of turnaround • Momentum generation & further upside potential • Strong management team with proven track record nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  5. Attractive Fast Growing End-Markets: Growing Importance of Wind Energy CAGR CAGR 2006E – 2015E: 15.8% ‘05 – ‘10 ‘10 – ‘15 CAGR 1995-2005: 28.6% 20% 13% 53% 17% 29% 17% 24% 16% 16% 11% Source: BTM nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  6. Attractive Fast Growing End-Markets: Key Growth Drivers • Demand for wind energy driven by renewables regulations, price competitiveness of wind energy and strong worldwide energy demand Growing Energy Consumption • World demand for primary energy increased by over 4% in 2004, world petrol demand by 1.5% in 2005 • Economic growth in 2006 expected to support oil demand further (+2.2% vs. 2005 in volume terms) • IEA estimates worldwide energy demand may double from 2002 to 2030 Generation Cost in €/MWh Rising Energy Costs • Oil price more than tripled since 2001, reaching all-time high in spring 2006 with in excess of US$70/barrel • Market forward curve for oil swaps implies prices at a level of US$70-75 for next three years Favourable Regulatory Environment • Kyoto protocol supports renewable energy to help countries achieve their targets • Regulatory outlook worldwide positive: • PTC in US extended until end of 2007; widely expected to be extended again • Supportive new renewable energy law in China • European Parliament reiterates position on renewable energy targets (20% by 2020) Source: Goldman Sachs Commodity Research, Bundesverband Wind Energie, Merrill Lynch Commodities Research nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  7. Current R&D Initiatives Well Positioned for Strong Growth: Technology Leader • Nordex track record of technological innovation • New drive train concept with differential gearbox (N90/2500) • Upgrade yaw system • Upgrade pitch system • New platform generation • Modular tower concept incl. standardized mounting parts (S70 & N90) • Advanced control system (reduced-load operation) • Redesign of rotor blade NR45 (until maturity phase) • Adoption to international grid codes • Development of 100m class turbine Launch of serial production of 90m class 2.5 MW wind turbine Installation of 1st Nordex offshore turbine Completion of the world’s first series of 80m class 2.5 MW wind turbine Construction of the world’s first series MW wind turbine Production of the world’s largest series wind turbine (250 kW) 1987 1995 2000 2003 2005 nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  8. Well Positioned for Strong Growth: Well Positioned Across the Value Chain Technical realisation Wind farm operation Service and maintenance Project development marketing financing Wind farm systemplanning • Market leader in France (high margin potential) • Development of first commercially financed project in China n Core business: WTG assembly, production of selected components, installation on site, initial operation n Additional service offering: increasing demand due to new wind farm investors, which are only interested in stable cash flow • 2200 turbines are currently under Nordex service • Full service contract offering up to 9+3 years duration • Micrositing of 100% of signed projects to review customer layout • Supporting customers (co-development) to receive necessary approvals and to optimize the park layout nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  9. CAGR ‘01-’05 by MW class Well Positioned for Strong Growth: Positioned in High-Growth Product Segments • Nordex is growing faster than the market and has established a proven technological position in the MW turbine class Newly installed MW p.a. CAGR: 12.2% NM +39.9% +13.6% (35.2)% • MW-Class (1500 – 2500 kW) is by far the fastest growing segment and will be the market mainstream in the next 5 years nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  10. Market Growth in 2005 Nordex’ World Market Share Recovery in 2005 3% 2% 7% 3% 60% Nordex Has Grown Faster Than the Market Leading to Recovery of Market Share Market Share Nordex’ Newly Installed Capacity in MW 2H World Market Growth40% 1H Source: BTM 2006 nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  11. Well Positioned for Strong Growth: International Expansion China: As of Mar-2006 Nordex has installed 1,543 turbines outside Germany (56% of total installed base) and is further expanding its international operations. Country Activity • Foundation of rotor blade production (4,000 sqm) for N60/1,300 kW in spring 2005 • Foundation of production JV for S70/77 (1,500 kW) in spring 2006 • Foundation of rotor blade production for S70/77 planned for 2006 • Market re-entry in 2006/7 • Upgrading capacities for project development • 17 new projects developed, construction expected in 2006/7 (total capacity: ~240 MW) • Successful re-entry achieved in 2006 (first major orders signed) • Successful entry achieved in 2006 (first major order signed) USA: France: UK: Italy: nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  12. Order Intake by Region in 1HY-2006 Order Intake Above Budget in 2005 and 1HY 2006 Order Intake by Product in 1HY-2006 Momentum Generation: Continuously Increasing Order Intake Asia 4% Q1-2: €400m Q1-4: €395m Germany 21% Rest of Europe75% Q1-3: €280m +67% Q1: €263m Total: € 400m Q1-2: €158m 2006 N60/N62 8% Sub-MW 0% 2005 2004 S70/S77 15% Q1: €35m N80/N90 77% Total: € 400m nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  13. Further Upside Potential • Implementation of EBIT improvement plan started in spring 2005 to achieve sustainable profitability (target: 5 – 10% EBIT margin) • Positive market development since autumn 2005 generates good opportunities to secure bottom-line growth short- / medium-term • improved utilisation of capacities • increasing sales prices • EBIT improvement plan will secure profitability long-term      nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  14. Main Drivers of Bottom-Line Growth 2007 2008 2006 Target revenue growth + 50% + 50% + 50% (1) Higher utilization of capacity + + + + + Increase in price per MW - due to shortages of WTG (2) + + + +/- (3) Increase in material costs - - - - (4) Expenditures in new markets - - - - (5) EBIT improvement program + + + Target EBIT margin 3.0% 4 – 7% 5 – 10% nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  15. Further Upside Potential:Enhanced Outlook 2006 2006E (old) 2006E (new) Order Intake >€450m≥€600m (Y-on-Y) +14% +50% Revenues >€400m≥€460m (Y-on-Y) 30% +50% EBIT Margin 2.5%≥3.0% • Projected revenues secured by order volume: • 100% of 2006 revenues secured by unconditional orders • Unconditional and conditional orders (> €1bn) secure workload until end of 2007 • Mid-term annual growth target of 50% nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  16. Opportunities for and Limitations of Growth Beyond Plan Opportunities Limitations 1. Markets • Recovery of market share, target  5% • New set-up in 1-2 markets p.a. • Cautious towards offshore 2. Core components • International supply • 2-3 supplier strategy • Production capacity gear boxes and blades 3. Product development capabilities • Solid 2.5 MW technology • Scaling up to 4.0 MW • Above 4.0 MW completelynew design required 4. Production capacities • Europe: expandable to750 (turbines) / 400 (blades) MW • Asia: expandable to250 (turbines) / 300 (blades)MW • North America • Further investments in Europe and Asia 5. Management & organisation • Restructuring completed • Basis for further improvements • Max. growth path +50% p.a. 6. Financial capabilities • Set-up for business volume with a target of € 1b • Working capital requirements secured due to increased bond lines • Investment requirements secureddue to capital increase (€ 70m) nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  17. Investment Highlights • Attractive fast growing end-markets • Well positioned for strong growth • Technology leader • Well-positioned across the value chain • Positioned in high-growth product segments • International expansion • Successful completion of turnaround • Momentum generation & further upside potential • Strong management team with proven track record nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  18. Appendix nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  19. Price Development of Fossil Fuels in % Increasing prices of fossil fuels have made wind more competitive Source: ARA, WTI, Datastream nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  20. Spot Market Price in 2005 (EEX) Euro/MWh Peakload EEG max. remuneration (85.9 EUR/MWh) Baseload EEG basic remuneration (53.9 EUR/MWh) Market power price was considerably in excess of the EEG tariff Source: EEX nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  21. The Nordex Group’s Restructuring Concept was based on Five Core Elements 1 2 Focus on attractive core markets • Concentration on foreign growth markets • Improved marketing efficiency • Regaining technical position in upper market segment • Elimination of existing deficiencies and lowering production costs • Priority: N80/N90 Elements of restructuring at Nordex Group 3 5 • Elimination of previous organizational shortcomings • Pragmatic approach to optimize business processes with immediate activities • Avoidance of inventory losses and guarantee expenditure • Harnessing liquidity potential by reducing working capital • Creation of a reasonable cost structure to regain competitiveness 4 • Radical cost-cutting by means of operative and structural measures • Creation of a reasonable cost structure to regain competitiveness nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  22. Recapitalisation Completed in May 2005 Current Shareholder Structure Capital Increase in May 2006 2005 Recapitalisation and Current Shareholder Structure of Nordex Freefloat 40.04% CMP 26.7% GoldmanSachs 17.4% Nordvest 4.1% HypoVereinsbank 4.3% HSH Nordbank 3.8% Morgan Stanley 3.7% € 70.4m from issue of 5.5m newshares nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  23. Monthly Index Ranking TecDAX 6/30/2006 Company Rank Market Cap in million* Rank Turnover in million** ……… ……… NORDEX 18 342.68 15 563.58 ………. ………. 30 )* on basis of freefloat )** 12 Month nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  24. Product Overview Type Capacity Regulation Certification Nordex N60 1,300kW stall GL1/GL2 Nordex S70/77 1,500kW pitch GL2/IEC 3a Nordex N80 2,500kW pitch IEC 1a Nordex N90 2,300kW pitch GL2 Nordex N90 2,500kW pitch IEC 1b (HS) IEC 2a (LS) nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  25. Production Facilities Yinchuan: S70/77 JV 99 blades/year NR-34/37 120 blades/year NR-40/45 180 blades/year 8-10 WTG MW-class/week 2 WTG 600 kW-class/week nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  26. Income Statement (IFRS) Fiscal 2005 01-Oct-2003- 30-Sep-2004 01-Jan-2005- 31-Dec-2005  €m 221.6 218.8 (173.3) 79.2% (34.5)15.8% (12.1) 5.5% (24.0)11.0% (25.5)(2.5) (5.1) 0.4 (33.5) 309.0 319.4 (251.3)78.6% (34.1) 10.7% (11.7) 3.7% (22.1) 6.9% 0.3 (5.4) (3.0) 0.1 (8.2) 87.4 100.6 78.0 (0.4) (0.4) (1.9) 25.8(2.9) 2.1 0.3 25.3 39.4% 46.0% 45.0% (1.3)% (3.3)% (7.9)% 101.2%(116.0)% 41.4% 75.4% Sales Total Revenues Cost of materialsas a percentage of total revenues Personnel costsas a percentage of total revenues Depreciation/amortisationas a percentage of total revenues Other operating income/expensesas a percentage of total revenues EBIT (operational)One-off items Financial result Tax Net income/loss nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  27. Income Statement (IFRS) Q1/2006 01-Jan-2005- 31-Mar-2005 01-Jan-2006- 31-Mar-2006 €m 124.7 122.8 (101.2) (9.1) (2.9) (7.3) 3.7 0.0 (1.0) 0.0 2.6 34.9 40.7 (30.6) (8.8) (2.8) (6.0) (8.7) (1.6) (0.9) 0.1 (9.5) Sales Total Revenues Cost of materials Personnel costs Depreciation/amortisation Other operating income/expenses EBIT (operational)One-off items Financial result Tax Net income/loss nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  28. Balance Sheet (IFRS) Q1/2006 31-Dec-2005 31-Mar-2006 (as if incl. cap. Increase) 31-Dec-2005 31-Mar-2006 (as if incl. cap. Increase) €m Fixed assets Current assets Net inventories Receivables and other assets Liquid funds Other assets Total Assets 55.5 183.7 80.6 94.2 79.3 26.4 336.0 Shareholder‘s equity Provisions Liabilities Banks Trade payables Other liabilities Others Total liabilities and equity 136.5 57.7134.6 3.0 62.7 68.8 7.2 336.0 55.4 150.0 71.1 59.4 19.5 26.0 231.4 63.5 55.8105.2 7.1 64.1 34.0 6.9 231.4 € 70.4 m net proceeds from capital increase as of May 2006 nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  29. Cash Flow Statement (IFRS) Fiscal 2005 01-Oct-2003- 30-Sep-2004 01-Jan-2005- 31-Dec-2005 €m Net income/loss Depreciation Change in provisions Change in inventories Change in trade receivables and other assets Change in trade payables and other liabilities Other changes from operating activities Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Change in liquidity (8.2) 11.7 (6.3) (23.5) (12.6) 18.6 (0.3) (20.6) (8.6) 39.0 9.9 (33.5) 12.2 (4.6) 41.8 (6.6) (8.6) 0.1 0.8 (3.3) (0.4) (2.9) nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  30. Ralf Peters Head of Corporate Communication/ Investor Relations Phone: +49 (0)40/500 98 522 Fax: +49 (0)40/500 98 333 eMail: rpeters@nordex-online.com Nordex AG Bornbarch 2 22848 Norderstedt Germany www.nordex-online.com Contact nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

  31. Financial Calendar • Report on the first half of 2006 August 25, 2006 • Report on the third quarter of 2006 November 23, 2006 • Report on fiscal 2006 April 26, 2007 nordisch\Presentations\IP Presentation Nordex\21 Roadshow Pres Nordex_May2006.ppt

More Related