Nordex USA, Inc.
Nordex Group Nordex USA, Inc.
Company Introduction Wind Energy Market (1)
Global Sources of Energy - 2006 Forecast Energy Demand
2,185,714 Wind + Wind Turbines Photovoltaic + Solar Thermal < 0,005
Geothermal < 0,01 6 Biomass 0,19 5,200 200 Hydro 0 ,17 Natural Gas 0,61 5 Coal-fired Three Gorges C Plants Dams Nuclear 0,15 M 4 O 1 cubic mile 3 Oil* s 2 1
4,500,000,000 1,300 0 Solar Panels Nuclear Power Coal 0,81 2000 2010 2020 2030 Plants Oil 1,06
CMO: Cubic Mile of Oil Current Demand = 3 CMOs Projected Demand = 6 CMOs
* Assumes energy equivalent for generation of 15.3 million GWh of electrical energy Based on: IEEE Spectrum, January 2007 ___ 2 Wind Energy Market
CAGR ‘05 - ‘08 ‘08 - ‘13
350,0 CAGR 2008 - 2013e: 22.9% 27% 23% CAGR 1995 - 2008: 28.3% 343,2 3,4% 28% 58% 300,0 2,9% 2,4% 284,6 2,0% 53% 29% 1,7% 250,0 1,3% 1,1% 233,2 0,9% 0,6% 0,7% 0,4% 0,5% 0,2% 0,3% 0,3% 42% 26% 200,0 0,1% 0,1% 0,2% 189,4
152,8 150,0 122,2 17% 17% 100,0 90,1 72,6 59,3 47,9 40,3 50,0 32,0 24,9 18,4 10,2 13,9 19954,8 19966,1 19977,6 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 0,0
% Increase 27.0 27.1 24.6 34.2 36.3 32.4 35.3 28.5 25.9 18.9 23.8 22.4 24.1 35.6 25.0 24.0 23.1 22.0 20.6
Europe The Americas Asia-Pacific RoW Wind Pow ers' Share of Total Pow er Market
Source: BTM ___ 3 Competitiveness of wind generated electricity (1)
€/ MWh €/ MWh 100 100
80 80
60 60
40 40
20 20
0 0 IGCC IGCC CCGT CCGT CCS CCS IGCC + IGCC + Wind Wind Wind Wind Coal Coal Onshore Offshore Onshore Offshore Traditional Traditional
Range of cost of electricity without Range of cost of electricity assuming a potential cost of carbon carbon penalty of €30 / ton for CO2 derived from fossil fuels Base Case Base Case
4 Source: emerging energy research Competitiveness of wind generated electricity (2)
Electricity generating costs in selected regions
$ per MWh 200 Coal Gas Nuclear 160 Wind
120
80
40
0 2015 2030 2015 2030 2015 2030 2015 2030 United States European Union China India
Source: IEA WEO 2008, Note: Costs include a carbon value of US$ 30 per tonne of CO2 in the EU. In 2015, coal refers to supercritical steam. In 2030, coal refers to IGCC (integrated gasification combined cycle) for the US, ultra-supercritical steam for Europe and China and supercritical steam for India. Gas refers to CCGT (combined cycle gas turbine). 5 Wind Energy Market in the US (1)
As of 2008 25,170 MW have been installed in the US:
6 Wind Energy Market in the US (2)
4,451 MW are currently under construction in the US.
7 Wind Energy Market in the US (3)
Outlook by state: 104,789 MW in advanced development stages
8 Nordex Group: Key Facts
Nordex at a Glance Installed base as of Feb 2009
• Global manufacturer of wind energy Germany 35 % systems with a focus on turbines in MW Class Other Europe 51 % • Founded in 1985 in Denmark Africa 1 % Geography • IPO in 2001 • Exceptional revenue growth track record Asia 10 % and strong future growth potential America 3 % • 2004 revenues: € 214m / $ 289m* • 2008 revenues: € 1,136m / $ 1,533m* 1 MW Turbines • Main manufacturing facilities in Germany (0.75 - 1.49 MW) MW Class (Rostock), China (Dongying, Yinchuan) and 30 % (1.5 - 2.5 MW) from 2010 in the USA (Jonesboro, 65 % Arkansas) Segment • Headquartered in Germany (Hamburg) Small • 2,153 employees as of December 2008 (<0.75 MW) 5 %
Total: 4,918 MW
* based on exchange rate of USD 1.35 / EUR 9 Most of the Leading Companies have chosen Nordex …
Selected Key Customers – Delivered Projects Selected Projects Total MW Customers Country # WTG MW (Names) Installed Germany Niederrhein 8 12 47 Germany Roth 15 23 France Brachy 5 12 UK Bow Beat 24 31 86 Germany Ketzin 8 18 Germany Schortewitz 6 15 Germany Hoppenrade 5 12 Poland Lebcz 4 10 UK Wharrels Hill 8 10 15 UK Burgar Hill 2 5 France Fitou 2 8 10 11 France Fitou Extension 1 1 Netherlands Nerefco 9 23 23 Portugal Carrezo 9 21 41 Portugal Vergao 10 13 Portugal Chamine 3 7 Norway Havøygavlen 16 40 40 UK Crystal Rig 20 50 63 UK Crystal Rig Extension 5 13 UK Kings Mountain 10 25 25
10 …and continue. Demand for MW- turbines increases significantly.
Selected Customers – Capacities Under Construction Total MW Selected Projects Customer Country # WTG MW Under (Names) Construction Italy Minervino Murge 26 60 183 UK Kilbraur 19 48 UK Millenium 16 40 UK Earlsburne 14 35 Italy Fossa del Lupo 36 90 215 Italy Capo Rizzuto 32 80 Italy Vicari 18 45 Poland Dolice 21 53 53 UK Little Cheney Court 26 60 64 UK Bilbster 3 4 UK Slieve Divena 10 25 50 UK Gruig 10 25 Italy Grighine 43 99 206 Italy Messina 21 48 Italy Energia Alternativa 25 38 Italy Cadau 14 21 France Boulay 12 30 78 France Erize 5 12 France Amelecourt 5 12 France Saint Aubin sur Aire 5 12 France Courcelles sur Aire 5 12 China Taonan Jilin 33 50 50
11 Nordex products are well-regarded by customers and industry experts
very been has our Nordex eting “Nordex has a long track “ ful me se ccess a clo su . It was our record internationally. They dards P and “We have calculated the annual stan with B cing are therefore candidates for a ship convin yield of the N90 to around 7,800 relation re is e fast return to the global . If the se th MWh. The production of 8,500 tners will u we players group.” (BTM) par e they ects idenc re proj ) MWh is therefore 9% above our ev in futu .” (BP ience again expectations.” (Elsam) exper ordex use N would
“In general terms, wind turbine “All th ree win manufacturers have the with d farm “Last week we inspected the the con s comp gua tractua lied tendency to overestimate both rantee l avail first eight wind turbines from our wi of 97% ability types of data somewhat. nd far in 200 wind farm, supplied and m ach 3. The Based on our results to date, yield th ieved a installed by Nordex. I want to an tha greate Nordex could be an win t indica r state that we were impressed to d index ted by spea data. the exception.” (ECN Research) king, No Gener see the quality of work, the a rdex ally produc works chosen technology for your er and as bo well an an op th machines and the good spirit of d as e erator e fficient as xpecte ly as c your people at the site.” (Nuon) d for o an be comp ther la anies i rge n this s (Re ector.” nerco)
12 Nordex Product Range: an outstanding track record in the MW class
Market growth by product segments Development of market segments by 2011e (supplied MW)
> 2.5 “Multi-MW class” 1.5 - 2.5 “MW Class” Offshore Very small segment Offshore 20,442 0.75 - 1.49 “One MW” 6 % < 750 kW “Small WTG” Established Established markets markets Western Europe Western Europe + 8 %* (including 48% North America Key growth Spain) markets with North America significant turbine up-scaling drive Asia (including growth of MW China, India) 80 % + 41 %* class 8,304 Spain 1 % China 3535% % India 46% Emerging markets Emerging 5656% % Emerging continue to use smaller markets markets 13 % turbines 8 % 1 %
2003 2008 2008 2011
Source: BTM Consult, 03/2009 * CAGR (2003-2008) 13 Nordex Product Range: Installed Base and Availability
Turbine type Units installed 1st installation Performance
Sub-MW 1,451 1985 N60/62 (1.3 MW) 711 1996 Availability in 2007/2008: Ø ≥ 97% S70/77 (1.5 MW) Availability in 2007/2008: Ø ≥ 98% 500 1999 N80/90/100 Availability in 2007/2008: Ø ≥ 97% 1,007 2000 (2.5 MW) 3,669
Worldwide installations: 3,669 WTG in 34 countries 14 (as of 1 Dec 2008) Nordex Product Range (1)
Type Capacity Regulation Certification Hot and cold climate versions Nordex 1.5 MW pitch GL2 / IEC 3a Conditional S70/77 monitoring system Nordex N80 2.5 MW pitch IEC 1a Fire detection and Nordex N90 2.3 MW pitch GL2 extinguishing system Nordex N90 2.5 MW pitch DIBt 2, DIBt 3 and Shadow impact cut- IEC 1b, IEC 2a, IEC out module 3a Nordex N100 2.5 MW pitch IEC 3a, DIBt 2 Anti-bat system Additional filter systems 15 Nordex Product Range (2)
Product portfolio: Nordex vs. Competitors
IEC III (LS) IEC II (MS) IEC I (HS)
N80/2.5 Nordex (2000)
N90/2.5 Nordex (2005) Nordex (2005)
N90/2.3 Nordex (2002)
N100/2.5 Nordex (2009)
SWT82/2.3 Siemens (2003)
V90/3.0 Vestas (2003)
E70/2.3 Enercon (2005)
• MW Class (1.5-2.5 MW) is the industry segment with highest actual growth rates as well as the highest medium-term growth potential and is increasingly becoming the “Mainstream Class” • Nordex, with the most complete MW Class product offering, benefits from the “First Mover” advantage
16 Nordex: Cold + Hot Climate Versions and Other Technical Features
Sophisticated solutions for various conditions:
Cold and Hot Climate Versions • special materials and components for performance between -30°C and +40°C, restart at -28°C • special air conditioning • additional cooling units and improved cooling system with new tower design
Other Features • Conditional Monitoring System • Fire detection and extinguishing system • Shadow impact cut-out module • Anti-bat system • Additional filter systems
17 Nordex Control Systems
Control and regulation from a single wind turbine to multiple wind parks
Nordex Control II reports: • operational disturbances • status of the turbines • availability • daily, monthly and annual production • turbine-specific wind conditions • data recorded by the weather mast • data recorded • substation
Real-time transmission of alarms via e-mail or SMS to operator's mobile phone
18 Nordex Turnkey Solutions
Advantages:
• Minimize risk with fixed price and guaranteed deadlines • No interface cost risks • Support for finance issues • Save time through advanced services for planning and grid connection Substation Nordex has DIN ISO 9001 certification for planning, delivery, installation and commissioning of all electrical and technical automation systems as well as for the infrastructure required for wind turbines.
Windfarm Management
Micrositing Project Development And Engineering 19 Nordex Service: Remote Monitoring and Support
• Twice yearly regular inspection and maintenance
• 24-hour remote monitoring and service for all turbines
• Stocking and supply of spare parts
• 24/7 Emergency Service – weekends, public holidays and during the night
• Customer advice and customer service
• Training for customers and operators at the respected Nordex Academy
• Repair and upgrading of turbines
• Turbine Management
20 Nordex Service: Service Packages
Service Basic Extended Premium
Repairs and Maintenance / Basic rate for Basic rate for replacement repairs materials materials parts included
Availability 95% per farm 95% per farm guarantee
Condition optional included monitoring
Technical optional optional optional Management
Term 3 (+ 3) years 6 (+ 3) years 9 (+ 3) years
21 Nordex Academy: Training Worldwide
Curriculum: Goal:
• regular maintenance and operation Provide participants with • trouble-shooting knowledge of the detailed • health & safety technical functions of the wind • customized training for customer needs energy systems and Health & Safety practices
22 Nordex Group: Financials 2008
2008 2007 Δ in %
Sales in € mn 1,136 747 + 52
Total revenues in € mn 1,190 807 + 47
EBITDA in € mn 78.9 54.2 + 46
EBIT in € mn 63.0 40.1 + 57
Capex in € mn 72.4 28.5 + 154
Net profit in € mn 49.5 48.0 + 3
EPS in € 0.71 0.74 -4
EBIT margin in % 5.3 5.0 + 0.3 PP
Return on sales in % 5.5 5.4 + 0.3 PP
Working capital ratio in % 14.0 2.3 + 11.7
23 Nordex Group: Sales and Output 2008
Sales by quarter in Million € 2007 vs. 2008 Substantial double-digit increase in output (MW)
2007 WTG China 2008 Rotor In-house 51 % Total Total 747 1,136 1,128
46 % 355
315 800 + 41 % 266 254
570 199 172 170 151 368 + 55 %
176 216 114 65
Q1 Q2 Q3 Q4 2007 2008
24 Nordex Group: Order Backlog 31 Dec 2008
in Million € + 5 %
3,044 2,903 Conditional orders 2,220 1,881 + 18 % Binding contract in force Advance payment / reservation fee received
Firm orders Binding contract in force Building permit received
1,022 Grid contract in force - 19 % 824 Finance approved Advance payment received
2007 2008
25 Nordex Group: exceptional growth + margin improvement
Sales in Million € 2004-2008 EBITDA (Million €) and EBITDA margin 2004-2008
1,136 6.6%
78.9
6.7% % .8 747 51 : GR A C 54.2 5.4% 514
3.7% 29.6 309
214 11.8
-9.7
2004 2005 2006 2007 2008 2004 2005 2006 2007 2008
26 Nordex Group: one of the fastest growing companies in the industry
CAGR 2004 - 2008 Nordex’ world market share / new installed MW
2.0 % 3.0 % 3.4 % 3.4 % 3.8 % Suzlon 67%
1,075 MW NORDEX 55%
GE 55%
680 MW Siemens 40%
505 MW Repower 37%
300 MW Gamesa 23% 190 MW
Enercon 21%
Vestas 19% World Market CAGR 38% 2004 2005 2006 2007 2008
Source: BTM Consult, 03/2009 27 Nordex Group: Sales Growth in Major Markets
Country New Capacity 2007* Expected Market Growth 2008* Nordex Growth 2008
USA +44% above market
China + 80% above market
Spain - 20% above market
Germany - 4% below market
France + 46% below market
Italy + 50% above market
Portugal + 61% above market
UK + 80% above market
*Source: BTM Consult 2008
28 Nordex Group: Shareholder Structure
SKion / momentum capital Free float / Klatten (47.3 %) (21.8 %)
HSH Nordbank CMP (2.1 %) (14.4 %)
CJ Holding A/S* Goldman Sachs (3.8 %) (10.6 %)
* Controlling company of Nordvest A/S
On the basis of 66.845 mn shares, as of March 2009 29 Nordex USA, Inc.: Key Facts
Local production / 800 installation in USA Bear Creek 700 Output nacelle 600 Output blades Chicago Highland 500 400
300 Jonesboro 200
100
2010e 2011e 2012e 2013e 2014e 2015e
• First N90 2.5 MW 60Hz installed in Minnesota in 2007 2008 2012e • First major project (62.5 MW) in 2008, followed by a 150 MW farm in 2009 • Product focus: N90 and N100 (2.5 MW)
New MW 8,358 13,000 • US Headquarters in Chicago, IL • Production Facilities including Training Academy in Jonesboro, AR (nacelle assembly in 2010 and blade Nordex‘ market >1% ~ 4.5% production in 2012) share • Investment of ~ $100 million (1/3 nacelle, 2/3 blades) • Headcount by 2013e: > 700 • Organizational Set-up: Project Management, Service, Engineering, HSE, Supply Management, Administration are established in the US Source: BTM Consult, 03/2009 30 Nordex USA, Inc. Organizational Set-Up
President & CEO
VP Production VP Supply Mmgt. VP Serv.+PM Legal & C. Secr. VP Finance & Acc.
Production Planning PM Operational Accounting Sen. Purch. Officer VP HR
Production Nacelle Treasury Purch. Officer PM Operational HR Production Contract Manager Controlling Nacelle Engineering Purch. Officer HR Training Production Blade Purch. Officer Health & Safety IT
VP Sales Blade Engineering Logistics Manager Site Manager
Sales PM Production Site Manager
VP Electrical Eng. VP Mech. Eng. Stock & Logistics Erection Supervisor
Electr. Engineer Mech. Engineer Health & Safety Erection Supervisor Electr. Engineer Mech. Engineer Work Assignments Chicago Civil Engineer Stock & Logistics Jonesboro QA Off. Suppliers Field Oper. Mgr. Project related QA Off. Suppliers Commissioners Positions in bold are staffed QA Off. Production Service Techn. as of 15 March 2009
QA Off. Production 31 Nordex Conclusions
• 2008: All-time high in sales and profit • Sales in third quarter exceeded total sales in the year 2005 • 4 consecutive years of 50% average annual growth completed • High liquidity position (112 Million € as of 31 Dec 2008) • 2009: Growing uncertainty in the financial market • Targeting further sales growth and clear profitability • Sufficient bank facilities available • Taking advantage of situation to improve structures for further strong growth • 2010 and beyond: Fundamentals for the wind energy market still intact • Significant double-digit sales growth expected
32