Germany - Nordex AG: 2003/04 financial statements on target

The current Nordex AG 2003/04 financial statements (01 October 2003 – 30 September 2004), which have now been audited, confirm the provisional figures published in December 2004. According to these, Group revenues increased by some 13 per cent to EUR 221.6 mill. (previous year: EUR 196.2 mill.). However, the volume of business was negatively affected by the company’s difficult financial situation. In order to take the pressure off working capital, Nordex decided not to obtain interim financing for most orders, which resulted in a shift in revenues. Furthermore, the manufacturer lost several major orders to competitors due to its very weak equity base - in spite of a 55 per cent increase in order receipts to EUR 230 mill. (previous year: EUR 148 mill.). Operating loss before interest, tax and one-off items declined by some 60 percent to approx. EUR -25.5 mill. (previous year: EUR -63.2 million). This positive development was primarily the result of the cost-cutting program, some 80 per cent of which had been implemented by the end of the financial year. For instance, the cost-of-materials ratio dropped from 89 to 79 per cent. Net other operating expenses and income declined by 27 per cent to EUR 24.3 mill. (previous year: EUR 33.3 mill.). Personnel expenditure fell by some 17 percent to EUR 34.5 mill. (previous year: EUR 41.6 mill.). 121 out of 812 jobs were cut in the past financial year.

As a result of strict working capital management the Group generated a positive cash flow from current operations of EUR 0.8 mill. (previous year: EUR -85.1 mill.). This was set against net debts totalling around EUR 47 mill. (previous year: EUR 44.7 m). Equity declined to EUR 10.1 million (previous year: EUR 44.9 mill.) as a result of losses. The planned recapitalization (see Adhoc announcement of 28 December 2004) is intended to considerably strengthen the equity base once again and reduce net debt in spring 2005. The measures to this effect are to be presented to the AGM on 21 February 2005, where they are to be decided upon. The Group’s operations were also hampered by the financial situation in stub fiscal 2004 (01 October – 31 December 2004). In spite of this, Nordex was able to improve new business year-on-year by 11 per cent to some EUR 62 mill. (previous year: EUR 55.5 mill.). This is due in particular to wind farms from the company’s own project development in France (43%). Overall, the proportion of foreign business increased further to approx. 70 per cent. All orders were for the N90/2,300 kW turbine type. Nordex projects revenues of around EUR 55 million for the stub financial year (previous year: EUR 66.7 mill.). Extensive cost-cutting is intended to reduce the operating loss to below EUR 5 mill. (previous year: EUR -6.7 mill.) in spite of low capacity utilization.

Due to the fact that recapitalization is to be implemented some three months later than originally planned, management forecasts a below-average first quarter of fiscal 2005. In total, order receipts worth at least EUR 300 mill. and revenues of between EUR 270 and 280 mill. are to be achieved in the financial year. Depending on the sales volume, earnings before tax, interest and one-off items are intended to lie between EUR -2.0 mill. and break-even point. A net profit is planned for the first time again in 2006.