Nordex Se

Ladies and gentlemen, welcome to the Nordics SE Q1 2025 results conference call. I am Yusuf, the chorus call operator. I would like to remind you that all participants will be in listen-only mode and that this conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or for broadcasting. At this time, it's my pleasure to hand over to Anja Siela. Please go ahead.

Thank you, Seth, and also a very warm welcome from the Nordics team in Hamburg. Thank you for joining the Q1-25 Nordics conference call. As always, we ask you to take notice of our safe harbor statements. With me are our CEO, Jose Luis Blanco, and our CFO, Ilja Hartmann, who will lead you through the presentation. Afterwards, we will open the floor for your questions. And now, I would like to hand over to our CEO, Jose Luis.

Thank you very much for the introduction. As always, Ania, on behalf of the Management Board, I would like as well to welcome you to our first quarter result for this current year, 2025. Let me start with a recap of the first three months of the year 2025. We are pleased to report that the first three months of 2025 have progressed as planned, marking a strong start into the year for Nordex. We have delivered improved margins and achieved a positive free cash flow this time already in the first quarter. In detail, firstly, our total order book, comprising both services and project orders grew by a remarkable 21%. We recorded a turbine order intake of 2.2 gigawatts in the first quarter, up 5%, which translates to a 12% year-on-year increase in Euro value. Secondly, profitability levels increased across all segments throughout the quarter. Our total EBITDA rose by 53% delivering 80 million euros EBITDA in the first quarter. This translates into a 5.5 EBITDA margin and a positive net income of 8 million, which is more than the total net income for the full year 2024. Additionally, our service EBIT was also up by 1.7%. achieving a margin of 16.8%. Despite a soft start into the year in terms of installation and working capital outflow, we were able to deliver a positive free cash flow of 4 million euros. We rate the rate, our confidence in achieving a positive free cash flow for the full year 2025, despite some provisions outflows yet to come. On the strategic side, the last few months, we have seen some positive developments in Europe and Germany particularly. Germany is expected to auction 12 to 14 gigawatts this year, which is another strong year after 12 gigawatts of auction volume of last year. On Europe, The commitment to the Clean Industrial Deal underlines that renewals, and wind onshore in particular, are crucial for both energy independence and also for national security. Finally, on the tariff discussions from the U.S., let me clarify again that we do not expect any material impact on our financial performance either this year or next year. Overall, we are on track to deliver guidance for this year and to achieve our EBITDA margin target of 8% in the medium term. And with this introduction, let me move to the next slide to more detail. Regarding order intake, the first quarter of 2025, we saw a strong order intake quarter in line with our expectations. Nordisk delivered 2.2 gigawatts in Q1, marking a 5% growth and a 7% increase in other intake value compared to the same period of the year before. This translates to 1.9 billion euros in value from orders across 10 countries. Strongest individual markets were Turkey, Germany and Finland. on the pricing side remain stable with average selling price at 0.87 million euros per megawatt year today up from 0.85 in the first quarter of 2024. as always while we are not providing a specific guidance for 25 we remain confident in our order momentum and we expect to repeat or better order intake compared to 2024. With this, let me move to the next slide, the order book. Driven by strong order intake in both segments, our total order book grew to 13.5 billion euros. The turbine order book increased by 12% to 8.2 billion euros in the first quarter of 2025, up from 7.3 billion in the first quarter of year 2024. Most of these orders will be installed in Europe, followed by North America, rest of the world, and Latin America. On the service side, our order book increased by 37% year-on-year, reaching a remarkable figure of 5.2 billion euros by the end of this quarter. This growth reflects the expansion of our turbine business over the past two years across multiple regions, now contributing to the service order book as well. And with this, let us move to the service business. Looking at the first three months of 2025, we can confirm that our service business continues to improve, and we are on track to return to prior profitability levels. Service revenue grew by 19%, reaching 197 million euros in the first quarter of 2025. As previously outlined, EBIT margins have started to improve, and are on track to return to our normal margin levels of around 18 to 19% in the next one to one and a half years, as we commented in previous course. Please keep in mind, though, that the improvement in margins is not linear, but the trend should be visible across the next quarters. We expect our revenues to increase further at a low double-digit percentage driven by an expanding service order book with longer tenors and increased installation activities expected in the future. Regarding other service KPIs, the average fleet availability remains stable at 97%, and the average tenor of the service contracts increased to around 12 years. Moving to the next slide, talking a little bit on installations and production, installations set slightly over one gigabyte in the first quarter down around five percent points year on year the slight decline was mainly due to customer delays with limited profitability impact for nordes but remains in line with our internal schedule for the whole year we continue to expect better installation levels compared to last year the current quarter we install a total of 100 with the majority of installations occurring in Europe, followed by Latin America and then North America. On the production side, turbine assembly increased by 3%, totaling 1.2 gigawatts, corresponding to 209 turbines, with the geographical split you see in the chart. And blade production in units increased by 14%, with 39% in-house production and 61% outsourced, as well with the split you see in the chart, slightly increasing the shares from Asia. And with this, I would like to hand over to Ilya to go over the financials.