Nordex Group
Nordex SE - Financial-year figures 2019
24th March 2020
2 |
Disclaimer
- All financial figures within this presentation are final and audited.
- This presentation was produced in March 2020 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 the Federal Republic of Germany or any other jurisdiction. In particular it is not intended to be an offer, an investment recommendation or a solicitation of an offer to anyone in the U.S., Canada, Japan and Australia or any other jurisdiction. This presentation is confidential. Any reproduction or distribution of this presentation, in whole or in part, without Nordex SE's prior written consent is expressly prohibited.
- This presentation contains certain forward-looking statements relating to the business, financial performance and results of Nordex SE and/or the industry in which Nordex SE operates, these statements are generally identified by using phrases such "aim", "anticipate", "believe", "estimate", "expect", "forecast", "guidance", "intend", "objective", "plan", "predict", "project", and "will be" and similar expressions. Although we believe the expectations reflected in such forward-looking statements are based upon reliable assumptions, they are prepared as up-to-date and are subject to revision in the future. We undertake no responsibility to update any forward-looking statement. There is no assurance that our expectations will be attained or that any deviations may not be material. No representation or warranty can be given that the estimates, opinions or assumptions made in, or referenced by, this presentation will prove to be accurate.
FY figures 2019 | 24 March 2020
3 | Agenda
Agenda
Introduction | José Luis Blanco | |||
Markets and orders | Patxi Landa | |||
Financials | Christoph Burkhard | |||
Operations and technology | José Luis Blanco | |||
Sustainability | José Luis Blanco | |||
Covid-19 | José Luis Blanco | |||
Guidance 2020 | José Luis Blanco | |||
Q&As | All | |||
Key takeaways | José Luis Blanco | |||
FY figures 2019 | 24 March 2020
4 | Introduction
The Nordex Group
Innovative global manufacturer
of onshore wind turbine
systems: Among the
Top 4*
industry leaders worldwide
Leading product in new 4MW+
turbine segment:
Leading-edge
product portfolio
Highly attractive and resilient
Service business with:
19.6 GW
under service
More than
30 years
of industry experience:
At the forefront of the
technological development
FY figures 2019 | 24 March 2020 | *Source: Wood Mackenzie - Global Wind Turbine Order Analysis Q1 2020: based on onshore |
order intake excl. Chinese manufacturers. |
5 | Introduction
Executive summary
FY 2019 RESULTS FULLY IN LINE WITH GUIDANCE
Sales | EBITDA margin | Working capital ratio | ||
EUR 3,285m | 3.8% | -9.1% | ||
- Strongest ever order intake of 6.2 GW in FY 2019 - increase of 31% compared to previous year 2018.
- 44% of the 6.2 GW order intake in FY 2019 accounts for latest turbine generation Delta4000.
- Book-to-bill-ratioof 1.53 signalling further growth in the future.
- Delta4000 product portfolio with five different product variants covering all customer requirements.
- On October 8th cash capital increase of EUR 99m through private placement to anchor shareholder Acciona.
FY figures 2019 | 24 March 2020
6 | Introduction
Economics and decarbonisation support global mid-term demand
Capacity addition (GW)
Global
CAGR +4.71% | ||||||||
27.0 | 34.8 | 45.3 | 45.8 | 40.4 | 36.8 | 35.6 | ||
Europe | ||||||||
14.4 | 18.5 | 17.1 | 16.3 | 15.5 | ||||
9.7 | 10.7 | |||||||
2018 | 2019e | 2020e | 2021e | 2022e | 2023e | 2024e | ||
International | 30.9 | US 60%-PTC extension | ||||||
27.3 | upside potential | |||||||
24.1 | 23.3 | |||||||
15.5 | 20.4 | 20.1 | ||||||
17.3 | 13.5 | 7.1 | ||||||
11.9 | 4.6 | 3.8 | ||||||
8.3 | ||||||||
9.0 | 12.2 | 15.4 | 13.7 | 16.3 | 15.8 | 16.3 | ||
2018 | 2019e | 2020e | 2021e | 2022e | 2023e | 2024e |
North America Rest of the World
Key highlights
Europe:
- PPAs and merchant projects keep driving Northern Europe
- Permitting difficulties continue to affect auctions in Germany
- Auctions in Poland and FIT phase-out in Ukraine lead to increased activity
- Newly announced auction rounds expected to increase volume in Italy
North America:
- 100%-PTCdemand unstopped and continues to increase 2020 volume
- 2021 supported by strong 80%-PTC demand and delayed 100%-PTC projects shifting from 2020 to 2021
- Introduction of 60%-PTC extension expected to lift volume in 2023 and 2024
International:
- Latin America outlook:
- Brazil and Colombia continue to show good momentum
- Increased activity in Chile and Mexico; but political uncertainties remain
- Activity in India slowly recovering, as awarded auction projects are starting to come online; undersubscription concerns remain
- Africa mainly driven by South Africa
FY figures 2019 | 24 March 2020 | Source: Wood Mackenzie (2019), Q4 Market Outlook Update; numbers are rounded. |
Wood Mackenzie (2019), US wind gets boost with one year extension. |
7 | Markets & orders
Order intake FY 2019
Order intake turbine* (in MW)
+31%
6,207
4,754
12M/201812M/2019
- Strong order intake in FY 2019: EUR 4,415m (EUR 3,637m in the previous year)
- Thereof in Q4/2019: EUR 1,102m (EUR 1,290m in prior-year quarter)
- Stable ASP of EUR 0.71m/MW in FY 2019
Order intake turbine* by regions (in %)
Europe North America Latin America RoW
45% | 51% | ||
15% | |||
25% | 28% | ||
15% | 18% | ||
3% | |||
12M/2018 | 12M/2019 |
- Large orders from USA, Turkey, Mexico, Sweden and Brazil in FY 2019
- 44% of order intake for new Delta4000 generation in FY 2019
- Share of Delta4000 generation was 49% in Q3 and increased to 57% in Q4/2019 indicating transition to 4/5 MW class products
FY figures 2019 | 24 March 2020 | *Group segment "Projects" |
8 | Markets & orders
Growing service business generates steady cash flows
Development of service revenues (EUR m) and EBIT margin
EBIT margin | 15.1% | 16.1% | 17.7% |
403
315 343
2017 2018 2019
Share of fleet under contract (as % of installed base)
Comments
- Service sales share amounted to 12.3% of group sales in FY 2019
- Service EBIT margin of 17.7% in FY 2019
- 97.5% average availability of WTGs under service
- Strong service order backlog of around EUR 2.5bn at the end of FY 2019
-
19.6 GW of installed base are under service agreement
- this represents a coverage of around 70%
› Average service contract duration is over 10 years
under contract | |
30% | not under contract |
Installed | |
base: | |
28.2 GW | Thereof: |
70% | 72% Nordex WTGs |
28% AWP WTGs |
8
FY figures 2019 | 24 March 2020
9 | Markets & orders
Strict policies for order recognition and healthy age profile of order backlog
Strict policies for order recognition
- A legally binding contract has been signed
- All necessary construction permits have been issued
- A connection has been established with the grid or a grid-connection agreement has been signed
- The customer has obtained the necessary financing and payment security was exchanged
- The customer has remitted the agreed prepayment
Nordex does not recognize "conditional" orders
Age profile of turbine order backlog* as of year end 2019
2%
33%
65%
<12 months 12-24 months > 24 months
- Order backlog provides good visibility for next two years
› Majority of orders older than 24 months are mostly completed with only final invoicing outstanding
9
FY figures 2019 | 24 March 2020 | * Turbine portion of order backlog considered only; no service contracts reflected. |
10 | Markets & orders
Combined order backlog of around EUR 8.1bn at the end of FY 2019
Order backlog turbines (EUR m)
+43%
5,534
3,869
Order backlog service (EUR m)
+14%
2,537
2,218
12M/2018 | 12M/2019 | 12M/2018 | 12M/2019 |
› Order backlog of EUR 5,534m at the end of FY | › At the end of FY 2019: 7,760 wind turbines under | ||
2019 reflects consistent high order intake over | service - corresponding to 19.6 GW |
the last quarters
- Distribution on Nordex focus markets: Europe (52%), North America (19%), Latin America (17%), Rest of World (12%)
FY figures 2019 | 24 March 2020
11 | Markets & orders
Order backlog well-balanced across platforms, markets and customers
Order backlog (EUR m) as of year end 2019
Platforms | Markets | Customer type | |||||||||||||||||||||
2% | 12% | 8% | |||||||||||||||||||||
23% | 18% | ||||||||||||||||||||||
35% | 17% | ||||||||||||||||||||||
47% | |||||||||||||||||||||||
52% | |||||||||||||||||||||||
40% | 19% | 27% | |||||||||||||||||||||
AW | Delta4000 | Delta | Gamma | Europe | Latin America | Utility | Developer | ||||||||||||||||
North America | Rest of World | IPP | Other | ||||||||||||||||||||
- Order backlog well-balanced between platforms, with Delta4000 already reaching 40% by the end of FY 2019.
- Gamma platform soon to be phased out. Other legacy platforms to be phased out gradually in line with customer and market demands.
- Nordex with strong base in European home markets.
- No dependence on one single market or region.
- Nordex successfully managed to achieve a shift in its customer base from regional project developers to global utility customers.
- Utilities with strong ratings and defined requirements, many of which are global key players.
FY figures 2019 | 24 March 2020
12 | Financials
Income statement FY 2019
in EUR m | FY 2019 | FY 2018 abs. change | Comments |
Sales | 3,284.6 | 2,459.1 |
Total revenues | 3,871.4 | 2,364.2 |
Cost of materials | -3,096.0 | -1,710.2 |
Gross profit | 775.4 | 654.1 |
Personnel costs | -360.7 | -325.9 |
Other operating (expenses)/income | -290.9 | -226.5 |
EBITDA | 123.8 | 101.7 |
Depreciation/amortization | -143.4 | -155.8 |
EBIT | -19.6 | -54.2 |
Net profit | -72.6 | -83.9 |
825.5 | › | Sales figures of EUR 3,285m |
1,507.2 | and EBITDA margin of 3.8% in | |
-1,385.8 | line with expectations and | |
guidance | ||
121.3 | › | High total revenues signal |
-34.8 | further sales growth in FY | |
-64.4 | 2020 | |
› | PPA depreciation amounted to | |
22.1 | ||
EUR 24m in FY 2019 (EUR |
12.4 | 62.6m in the previous year) |
34.6 | |
11.3 |
Gross margin* | 23.6% | 26.6% |
EBITDA margin | 3.8% | 4.1% |
EBIT margin w/o PPA | 0.1% | 0.3% |
FY figures 2019 | 24 March 2020 | *Gross profit in relation to sales. |
13 | Financials
Income statement Q4/2019
in EUR m | Q4/2019 | Q4/2018 | abs. change |
Sales | 1,341.6 | 686.3 | 655.3 |
Total revenues | 1,351.7 | 611.0 | 722.3 |
Cost of materials | -1,091.6 | -428.7 | -662.9 |
Gross profit | 260.1 | 182.3 | 77.8 |
Personnel costs | -95.8 | -87.7 | -8.1 |
Other operating (expenses)/income | -100.7 | -64.3 | -36.4 |
EBITDA | 63.6 | 30.3 | 33.3 |
Depreciation/amortization | -41.0 | -45.4 | 4.4 |
EBIT | 22.6 | -15.2 | 37.8 |
Net profit | 4.0 | -32.0 | 36.0 |
Gross margin* | 19.4% | 26.6% | |
EBITDA margin | 4.7% | 4.4% | |
EBIT margin w/o PPA | 2.1% | 0.3% | |
Comments
- Sales figures of EUR 1,342m in Q4/2019 show high order execution as expected
- PPA depreciation in Q4/2019 totaled EUR 5.7m
FY figures 2019 | 24 March 2020 | *Gross profit in relation to sales. |
14 | Financials
Balance sheet FY 2019
in EUR m | 31.12.19 | 31.12.18 | abs. change | in % |
Non-current assets | 1,488.9 | 1,277.6 | 211.3 | 16.5 |
Current assets | 2,513.8 | 1,781.0 | 732.8 | 41.1 |
Total assets | 4,002.7 | 3,058.5 | 944.2 | 30.9 |
Equity | 745.4 | 697.3 | 48.1 | 6.9 |
Non-current liabilities | 914.2 | 822.9 | 91.3 | 11.1 |
Current liabilities | 2,343.2 | 1,538.3 | 804.9 | 52.3 |
Equity and total liabilities | 4,002.7 | 3,058.5 | 944.2 | 30.9 |
Net debt* | -84.0 | -32.5 | ||
Working capital ratio** | -9.1% | -3.8% | ||
Equity ratio | 18.6% | 22.8% | ||
Comments
- Cash position of EUR 510m at year-end 2019 (EUR 610m year-end 2018)
- Increase in current assets and current liabilities reflects preparation for high installation activity in 2020
- Balance sheet prolongation compared to 2018 is also a result of significantly increased project pipeline
FY figures 2019 | 24 March 2020 | *Cash and cash equivalents less bank borrowings and bond. |
**Based on actual sales figures. |
15 | Financials
Working capital development FY 2019
Working capital ratio (in % of sales)* | Working capital development (in EUR m)* |
FY guidance 2019 < 2%
-1.5
-3.8
-4.7
-5.2
-9.1 | ||||
Q4/ | Q1/ | Q2/ | Q3/ | Q4/ |
2018 | 2019 | 2019 | 2019 | 2019 |
-136 | 47 | ||||
162 | 47 | ||||
92 | |||||
-300 | |||||
Q3/ | Receiva- | Inven- | Prepay- | Pay- | Q4/ |
2019 | bles | tories | ments | ables | 2019 |
- Low working capital ratio also supported by continuous stringent working capital management throughout FY 2019
- Decrease in inventories driven by high installation level in Q4/2019
- Receivables management mirrors strong cash focus
FY figures 2019 | 24 March 2020 | *Based on last twelve months sales. |
16 | Financials
Cash flow statement FY 2019
in EUR m | FY 2019 | FY 2018 |
Comments
Cash flow from operating activities before net working capital
Cash flow from changes in working capital
-156.9-31.4
194.9156.3
› Cash flow from operating |
activities impacted by working |
capital changes and at the |
same time by net loss and |
outflows related to VAT |
phasing effects |
Cash flow from operating activities | 38.0 | 124.9 |
Cash flow from investing activities | -163.9 | -80.9 |
Free cash flow | -126.0 | 44.0 |
Cash flow from financing activities | 30.6 | -46.4 |
Change in cash and cash equivalents* | -95.3 | -2.4 |
› | Cash flow from investing |
activities reflects global SCM | |
expansion | |
› | Cash flow from financing |
activities mainly impacted by | |
capital increase in October | |
and repayment of SSD | |
tranche in April last year |
FY figures 2019 | 24 March 2020 | *Including FX effects |
17 | Financials
Total investments FY 2019
CAPEX (in EUR m)
Property, plant, equipment
Intangible assets
52.8%
172.5
112.9
134.2
71.6
41.3 | 38.3 |
12M/201812M/2019
Comments
- Investments in FY 2019 mainly consists of:
- Investments in blade production facilities in Mexico and Spain
- Investments in nacelle production facility in India
- Investments in tooling and equipment for international projects
- Investments in product development
- Slight decrease in intangible assets due to lower level of development costs compared to previous year
FY figures 2019 | 24 March 2020
18 | Financials
Capital structure FY 2019
Net debt*/EBITDA** | Equity ratio (in %) | |
3.0 | 2.5 | ||||
2.5 | |||||
2.2 | |||||
2.0 | Ambition | ||||
1.5 | 1.3 | level | |||
1.0 | 0.7 | ||||
0.5 | 0.3 | ||||
0.0 | |||||
-0.5Q4/ | Q1/ | Q2/ | Q3/ | Q4/ | |
2018 | 2019 | 2019 | 2019 | 2019 |
30 | |||||
25 | 22.8 | ||||
20 | 19.7 | 18.6 | |||
17.4 | |||||
15.5 | |||||
15 | |||||
10Q4/ | Q1/ | Q2/ | Q3/ | Q4/ | |
2018 | 2019 | 2019 | 2019 | 2019 |
› | Leverage ratio significantly declined towards the end | › Equity ratio improved towards year end 2019 as a |
of FY 2019 as communicated | result of the capital increase in October 2019 | |
› | In Q4/2019 leverage ratio well below own ambition | |
level of 1.5 as expected |
FY figures 2019 | 24 March 2020 | *Cash and cash equivalents less bank borrowings and bond. |
** Based on last twelve months. |
19 | Operations & technology
FY 2019 a year of significant ramp-up in operations
Installations (MW)
+23%
3,090
Production
Turbine assembly (MW) Inhouse blade production (#)
2,522
12M/201812M/2019
+105% | |
4,677 | |
2,278 | |
12M/2018 | 12M/2019 |
+69% | |
1,366 | |
807 | |
12M/2018 | 12M/2019 |
- Total installations of 938 WTGs in 21 countries in FY 2019
- Geographical split: 44% Europe, 29% Latin America, 23% North America and 4% Rest of World
- Output turbines totaled 1,388 units in FY 2019: 536 GER, 526 ESP, 234 IND, 49 BRA and 43 ARG
- Inhouse blade production of 1,366 units in FY 2019: 600 ESP, 465 GER, 234 IND and 67 MEX
- Outscourced blade production of 2,556 units in FY 2019
FY figures 2019 | 24 March 2020
22 | Operations & technology
Nordex supply chain - global, flexible and scalable
Overview of production and workflows (selected simplified examples)
GER
BN
ESP | TUR | CHN | |
B | T | B | |
B B S | |||
N | N | ||
MEX
B T
B Blades | BRA | IND | |||||||||
B | N | T | |||||||||
N | B | N | |||||||||
Nacelles | T | T | |||||||||
T | Towers | CHL | ZAF | ||||||||
T | ARG | ||||||||||
T | |||||||||||
S | Smart Logistics | N | T | ||||||||
T | T | ||||||||||
Blades
- approx. 35% in-house capacity, 65% outsourced (as per Q4/2019)
- Own production sites in Germany, Spain, Mexico and India
- Third party sites in Turkey, Brazil and China
- Global network of blade production necessary to ensure best landed cost in all regions
Nacelles
- Own nacelle production in Rostock, two sites in Spain, one in India and one in Brazil. India producing for global markets, Brazil only for local market
- Own production site in US mothballed and available if needed due to tariff conflicts
- Nacelle production in Argentina (subcontracted assembly)
Towers
- All steel towers sourced externally
- Concrete towers are fully in-house (~700 concrete towers next year), track record of >1,000 concrete towers produced in-house
FY figures 2019 | 24 March 2020
23 | Operations & technology
Product portfolio with highly efficient products for all different sites
Development of product portfolio & pipeline
Light | Medium | Strong | |||
wind | wind | wind | |||
N149/5.x | |||||
5MW | |||||
N163/5.x | |||||
N133/4.8
4MW+ | N155/4.5 |
One platform with market specific derivatives
Delta4000
Future focus of product development
3MW+
N149/4.0-4.5 incl. 4.8 mode
AW116/3000
AW125/3000-3150
AW132/3000-3465
AW140/3000
AW148/3000
N100/3300
N117/3000-3600
N131/3000-3900
N90/2500
Continuous CoE
AWimprovements for low wind sites
Delta | Phase-out of 3MW Delta |
platform in preparation | |
2MW+ | N100/2500 |
N117/2400
Gamma | Phase-out of Gamma platform |
in preparation | |
Site dependent | today | 2022+ |
21
FY figures 2019 | 24 March 2020
24 | Operations & technology
Delta4000 products: range for the right fit for all sites
Product launches within Delta4000 platform
AEP* on typical low wind site in land constrained markets
Sept- | N149/4.0-4.5 | ||
› Transformer and converter in nacelle | |||
ember | › | Adaptable to various site conditions | |
2017 | › | Maximum yield for light and medium wind | |
sites |
115%
100%
136%
121%
N133/4.8 | |||
April | › | Tip height limitation | |
› | Very restricted transportation | ||
2018 | |||
› Maximum yield for high wind sites | |||
N149/5.X | |||
April | › 6-17 % higher AEP than the N149/4.0-4.5 | ||
› Increased suitability in low and medium | |||
2019 | |||
wind sites | |||
N155/4.5 | |||
May | › Improves park AEP in MW-constrained | ||
applications without sound constraints | |||
2019 | |||
› Similar hub components to AW3000 to | |||
capture supply chain and O&M synergies | |||
N163/5.X | |||
August | › Maximizing turbine AEP - up to 20% higher | ||
than the N149/4.0-4.5 | |||
2019 | |||
› Optimized for low wind sites via 20% | |||
increase in swept area |
N133/4.8 | N149/4.5 | N149/5.5 | N163/5.5 |
AEP* on typical site in grid-constrained markets
105%
100%
N149/4.5 | N155/4.5 |
22
FY figures 2019 | 24 March 2020 | *Annual Energy Production |
23 | Sustainability
Sustainability strategy 2019 to 2021
FY figures 2019 | 24 March 2020
24 | Sustainability
Sustainability key facts
Product
Lifecycle assessment of wind farm with Delta4000
turbines shows:
only 6.4 g CO2e
are emitted per kilowatt-hour electricity generated
- single Nordex large-scale turbine1 covers the average annual electricity demand of about
3,000
four-person households2.
474 g of CO2
are saved per kWh generated by wind turbines (compared to the German electricity mix 20183).
Projection for one Delta4000 at medium wind speed:
savings of approx.
6,300 t CO2 per year.
Employees
Lost time injury frequency (LTIF) lowered to
4.6 in FY 2019 (FY 2018: 5.6)
73
nationalities were working at Nordex in FY 2019
Environment
73.5%
of the overall amount of purchased electricity
in 2019 was generated by the use of
renewables
1 Reference: N149/4.0-4.5, medium wind speed of 6.5m/s, excl. losses.
2 https://www.musterhaushalt.de/durchschnitt/stromverbrauch/ average electricity demand of 4,432 kWh per year.
FY figures 2019 | 24 March 2020 3 https://www.umweltbundesamt.de/sites/default/files/medien/1410/publikationen/2019-04-10_cc_10-2019_strommix_2019.pdf.
25 | Covid-19
Overall business impact assessment of Covid-19 is too early to judge
Management focus | Challenges |
- Health & safety of all Nordex employees is top priority
- Global cross-functionalCovid-19 taskforce established to assess the situation closely
- Special health related measures implemented
- Ensure business continuity at all possible options
- Strong focus on working capital and cash flow management
- New and complex situation due to continuous measures by authorities, e.g. travel restrictions
- Evaluation of impact on the business development in 2020 ongoing
- Possible delays in project execution and installations
- Impact on sourcing activities (components) along the entire supply chain
- Delays in ramping up and enlarging the supply chain
FY figures 2019 | 24 March 2020
26 | Guidance 2020
Guidance 2020 - subject to the unforeseeable extent and duration of the measures taken globally to contain COVID-19
Sales: | EUR 4.2 - 4.8bn |
EBITDA: | EUR 160 - 240m |
Working capital ratio: | <0% |
CAPEX: | min. EUR 140m* |
FY figures 2019 | 24 March 2020 | *Depending on the market situation and the pace of the further development of the supply chain. |
27 | Q&As
Time for your questions
Questions
Answers
FY figures 2019 | 24 March 2020
28 | Key takeaways
Key takeaways
Expected sales growth in FY 2020 will show an increase of 75% to nearly 100% compared to FY 2018.
Order momentum expected to remain strong with increasing share of Delta4000.
Business performance and ramp-up in FY 2020 are subject to significant uncertainties due to COVID-19.
FY figures 2019 | 24 March 2020
29 |
Thank you for your attention
FY figures 2019 | 24 March 2020
30 |
Contact details
IF YOU HAVE ANY QUESTIONS PLEASE
CONTACT THE INVESTOR RELATIONS TEAM:
Felix Zander
Tobias Vossberg
Rolf Becker
Nordex SE
Langenhorner Chaussee 600
22419 Hamburg
Germany
Phone: +49-40-30030-1000
Email: investor-relations@nordex-online.com
Web: www.nordex-online.com
FY figures 2019 | 24 March 2020
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Nordex SE published this content on 24 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 March 2020 07:02:07 UTC