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Nordex Se
7/27/2023
Good afternoon, ladies and gentlemen. Welcome on behalf of Nordex to our analysts and investor call today. Our board, our CEO, Jose Luis Blanco, our CFO, Dr. Elia Hartmann, and our CSO, Pachi Landa, are here with us, guiding you through our slide deck, which we have prepared for you today. They will share information about the latest developments, financials, and markets. And as you've heard, the presentation is followed by a Q&A. I would like to ask you to limit yourself up to three questions, please. And now, I would like to hand over to our CEO, José Luis. Please go ahead.
Thank you very much for the introduction, Félix. I would like to welcome you as well on behalf of the entire board, as mentioned, Pachi Landa, and Ilya Harman are with me today in the call, guiding you through our presentation and taking your questions later. For today, we have prepared our usual agenda. As usual, let me start with the executive summary of the first half of 2023. Our performance in the second quarter was in line with our expectations as indicated in our Q1 call in May. And we expected continuing improvement in our performance in the second half of the year as volume should pick up further with better prices of the orders starting to flow through our financials. Our order intake continues to remain stable despite generally sluggish markets. The pricing and margin are stable at good level In the second quarter, we booked 1.6 gigawatts of orders, reaching 2.6 gigawatts in the first half with generally stable selling prices. Our revenue increased to 2.8 billion euros in the first half of 2023 compared to 2.1 billion euros last year, recording growth of 30%. At the same time, our gross margin also improved sequentially in the second quarter to 12.1%. We expect this to improve further in the second half as the extra cost of delays and other project issues are slowly starting to recede with a higher share of revenue coming as well from better quality orders. With that, we managed to break even at the EBITDA level in Q2. as indicated in our call. This is a huge improvement compared to our EBITDA margin of minus 9% in the first quarter, and this was mainly possible due to higher volumes and significantly less project issues in the second quarter. As a result, now we have an EBITDA margin of minus 4.2% in the first half of this year, And we expect continued improvements in our margins in the second half of the year. Our working capital was stable at minus 9.6%. Our installation increased in the second quarter to 1.8 gigawatts, reaching 3.1 gigawatts in the first half of the year. And furthermore, with the latest financial measures, we have strengthened the financial structure further with an improved equity ratio and net cash levels while also saving 45 million euros per year in financial interest costs. Finally, I would like to confirm our guidance for 2023 and our mid-term strategic EBITDA margin of 8%. And now, I would like to hand over to Paci for discussions about markets, order intake, and customers. Paci, please.
Thank you very much, José Luis. Looking at the orders, we sold 2.6 gigawatts of new turbine contracts in the first half of 2023, down 12% compared to the same period last year. All orders came from Europe, with largest markets being Germany, Lithuania, Greece, and Estonia. ASP stood at 0.89 million euros per megawatt in Q2. in line with the previous quarter, and growing from 0.79 million euro per megawatt in the first half of 2022. Service sales grew 35% to 305 million euro, representing 11% of group sales in H1 2023, with an immediate margin of 13.2%. Margin of the first half was lower compared to the same period last year due to inflationary pressures on costs as well as negative FX impact. Turbine order backlog stood at €6.4 billion at the end of the quarter, and service order backlog stood at €3.4 billion for a total combined order backlog of €9.8 billion at the end of June. And with this, I give it back to Ilya.
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