Third quarter 2010 Bilbao, 11 November 2010 Results Presentation ORDER INTAKE RECOVERY, WITH 1,186 1 MW RECEIVED IN THE THIRD QUARTER OF 2010, DEBT REDUCTION AND PROFITABILITY IN A HIGHLY COMPETITIVE MARKET AND A COMPLEX MACROECONOMIC AND REGULATORY SITUATION Gamesa ended the third quarter of 2010 with new orders totalling 1,186 1 MW, five times the intake in the third quarter of and three times the intake in Q2 2010. Additionally, Gamesa Corporación Tecnológica 2 ended the first nine months of 2010 with a 5.4% EBIT margin in the Wind Turbine division, at the high end of the guidance for 2010, and 297 million in group net debt, 420 million less than at 30 September. Group sales amounted to 1,786 million, less than in the first nine months of due to a lower level of activity. The lower level of activity reflects the impact of the weak macroeconomic situation and the regulatory changes in on demand for wind turbines, the high seasonality envisioned for the year, and the policy of aligning manufacturing with customer orders and with delivery schedules. The success of the Cost Improvement Plan, which saved c. 100 million in the first nine months of 2010, partly offset the increased competitive pressure, which has been accentuated in the second half of the year, and places the Wind Turbine division's EBITDA margin at 12.8%. As a result, the Wind Turbine division's EBIT margin was 5.4%, i.e. at the high end of the guidance for 2010 (4.5%-5.5%) despite the lower absorption of structural costs due to the lower level of activity. The Wind Farm division continued to improve its profitability in the third quarter, supported by the recovery in wind farm development, construction and sales, but it continued to feel the impact of the slowdown in the US market. As a result, consolidated EBIT amounted to 75 million, equivalent to 4.2% of the Group's sales. In the third quarter, the Wind Turbine division delivered 1,138 MW, a record for a third quarter, enabling it to reduce the working capital/sales ratio to 19%, in line with 18% in September and down from 24% in mid-2010. Additionally, the increase in deliveries by the Wind Farm unit, 439 MW in the last twelve months, enabled it to reduce working capital year-on-year, and the consolidated group's working capital/sales ratio reached 38%, which is within the company's guidance range for the year. The commercial activity has maintained the recovery announced in July with orders in the third quarter totalling 1,186 1 MW, including 584 MW for delivery in 2010 and 602 MW for 2011. Accordingly, order intake in Q3 2010 was five times the Q3 figure and three times the Q2 2010 figure; as a result, Gamesa attained 93% sales coverage in 2010 (based on average sales guidance for the year) and 24% coverage in 2011 as of September. The positive trend in order intake persisted in October and at this date the company has reached the range of its 2010 sales guidance 3 and 33% coverage of our 2011 volume guidance range 4 or 982 MW. Gamesa Corporación Tecnológica had a solid financial position at the end of the period, reflected by 297 million of net financial debt, i.e. 1 time consolidated EBITDA and below the company's guidance ceiling (2.5x). 1 Firm, irrevocable orders, including confirmation of framework agreements for delivery in 2010 (584 MW) and 2011 (602 MW). 2 Gamesa Corporación Tecnológica manufactures wind turbines and develops, builds and sells wind farms. The latter activities were consolidated as continuing activities following the implementation of the agreement signed with Iberdrola Renovables on 23 September. 3 Wind Turbine unit guidance: 2,400-2,500 MW 4 Wind Turbine unit guidance 2011: 2,800-3,100 11-November-2010 Page 1 of 18
Wind Turbines Key factors Gamesa's Wind Turbine Unit ended the first nine months of 2010 in line with the guidance: 1,600 MWe of wind turbines sold (2010 guidance: 2,400-2,500 MW), and record thirdquarter deliveries (1,138 MW) an EBIT margin of 5.4% (2010 guidance: 4.5%-5.5%) and a working capital/sales ratio of 19% (2010 guidance: 20%) Against a backdrop of shrinking activity in the industry, these results demonstrate that Gamesa remains focused on profitability and robust finances. The Wind Turbine Division's activity during the first nine months of 2010 can be broken down as follows: (MW) M9 M9 2010 % chg. Q3 2010 Status MW delivered to customers 1,620 1,676 +3% 1,138 + Variation in MWe Available Ex Works +510-500 -653 + Variation of MWe Work in Progress +146 +423 +113 Handover of ownership to customer, in wind farm, or factory; Invoiced Variation in stock of WTG available for delivery to customer; Invoiced Ex Works Variation in the stock of WTG not available for delivery to customer; Not invoiced MWe sold 2,276 1,600-30% 599 During the third quarter of 2010, Gamesa attained a record level of third-quarter deliveries, 1,138 MW, i.e. 51% more than in Q3, confirming the strong seasonal fluctuations expected this year. Additionally, the variation in MW available Ex-Works and Work in Progress was -540 MW in Q3 2010 and -77 MW in M9 2010, despite bringing production forward to fulfil commitments to customers in the US to enable them to meet Treasury Grant deadlines (Section 1603 of the American Recovery and Reinvestment Act of ). 11-November-2010 Page 2 of 18
The geographic breakdown of sales in the first nine months of 2010 shows the success of the internationalisation strategy; foreign markets increased their share of sales to 93%, from 71% in the same period of. The main growth areas are making a rising contribution to sales: China's share increased notably to 29% of total sales (14% in the first nine months of ) and India made its first contribution to sales in the first nine months of 2010: 9% of the total. The US continues to gain in share of total sales, accounting for 22% in M9 2010, up from 17% in H1 2010, evidencing the strong seasonal fluctuations in this market that are expected to persist in Q4 2010. r Geographical breakdown of wind turbine sales (MWe) M9 % M9 2010 % Spain 670 29% 105 7% US 379 17% 353 22% China 318 14% 472 29% India 0-141 9% Rest of Europe 712 31% 410 26% Rest of world 196 9% 120 7% TOTAL 2,275 1,600 The product mix in the first nine months of 2010 was similar to the same period of ; the G5X-0.85 MW turbine accounted for 28% of MWe sold, while the G8X-2MW turbine accounted for 68% and MADE for 4%. The G8X platform was successfully launched in China and accounted for half of MWe sold in the first nine months of the year, confirming that the G8X-2 MW platform is firmly established in China. Wind Turbine Division Results in First 9 Months of 2010 Concentration on cost improvement plans and orthodox financial policies enabled Gamesa to attain a 5.4% EBIT margin in the first nine months of 2010 and a working capital/sales ratio of 19%, in a year of slack activity (-30% with respect to the same period of ), confirming that the company is meeting its guidance with regard to this unit's profitability and financial sustainability. 11-November-2010 Page 3 of 18
(million euro) M9 M9 2010 % Chg. Q3 2010 Sales 2,274 1,707-25% 744 EBITDA 310 218-30% 80 EBITDA/Sales (%) 13.6% 12.8% 10.8% EBIT 163 92-44% 36 EBIT/Sales (%) 7.2% 5.4% 4.8% Net Profit 106 50-53% 13 Net profit/sales (%) 4.7% 2.9% 1.8% Working capital 591 488 488 % Sales 18% 19% +1pp 19% NFD 254 179 179 NFD/EBITDA 0.6x 0.5x -0.1x 0.5x Sales in the first nine months of 2010 reflect the expected lower level of activity (MWe sold fell 30% with respect to M9 ), partially offset by sustained growth in the services division ( 227 million, vs. 144 million in the same period of ). Consolidation of measures related to the cost improvement plan enabled Gamesa to attain an EBIT margin of 5.4% in the first nine months of 2010 despite the lower level of activity. The EBIT margin was also impacted by price pressure in China (which accounts for 29% of sales) and by the partial transfer to customers of the improvements in costs and productivity. Warranty provisions were brought below 3.5% of wind turbine sales, revealing the steady improvement in processes, the strength of Gamesa's product platform, and the emphasis placed on operational excellence. Gamesa continued to focus on its financial health despite the increasing contribution to sales from work in progress in M9 2010 due to bringing forward production in the US to fulfil commitments to customers. In a context of less activity and, therefore, lower order intake, the working capital/sales ratio was 19%, similar to last year. Additionally, Gamesa continued its capex optimisation policy, keeping capex at 87 million, which includes expenditure linked to building new manufacturing capacity for the G8X-2 MW in China, commencement of construction of two new plants in Inner Mongolia and Jilin, new capacity in India for the G5X turbine, and investment linked to manufacturing of the new G10X-4.5 MW wind turbine. 11-November-2010 Page 4 of 18
Wind Farms Key factors Gamesa's global wind farm pipeline (22,268 MW) at 30 September 2010 represents a competitive advantage. The company continues focusing on the development of its wind farm pipeline with a view to advancing the implementation of its value realisation plan. Wind Farm Development Stages (MW) M9 M9 2010 % Growth Probable 12,649 11,494-9% Likely 8,131 8,295 +2% Highly Confident 2,180 2,479 +14% Total pipeline 22,959 22,268-3% The growth in Highly Confident MW is due to progress on wind farm development in Europe and the recovery of more than 600 MW of USA pipeline during the second half of, increasing the pipeline's visibility (Likely + Highly Confident) despite the delivery of 439 MW over the last twelve months. Gamesa also monetised sales of 92 MW which will be delivered in the coming months. The company had 784 MW in the final stages of construction and commissioning as of 30 September 2010, evidence that it continues advancing development of the pipeline scheduled for delivery in the coming months. Notable progress has been made with construction of the first wind farm in the US (38 MW) after two years of inactivity, evidencing revival of the wind farm business in that country. Activity (MW) M9 M9 2010 % Growth MW under Construction 494 545 10% MW commissioned 199 239 +20% Total 693 784 +13% Note: includes MW in joint development agreements in China, in which Gamesa holds a minority stake 11-November-2010 Page 5 of 18
Wind Farm division results for M9 2010 The Wind Farm division's results in the third quarter reveal a revival of wind farm construction and sales, reflected in closure of a number of new sales agreements in Germany (45 MW), Italy (26 MW), France (10MW) and Mexico (26 MW). As a result, the Wind Farm Development and Sales Division began to contribute positively to the group bottom line in the third quarter: it contributed 4 million in EBIT in the quarter. The Wind Farm Development and Sales Division delivered more than 439 MW in the last twelve months, which, together with firm sales of 92 MW that were collected in June 2010 and will be delivered in the coming months, enabled the company to end the third quarter with a significant improvement in financial debt with respect to 30 September (a reduction of 345 million); this offset the working capital associated with the development of the pipeline at 30 September 2010 (784 MW in the final stages of development). (million euro) M9 M9 2010 Q3 2010 Sales 439 288 96 EBIT -26-6 4 Net Profit -20-12 4 NFD 462 117 117 11-November-2010 Page 6 of 18
Gamesa Corporación Tecnológica Results M9 2010 The Consolidated Group's main financial figures appear below. (million euro) M9 M9 2010 (1) % Chg. Q3 2010 Sales 2,478 1,786-28% 753 EBITDA 289 201-30% 70 EBITDA/Sales (%) 11.7% 11.3% 9.2% EBIT 138 75-46% 26 EBIT/Sales (%) 5.6% 4.2% 3.5% Net Income 86 25-71% 3 NFD 716 297 297 NFD/EBITDA 1.6x 1.0x - 1.0x (1) The results of Gamesa Corporación Tecnológica reflect the impact in the third quarter of the consolidation adjustment of eliminating sales (and the corresponding margins) from the Turbine division to the Wind Farm division for which the sales agreements are under discussion but not completed at the end of the period. Outlook Business plan 2011- Gamesa has implemented a business plan 2011- in order to strengthen its lead in the WTG market and make it a benchmark in the industry in terms of cost of energy. This objective hinges on three vectors: Reducing the cost of energy through technological development Maximising growth by expanding into new markets and segments Maximising efficiency by launching new industrial platforms and optimising the cost structure Industry benchmark for cost of energy Gamesa will reduce its customers' cost of energy by 20% in the next three years, and by 30% by 2015. This reduction will be attained by enhancing reliability, efficiency and availability of Gamesa's present and future product portfolio; 1.5 million engineering hours annually have been budgeted for this task and R&D staff numbers will be doubled by. Additionally, Gamesa will launch five new product families, including the G97-2MW, which offers a 14% performance improvement over the actual product and will be market leader in the 2 MW category for low wind sites, and the multi-mw family of products, whose technological improvements will be rolled out in the existing product range to enhance reliability and performance. In this way, Gamesa is positioned as the benchmark for cost of energy in both the sub-mw and multi-mw segments 11-November-2010 Page 7 of 18
2010 2011 2012 2014 2015 Sub MW Multi MW G90cII G58cII Current best in class CoE G97cIII G87cS Best in class CoE Best adaptability to grid requirements Offshore Know-how G128cII Know-how G11X- Offshore G9X-FC Mark 2 G13xcIII G9X-FC Mark 3 Best onshore output per sqm New platform for new market segment G12x Best in class CoE G14X- Offshore Growth Through expansion of sales efforts into new countries and market segments to offset the maturity and regulatory uncertainty of Gamesa's traditional markets, the company entered 10 new markets and obtained over 20 new customers in the last 12 months. To maintain this level of success and attain the target of selling 4,000 MW in, Gamesa is expanding its presence on the ground by opening new sales offices (24 in total), which also enhances the company's understanding of customer needs and enables it to respond more rapidly to customer demand. The new commercial organization continues to design and offer customised value propositions adapted to each customer segment's specific features, ranging from large electric utilities through industrial groups and financial investors to small and medium-sized IPPs. Gamesa sales, - (MWe sold; CAGR 09-13) North America +15% >800 479 Europe and RoW 2,078-20% China +20% >1,000 479 >800 India Central and South America +50% +166% >800 16 93 >500 Gamesa Energía, the division that develops, builds and sells wind farms, is a unique asset that enables Gamesa Corporación Tecnológica to provide its customers with detailed knowledge of the 11-November-2010 Page 8 of 18
entire value chain, from wind measurement to wind farm commissioning; this reduces the risk for the wind farm's customer and financier. Risk abatement is a key factor in the current market context of macroeconomic and regulatory uncertainty, and it makes Gamesa Energía a source of significant demand, the goal being to deliver around 400 MW per year in 2011-, not counting joint development deals in China (another 300 MW per year). Efficiency The change in the wind power market since the financial crisis in 2008, coupled with the slow pace of economic recovery and regulatory volatility, require greater efficiency from turbine manufacturers who are competing in an increasingly competitive environment. Gamesa was one of the first companies in the sector to implement a cost optimization plan which has saved around 250 million since it was implemented and has enabled the company to maintain profitability despite lower levels of activity. As part of the new business plan, Gamesa will continue to implement measures to improve operating efficiency, notably including tailoring its presence and industrial capacity to demand. Gamesa plans to reduce capacity in Spain by 50%, to 1000 MW, with a cost of approximately 10 million in 2011. At the same time as it is rationalizing capacity in Spain, Gamesa is expanding capacity in markets with strong growth potential, such as India, where it plans to have 800 MW of capacity by, and South America, where it plans 300 MW of capacity for the same year, thereby expanding capacity and production autonomy in key emerging markets. As a result, by Gamesa will have approximately 1,000 MW of capacity in each of the key markets. Effective blade manufacturing capacity 1), - (MW) USA EUROPE South America x2-50% 2,200 c.500 >1,000 c.1,000 0 c.300 CHINA INDIA x2 c.500 > 1,000 > 800 0 1) Capacity based on workforce size rather than equipment By implementing the Business Plan 2011-, Gamesa expects to expand MWe sales by 15% per year in the Wind Turbine Division, with an EBIT margin of 6%-7% by, while maintaining a sound financial position, with a group net debt/ebitda ratio of 2.5 and a working capital/sales ratio of 20% in the Wind Turbine division. 11-November-2010 Page 9 of 18
WTG Guidance 2010 Guidance 2011 Guidance WTG Manufacturing MWe sold EBIT Margin 2,400 2,500 4.5% - 5.5% 2,800 3,100 4% - 5% CAGR2010-13: 15% 6% - 7% WC as % of sales c.20% 20-25% c.20% CAPEX (EUR m, annual) 150 250 2) 250 2) Wind farms Windfarms Development & Sales MW delivered, ex-china Joint promotion China (MW) c.300 1) c.150 c.400 c.300 c.400 c.300 EBIT (EUR m) c.0 c.20 c.25 Net debt (EUR m) c.300 c.500 c.500 Group NFD/EBITDA (x) <2.5x <2.5x <2.5x (1) FY 2010 guidance does not include 244MW delivered to Iberdrola in Q1 (2) Includes offshore investments: EUR30MM in 2011, EUR60MM in Investment in growth areas continues to provide strong results Gamesa has invested and will continue to invest in markets that have long-term growth potential, economic stimulus plans linked to the development of wind energy, or regulatory regimes and tariffs which favour the long-term development of wind energy (e.g. China, India and the USA). During the second quarter of the year, Gamesa completed expansion of production capacity (400 MW) for the G8X-2MW product in China, construction of which commenced in, and it began investing in a new nacelle assembly plant in the province of Jilin with a total estimated capacity of 500 MW with a view to optimising the ability to meet regional demand. Construction of a second plant of the same capacity in Inner Mongolia is scheduled to begin in 2011. This investment program is supported by the good results of Gamesa's commercial strategy in the region, which, in the second half of the year, led to a total of 251 MW of new orders for turbines for delivery this year, including the sale of 124 G58-850 kw wind turbines to Henan Weite Wind Power, Gamesa's first IPP customer in China. Those orders include 48 G90-2 MW wind turbines for Guandong Nuclear Wind Power and 25 G90-2 MW turbines for Datang Renewable Power, evidencing the success of the 2 MW platform, which was only recently introduced in the region. The strategy of joint development agreements with large Chinese electric utilities that commenced in continues to advance, and two of the first agreements to be signed have been extended: 126 MW with Guangdong Nuclear in the province of Shandong and 150 MW with Huadian in the province of Inner Mongolia. As a result, the backlog associated with joint development agreements for implementation by 2014 now amounts to 2,126 MW. In India, we are continuing with the investment plan that commenced in, and will invest approximately 90 million in the next few years not only to expand production capacity of the G58-850 kw machine from 200 MW at present but also to undertake the G8X-2 MW manufacturing plan. Gamesa's investments in India are also supported by the strong sales results obtained since it established manufacturing capacity there: India accounted for 9% of total group sales in the first nine months of the year and Gamesa will end 2010 with an estimated 10% market share. In the US, industrialization of the G90-2 MW wind turbine was completed in the first quarter and the Ebensburg blade plant continues to operate at full capacity while making progress with expanding G90 production capacity through strategic agreements with suppliers, which will enable Gamesa to fulfil commitments to its customers in the region and advance its sales strategy of landing new customers among independent power producers. This investment, like those being made in China and India, is supported by sales being obtained not only in the United States but also in countries in the region such as Mexico, Costa Rica and Honduras. 11-November-2010 Page 10 of 18
Accelerating the in-house offshore plan In the offshore market, Gamesa is accelerating its organic development plan, which will ensure its ability to meet demand in northern Europe. Using multi-mw technology developed for the G10X- 4.5 MW turbine, and incorporating other design details to meet the needs of our customers, Gamesa is working on two product platforms (5 MW and 6-7 MW) for offshore use in the UK. The first preseries units (5 MW platform) will be ready in. To accelerate development of the offshore platform and ensure its success, Gamesa has entered a strategic alliance with Northrop Grumman Shipbuilding, the largest naval construction company in the US, in order to pool Gamesa's multi-mw know-how and expertise with the experience of Northrop Grumman Shipbuilding in constructing and operating machinery in the difficult marine environment. Northrop Grumman brings expertise on elements that are critical to the success of offshore wind power, such as: Heavy load logistics Systems integration Performance and reliability systems Additionally, the investment plan for mass production of the offshore platform in the United Kingdom has been defined, involving an estimated investment of 150 million to set up an R&D centre, a blade factory, port logistics and O&M services. In line with 2010 guidance The guidance published for 2010 is supported by performance of the Wind Turbine business in the first nine months, the upswing in order intake, which is already in the guidance range for 2010 (2,400-2,500 MW), and the positive trend in profitability in the Wind Farm business. WTG Manufacturing WTG MWe sold EBIT Margin Q3 2010 599 4.8% 9M 2010 1,600 5.4% Guidance 2010 2,400-2,500 4.5%-5.5% WC as % of sales 19% 19% c.20% Wind Farms Windfarms Development & Sales MW delivered EBITDA (MMEUR) 107 3 419-6 c.300 (1) c.0 Net debt (MMEUR) 117 117 c.300 Group WC as % of sales 38% 38% c.35%-45% NFD/EBITDA 1.0x 1.0x <2.5x (1) FY 2010 guidance does not include 244MW delivered to Iberdrola in Q1 The strength of the recovery in industry demand continues to be shaped by factors such as the speed at which new renewable energy support plans are presented in Europe and federal energy legislation is passed in the US, and also by the pace of the recovery by the broad economy and energy demand. Considering these factors, Gamesa presented a volume guidance of 2,800-3,100 MW in 2011, which was already 24% covered in September 2010, far in excess of the degree of 2010 sales coverage that had been attained by the end of September (c. 4%) and 33% covered as of today. Additionally given the impact on the company's costs of launching new products and the new industrial platforms, we estimate EBIT margins of 4%-5% in the Wind Turbine division, i.e. practically stable with respect to 2010 if we exclude capacity restructuring expenses in Spain (c. 10 million in 2011) which are included in the guidance. 11-November-2010 Page 11 of 18
Conclusions In a context of a global slowdown in demand for wind turbines, driven by both economic and regulatory uncertainty, plus growing competition, Gamesa ended the first nine months of 2010 with solid earnings, enabling it to attain an EBIT margin of 5.4% in the Wind Turbine division, in line with the high-end of the guidance. Moreover, control of costs, working capital and capex enabled the company to end the quarter in a solid financial position, with a consolidated net debt/ebitda ratio of 1x. Additionally, the Wind Farm unit continued improving its profitability during the quarter in line with expectations for the full year. The commercial strategy continues to gain traction, having attained 1,186 MW of firm orders during the third quarter of 2010, i.e. five times the order intake of Q3 and over three times the intake in Q2 2010, due to the major impact of regulatory volatility and macroeconomic weakness. The stronger order intake is attributable to having entered 10 new markets and obtained over 20 new customers since the new commercial strategy was implemented. As a result of ongoing commercial efforts after the end of the quarter, the company has now reached its 2010 sales guidance (2,400-2,500 MW). The Business Plan 2011-, which was launched in October, aims to strengthen Gamesa's leading position by acting on three vectors: cost of energy, growth and efficiency. The investment required in this period will not only enable Gamesa to attain around 15% compound average growth in sales 5 in the next three years while maintaining profitability despite a more competitive environment but also to strengthen its position beyond the 2011- investment horizon. Finally, Gamesa is accelerating its offshore development plan to ensure it is ready for Round 3 in the UK. To this end, Gamesa has formed an alliance with Northrop Grumman Shipbuilding, the largest naval construction company in the US, which is an expert in areas that are critical for profitable development of offshore wind power, such as the logistics of heavy loads, systems integration, and performance and reliability systems. The company has also defined and implemented an investment plan in the UK to set up an offshore wind power R&D centre, a blade factory, port logistics and operations and maintenance services for offshore wind farms. The result will be to ensure offshore installation of the first prototype (5 MW) in 2012, with the first pre-series units being produced in and mass production commencing in 2014, while work proceeds in parallel on the 6 MW-7 MW platform. 5 Wind Turbine unit guidance: +15% CAGR 2010-11-November-2010 Page 12 of 18
Annex 6 Financial Statements January-September 2010 Gamesa Corporación Tecnológica - Consolidated Profit and Loss Account - Million Euro M9 M9 2010 Turnover 2,478 1,786 Own work capitalised 46 50 Consumption -1,827-1,197 Personnel -208-207 Other expenses -201-231 EBITDA 289 201 Depreciation -75-74 Provisions -75-52 EBIT 138 75 Financial result -40-45 Gains (losses) on disposal of non-current assets -1-1 Equity method gains (losses) 1 1 Profit before tax 99 30 Taxes -12-5 Net Income 86 25 Balance Sheet - Million Euro M9 M9 2010 Goodwill 387 387 Other intangible assets 144 168 Tangible fixed assets 336 429 Shareholdings in associated companies 51 52 Deferred taxes, net 99 120 Working capital 1,478 952 Total 2,495 2,109 Shareholders' Equity 1,544 1,601 Provisions for contingencies and expenses 235 210 Net financial debt 716 297 Derivative financial instruments and others 0 1 Total 2,495 2,109 6 The financial statements in the annex have not been audited. 11-November-2010 Page 13 of 18
Cash Flow Million Euro M9 2010 Profit 25 + Depreciation 74 + Provisions 52 - Variation in provisions -68 - Variation in working capital -8 Operating cash flow 75 - Investments -96 - Variation in treasury stock -2 Cash flow for the period -22 - Dividends paid out 0 - Others -15 Variation in net financial debt 38 Variation in net financial debt 38 Initial net financial debt 259 Final net financial debt 297 11-November-2010 Page 14 of 18
Financial Statements January-September 2010 Wind Turbine Division Profit and Loss Account - Million Euro M9 M9 2010 Turnover 2,274 1,707 Own work capitalised 46 50 Consumption -1,629-1,128 Personnel -193-193 Other expenses -188-217 EBITDA 310 218 Depreciation -74-73 Provisions -73-54 EBIT 163 92 Financial result -35-32 Gains (losses) on disposal of non-current assets -1-1 Equity method gains (losses) 1 1 Profit before tax 129 60 Taxes -22-10 Net Income 107 50 Balance Sheet - Million Euro M9 M9 2010 Goodwill 311 311 Other intangible assets 143 168 Tangible fixed assets 332 418 Shareholdings in associated companies 51 52 Deferred taxes, net 101 112 Working capital 591 488 Total 1,529 1,549 Shareholders' Equity 1,039 1,150 Provisions for contingencies and expenses 232 209 Net financial debt 254 179 Derivative financial instruments and others 4 11 Total 1,529 1,549 11-November-2010 Page 15 of 18
Cash Flow Million Euro M9 2010 Profit 50 + Depreciation 73 + Provisions 54 - Variation in provisions -69 - Variation in working capital -125 Operating cash flow -17 - Investments -87 - Variation in treasury stock -2 Cash flow for the period -107 - Dividends paid out - - Others -1 Variation in net financial debt 107 Variation in net financial debt 107 Initial net financial debt 72 Final net financial debt 179 11-November-2010 Page 16 of 18
Financial Statements January-September 2010 Wind Farm Unit Profit and Loss Account - Million Euro M9 M9 2010 Turnover 439 288 Own work capitalised - - Consumption -432-264 Personnel -15-14 Other expenses -16-17 EBITDA -23-6 Depreciation -1-1 Provisions -3 2 EBIT -26-6 Financial result -4-13 Gains (losses) on disposal of non-current assets 0 0 Equity method gains (losses) 0 0 Profit before tax -31-19 Taxes 10 6 Profit after taxes and minority interest 1 0 Net Income -20-12 Balance Sheet - Million Euro M9 M9 2010 Goodwill 76 76 Other intangible assets 1 1 Tangible fixed assets 4 11 Shareholdings in associated companies 0 0 Deferred taxes, net -2 4 Working capital 888 495 Total 967 586 Shareholders' Equity 506 477 Provisions for contingencies and expenses 3 2 Net financial debt 462 117 Derivative financial instruments and others -4-9 Total 967 586 11-November-2010 Page 17 of 18
Disclaimer This material has been prepared by Gamesa Corporación Tecnológica, S.A., and is disclosed solely as information. This material may contain declarations which constitute forward-looking statements, and includes references to our current intentions, beliefs or expectations regarding future events and trends that may affect our financial condition, earnings and share value. These forward-looking statements do not constitute a warranty as to future performance and imply risks and uncertainties. Therefore, actual results may differ materially from those expressed or implied by the forward-looking statements, due to different factors, risks and uncertainties, such as economical, competitive, regulatory or commercial changes. The potential investor should assume the fact that the value of any investment may rise or go down, and furthermore, it may not be recovered, partially or completely. Likewise, past performance is not indicative of future results. The facts, opinions, and forecasts included in this material are furnished as to the date of this document, and are based on the company s estimations and on sources believed to be reliable by Gamesa Corporación Tecnológica, S.A., but the company does not warrant its completeness, timeliness or accuracy, and therefore it should not be relied upon as if it were. Both the information and the conclusions contained in this document are subject to changes without notice. Gamesa Corporación Tecnológica, S.A. undertakes no obligation to update forward-looking statements to reflect events or circumstances that occur after the date the statements were made. The results and evolution of the company may differ materially from those expressed in this document. None of the information contained in this document constitutes a recommendation, solicitation or offer to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. This material does not provide any recommendation of investment, or legal, tax or any other type of advice, and it should not be relied upon to make any investment or decision. Any and all the decisions taken by any third party as a result of the information, materials or reports contained in this document, are the sole and exclusive risk and responsibility of that third party, and Gamesa Corporación Tecnológica, S.A. shall not be responsible for any damages derived from the use of this document or its content. This document has been furnished exclusively as information, and it must not be disclosed, published or distributed, partially or totally, without the prior written consent of Gamesa Corporación Tecnológica, S.A. The images captured by Gamesa in the work environment or at corporate events are solely used for professional purposes to inform third parties about corporate activities and to illustrate them. English version for information purposes only. In case of doubt the Spanish version will prevail" 11-November-2010 Page 18 of 18