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Nordex Group 2019

Demand for highly efficient turbines of Nordex Group remained strong in 2019

The Nordex Group is an integrated, global supplier of multi-megawatt onshore wind turbine systems. The Company develops complete systems, including control software, as well as services related to wind turbines.
In 2019 the group installed more than 28 GW of wind power capacity in over 40 markets and in 2019 generated sales of around EUR 3.3 billion. Currently the company has more than 6,500 employees. The Group includes factories in Germany, Spain, Brazil, the USA, India, Argentina and Mexico. The product portfolio is focused on onshore turbines in the 2.4 to 5.X MW class to meet requirements of countries with limited available space and regions with limited grid capacity.

According to the company´s Press Releases, consolidated sales of the Nordex Group totalled EUR 3.3 billion in 2019 compared to EUR2.5 billion in 2018, and represented a year-on-year increase of 32%.

The company achieved an EBITDA margin of 3.8% compared to 4.1% in 2018 and 6.5% in 2017. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose significantly by 21.7% from EUR 101.7 million in 2018 to EUR 123.8 million in 2019 and the achieved EBITDA margin of 3.8 percent was also within the expected range of 3 to 5%.

The Nordex Group achieved a working capital ratio as a percentage of consolidated sales of minus 9.1% in 2019 compared to minus 3.8% in 2018 and 5.3% in 2017. This means that the ratio is well below the target level of under 2%. The high order intake and stringent working capital management had a positive impact on these figures.

During 2019, the Nordex Group invested EUR 172.5 million compared to EUR 112.8 million in 2018 due to the strong development of the order volume for turbines. As a result, free cash flow amounted to EUR minus 126.0 million in 2019 compared to EUR 44.0 million in 2018.

In 2019, the Nordex Group installed 938 wind turbines in 21 countries with a total output of 3.1 GW, compared to 828 turbines and 2.5 GW in 2018.

In 2019, the Nordex Group increased its order intake by 31% from 4.75 GW in 2018 to 6.21 GW in 2019. These orders were attributable to the following regions: Europe with 51%, North America with 28%, Latin America with 18%, and the Rest of the World with 3%. The group achieved an order intake of EUR 543 million in 2018 compared to EUR 556 million in 2017 and decreased by 2.5%.

Segmentally, the Nordex Group achieved the following results: the Projects segment recorded very positive order intake growth during 2019. The Company received wind turbine orders with a total volume of EUR 4.42 million in 2019 compared to EUR 3.64 million in 2018 and EUR 2.22 million in 2017, and represented a year-on-year increase of 21.4% and 64%, respectively. At the end of 2019 the new wind turbine order book of the Project segment rose to EUR 5.5 million compared to EUR 3.9 million in 2018, and represented an increase of 43% on the previous year.

Sales in the Service segment rose by 17.7% to EUR 403.2 million compared to EUR 342.6 million in 2018, thus making a 12% contribution to overall sales. By the end of the year, Nordex serviced more than 7,760 wind turbines worldwide with total output of 19.6 GW. The order book in the Service segment rose by 14.4% to EUR 2,536.5 million in 2019 compared to EUR 2,217.7 million in 2018. The order intake in the Service segment rose by 28% from EUR 543.1 million in 2018 to EUR 695.4 million in 2019.

At the end of the year 2019, the Nordex Group had cash and cash equivalents of EUR 510.0 million compared to EUR 610.0 million in 2018, and remained at a good level.

For the 2020 financial year, the company once again expects a visible rise in sales and a further increasing operating profit. Due to COVID-19 and their economic impact, the Nordex Group anticipates consolidated sales of EUR 4.2 to 4.8 billion for the current financial year.

The company expects earnings before interest, taxes, depreciation and amortization (EBITDA) to be within the range of EUR 160 million to EUR 240 million. However, against the backdrop of COVID-19, the group's business performance in 2020 is subject to significant uncertainty.