Nordex Group Nordex SE – Half-year financial figures 2020
13th August 2020
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› All financial figures within this presentation are unaudited.
- › This presentation was produced in August 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.
| 3 Agenda
| José Luis Blanco |
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| Patxi Landa |
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| Christoph Burkhard |
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| José Luis Blanco |
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| All |
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| José Luis Blanco |
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Financial figures H1/2020 | 13 August 2020
Executive summary
H1/2020 RESULTS
- › State-guaranteed revolving credit facility of EUR 350m closed on August 6th protecting Nordex Group against the effects and remaining uncertainties caused by the Covid-19 pandemic.
- › In the context of the new facility, the refinancing of the promissory notes (Schuldscheindarlehen) of EUR 215m due in April 2021 has already been secured.
- › Potential sale of Nordex European project development pipeline to RWE for EUR 403m with closing expected in Q4/2020.
- › Successful refinancing of multi-currency guarantee facility of EUR 1.21bn already completed in April 2020.
- › Order intake with a volume of 2,532 MW in H1/2020 dominated by latest turbine generation Delta4000 attributable to around 79% of the order intake.
- › Strong sales number of EUR 2,048m in H1/2020 due to high activity level despite Covid-19.
- › Results in H1/2020 influenced by extraordinary costs due to Covid-19 impact.
| 5 Markets & orders
- › Order intake in H1/2020: EUR 1,806m (EUR 2,112m in previous year period)
- › Stable ASP of EUR 0.71m/MW in first half-year 2020
Order intake turbine* (in MW) Order intake turbine* by regions (in %)
- › Largest orders come from Norway, Spain, Great Britain, Chile, Brazil and Turkey in H1/2020
- › Share of latest turbine generation Delta4000 was 65% in Q2/2020 and 79% for the first half-year 2020
Growing service business
Comments
- › Service sales share amounted to 10.2% of group sales in the first half-year 2020
- › Service EBIT margin of 16.7% in the first six months 2020
- › 97.6% average availability of WTGs under service
- › Service order backlog stands at over EUR 2.7bn at the end of Q2/2020
| 7 Markets & orders
Combined order backlog of over EUR 8bn at the end of H1/2020
Order backlog turbines (EUR m) Order backlog service (EUR m)
- › Order backlog of EUR 5,367m at the end of Q2/2020 reflects high order intake over the last quarters
- › Well balanced geographical footprint on Nordex focus markets: Europe (64%), Latin America (17%), North America (11%), Rest of World (8%)
› 8,257 wind turbines under service corresponding to 21.3 GW at the end of Q2/2020
Comprehensive financing structure successfully closed
| Details |
Revolving
credit
facility
(RCF) |
Participating Lenders |
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Recent
financing activities |
| Amount: |
350m EUR |
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| Duration: |
30th
April 2022 |
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› |
Three-year extension of EUR 1.21bn multi
currency guarantee facility (MGF) was
closed on April 9th |
Number
of
banks: |
9 |
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› |
RCF of EUR 350m backed by German
State guarantee covering 90% was |
| Purpose: |
General
corporate purposes
•
Cash drawings
• |
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› |
closed on August 6th
RCF provided by a consortium of nine
lenders was significantly
oversubscribed |
| Security: |
Unsecured
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Pari-passu
• |
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› |
Refinancing
of promissory notes
(Schuldscheindarlehen) of EUR 215m due |
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in April 2021 has been secured in the
context of the state-guaranteed RCF |
| ESG rating provider: |
ISS ESG |
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MGF and RCF contain an ESG
component
and fit seamlessly into the company`s |
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sustainable financing structure |
| ESG company rating: |
B |
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| 9 Financials
Income statement H1/2020
| in EUR m |
H1/2020 |
H1/2019 |
abs. change |
| Sales |
2,047.9 |
990.8 |
1,057.1 |
| Total revenues |
1,990.0 |
1,603.6 |
386.4 |
| Cost of materials |
-1,702.3 |
-1,300.8 |
-401.5 |
| Gross profit |
287.6 |
302.8 |
-15.2 |
| Personnel costs |
-203.2 |
-172.9 |
-30.3 |
| Other operating (expenses)/income |
-155.2 |
-112.8 |
-42.4 |
| EBITDA |
-70.8 |
17.1 |
-87.9 |
| Depreciation/amortization |
-75.6 |
-67.3 |
-8.3 |
| EBIT |
-146.4 |
-50.2 |
-96.2 |
| Net profit |
-180.0 |
-55.4 |
-124.6 |
| Gross margin* |
14.0% |
30.6% |
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| EBITDA margin |
-3.5% |
1.7% |
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EBIT margin
w/o PPA |
-6.5% |
-3.8% |
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Comments
- › Strong sales of EUR 2,048m in the first six months 2020
- › EBITDA margin of -3.5% reflects Covid-19 impact
- › Covid-19 mainly lead to major production stops and site interruptions causing significant cost increases
- › FY impact of Covid-19 cannot be assessed at this point in time
| 10 Financials
Balance sheet H1/2020
| in EUR m |
30.06.20 |
31.12.19 |
abs. change |
Δ in % |
| Non-current assets |
1,457.5 |
1,488.9 |
-31.4 |
-2.1 |
| Current assets |
2,566.0 |
2,513.8 |
52.2 |
2.1 |
| Total assets |
4,023.5 |
4,002.7 |
20.8 |
0.5 |
| Equity |
554.9 |
745.4 |
-190.5 |
-25.6 |
| Non-current liabilities |
640.1 |
914.2 |
-274.1 |
-30.0 |
| Current liabilities |
2,828.5 |
2,343.2 |
485.3 |
20.7 |
| Equity and total liabilities |
4,023.5 |
4,002.7 |
20.8 |
0.5 |
| Net debt* |
-241.4 |
-84.0 |
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Working capital
ratio** |
-7.1% |
-9.1% |
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Equity
ratio |
13.8% |
18.6% |
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Comments
- › Cash position of EUR 334m at the end of H1/2020 (EUR 396m H1/2019) reflecting successful Covid-19 mitigation management
- › The shifts between noncurrent and current liabilities largely relate to the reclassification of the promissory note (SSD) of EUR 215m due in 04/2021
- › The refinancing of EUR 215m promissory notes due in April 2021 has already been secured in the context of the state-guaranteed RCF
Financial figures H1/2020 | 13 August 2020
*Cash and cash equivalents less bank borrowings and bond. **Based on last twelve months sales.
| 11 Financials
Working capital development H1/2020
- › Absolute working capital in Q2/2020 improved compared to the end of previous quarter
- › Working capital ratio increased due to higher sales
Working capital ratio (in % of sales)* Working capital development (in EUR m)*
› Working capital remains stable compared to YE 2019 reflecting success of short-term Covid-19 mitigation actions
| 12 Financials
Cash flow statement H1/2020
| in EUR m |
H1/2020 |
H1/2019 |
Cash flow from operating activities
before net working capital |
-74.2 |
-123.7 |
Cash flow from changes in working
capital |
6.2 |
23.1 |
Cash
flow from operating activities |
-68.0 |
-100.6 |
| Cash flow from investing activities |
-69.0 |
-60.7 |
| Free cash flow |
-137.1 |
-161.3 |
| Cash flow from financing activities |
-24.1 |
-50.6 |
Change
in cash and cash equivalents |
-161.1 |
-211.9 |
Comments
- › Cash flow from operating activities reflecting the negative net result partly compensated by cash inflows from VAT phasing effects
- › Cash flow from investing activities reflects further expansion of supply chain management
- › Cash flow from financing activities primarily driven by repayment of EIB and other short-term loans
| 13 Financials
CAPEX (in EUR m) Comments
- › Investments in H1/2020 primarily comprise:
- Investments in blade production facilities in Mexico and 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 period
| 14 Financials
Net debt*/EBITDA** Equity ratio (in %)
› Due to low EBITDA and decreased cash level compared to Q1/2020 both impacted by Covid-19 the leverage ratio increased
› Equity ratio decreased in Q2/2020 due to negative net result
Financial figures H1/2020 | 13 August 2020
*Cash and cash equivalents less bank borrowings and bond. ** Based on last twelve months.
Installations (MW) Production
- › Total installations of 662 WTGs in 21 countries in H1/2020 (H1/2019: 242 WTGs)
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› Geographical split: 45% Europe, 17% Latin America, 32% North America and 6% Rest of World
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› Output turbines of 787 units in H1/2020: 392 GER, 247 ESP, 96 IND, 42 BRA and 10 ARG
- › Inhouse blade production of 623 units in H1/2020: 351 GER, 142 IND, 123 MEX and 7 ESP
- › Outsourced blade production of 1,215 units in the first half-year 2020
| 16 Q&As
Time for your questions
Financial figures H1/2020 | 13 August 2020
Order momentum expected to remain strong in H2/2020 with continuously high share of new turbine generation Delta4000.
Covid-19 impact on further business performance in FY 2020 cannot finally be assessed at this point in time.
Comprehensive financing structure in place in order to protect the company against the effects and remaining uncertainties caused by Covid-19 pandemic.
Potential sale of 2.7 GW project development pipeline to RWE will strengthen Nordex capital structure and support growth trajectory.
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
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