Nordex Group Nordex SE – Financial figures H1/2023
27th July 2023
› All financial figures within this presentation are unaudited.
- › This presentation was produced in July 2023 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.
| Introduction |
José Luis Blanco |
| Markets and orders |
Patxi Landa |
| Financials |
Dr Ilya Hartmann |
| Operations and technology |
José Luis Blanco |
| Guidance and Outlook |
José Luis Blanco |
| Q&As |
All |
| Key takeaways |
José Luis Blanco |
|
|
Executive summary H1/2023 |
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H1/2023 RESULTS
| Sales |
EBITDA margin |
Working capital ratio |
| EUR 2,753m |
-4.2% |
-9.6% |
- › Order intake of over 2.6 GW in H1/2023 (previous year: 3.0 GW) with improved ASP of EUR 0.89m/MW compared to the first-half 2022 (EUR 0.79m/MW).
- › Sales increased to EUR 1,536m in Q2/2023 and reaching EUR 2,753m in H1/2023 (EUR 2,126m in H1/2022).
- › Q2/2023 gross margins further improving sequentially to 12.1% as expected and as impact of delays from last year recede.
- › EBITDA margin significantly improved to breakeven in Q2/2023 compared to -9.4% in the first quarter 2023. As a result, H1/2023 margin improved to -4.2% compared to -8.1% in H1/2022. EBITDA margin is expected to improve further in the second half, as extra project costs start to recede with a higher share of revenues coming from better-quality orders.
- › Working capital stable at -9.6%.
- › Installations of 1,778 MW in Q2/2023.
- › Balance sheet strengthened with the issuance of the EUR 333m convertible bond in April and conversion of the EUR 347m shareholder loans into equity in May 2023.
- › Guidance for FY 2023 maintained.
| 5 Markets & orders
› Order intake in H1/2023: EUR 2,354m (EUR 2,357m in the previous year period)
- › Stable ASP** of EUR 0.89m/MW in Q2/2023 in line with the previous quarter
- › ASP in H1/2023 of EUR 0.89m/MW increased compared to EUR 0.79m/MW in H1/2022
Order intake turbine* (in MW) Order intake turbine* by regions (in MW in %)
- › Orders received from 16 different countries in the first half-year 2023
- › Largest individual markets were Germany, Lithuania, Greece and Estonia in H1/2023
Service business in H1/2023
Comments
- › Share of service sales totaled 11% of group sales in the first half-year 2023
- › Service EBIT margin of 13.2% in the first six months 2023, on account of higher than anticipated inflationary pressures on the costs as well as regional mix
- › Service order backlog stands at over EUR 3.4bn at the end of Q2/2023
| 7 Markets & orders
Combined order book of EUR 9.8bn at the end of H1/2023
Order book turbines (EUR m) Order book service (EUR m)
- › Order book of EUR 6.4bn at the end of H1/2023 reflects ongoing order intake momentum
- › Geographical footprint of the order book in H1/2023: Europe (83%), Latin America (14%), North America (2%) and Rest of World (1%)
› 10,956 wind turbines under service agreement corresponding to 32.8 GW at the end of Q2/2023
| 8 Financials
Income statement H1/2023
in EUR m (rounded
figures) |
H1/2023 |
H1/2022 |
abs. change |
| Sales |
2,753 |
2,126 |
627 |
| Total revenues |
2,799 |
2,220 |
579 |
| Cost of materials |
-2,505 |
-1,974 |
-531 |
| Gross profit |
293 |
246 |
48 |
| Personnel costs |
-299 |
-302 |
3 |
| Other operating (expenses)/income |
-109 |
-117 |
8 |
| EBITDA |
-114 |
-173 |
59 |
| Depreciation/amortization |
-93 |
-88 |
-5 |
| EBIT |
-207 |
-261 |
54 |
| Net profit |
-299 |
-283 |
-16 |
| Gross margin* |
10.7% |
11.6% |
|
| EBITDA margin |
-4.2% |
-8.1% |
|
EBIT margin
w/o PPA |
-7.4% |
-12.2% |
|
Comments
- › Sales in H1/2023 increased by around 30% compared to the same period last year
- › Gross margins still impacted by LDs from the past delays, although further improving on a sequential basis
- › EBITDA margin in Q2/2023 significantly improved reaching break-even in line with expectations
- › PPA depreciation amounted to EUR 2.5m in H1/2023 (EUR 2.4m in H1/2022)
| 9 Financials
Balance sheet H1/2023
in EUR m
(rounded figures) |
30.06.23 |
31.12.22 |
abs. change |
Δ in % |
| Non-current assets |
1,771 |
1,795 |
-24 |
-1.4 |
| Current assets |
3,025 |
2,961 |
64 |
2.1 |
| Total assets |
4,796 |
4,757 |
39 |
0.8 |
| Equity |
992 |
878 |
114 |
13.0 |
| Non-current liabilities |
659 |
452 |
207 |
45.7 |
| Current liabilities |
3,145 |
3,427 |
-282 |
-8.2 |
| Equity and total liabilities |
4,796 |
4,757 |
39 |
0.8 |
| Net cash* |
360 |
244 |
|
|
Working capital
ratio** |
-9.6% |
-10.2% |
|
|
Equity
ratio |
20.7% |
18.5% |
|
|
Comments
- › Solid liquidity levels of around EUR 741m (incl. RCF) at the end of H1/2023
- › The issuance of the EUR 333m convertible bond in April has further strengthened the liquidity profile of the company
Financial figures H1/2023 | 27 July 2023
*Cash and cash equivalents less bank borrowings, bond and shareholder loan. **Based on actual sales figures.
| 10 Financials
Working capital development H1/2023
› Working capital ratio increased slightly compared to Q1/2023 but still in line with guided figure of below -9% for FY 2023
Working capital ratio (in % of sales)* Working capital development (in EUR m)*
| 11 Financials
| in EUR m |
H1/2023 |
H1/2022 |
Cash flow from operating activities
before net working capital |
-243.8 |
-187.8 |
Cash flow from changes in working
capital |
25.6 |
-30.3 |
Cash
flow from operating activities |
-218.2 |
-218.1 |
| Cash flow from investing activities |
-63.4 |
-68.7 |
| Free cash flow |
-281.6 |
-286.7 |
| Cash flow from financing activities |
307.6 |
144.8 |
Change
in cash and cash equivalents |
26.0 |
-141.9 |
Comments
- › Cash flow from operating activities impacted by softer margin levels
- › Cash flow from investing activities in line with expected investments in H1/2023
- › Cash flow from financing activities mainly influenced by inflows from green convertible bond in April
| 12 Financials
CAPEX (in EUR m) Comments
- › Investments in H1/2023 primarily comprise:
- Investments in moulds and equipment
- Investments intransport equipment for blade and tower
- › Intangible assets increased compared with previous year period
| 13 Financials
Capital structure H1/2023
(Net debt) / net cash* Equity ratio (in %)
› Net cash levels increased as expected, due to the issuance of debt-to-equity swap
› Equity ratio increased as expected, post successful completion of the debt-to-equity swap
Financial figures H1/2023 | 27 July 2023
Installations (MW) Production
- › Total installations of 356 WTGs in 20 countries in Q2/2023 (219 WTGs in the previous year quarter)
- › Installations of 1,778 MW in Q2/2023; run rate substantially improved compared to Q1/2023
-
› Geographical split (MW) in Q2/2023: 64% Europe, 24% Latin America, 5% North America and 7% RoW
-
› Output turbines amounted to 340 units in Q2/2023: 188 GER, 51 IND, 34 CHN, 34 ESP and 33 BRA
- › Inhouse blade production of 506 units in H1/2023: 311 IND and 195 ESP
|
H1/2023 |
Guidance FY 2023 |
|
| Sales: |
EUR ~2.8bn |
EUR 5.6 -
6.1bn |
|
| EBITDA margin: |
-4.2% |
-2% to +3% |
|
| Working capital ratio: |
-9.6% |
below -9% |
|
| CAPEX: |
~50m |
approx. EUR 200m |
|
|
|
|
|
Please note the assumptions underlying the guidance are subject to greater uncertainties than normal
| 16 Q&As
Time for your questions
Financial figures H1/2023 | 27 July 2023
Order intake back-end loaded for 2023 with further sequential improvement of margins. 1
Development in the second quarter was in line with expectations with a stronger second half compared to the first one. 2
Nordex has strengthened its financial position and flexibility with the recent debt-toequity swap and convertible bond. 3
Guidance for 2023 is confirmed and mid-term target remains in place subject to a stabilized macroeconomic environment. 4
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IF YOU HAVE ANY QUESTIONS PLEASE CONTACT:
Felix Zander Phone: +49 152 0902 40 29 Email: [email protected]
Tobias Vossberg Phone: +49 173 4573 633 Email: [email protected]
Nordex SE Langenhorner Chaussee 600 22419 Hamburg / Germany www.nordex-online.com