Nordex Group Nordex SE – Financial figures Q1/2023
12th May 2023
› All financial figures within this presentation are unaudited.
- › This presentation was produced in May 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.
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2
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3
| 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 Q1/2023
| Q1/2023 RESULTS |
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| Sales |
EBITDA margin |
Working capital ratio |
|
| EUR 1,217m |
-9.4% |
-10.6% |
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› Order intake of around 1.0 GW shows a solid start into the year with ASP of EUR 0.90m/MW.
- › Sales aggregated to EUR 1,217m; increase of ~31% compared to previous year quarter of EUR 933m.
- › Gross margins continue to be impacted by extra costs of catch up in winter and some further LDs from the delays of the last year. Margins improved sequentially to 8.9% compared to 2.6% in Q4/2022, however still below the normal run-rate due to these one-off effects.
- › EBITDA margin of -9.4% in Q1/2023 similar to previous year quarter, mainly on account of lower gross margins.
- › Strong working capital ratio of -10.6%.
- › Installations of 1,319 MW in Q1/2023; run rate back to normal level but still lower than the run-rate required to catch up for delays of 2022.
- › Successful issuance of the EUR 333m convertible bond in April, further strengthening the balance sheet of the Company.
- › EUR 275m high yield bonds repaid in February 2023 and conversion of the EUR 347m shareholder loans into equity successfully completed in May 2023.
- › 2023 guidance maintained.
| 5 Markets & orders
- › Order intake totaled to EUR 917m in Q1/2023 (EUR 903m in Q1/2022)
- › ASP** of EUR 0.90m/MW in Q1/2023 (0.78m/MW in Q1/2022), after a healthy development in FY 2022
Order intake turbine* (in MW) Order intake turbine* by regions (in MW in %)
- › Orders received from eight different European countries in Q1/2023
- › Largest single markets were Estonia, Germany and Lithuania
*Group segment "Projects". ** Average Selling Price.
Growth in service business Q1/2023
Comments
- › Share of service sales amounted to around 12% of group sales in Q1/2023
- › Service EBIT margin of 15% in the first three months 2023, reflecting higher cost inflationary effects
- › 97% average availability of WTGs under service in Q1/2023
- › Service order book remains strong of over EUR 3.4bn at the end of Q1/2023
| 7 Markets & orders
Combined order book at EUR 9.9bn at the end of Q1/2023
Order book turbines (EUR m) Order book service (EUR m)
- › Order book of around EUR 6.5bn at the end of Q1/2023 shows continued healthy order intake development
- › Geographical distribution of the order book in Q1/2023: Europe (76%), Latin America (19%), North America (3%) and Rest of World (2%)
› 10,682 wind turbines under service agreement corresponding to 31.7 GW at the end of Q1/2023
Successful issuance of green convertible bond strengthens capital structure while optimising financing costs
|
Deal
Terms |
Transaction
Highlights |
| Issuer: |
Nordex
SE |
›
Debut in convertible bond market |
| Issue Size: |
EUR
333m |
›
Transaction
strengthens capital structure |
| Ranking: |
Senior Unsecured |
while optimising financing costs |
| Maturity: |
7-years |
›
Display of environmental commitments |
| Bondholder Put: |
At the 5th
anniversary |
Green Financing Framework, with the |
| Issuer Call: |
After 5 years subject to 130% parity threshold |
Projects |
| Coupon: |
4.25% p.a., paid semi annually |
›
Multiple oversubscription during book |
| Reference Share Price: |
EUR 12.10 |
|
| Conversion Premium: |
30.0% |
as the industry's long-term prospects |
| Conversion Price: |
EUR 15.73 initially |
|
| Underlying Shares: |
21.2m shares / 10.0% of issued
share capital |
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|
- › Debut in convertible bond market
- › Transaction strengthens capital structure while optimising financing costs
- › Display of environmental commitments through issuance under a newly established Green Financing Framework, with the proceeds being earmarked for Eligible Green Projects
- › Multiple oversubscription during bookbuilding, demonstrating the high confidence of investors in Nordex business model as well as the industry's long-term prospects
Income statement Q1/2023
in EUR m (rounded
figures) |
Q1/2023 |
Q1/2022 |
abs. change |
| Sales |
1,217 |
933 |
284 |
| Total revenues |
1,243 |
1,133 |
110 |
| Cost of materials |
-1,135 |
-1,012 |
-123 |
| Gross profit |
108 |
121 |
-13 |
| Personnel costs |
-147 |
-162 |
15 |
| Other operating (expenses)/income |
-76 |
-48 |
-28 |
| EBITDA |
-115 |
-89 |
-26 |
| Depreciation/amortization |
-51 |
-42 |
-9 |
| EBIT |
-166 |
-131 |
-35 |
| Net profit |
-215 |
-151 |
-64 |
| Gross margin* |
8.9% |
12.9% |
|
| EBITDA margin |
-9.4% |
-9.5% |
|
EBIT margin
w/o PPA |
-13.5% |
-13.9% |
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Comments
- › Growth of ~31% recorded in sales at the end of Q1/2023 compared to previous year quarter
- › Gross margins still impacted by project delays and resultant LDs from the last quarter, although improving on a sequential basis
- › EBITDA margin of -9.4% primarily due to soft start into the year
- › PPA depreciation amounted to EUR 1.3m in Q1/2023 (EUR 1.2m in previous year quarter)
| 10 Financials
Balance sheet Q1/2023
in EUR m
(rounded figures) |
31.03.23 |
31.12.22 |
abs. change |
Δ in % |
| Non-current assets |
1,788 |
1,795 |
-8 |
-0.4 |
| Current assets |
2,758 |
2,961 |
-203 |
-6.9 |
| Total assets |
4,546 |
4,757 |
-211 |
-4.4 |
| Equity |
680 |
878 |
-198 |
-22.6 |
| Non-current liabilities |
413 |
452 |
-39 |
-8.7 |
| Current liabilities |
3,453 |
3,427 |
27 |
0.8 |
| Equity and total liabilities |
4,546 |
4,757 |
-211 |
-4.4 |
| Net cash* |
104 |
244 |
|
|
Working capital
ratio** |
-10.6% |
-10.2% |
|
|
Equity
ratio |
15.0% |
18.5% |
|
|
Comments
- › Solid liquidity levels of around EUR 600m at the end of Q1/2023
- › The issuance of the EUR 333m convertible bond in April further strengthens the liquidity profile of the company
Financial figures Q1/2023 | 12 May 2023
*Cash and cash equivalents less bank borrowings, bond and shareholder loan. **Based on actual sales figures.
| 11 Financials
Working capital development Q1/2023
› Working capital ratio remains at a very strong level in Q1/2023 despite operational challenges
Working capital ratio (in % of sales)* Working capital development (in EUR m)*
Cash flow statement Q1/2023
| in EUR m |
Q1/2023 |
Q1/2022 |
Cash flow from operating activities
before net working capital |
-132.6 |
-103.8 |
Cash flow from changes in working
capital |
57.0 |
22.9 |
Cash
flow from operating activities |
-75.6 |
-80.9 |
| Cash flow from investing activities |
-39.2 |
-32.6 |
| Free cash flow |
-114.8 |
-113.5 |
| Cash flow from financing activities |
2.5 |
2.1 |
Change
in cash and cash equivalents* |
-112.3 |
-111.5 |
Comments
- › Cash flow from operating activities impacted by softer margin levels in Q1, partially offset by tight working capital management
- › Cash flow from investing activities reflects expected investments in Q1/2023
- › Cash flow from financing activities mainly determined by cash drawdowns under the MGF; corporate bond of EUR 275m has been repaid by a shareholder loan in February
*Including FX effects
CAPEX (in EUR m) Comments
- › Investments in Q1/2023 mainly comprises:
- Investments in the expansion of blade and nacelle production facilities, moulds and tooling
- Investments in installation and transport tooling and equipment for projects
| 14 Financials
Capital structure Q1/2023
(Net debt) / net cash* Equity ratio (in %)
- › Net cash levels remains healthy despite soft Q1/2023
- › Issuance of convertible bond further strengthens the cash levels of the company
› Equity ratio expected to increase post completion of the debt-to-equity swap
* Bank borrowings, bond, employee bond and shareholder loan less cash and cash equivalents.
1) Pro forma net cash assuming conversion of the shareholder loans into equity as of 31st March 2023, but without the convertible loan. 2) Pro forma equity ratio assuming conversion of the shareholder loans into equity as of 31st March 2023, but without the convertible loan.
Installations (MW) Production
- › Total installations of 276 WTGs in 19 countries in Q1/2023 (197 WTGs in the previous year quarter)
- › Installations of 1,319 MW in Q1/2023; run rate substantially improved, but still lower than required to catch up for delays in 2022
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› Geographical split (MW) in Q1/2023: 54% Europe, 25% Latin America, 14% North America and 7% RoW
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› Output turbines amounted to 217 units in Q1/2023: 131 GER, 56 BRA, 28 IND, 1 ESP and 1 CHN
- › Inhouse blade production of 233 units in Q1/2023: 146 IND and 87 ESP
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Q1/2023 |
2023 guidance |
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| Sales: |
EUR 1,217m |
EUR 5.6 -
6.1bn |
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| EBITDA margin: |
-9.4% |
-2% to +3% |
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| Working capital ratio: |
-10.6% |
below -9% |
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| CAPEX: |
~25m |
approx. EUR 200m |
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Please note the assumptions underlying the guidance are subject to greater uncertainties than normal
| 17 Q&As
Time for your questions
Financial figures Q1/2023 | 12 May 2023
Macro environment improving, but near-term headwinds remain in the form of inflation, higher interest rates and supply chain reliability. 1
Order intake and pipeline continues to be healthy with improving margin profile on a more stable cost base. 2
Q1/2023 performance soft as expected with sequential improvement in the margins expected over the coming quarters. 3
Latest capital measures will further strengthen the financial flexibility of Nordex and protect against short term volatilities. 4
Guidance for 2023 confirmed and mid-term strategic target remains in place subject to a stabilized macroeconomic environment.
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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