Investor Presentation
Nordex AG
July 2006
Nordex Management Team
Thomas Richterich
Dr. Hansjörg Müller
CEO / CFO
COO

Previous positions with MAN,
Ferrostaal and Babcock
Borsig

CFO since 2002, CEO since
2005

Previous positions with
Siemens and Roland Berger

Since 2004 Nordex board
member for Operations
Carsten Pedersen
Board Member
Head of Sales

Managing Director of Nordex
Energy GmbH since 1987
and Board Member of Nordex

Responsible for Sales, since
2001
Page 2
Nordex at a Glance
 Headquarter: Norderstedt, Germany
 Founded in 1985 in Denmark
 Establishment of production operations
in Germany (1992) and China (1998)
 IPO in 2001
Installed Base by Geography
Other Europe
30%
America 2%
Germany
44%
Africa 4%
Asia 20%
 Global manufacturer of wind energy
systems with a focus on turbines in the
“MW class”
Installed Base by Segment
Small WTG (<750 kW)
6%
 2005 Sales of €309m
 721 employees
 Main production sites in Rostock
(Germany) and Baoding (China)
“MW Class”
(1.5-2.5MW)
43%
Mainstream
(0.75-1.5MW)
51%
Total Base (as of Mar-2006): 2,738
Page 3
Investment Highlights
1.
Attractive fast growing end-markets
2.
Well positioned for strong growth
 Technology leader
 Well-positioned across the value chain
 Positioned in high-growth product segments
 International expansion
3.
Successful completion of turnaround
4.
Momentum generation & further upside potential
5.
Strong management team with proven track record
Page 4
Attractive Fast Growing End-Markets:
Growing Importance of Wind Energy
CAGR
‘05 – ‘10
350.0
2.7%
1.9%
250.0
Total Installed GW
2.9%
2.4%
300.0
0.7%
0.5% 0.6%
0.3% 0.4%
0.3%
0.1% 0.1% 0.2% 0.2%
0.9%
1.1%
1.2%
1.4%
2.1%
‘10 – ‘15
20%
13%
53%
17%
29%
17%
24%
16%
16%
11%
276.6
1.6%
246.9
219.5
193.9
200.0
170.4
148.8
150.0
124.4
104.2
100.0
87.6
72.6
59.3
50.0
4.8
7.6
6.1
10.2
13.9
18.4
24.9
32.0
40.3
47.9
0.0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
% Increase
27.0
25.8
33.0
Europe
37.2
32.4
35.1
The Am ericas
28.5
25.8
18.9
Asia-Pacific
23.7
22.4
RoW
20.7
19.0
19.4
19.6
14.6
13.8
13.2
12.5
12.0
Wind Pow ers' Share of Total Pow er Market
Source: BTM
Page 5
Attractive Fast Growing End-Markets:
Key Growth Drivers
Demand for wind energy driven by renewables regulations, price
competitiveness of wind energy and strong worldwide energy demand
Growing
Energy
Consumption
 World demand for primary energy increased by
over 4% in 2004, world petrol demand by 1.5% in
2005
 Economic growth in 2006 expected to support oil
demand further (+2.2% vs. 2005 in volume
terms)
 IEA estimates worldwide energy demand may
double from 2002 to 2030
Rising
Energy
Costs
Favourable
Regulatory
Environment
 Oil price more than tripled since 2001, reaching
all-time high in spring 2006 with in excess of
US$70/barrel
 Market forward curve for oil swaps implies prices
at a level of US$70-75 for next three years
Generation Cost in €/MWh
Photovoltaic
Solar Thermal
Conv. Gas/Oil CC
Biomass
Advanced Gas/Oil CC
Wind
 Kyoto protocol supports renewable energy to
help countries achieve their targets
IGCC - Coal
 Regulatory outlook worldwide positive:
Geothermal
 PTC in US extended until end of 2007; widely
expected to be extended again
 Supportive new renewable energy law in
China
 European Parliament reiterates position on
renewable energy targets (20% by 2020)
Conv. Hydro
Advanced Nuclear
0
50
100
150
200
250
€/MWh
Source: Goldman Sachs Commodity Research, Bundesverband Wind Energie, Merrill Lynch Commodities Research
Page 6
Well Positioned for Strong Growth:
Technology Leader
Nordex track record of technological innovation
Production of
the world’s
largest series
wind turbine
(250 kW)
1987
Construction
of the world’s
first series
MW wind
turbine
Completion of
the world’s first
series of 80m
class 2.5 MW
wind turbine
Installation of
1st Nordex
offshore
turbine
Current R&D Initiatives
Launch of serial
production of
90m class 2.5
MW wind
turbine
 New drive train concept with
differential gearbox
(N90/2500)
 Upgrade yaw system
 Upgrade pitch system
 New platform generation
 Modular tower concept incl.
standardized mounting parts
(S70 & N90)
 Advanced control system
(reduced-load operation)
 Redesign of rotor blade NR45
(until maturity phase)
 Adoption to international grid
codes
 Development of 100m class
turbine
1995
2000
2003
2005
Page 7
Well Positioned for Strong Growth:
Well Positioned Across the Value Chain
Project
development
marketing
financing
 Market leader in
France (high
margin potential)
 Development of
first commercially
financed project in
China
Wind farm
system
planning
 Micrositing of 100%
of signed projects
to review customer
layout
 Supporting
customers (codevelopment) to
receive necessary
approvals and to
optimize the park
layout
Technical
realisation
 Core business:
WTG assembly,
production of
selected
components,
installation on
site, initial
operation
Wind farm
operation
 Additional service
offering:
increasing
demand due to
new wind farm
investors, which
are only
interested in
stable cash flow
Service and
maintenance
 2200 turbines are
currently under
Nordex service
 Full service
contract offering up
to 9+3 years
duration
Page 8
Well Positioned for Strong Growth:
Positioned in High-Growth Product Segments
Nordex is growing faster than the market and has established a proven technological position in the
MW turbine class
CAGR ‘01-’05
by MW class
Newly installed MW p.a.
12,000
11,203
NM
10,000
8,305
8,000
7,057
8,153
+39.9%
7,417
6,000
4,000
+13.6%
2,000
(35.2)%
0
2001A
2002A
< 750
2003A
750 - 1500
1500 - 2500
2004A
2005A
> 2500
MW-Class (1500 – 2500 kW) is by far the fastest growing segment and will be
the market mainstream in the next 5 years
Page 9
Nordex Has Grown Faster Than the Market
Leading to Recovery of Market Share
Nordex’ World Market Share Recovery in 2005
Market Growth in 2005
3%
2%
3%
Market
Share
117%
Nordex
60%
Repower
30%
Siemens
24%
17%
Enercon
Vestas
15%
Ecotécnia
12%
Mitsubishi
9%
0%
Source: BTM 2006
World Market
Growth
40%
Nordex’ Newly Installed Capacity in MW
Suzlon
Gamesa
7%
120%
GE
500
60%
300
250
190
230
2H
70
1H
2002
2003
2004
2005
Page 10
Well Positioned for Strong Growth:
International Expansion
As of Mar-2006 Nordex has installed 1,543 turbines outside Germany (56% of total installed base)
and is further expanding its international operations.
Country
Activity

Foundation of rotor blade production (4,000 sqm) for N60/1,300 kW in spring 2005

Foundation of production JV for S70/77 (1,500 kW) in spring 2006

Foundation of rotor blade production for S70/77 planned for 2006
USA:

Market re-entry in 2006/7
France:

Upgrading capacities for project development

17 new projects developed, construction expected in 2006/7 (total capacity: ~240
MW)
UK:

Successful re-entry achieved in 2006 (first major orders signed)
Italy:

Successful entry achieved in 2006 (first major order signed)
China:
Page 11
Momentum Generation: Continuously
Increasing Order Intake
Order Intake by
Region in 1HY-2006
Order Intake Above Budget in 2005 and 1HY 2006
Asia 4%
450
Q1-2:
€400m
400
Q1-4:
€395m
Germany
21%
350
300
Q1-3:
€280m
Q1:
€263m
+67%
Rest of
Europe
75%
Total: € 400m
250
Order Intake by
Product in 1HY-2006
Q1-2:
€158m
200
N60/N62 8% Sub-MW 0%
150
S70/S77
15%
100
50
0
Jan
Q1:
€35m
Feb
Mar
Apr
N80/N90
77%
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Total: € 400m
Page 12
Further Upside Potential


Implementation of EBIT improvement plan started in spring 2005 to
achieve sustainable profitability (target: 5 – 10% EBIT margin)


Positive market development since autumn 2005 generates good
opportunities to secure bottom-line growth short- / medium-term


improved utilisation of capacities


increasing sales prices


EBIT improvement plan will secure profitability long-term

Page 13
Main Drivers of Bottom-Line Growth
2006
2007
2008
+ 50%
+ 50%
+ 50%
+
++
++
- due to shortages of WTG
+
++
+/-
(3) Increase in material costs
-
--
-
(4) Expenditures in new markets
--
-
-
(5) EBIT improvement program
+
+
+
3.0%
4 – 7%
5 – 10%
Target revenue growth
(1) Higher utilization of capacity
(2) Increase in price per MW
Target EBIT margin
Page 14
Further Upside Potential:
Enhanced Outlook 2006
2006E (old)
2006E (new)
Order Intake
>€450m
≥€600m
(Y-on-Y)
+14%
+50%
Revenues
>€400m
≥€460m
(Y-on-Y)
30%
+50%
EBIT Margin
2.5%
≥3.0%
 Projected revenues secured by order volume:
 100% of 2006 revenues secured by unconditional orders
 Unconditional and conditional orders (> €1bn) secure workload until end of 2007
 Mid-term annual growth target of 50%
Page 15
Opportunities for and Limitations of Growth
Beyond Plan
Opportunities
Recovery of market share,
target  5%

New set-up in 1-2 markets p.a.

Cautious towards offshore

International supply


2-3 supplier strategy
Production capacity gear boxes
and blades
3. Product development
capabilities

Solid 2.5 MW technology


Scaling up to 4.0 MW
Above 4.0 MW completely
new design required
4. Production
capacities

Europe: expandable to
750 (turbines) / 400 (blades) MW

North America

Further investments in Europe and
Asia

Max. growth path +50% p.a.

Working capital requirements
secured due to increased bond lines

Investment requirements secured
due to capital increase (€ 70m) Page 16
1. Markets
2. Core components

Limitations

Asia: expandable to
250 (turbines) / 300 (blades) MW
5. Management
& organisation

Restructuring completed

Basis for further
improvements
6. Financial
capabilities

Set-up for business
volume with a target of € 1b
Investment Highlights
1.
Attractive fast growing end-markets
2.
Well positioned for strong growth
 Technology leader
 Well-positioned across the value chain
 Positioned in high-growth product segments
 International expansion
3.
Successful completion of turnaround
4.
Momentum generation & further upside potential
5.
Strong management team with proven track record
Page 17
Appendix
Page 18
Price Development of Fossil Fuels
in %
250
200
150
100
50
Q1/2004
Q2/2004
Q3/2004
Steam Coal ARA $/MT
Q4/2004
Q1/2005
Q2/2005
Natural Gas $/MMBTU
Q3/2005
Q4/2005
Q1/2006
Crude Oil WTI Spot U$/BBL
Increasing prices of fossil fuels have made wind more competitive
Source: ARA, WTI, Datastream
Page 19
Spot Market Price in 2005 (EEX)
Euro/MWh
Jan-2005
Feb-2005
Mar-2005
Apr-2005
May-2005
Jun-2005
Jul-2005
Aug-2005
Sep-2005
Peakload
EEG max. remuneration (85.9 EUR/MWh)
Baseload
EEG basic remuneration (53.9 EUR/MWh)
Oct-2005
Nov-2005
Dec-2005
Market power price was considerably in excess of the EEG tariff
Source: EEX
Page 20
The Nordex Group’s Restructuring Concept
was based on Five Core Elements
1
2
Focus on attractive core markets
 Concentration on foreign growth
markets
 Improved marketing efficiency
Regaining technical position in
upper market segment
 Elimination of existing deficiencies
and lowering production costs
 Priority: N80/N90
3
5
Elements of
restructuring at
Nordex Group
Harnessing liquidity potential by
reducing working capital
 Creation of a reasonable cost
structure to regain competitiveness
Elimination of previous organizational
shortcomings
 Pragmatic approach to optimize business
processes with immediate activities
 Avoidance of inventory losses and
guarantee expenditure
4
Radical cost-cutting by means of
operative and structural measures
 Creation of a reasonable cost
structure to regain competitiveness
Page 21
2005 Recapitalisation and Current
Shareholder Structure of Nordex
Recapitalisation Completed in May 2005
Share
Capital
• Reverse split 10 : 1
Cash Capital
Increase
• €41.6m
• Capital increase with pre-emptive rights
for existing shareholders
• All shares from rights not taken up by
existing shareholders purchased by
CMP and Goldman Sachs
Debt-toEquity Swap
• Reduction in bank liabilities of €28m
• Issue of 12m new shares
Credit
Facilities
• Renewal for a further four years in the
Current Shareholder Structure
Freefloat
40.04%
CMP
26.7%
Goldman
Sachs
17.4%
existing credit facilities
• €60 million in additional credit facilities
Nordvest 4.1%
HypoVereinsbank 4.3%
Capital Increase in May 2006
HSH Nordbank 3.8%
Morgan Stanley 3.7%
€ 70.4m from issue of 5.5m new
shares
Page 22
Monthly Index Ranking TecDAX 6/30/2006
Company
Rank Market Cap
in million*
Rank Turnover
in million**
18
342.68
15
563.58
………
………
NORDEX
……….
……….
30
)* on basis of freefloat
)** 12 Month
Page 23
Product Overview
Type
Capacity
Regulation
Certification
Nordex N60
1,300kW
stall
GL1/GL2
Nordex S70/77
1,500kW
pitch
GL2/IEC 3a
Nordex N80
2,500kW
pitch
IEC 1a
Nordex N90
2,300kW
pitch
GL2
Nordex N90
2,500kW
pitch
IEC 1b (HS)
IEC 2a (LS)
Page 24
Production Facilities
Yinchuan:
S70/77 JV
NR-34/37
120 blades/year
NR-40/45
180 blades/year
8-10 WTG MWclass/week
99 blades/year
2 WTG 600 kWclass/week
Page 25
Income Statement (IFRS) Fiscal 2005
01-Oct-200330-Sep-2004
01-Jan-200531-Dec-2005
Sales
221.6
309.0
87.4
39.4%
Total Revenues
218.8
319.4
100.6
46.0%
Cost of materials
as a percentage of total revenues
(173.3)
79.2%
(251.3)
78.6%
78.0
45.0%
Personnel costs
as a percentage of total revenues
(34.5)
15.8%
(34.1)
10.7%
(0.4)
(1.3)%
Depreciation/amortisation
as a percentage of total revenues
(12.1)
5.5%
(11.7)
3.7%
(0.4)
(3.3)%
Other operating income/expenses
as a percentage of total revenues
(24.0)
11.0%
(22.1)
6.9%
(1.9)
(7.9)%
EBIT (operational)
(25.5)
0.3
25.8
101.2%
One-off items
(2.5)
(5.4)
(2.9)
(116.0)%
Financial result
(5.1)
(3.0)
2.1
41.4%
0.4
0.1
0.3
(33.5)
(8.2)
25.3
€m
Tax
Net income/loss

75.4%
Page 26
Income Statement (IFRS) Q1/2006
€m
01-Jan-200531-Mar-2005
01-Jan-200631-Mar-2006
Sales
34.9
124.7
Total Revenues
40.7
122.8
Cost of materials
(30.6)
(101.2)
Personnel costs
(8.8)
(9.1)
Depreciation/amortisation
(2.8)
(2.9)
Other operating income/expenses
(6.0)
(7.3)
EBIT (operational)
(8.7)
3.7
One-off items
(1.6)
0.0
Financial result
(0.9)
(1.0)
0.1
0.0
(9.5)
2.6
Tax
Net income/loss
Page 27
Balance Sheet (IFRS) Q1/2006
€m
Fixed assets
Shareholder‘s equity
63.5
136.5
Provisions
55.8
57.7
80.6
Liabilities
105.2
134.6
94.2
Banks
7.1
3.0
Trade payables
64.1
62.7
Other liabilities
34.0
68.8
Others
6.9
7.2
231.4
336.0
55.4
55.5
150.0
183.7
Net inventories
71.1
Receivables
and other assets
59.4
Current assets
Liquid funds
31-Dec-2005 31-Mar-2006
(as if incl. cap.
Increase)
31-Dec-2005 31-Mar-2006
(as if incl. cap.
Increase)
19.5
79.3
Other assets
26.0
26.4
Total Assets
231.4
336.0
Total liabilities
and equity
€ 70.4 m net proceeds from
capital increase as of May 2006
Page 28
Cash Flow Statement (IFRS) Fiscal 2005
€m
Net income/loss
01-Oct-200330-Sep-2004
01-Jan-200531-Dec-2005
(33.5)
(8.2)
Depreciation
12.2
11.7
Change in provisions
(4.6)
(6.3)
Change in inventories
41.8
(23.5)
Change in trade receivables and other assets
(6.6)
(12.6)
Change in trade payables and other liabilities
(8.6)
18.6
Other changes from operating activities
0.1
(0.3)
Cash flow from operating activities
0.8
(20.6)
Cash flow from investing activities
(3.3)
(8.6)
Cash flow from financing activities
(0.4)
39.0
(2.9)
9.9
Change in liquidity
Page 29
Contact
Nordex AG
Ralf Peters
Bornbarch 2
22848 Norderstedt
Head of Corporate Communication/ Investor
Relations
Germany
Phone:
+49 (0)40/500 98 522
Fax:
+49 (0)40/500 98 333
eMail:
rpeters@nordex-online.com
www.nordex-online.com
Page 30
Financial Calendar
 Report on the first half of 2006
August 25, 2006
 Report on the third quarter of 2006
November 23, 2006
 Report on fiscal 2006
April 26, 2007
Page 31