Specialist
Former C-level Executive, Northern Europe at Nordex SE
Agenda
- Turbine portfolio breakdown for Nordex Group and Acciona
- Portfolio consolidation potential
- Update on megawatts (MW) tendered
- Value up and cost down progress
Questions
1.
Senvion is going into self-administration. Would you expect Nordex Group to head a similar way? What do you see as the salient differences between the two companies?
2.
Moving to the forward-selling strategy. What sorts of discounts do you think Senvion would have been offering in comparison to Nordex, over the period of time where it was more aggressive with its strategy?
3.
What is Senvion’s comparable product to Nordex’s Delta4000 N149? What is the margin differential between the two?
4.
What do you think is the most significant factor impacting the differential between Senvion and Nordex? Is it simply order intake or the turbine-specific EBIT margin?
5.
How has pricing on megawatt tendering changed over the last six months? Nordex tendered 3.6GW in 2018. What sort of pricing have you seen that go out at?
6.
Nordex has increased its North American market share vs Siemens Gamesa. Is this due to the AWP machines? Why is this happening now, and would you expect it to continue?
7.
If the 1,800MW Nordex tendered in the last six months continues through ’19 and into H1 ’20, what would you expect the split to be between the N149 at EUR 1,000 per MW and the rest of the turbine types?
8.
What sort of EBITDA margins would you ascribe to Nordex’s Delta4000s that are being rolled out?
9.
Where in Nordex’s distribution do you see potential for 3-5% YoY cost out? Across multiple turbine development cycles, 10% of cases might get 10% cost out, 50% of cases around 3-5% and in 90% at least 1-2%.
10.
The procurement part is the largest bit of the cost-saving for Nordex. What proportion of the N149’s total cost would you expect the procurement cost to be?
11.
Moving to the fabrication, what proportion of a turbine is fixed-cost? Should we examine this across Nordex’s entire portfolio or specifically on an N149 basis?
12.
Can we explore Nordex’s portfolio rationalisation? How many moulds is the company running now vs what you would expect if it rationalised its portfolio?
13.
How much CAPEX saving would you expect to see from Nordex’s portfolio rationalisation?
14.
For Nordex’s EBIT and EBITDA margins, we saw pretty low numbers around 2018, and the business as a whole making a loss. On an individual turbine level, how have you seen EBIT margins develop through H1-H2 2018, and what you would expect to happen in H1 2019?
15.
We mentioned EBITDA margins for Nordex of around 1.4%, on that EUR 30m of EBITDA. What would you expect to see happen over H1 and H2 2019?
16.
What new products are you expecting to see from Nordex across 2019?
17.
Do you think that Q2 or Q3 2020 might potentially be too late for Nordex to recover from these low EBIT margins? Senvion is putting itself in administration already.
18.
Moving to margin on the Delta4000. If we consider the 1.4% EBITDA margins on Nordex’s core portfolio, and in the best scenario the N149 could be up to 50% of total sales. Would we expect somewhere around the 15% EBITDA margins to offset the rest of the portfolio? How realistic do those 8% EBITDA margins seem?
Gain access to Premium Content
Submit your details to access up to 5 Forum Transcripts or to request a complimentary one week trial.
The information, material and content contained in this transcript (“Content”) is for information purposes only and does not constitute advice of any type or a trade recommendation and should not form the basis of any investment decision.This transcript has been edited by Third Bridge for ease of reading. Third Bridge Group Limited and its affiliates (together “Third Bridge”) make no representation and accept no liability for the Contentor for any errors, omissions or inaccuracies in respect of it. The views of the specialist expressed in the Content are those of the specialist and they are not endorsed by, nor do they represent the opinion of, Third Bridge. Third Bridge reserves all copyright, intellectual and other property rights in the Content. Any modification, reformatting, copying, displaying, distributing, transmitting, publishing, licensing, creating derivative works from, transferring or selling any Content is strictly prohibited
