INTERIM REPORT OF THE NORDEX GROUP ON THE FIRST QUARTER OF

Transcription

1 INTERIM REPORT OF THE NORDEX GROUP ON THE FIRST QUARTER OF

2 CONTENTS 2 Contents Key performance indicators 3 Preface 4 The stock 5 Notes on the consolidated interim financial report for the first quarter of Economic conditions 7 Business performance 9 Earnings situation 10 Financial condition and net assets 10 Capital spending 11 Research and development 11 Employees 12 Risk report 12 Outlook 12 Events after the conclusion of the period under review 13 Consolidated financial statements on the first quarter of Consolidated balance sheet 14 Consolidated income statement 15 Consolidated statement of comprehensive income 16 Consolidated cash flow statement 17 Consolidated statement of equity movements 18 Notes 19 Statement of changes property and intangible assets 24 Consolidated segment report 25 Management bodies 27 Calendar of events/production credits/disclaimer 28

3 KEY PERFORMANCE INDICATORS 3 Key performance indicators PROFIT DEVELOPMENT 1/1/2009 3/31/2009 1/1/2008 3/31/2008 Sales mn Total revenues mn EBITDA mn EBIT mn Cash flows¹ mn Capital spending mn Consolidated net profit for the period mn Earnings per share² EBIT margin % Return on sales % Working capital ratio % ¹ Change in cash and cash equivalents ² Unchanged on the basis of the weighted average of million shares (2008: million shares) BALANCE SHEET 3/31/2009 3/31/2008 Total assets mn Equity mn Equity ratio % EMPLOYEES 1/1/2009 3/31/2009 1/1/2008 3/31/2008 Employees Average 2,206 1,704 Personnel costs mn Sales per employee EUR Staff cost ratio % SPECIFIC COMPANY RATIOS 1/1/2009 3/31/2009 1/1/2008 3/31/2008 Order receipts mn Non-domestic proportion of turbine construction % 97 96

4 PREFACE 4 Preface Ladies and Gentlemen, Thanks to our good order situation, we have so far been able to cushion the effects of the financial market crisis effectively despite the decline in firmly financed contracts since summer On the strength of this solid base, Nordex achieved record sales of EUR 355 million in the fourth quarter. Although we were unable to repeat this large volume in the first few months of 2009, sales were still up 17 percent on the same period in the previous year, thus living up to our expectations for 2009 as a whole. At EUR 194 million, Nordex registered by far the greatest intake of new contracts for the past three quarters in March The next few months will show whether this has ushered in a sustained turnaround in new business. As it is, banks are still not providing our customers with sufficient project finance. Yet, it is precisely this problem that the extensive government economic stimulus programs are seeking to redress. At this stage, it is difficult to predict when they will trigger a recovery in the economy. Experts consider it to be very likely that a rebound will emerge before the end of the year and we are gearing up for this eventuality. We want to maintain our ability to grow and are preparing to harness advantages from the expected economic upswing swiftly by substantially shortening project development times. which our operating profit was down EUR 6 million. Among other things, this was materially due to the increase in the staff cost ratio relative to total business volumes. The greater volume of capital tied up by operating business will return to a normal level by summer Only then will the measures agreed upon with our suppliers take effect. A more pronounced adjustment would have exerted undue strain on our supplier network and ultimately also threatened Nordex s ability to grow. By optimizing our project execution structures, we will also be able to take greater pressure off our liquidity and further reduce our working capital ratio. We are still seeking an increase in sales to over EUR 1.2 billion for Accordingly, we expect business volumes to pick up again in the course of the year and to make a greater contribution to covering costs over the next few quarters. However, operating profit will fall short of the previous year but will still remain positive. Yours sincerely, On the other hand, this structural expenditure will exert strain in the short term, something that was already evident in the period under review, in Thomas Richterich CEO

5 THE STOCK 5 The stock Towards the end of 2008, it became increasingly obvious that the global economy was headed for recession. These fears were largely confirmed in the first few weeks of 2009 when a whole series of economic indicators dropped sharply, prompting nearly all economic research institutes to scale back their forecasts for the current year. Against this backdrop, the capital markets performed poorly in January and February. After hitting a low in early March, the markets entered a phase of recovery which lasted several weeks and was primarily sustained by hopes of an economic recovery in the second half of 2009 and a return to growth in Despite this, the German benchmark index DAX shed around 17% of its value in the first quarter. Deutsche Börse s technology index, the TecDax, closed the first quarter of 2009 down roughly 10% compared with the beginning of the year. At the beginning of the year, the Company attended various capital market conferences in Germany, other parts of Europe and the United States. In addition, it presented its latest development to international trade audiences at specially organized conferences as well as during a road show. Thanks to the comprehensive and ongoing analysis by the equity research departments of around 20 major international banks, there is a high degree of transparency with respect to Nordex AG s business performance. In the period under review, additional banks commenced coverage of the stock. There have been no material changes in the shareholder structure since last year. In the period under review, Nordex AG stock was unable to shield itself from general market trends and proved to be volatile. A high for the first quarter of 2009 of EUR was reached at the beginning of January, while a low of EUR 7.30 was hit in early March. By March 31, 2009, the stock had recovered and was trading at EUR 9.70, i.e. around 8% down on the beginning of the year. In the following weeks, Nordex stock continued its upward move and was trading at well in excess of EUR 13 at the beginning of May Average daily trading volumes on the Xetra electronic platform came to around 266,000 shares.

6 THE STOCK 6 The stock SHAREHOLDER STRUCTURE HSH Nordbank 2.1 % Free float 47.6 % CJ Holding ApS 3.5 % Goldmann Sachs 10.6 % CMP 14.4 % SKion/momentum capital/klatten 21.8 % on the basis of 66,845,000 shares PERFORMANCE OF NORDEX STOCK RELATIVE TO TECDAX AND RENIXX FROM JANUARY 1, 2009 MARCH 31, 2009 % Nordex TecDax RENIXX /2/2009 2/1/2009 3/3/2009 4/2/2009 5/12/2009

7 CONSOLIDATED INTERIM REPORT 7 Consolidated interim report Economic conditions The global economy is currently in the throes of the worst recession since the Great Depression ( ). The economic crisis was triggered when the real estate bubble in the US mortgage market burst, forcing numerous banks to write down the value of their assets. This in turn led to considerable liquidity problems on the part of many banks and caused a great loss of confidence. Ultimately, the financial crisis also spread to the real economy, with economic indicators pointing to substantial declines in the first three months of Central banks and governments alike are trying to actively overcome the economic weakness by cutting interest rates and establishing economic stimulus programs. In the first two months of the year, production in the German mechanical engineering sector shrank by 23%, with order receipts dropping by as much as 45%. According to the German Mechanical and Plant Engineering Association (VDMA), order receipts were a real 35% down on the previous year in the German mechanical and plant engineering industry. Foreign business was up again slightly on the previous year in December 2008 to February The regulatory environment for regenerative energies has continued to improve. Thus, with the adoption of the EU Climate and Energy Package, the European Union has defined binding goals for the use of renewable energies. In Germany, the amended Renewable Energies Act (EEG) took effect on January 1, Among other things, it provides for an increase in the initial remuneration from windgenerated electricity to 9.2 euro-cents per KWh and, in the case of offshore wind energy, to 15 euro-cents per KWh. The UK government wants to promote the sector to a greater extent by means of direct grants as well as extensions to the certificate system ( Renewable Obligation Certificates or ROC for short). Thus, funding of up to GBP 4 billion is to be provided via the European Investment Bank. In addition, wind farm operators will receive more certificates for the production of electricity using regenerative sources. In the United States, the new Obama administration has earmarked roughly USD 40 billion of its economic stimulus package for extensions to green energy. Instead of the production tax credits (PTC), which have been renewed until 2012, wind farm investors are now able to claim an investment tax credit (ITC) of 30% on projects which are commenced by no later than the end of In addition to these tax incentives, direct monetary grants are also available for investments in environmental technology. As well as this, there are still plans to introduce a nationwide Renewable Portfolio Standard (RPS) for restricting and trading in emissions. This new political agenda has prompted US utilities to step up spending on renewable energies. In China, the world s second largest wind power market, the government increased its target for extensions to wind power to 20 gigawatts in 2010.

8 CONSOLIDATED INTERIM REPORT 8 Consolidated interim report Although demand for wind turbines remains strong, banks have scaled back the volume of funding which they are granting for project finance. The New Energy Finance industry intelligence service estimates that a global sum of around USD 13.3 billion was spent on the construction of new green power stations in the first quarter of 2009, down roughly 35% on the fourth quarter of In particular, measures aimed at easing the supply of project finance appear to be the most likely in efforts to overcome the strain currently being exerted on the sector.

9 CONSOLIDATED INTERIM REPORT 9 Consolidated interim report Business performance After weak new business in January and February, the intake of firmly financed contracts increased in March substantially to a cumulative EUR million. This translates into a considerable increase compared with the previous two quarters in the second half of 2008 but is still down on the first quarter of 2008 (EUR 406 million). Roughly 4% of the contracts are for German projects and 96% for wind farms in other European countries. Firm orders thus climbed slightly to EUR 853 million (December 31, 2008: EUR 824 million). Part of the new business came from existing master contracts, thus resulting in a slight decline in contingent contracts (i.e. those for which advance payments have been received) to EUR billion (December 31, 2008: EUR billion). Since the second half of 2008, Nordex has been unable to secure any advance payments on master contracts, while advance payments continued to be obtained for firmly financed contracts. All told, the order backlog was valued at around EUR 2.9 billion (previous year: EUR 3.3 billion). In the period under review, consolidated sales rose by 17% from EUR million to EUR million, thus living up to the full-year forecast for Sales were chiefly underpinned by new turbine business (95%), with after-sales service accounting for around 5%. The share of exports came to roughly 97% (previous year: 96%). Europe accounted for 85% of sales, while Asia and America contributed 8% and 7% respectively. TURBINE ENGINEERING SALES BY REGION (%) Q1/2009 Q1/2008 Europe 85% 84% Asia 8% 15% America 7% 1% Total revenues rose by around 6% to EUR million (previous year: EUR million). Changes in inventories and other own work capitalized dropped by around 63% over the previous year from EUR 32.0 million to EUR 11.9 million. Turbine engineering output widened by around 25% to MW (previous year: 210 MW), thus outpacing sales growth. On the other hand, rotor blade production contracted by some 13% over the previous year to 107 MW. This was primarily due to the fact that production of rotors had been brought forward in 2008 to prepare for the conversion of the assembly facility. OUTPUT IN MW Q1/2009 Q1/2008 Turbine assembly of which China Rotor blade production of which China Internally sourced production 41% 59%

10 CONSOLIDATED INTERIM REPORT 10 Consolidated interim report Earnings situation Earnings before interest and taxes (EBIT) declined to EUR 0.5 million in the period under review (previous year: EUR 6.6 million) due to the strain caused by higher structural costs. Thus, staff costs rose by 53% to EUR 26.0 million (previous year: EUR 17.0 million). Management expects the low capacity utilization to be only temporary and has therefore decided to cautiously invest in the Company s future growth in expectation of an increase in business volumes in the short term. Depreciation expense rose by EUR 1.2 million to EUR 5.1 million as a result of the previous year s heavy spending on extensions to the plant facilities. The Group recorded net financial expense of EUR 1.5 million in the first quarter, marking a swing away from the net financial income of EUR 0.8 million. This was chiefly due to reduced liquidity, lower interest on credit balances and the utilization of bank borrowings. Consolidated net profit for the period dropped from EUR 5.7 million to EUR 0.5 million. Financial condition and net assets As of March 31, 2009, the Group had an equity ratio of 37.9% (December 31, 2008: 38.0%). Total assets dropped marginally from EUR million to EUR million. Following the emergence of the financial market crisis in the late summer of 2008 and the resultant unexpectedly small intake of new firmly financed contracts, the Company was not able to adjust component ordering volumes to meet the changed requirements until the final months of As a result, inventories grew from EUR million to EUR million, causing a greater volume of capital to be tied up. Cash and cash equivalents shrank by 44% in the period under review to EUR 62.6 million. In addition, inventories were affected by the following exceptionals: early production of turbines for internally developed projects in France currently being marketed and the brought-forward production of rotor blades in preparation of the conversion of the plant facility in China. At the same time, trade payables dropped by 8% as of the balance sheet date to EUR million. In connection with the funding of operating business in China, bank borrowings rose by EUR 23.3 million to EUR 39.1 million. The ratio of advance payments widened from 115.2% as of December 31, 2008 to 116.9% as of March 31, The working capital ratio came to 22.1% (December 31, 2008: 14.0%) primarily as a result of the increase in inventories. The increase of EUR 50 million in working capital in particular resulted in a net outflow of cash from operating activities of EUR 61.7 million (previous year: net outflow of EUR 28.3 million).

11 CONSOLIDATED INTERIM REPORT 11 Consolidated interim report Capital spending In the period under review, capital spending came to some EUR 11.8 million (previous year: EUR 13.2 million). This decline is chiefly due to the postponement of a number of projects such as the extensions to the turbine assembly facility in Germany and the establishment of a production plant in the United States. Both projects are still to be executed in their original scope; however, completion is not required as quickly as expected. At EUR 7.4 million, the main focus of capital spending was on property, plant and equipment, primarily extensions to and the modernization of the rotor blade production facility in Germany, which has been under construction since the beginning of This step aims to increase capacity roughly three-fold in order to heighten the share of internal production. At the same time, it seeks to achieve greater automation of production activities for the purpose of reducing production times and of enhancing process quality on a sustained basis. A further sum of around EUR 4.4 million was spent on intangible assets, of which EUR 3.8 million was related to capitalized development expense. Research and development Development activities in the first quarter of 2008 concentrated on extensions to the product range. One crucial aspect of this entailed preparations for the new-generation 2.5 MW class, preliminary prototypes of which have already been assembled and are currently being tested. At its core, the new generation will incorporate further advances in reliability, availability, serviceability and durability. In the period under review, particular attention was also devoted to the development of alternative energy storage systems in the pitch system and material analyses for a cold-climate version. At the same time, the Company has been working on additions to the 1.5 MW class in Germany and China in the form of a model with a rotor with a diameter of 82 meters for deployment at locations with weaker wind conditions. At the same time, the components of the three basic versions of this class are to be standardized. The third main activity encompassed preparations for the development of a new class with a target nominal output above 3.0 MW, which is to be launched in 2012.

12 CONSOLIDATED INTERIM REPORT 12 Consolidated interim report Employees The number of employees in the Nordex Group increased by 29% over the same period in the previous year to 2,206 (March 31, 2008: 1,704). However, the headcount was up by only 2.5% compared with December 31, New staff were particularly recruited for production (up 116), service (up 98) and project management (up 91). Regionally, the establishment of new branches in the United States, Poland and Sweden played a key role in recruitment activities. Risk report In the period under review, there were no material changes in the risks in the Group s expected performance described in detail in the Nordex AG annual report for There are no risks to the Group s going-concern status. Nor are any discernible at the moment. Outlook Various economic research institutes do not expect any turnaround in the global economy until towards the end of 2009 or early However, experts assume that the momentum of the economic recovery will continue to be dragged down by uncertainty in the financial markets surrounding the solvency of systemically relevant banks, generally weaker domestic demand and a decline in export demand with further cuts in production output. The global economy is expected to contract by 3.3% in 2009, with small growth of 0.6% projected for The German Mechanical and Plant Engineering Association (VDMA) projects a decline of between 10 and 20% in production output in the mechanical and plant engineering industry in In this connection, it assumes that the wind power sector will also consolidate in 2009 against this backdrop but return to strong growth rates as of Consulting companies specializing in wind power are painting a mixed picture of trends in Thus, BTM Consult expects the overall market to grow by around 9% this year, underpinned in particular by strong performance in Europe (up 26%) and China (up 17%). By contrast, MAKE Consulting projects flat to lower sales. In this environment, Nordex expects sales to grow again in 2009 albeit at a slower pace than in earlier years. Accordingly, it expects to achieve a figure in excess of EUR 1.2 billion on the strength of its current order books worth EUR 2.9 billion as well as new contracts which it expects to receive once lending picks up over the next few quarters. Measures aimed at shortening delivery periods should help to lower the book-to-bill ratio, thus ensuring that new contracts generate reportable sales more quickly. With respect to working capital, management expects less capital to be tied up in the second half of 2009 due to inventory destocking. This will be achieved by shorter project execution periods. At the same time, the newly adjusted quantity management system via suppliers will also unleash its full effect.

13 CONSOLIDATED INTERIM REPORT 13 Consolidated interim report Nordex s profitability in 2009 is expected to fall short of the previous year as it will not be possible to harness any economies of scale for growth-related reasons, while spending on new structures will continue unabated to ensure that the Company remains positioned for future growth. Events after the conclusion of the period under review On February 17, 2009 the Supervisory Board passed a resolution appointing Dr. Marc Sielemann to the Management Board for a period expiring on December 31, Dr. Sielemann commenced his duties on April 1, 2009 as COO Operations and in this position is in charge of production, sourcing and service. This function had been held by the CEO on an interim basis since August On May 6, 2009, Nordex AG successfully placed a promissory note for a total of EUR 50 million with banks in order to broaden its financial base. This is a precautionary measure in the event that the capital market crisis persists for longer than expected. Some of the internally developed projects in which Nordex had already invested were sold in April.

14 CONSOLIDATED FINANCIAL STATEMENTS 14 Consolidated financial statements CONSOLIDATED BALANCE SHEET as of March 31, 2009 (IFRS) 3/31/ /31/2008 Cash and cash equivalents 62, ,711 Trade receivables and future receivables from construction contracts 107, ,360 Inventories 405, ,189 Other current financial assets 32,859 32,852 Other current assets 56,047 49,431 Current assets 665, ,543 Property, plant and equipment 82,908 78,846 Goodwill 9,960 9,960 Capitalized development costs 24,251 22,376 Other intangible assets 7,308 7,327 Non-current financial assets 6,669 6,670 Other non-current financial assets 139 1,462 Other non-current assets 1,698 2,264 Deferred tax assets 54,729 55,832 Non-current assets 187, ,737 Assets 852, ,280 Current bank borrowings 39,136 15,803 Trade payables 121, ,613 Income taxes payable 3,902 3,875 Other current provisions 28,541 44,038 Other current financial liabilities 11,528 5,011 Other current liabilities 259, ,575 Current liabilities 464, ,915 Pensions and similar obligations Other non-current provisions 26,430 25,714 Other non-current financial liabilities 7,610 7,653 Deferred tax liabilities 29,985 33,038 Non-current liabilities 64,544 66,924 Subscribed capital 66,845 66,845 Share premium account 157, ,650 Other retained earnings 1,731 1,731 Other equity components 10,530 10,530 Foreign-currency equalization item 1,301 3,454 Consolidated profit/loss carried forward 102,944 62,446 Consolidated profit ,498 Share in equity attributable to the parent company s equityholders 319, ,094 minority equityholders 3,225 3,347 Equity capital 323, ,441 Equity and liabilities 852, ,280

15 CONSOLIDATED FINANCIAL STATEMENTS 15 Consolidated financial statements CONSOLIDATED INCOME STATEMENT IFRS from January 1, 2009 to March 31, /1/2009 3/31/2009 1/1/2008 3/31/2008 Sales 233, ,336 Changes in inventories and other own work capitalized 11,872 31,961 Total revenues 245, ,297 Other operating income 4,130 4,616 Cost of materials 193, ,365 Personnel costs 25,976 16,984 Depreciation/amortization 5,122 3,873 Other operating expenses 24,417 22,129 EBIT 324 6,562 Other interest and similar income 333 1,674 Interest and similar expenses 1, Net financial income/expense 1, Profit/loss from ordinary activity 1,145 7,365 Income taxes 1,594 1,666 Consolidated profit 449 5,699 Of which attributable to: parent company s equityholders minority equityholders Earnings per share in Euro Basic*) Diluted**) *) on the basis of the weighted average of million shares (previous year million shares) **) on the basis of the weighted average of million shares (previous year million shares) ,702 3

16 CONSOLIDATED FINANCIAL STATEMENTS 16 Consolidated financial statements CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS) from January 1, 2009 to March 31, /1/2009 3/31/2009 1/1/2008 3/31/2008 Consolidated profit 449 5,699 Other income: Foreign currency translation differences 2,153 1,206 Consolidated comprehensive income 1,704 6,905 Of which attributable to: parent company s equityholders minority equityholders 1, ,908 3

17 CONSOLIDATED FINANCIAL STATEMENTS 17 Consolidated financial statements CONSOLIDATED CASH FLOW STATEMENT IFRS from January 1, 2009 to March 31, /1/2009 3/31/2009 1/1/2008 3/31/2008 Operating activities: Consolidated profit 449 5,699 + Depreciation of non-current assets 5,122 3,873 /+ Decrease/increase in other provisions and tax provisions 14, /+ Profit/loss from the disposal of non-current assets Increase in inventories 33,423 57,313 Increase in trade receivables and future receivables from construction contracts as well as other assets not allocated to investing or financing activities 9,331 56,707 Decrease/increase in trade payables and other liabilities not allocated to investing /+ or financing activities 7,559 73,894 /+ Changes in deferred taxes 1,951 1,473 = Cash flow from operating activities 61,680 28,332 Investing activities: + Payments received from the disposal of property, plant and equipment/intangible assets Payments received from the disposal of financial assets 2 15 Payments made for investments in property, plant and equipment/intangible assets 11,793 13,150 = Cash flow from investing activities 10,804 12,991 Financing activities: + Bank loans raised 23,333 5,508 = Cash flow from financing activities 23,333 5,508 Cash change in cash and cash equivalents 49,151 35,815 + Cash and cash equivalents at the beginning of the period 111, ,187 + Exchange rate-induced change in cash and cash equivalents 2 9 = Cash and cash equivalents at the end of the period (Cash and cash equivalents carried on the face of the consolidated balance sheet) 62, ,363 The net profit for the year includes interest and similar expenditure of EUR million (previous year: EUR million) as well as interest and similar income of EUR million (previous year: EUR million). Cash flows from income taxes come to EUR million (previous year: EUR million).

18 CONSOLIDATED FINANCIAL STATEMENTS 18 Consolidated financial statements CONSOLIDATED STATEMENT OF EQUITY MOVEMENTS in Subscribed capital Share premium Other retained earnings Foreign currency translation item Other equity components Consolidated net profit/ carried forward Consolidated net profit/ loss Attributable equity share of parent company s equityholders minority equityholders Balance on January 1, , , , ,576 48, ,408 1, ,847 Consolidated net profit for the year for fiscal 2007 Consolidated profit/loss ,859 48, carried forward Consolidated comprehensive income , ,702 6, ,904 Balance on December 31, , , ,706 2,029 62,435 5, ,315 1, ,751 Total equity Subscribed capital Share premium Other retained earnings Foreign currency translation item Other equity components Consolidated net profit/ carried forward Consolidated net profit/ loss Attributable equity share of parent company s equityholders minority equityholders Total equity Balance on January 1, , ,650 1,731 10,530 3,454 62,446 40, ,094 3, ,441 Consolidated net profit for the year for fiscal 2008 Consolidated profit/loss ,498 40, carried forward Employee stock option program Consolidated comprehensive income , , ,704 Balance on March 31, , ,650 1,731 10,530 4, , ,956 3, ,531

19 CONSOLIDATED FINANCIAL STATEMENTS 19 Consolidated financial statements NOTES ON THE INTERIM CONSOLIDATED FINANCIAL REPORT (IFRS) AS OF MARCH 31, 2009 I. General The non-audited consolidated interim report on Nordex AG and its subsidiaries for the first three months as of March 31, 2009 was prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) in the version adopted in the EU. In this connection, all International Financial Reporting Standards and interpretations of the International Financial Reporting Interpretations Committee binding as of March 31, 2009 were applied. The consolidated financial statements of Nordex AG were prepared in accordance with IFRS with exempting effect under German GAAP (HGB) in accordance with Section 315a of the German Commercial Code. At the same time, the consolidated financial statements and the Group management report comply with the EU directive on group accounting. With the exception of the reporting standards to be applied for the first time, the accounting principles applied for the interim report are the same as those for the consolidated financial statements as of December 31, In addition, IAS 34 Interim Financial Reporting was applied. The annual report for 2008 is available on the internet at com in the Investor Relations section. IAS 1 Presentation of the Financial Statements stipulates that changes in equity resulting from transactions with owners in their capacity as owners and changes in equity resulting from transactions with non-owners must be presented separately. As well as this, it stipulates the inclusion of a statement of comprehensive income, which comprises two main components: Net profit or loss as the sum total of the expenses and income required to be recognized in profit and loss under IFRS and the sum total of the income and loss recorded within equity in accordance with IFRS. The Nordex Group has utilized the option provided for in IAS 1.81 by applying the twostatement approach. Accordingly, it has prepared an income statement and a statement of comprehensive income, which reconciles profit and loss with other comprehensive income. Effective January 1, 2009, IAS 14 Segment Reporting has been replaced by IFRS 8 Operating Segments. In accordance with the full management approach, three reportable operating segments have been identified: Europe, Asia and America. This matches the Group-wide organizational, reporting and management structure which provides for the establishment of and extensions to manufacturing structures in these three regions. The Group applied all the accounting standards which were mandatory for the first time as of Accordingly, the material changes were as follows:

20 CONSOLIDATED FINANCIAL STATEMENTS 20 Consolidated financial statements As of 1 January 2009 IAS 23, Borrowing Costs, is to be applied. The option of either capitalising borrowing costs incurred in close connection with financing the purchase or production of a qualifying asset or of immediately recognising them as an expense is replaced by a capitalisation duty. The first-time application of the standard had no effect of any significance on the asset, financial or earnings situation of the Nordex Group. Furthermore, as of fiscal 2009 the following amendments by the International Financial Reporting Interpretations Committee (IFRIC) are to be considered by Nordex: Amendments to IFRS 2 Share-based payment: vesting conditions and cancellations, amendments to IAS 32 and IAS 1 Puttable Financial Instruments and Obligations Arising on Liquidation as well as IFRIC 13 Customer Loyalty Programmes and IF- RIC 16 Net Investment in a Foreign Operation. The first-time application of the aforementioned standards and interpretations had no effect of any significance on the asset, financial or earnings situation of the Nordex Group. These interim financial statements must be read in conjunction with the consolidated annual financial statements for Further details on the recognition and measurement policies applied are to be found in the notes to the consolidated financial statements as of December 31, In the absence of any express mention of differences, the comments included in the consolidated financial statements as of December 31, 2008 also apply to the interim financial statements for The business results for the first three months as of March 31, 2009 are not necessarily an indication of expected results for the year as a whole. The presentation of the income statement continues using the cost-of-production method. The interim report was prepared in the Group currency euro. Any irregular expenses occurring in the year are only included or deferred in the interim financial report to the extent that such inclusion or deferral would also be reasonable at the end of the year.

21 CONSOLIDATED FINANCIAL STATEMENTS 21 Consolidated financial statements NOTES ON BALANCE SHEET Current assets Trade receivables came to EUR 93.3 million as of March 31, 2009 (December 31, 2008: EUR 48.4 million). The trade receivables recognized include adjustments of EUR 5.1 million as of March 31, 2009 (December 31, 2008: EUR 5.2 million). Of the future gross receivables from construction contracts of EUR million, advance payments received of EUR million were capitalized. In addition, advance payments received of EUR million were reported within other current liabilities. Inventories rose by EUR 33.4 million to EUR million as of March 31, This was primarily due to organic growth and the resultant sourcing of large-scale projects for current contracts as well as contracts expected in the short term. Non-current assets Changes in non-current assets are set out in the statement of changes in property and intangible assets. As of March 31, 2009, capital spending was valued at EUR 11.8 million, while depreciation and amortization stood at EUR 5.1 million. Of the additions, a sum of EUR 4.1 million relates advance payments made and assets under construction and a sum of EUR 3.8 million to capitalized development expenses. Deferred tax assets primarily comprise tax losses which the Company expects to be able to deduct from corporate and trade tax liability in Germany. Current liabilities Current bank borrowings rose from EUR 23.3 million to EUR 39.1 million and are primarily related to funding of operating business in China. Other current provisions dropped by EUR 15.5 million to EUR 28.5 million chiefly due to the utilization of provisions for individual guarantee claims which had been set aside as of December 31, 2008 to replace faulty rotor blade sets. Equity Reference should be made to the Nordex Group s statement of changes in equity for a breakdown of changes in equity.

22 CONSOLIDATED FINANCIAL STATEMENTS 22 Consolidated financial statements NOTES ON INCOME STATEMENT Sales Sales increased over the same period one year earlier from EUR million to EUR million They break down by region as follows: 1/1/2009 3/31/2009 EUR mn 1/1/2008 3/31/2008 EUR mn Europe Asia America Changes in inventories and other own work capitalized Changes in inventories and other own work capitalized totaled EUR 11.9 million in the first three months of In addition to an increase of EUR 7.4 million in inventories, other internally generated output of EUR 4.5 million, which includes research and development expenditure of EUR 3.8 million, was also allowed for. Other operating income Other operating income stems from currency translation gains and insurance claims, among other things. Cost of materials The cost of materials breaks down as follows: 1/1/2009 3/31/2009 EUR mn 1/1/2008 3/31/2008 EUR mn Cost of raw materials and supplies Cost of services bought The cost of raw materials and supplies also includes the cost of components and energy. The cost of services bought includes external freight, changes in order provisions, commission and externally sourced order-handling services.

23 CONSOLIDATED FINANCIAL STATEMENTS 23 Consolidated financial statements Personnel costs 1/1/2009 3/31/2009 EUR mn 1/1/2008 3/31/2008 EUR mn Wages and salaries Social security and pension and support expenses Total Group employee numbers were as follows: Personnel numbers as of March 31, 2009 were up 502 compared with the same period of /1/2009 3/31/2009 EUR mn , ,704 Change 502 Other operating expenses Other operating expenses include externally sourced services, travel expenses, currency translation gains, legal and consulting costs, IT costs, rentals and lease payments, among other things. Report on material transactions with related parties Related party Company Transaction Dr. Hans Fechner* Martin Rey** Carsten Pedersen*** G. Siempelkamp GmbH & Co. KG Companies affiliated with Babcock & Brown GmbH Welcon A/S Supplier of castings Sale of wind power systems and project companies Supplier of towers Open items Liability (-)/ receivable (+) 31/3/2009 Open items Liability (-)/ receivable (+) 31/3/2008 Sales 1/1/2009 3/31/2009 Sales 1/1/2008 3/31/ ,113 3,571 20,538 7,084 *Managing director, G. Siempelkamp GmbH & Co. KG; left Supervisory Board on 2/23/2009 ** Executive Director, Babcock & Brown Ltd. ***Co-owner, Welcon A/S

24 CONSOLIDATED FINANCIAL STATEMENTS 24 Consolidated financial statements STATEMENT OF CHANGES IN PROPERTY AND INTANGIBLE ASSETS Commencing balance 1/1/2009 HISTORICAL COST Additions Disposals Closing balance 3/31/2009 Property, plant and equipment Land and buildings 55, ,292 Technical equipment and machinery 25,240 1, ,642 28,898 Other equipment, operating and business equipment 33,147 1,620 1,103 1,694 31,970 Advance payments made and assets under construction 5,211 4, ,356 Total property, plant and equipment 119,352 7,377 1, ,516 Intangible assets Goodwill 14, ,461 Capitalized development costs 42,810 3, ,435 Other intangible assets 19, ,805 Total intangible assets 76,486 4, ,901 DEPRECIATION/AMORTIZATION CARRYING AMOUNT Reclassification Commencing balance 1/1/2009 Additions Disposals Reclassification Closing balance 3/31/2009 Carrying amount 3/31/2009 Carrying amount 12/31/2008 Property, plant and equipment Land and buildings 6, ,810 49,482 49,393 Technical equipment and machinery 15, ,472 12,426 9,659 Other equipment, operating and business equipment 18,564 1, ,161 12,809 14,583 Advance payments made and assets under construction ,191 5,211 Total property, plant and equipment 40,506 2, ,608 82,908 78,846 Intangible assets Goodwill 4, ,501 9,960 9,960 Capitalized development costs 20,434 1, ,384 24,251 22,376 Other intangible assets 11, ,497 7,308 7,327 Total intangible assets 36,823 2, ,382 41,519 39,663

25 CONSOLIDATED FINANCIAL STATEMENTS 25 Consolidated financial statements Segment report The Nordex Group assumes that global market demand for wind power systems will be fueled in equal proportions by Europe, Asia and America. In view of this, it began establishing manufacturing facilities for the production of wind power systems in China in 2006 in addition to those which it already had in Europe. Currently, Nordex is in the process of building up local manufacturing structures in the United States with the aim of generating 20% of consolidated sales each in Asia and America. For the purpose of managing the three regions Europe, Asia and America Nordex has installed regional boards which are independently responsible for regional profit and loss and report to the Group s central Management Board. As the production plant in Europe currently still handles most of the nacelle production for the US wind power projects and deliveries will continue to be made to Asia in the future, segment sales include both external sales and internal sales amongst the regional segments. The prices of deliveries between the individual regions are determined on an arm s length basis. Rostock, May 2009 T. Richterich C. Pedersen E. Voß B. Schäferbarthold M. Sielemann Chief Executive Officer Management Board Management Board Management Board Management Board

26 CONSOLIDATED FINANCIAL STATEMENTS 26 Consolidated financial statements CONSOLIDATED SEGMENT REPORT in Europe Asia America Q1/2009 Q1/2008 (restated) Q1/2009 Q1/2008 (restated) Q1/2009 Q1/2008 (restated) Consolidation/ Central units Q1/2009 Q1/2008 (restated) Group total Q1/2009 Q1/2008 (restated) Sales External sales 198, ,509 19,050 28,290 16, , ,336 Internal sales 14,070 7, ,070 7, Total sales 212, ,848 19,050 28,290 16, ,070 7, , ,336 Earnings before interest and tax (EBIT) 10,834 12,408 1,784 1,330 2, ,916 7, ,562 Segment assets 569, ,514 63,566 71, , ,466 81,911 84, , ,738

27 MANAGEMENT BODIES 27 Management bodies STOCK AND STOCK OPTIONS HELD BY MEMBERS OF THE MANAGEMENT BOARD AND THE SUPERVISORY BOARD Position Aktien Carsten Pedersen COO Sales and Marketing 30,463 and a further 2,360,221 shares via a 50 percent holding in CJ Holding ApS* Thomas Richterich Chief Executive Officer 206,143 via a dormant sub-interest in the holdings of CMP-Fonds I GmbH and 20,000 directly Dr. Eberhard Voß CTO 1,000 directly Yves Schmitt Jan Klatten Kai Brandes Dr. Hans Seifert Chairman of the Supervisory Board (until February 27, 2009) Deputy chairman of the Supervisory Board Member of the Supervisory Board Member of the Supervisory Board until February 27, ,000 directly (including 3,000 via related parties) and further shares indirectly via an interest in CMP-Fonds I GmbH 14,652,052 directly via a shares in momentum capital Vermögensverwaltungsgesellschaft mbh and Ventus Venture Fund GmbH & Co. Beteiligungs KG 2,000 directly via a share in Brandes Capital GmbH and further shares indirectly via a share in CMP-Fonds I GmbH 50,000 directly Dr. Dieter Maier Member of the Supervisory Board 5,000 directly *Parent company of Nordvest A/S Thomas Richterich (CEO) holds 206,143 shares via a dormant sub-participation (with no voting or selling rights) in the financial investors and is thus exposed to the stock. Carsten Pedersen (COO Sales and Marketing) holds 30,463 shares directly and 2,360,221 shares indirectly via his 50 percent stake in CJ Holding ApS*. In addition, Thomas Richterich is entitled to a portion of the proceeds from any sale of the shares held in the Company by CMP Capital Management Partners and Goldman Sachs (excess profit participation). Nordex AG established a stock option program in summer On September 30, 2008, the Management Board accepted a total of 524,080 stock options. To date, none of these options has been forfeited since being granted. The exercise price stands at EUR per share. The average residual period before vesting is roughly 2.5 years.

28 CALENDAR OF EVENTS/PRODUCTION CREDITS 28 Calendar of events Calendar of events May 26, 2009 August 25, 2009 November 24, 2009 Annual general meeting in Rostock Report on the first half of 2009 with telephone conference Report on the third quarter of 2009 with telephone conference Disclaimer This report contains, among other things, certain forward-looking statements and information on future developments based on the beliefs of the Management Board of Nordex AG as well as assumptions and information currently available to Nordex AG. Many factors may contribute to the actual results achieved by the Nordex Group differing from the forecasts contained in such forward-looking statements. Accordingly, Nordex AG assumes no liability towards the general public to update or correct any forwardlooking statements. All forward-looking statements are subject to certain risks and uncertainties which may cause actual results to differ from expectations. All forward-looking statements speak only as of the date on which they were made. NB: Rounding differences may arise within the calculations. Contact Nordex AG Bornbarch Norderstedt, Germany Telephone: +49 (040) Fax: +49 (040) Design: Heuer & Sachse Werbeagentur GmbH Lithography: LITHOKONTOR WENIG GmbH, Hamburg, Photos: Nordex