Q3/9M results conference call November 28, 2013 William J. Wang, - - PowerPoint PPT Presentation

q3 9m results conference call
SMART_READER_LITE
LIVE PREVIEW

Q3/9M results conference call November 28, 2013 William J. Wang, - - PowerPoint PPT Presentation

ZhongDe Waste Technology AG Q3/9M results conference call November 28, 2013 William J. Wang, CFO Modern Waste Disposal Solutionsfor Generations to Come Page 1 9M results still affected by delay of BOT projects Revenue and Gross Profit


slide-1
SLIDE 1

Page 1

ZhongDe Waste Technology AG

➜ Modern Waste Disposal Solutions…for Generations to Come

Q3/9M results conference call

November 28, 2013 William J. Wang, CFO

slide-2
SLIDE 2

Page 2

Gross profit and gross profit margin Revenue

BOT

  • In 9M 2013, revenues decreased

by 39.8% to € 7.4 million exclusively generated from BOT projects

  • Weak development due to slow completion

progress of the current BOT projects Kunming and Xianning and the suspension of the two EPC projects in Zhucheng and Dingzhou

  • Moreover the application of a new accounting

method for BOT projects (zero-profit-method) had a negative impact

  • Gross profit down to € -0.7 million (9M 2012:

€ 1.8 million)

m €

Incinerators EPC

m €

Revenue and Gross Profit Comments

9M results still affected by delay of BOT projects

1.6 2.3 10.7 8.9 0.3 0.4 21.1 21.2 24.5 11.9 7.4 5 10 15 20 25 30 35 40 2010 2011 2012 2012 9M 2013 9M 7.4 4.1 1.6 1.75

  • 0.7

22% 13% 6% 14%

  • 9%
  • 20%
  • 10%

0% 10% 20% 30%

  • 5

5 10 2010 2011 2012 2012 9M 2013 9M Gross profit Margin

slide-3
SLIDE 3

Page 3

  • 0.9
  • 10.7
  • 12.2

2.1

  • 5.8
  • 3%
  • 33%
  • 49%

17%

  • 78%
  • 100%
  • 80%
  • 60%
  • 40%
  • 20%

0% 20% 40%

  • 14
  • 12
  • 10
  • 8
  • 6
  • 4
  • 2

2 4 2010 2011 2012 2012 9M 2013 9M

  • EBIT decreased by € 0.9 million to

€ -5.1 million in 9M 2013

  • EBIT margin of -69%

(9M 2012: -34%)

  • Net income of € -5.8 million

(9M 2012: € 2.1 million)

  • Net income margin of -78%

(9M 2012: 17%)

  • The weak financial performance mainly results

from the slow construction progress of the EPC and BOT projects, the application of a new accounting method and the adjustment of the estimated total costs for BOT projects in Kunming and Xianning

EBIT / EBIT Margin Net income / Net income margin

m € m €

EBIT / Net income Comments

9M weak earnings situation

0.9

  • 7.7
  • 12.6
  • 4.2
  • 5.1

3%

  • 24%
  • 51%
  • 34%
  • 69%
  • 80%
  • 70%
  • 60%
  • 50%
  • 40%
  • 30%
  • 20%
  • 10%

0% 10%

  • 14
  • 12
  • 10
  • 8
  • 6
  • 4
  • 2

2 2010 2011 2012 2012 9M 2013 9M

slide-4
SLIDE 4

Page 4

  • As of 30 September 2013, cash

and cash equivalents amounted to € 86.1 million (-14.2%)

  • Net cash amounted to € 35.2 million (after

deducting € 50.9 million of loan volume)

  • Strong cash position ensures flexibility for

BOT investments and bank loan negotiations

  • Shareholders’ equity at € 106.5 million (-5.6%)
  • € 6.6 cash per share (€ 2.7 net cash per

share)

m €

Cash and Equity Comments

Financially well-positioned for further investments

20 40 60 80 100 120 140 2010 2011 2012 2012 9M 2013 9M Cash and Equivalent Equity

slide-5
SLIDE 5

Page 5

  • Order intake of € 42.1 million in 9M 2013
  • Order backlog increased by 80.2% to

€ 237.2 million, mainly due to the new contracts for the Wuhai EPC-project and the Lanzhou BOT-project

  • The proportion of small-size incinerators

accounted for 2%, EPC projects accounted for 33%, and BOT projects 66% of total

  • rder backlog in Q3 2013
  • Reduction of order backlog concerning the

projects Zhaodong (€ 26.0 million) and Shouguang (€ 27.9 million)

m €

Order intake & Order backlog Comments

Strong order position for future growth

50 100 150 200 250 300 2010 2011 2012 2012 9M 2013 9M Order intake Order backlog

slide-6
SLIDE 6

Page 6

BOT As of 30 Sep 2013 Percentage of Completion Expected completion time

Feicheng Trial Operation

  • Zhoukou (500T)

88.3% 2014 Kunming (700T) 73.4% 2014 Xianning (600T) 83.4% 2014

EPC As of 30 Sep 2013 Percentage of Completion Expected completion time

Dingzhou (600T) 16.7% 2014 Zhucheng (500T) 59.2% 2014 Zhaodong Preliminary preparation stage Will be cancelled Shouguang Preliminary preparation stage Will be cancelled

Expected completion of energy-from-waste projects

slide-7
SLIDE 7

Page 7

  • Growing demand for energy-from-waste plants in China and throughout Asia

due to increasing industrialization and urbanization

  • The Q3 2013 will continue be a transition period characterized by
  • rganizational measures for the BOT and EPC projects
  • The BOT projects in Zhoukou is expected to finish the trial run stage in 2014

and is expected to be approved by the municipal government afterwards

  • The BOT project in Xianning is expected to be completed in 2014
  • Further construction progress of Dingzhou and Zhucheng EPC projects in 2014
  • Finish the preparation stage for both Lanzhou BOT and Wuhai EPC in Q4 2013

and start their construction phase in 2014

  • Sale of Feicheng project and Beijing manufacturing site until the end of 2013
  • ZhongDe’s financial group results 2013 expected to exceed 2012 results

Outlook - transition period continues

slide-8
SLIDE 8

Page 8

Thank you very much for your attention, we look forward to your questions!

➜ Safe Waste Disposal Solutions…for Generations to Come

slide-9
SLIDE 9

Page 9

This presentation was prepared by ZhongDe Waste Technology AG solely for use at the Management presentation. It is furnished to you solely for your information, should not be treated as giving investment advice and may not be copied, distributed or otherwise made available to any other person by any recipient. The facts and information contained herein are as up to date as is reasonably possible and are subject to revision in the

  • future. Neither ZhongDe Waste Technology AG nor any of its directors, officers, employees or advisors nor any other

person makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this presentation. Neither ZhongDe Waste Technology AG nor any of its directors, officers, employees and advisors nor any other person shall have any liability whatsoever for losses howsoever arising, directly or indirectly, from any use of this presentation. Whilst all reasonable care has been taken to ensure that the facts stated herein are accurate and that the opinions contained herein are fair and reasonable, this document is selective in nature and is intended to provide an introduction to, and overview of, the business of ZhongDe Waste Technology AG. Any opinions expressed in this document are subject to change without notice and neither ZhongDe Waste Technology AG nor any other person is under any obligation to update

  • r keep current the information contained herein. In addition, institutions mentioned in this document, their affiliates, agents,

directors, partners and employees may make purchases and/or sales as principal or agent or may act as market maker or provide investment banking or other services. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by ZhongDe Waste Technology AG as being accurate. This presentation contains forward-looking statements, which involve risks uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These forward-looking statements reflect ZhongDe Waste Technology AG’s current expectations and projections about future events and may be identified by words such as “expectation” or “target” or “forecast” and similar expressions, or by their

  • context. These forward-looking statements are made on the basis of current knowledge and assumptions. Various factors

could cause actual future results, performance or events to differ materially from those described in these forward-looking

  • statements. No obligation is assumed to update any forward-looking statements. This presentation does not constitute an
  • ffer or invitation purchase shares of ZhongDe Waste Technology AG and neither this document nor anything contained

herein shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever.

Important Notices