Germany - REpower Systems announces 23% increase in revenue to €248.3 million as part of its preliminary results for Q1 2011

According to initial calculations REpower Systems SE (WKN 617 703) generated a total performance of EUR 248.3 million in the first quarter of fiscal year 2011/12 (April 1, 2011 - June 30, 2011) compared to EUR 204.0 million in the previous year’s period. Revenue increased by around 23% year-on-year from EUR 213.1 million to EUR 262.5 million. The result from operating activities (EBIT) for the period from April to June 2011 multiplied from EUR 1.5 million to EUR 10.0 million. The increase mainly results from a higher business volume in the markets North America and Offshore.

In the first three months of fiscal year 2011/12 the order intake volume amounted to approximately EUR 218 million (first quarter of 2010/11: EUR 323 million). The order backlog as per key date June 30, 2011 included agreements with a total capacity of around 2,328 megawatts (MW) compared to 2,095 MW at the previous year’s record date. This corresponds to a potential revenue volume of around EUR 2.61 billion (June 30, 2010: EUR 2.42 billion). The figures exclusively comprise the batches bindingly ordered within the scope of project agreements, as well as on-call orders arising from framework agreements.

Publication of the final results for the first quarter of fiscal year 2011/12 and the complete quarterly report is scheduled for August 12, 2011.

Company Information.
REpower Systems AG is active in the area of wind energy. The main activity is manufacturing wind energy systems, and developing wind parks. The services we offer include research and development, production, as well as marketing and licensing. A comprehensive after-sales service completes the offer pallet. By providing such a broad range of services, REpower is unique in the wind energy market up to now. REpower is also active in constructing wind farms as turnkey-solutions. The company's head office is in Hamburg, manufacturing plants are located in Trampe and Husum and the R&D department is in Rendsburg. In addition, the company maintains subsidiaries abroad.

Currently the product portfolio includes six wind energy systems, with rated outputs from 600 to 2,000 kilowatts. In addition a 5 megawatt offshore system will be commissioned as prototype by the beginning of 2004 and the installation of the first offshore plant is planned for 2005.

At the moment REpower Systems AG holds a share of about 17 percent in the German multi-megawatt class market. This market has strong growth and is highly profitable. The models MD70 and MD77, both rated at 1.5 megawatts, have leading edge technology. Well known competitors such as Gamesa, Fuhrländer and Südwind Energy GmbH (part of the Nordex group) produce their systems partly on the basis of licenses acquired from REpower Systems AG.

The objective of the company is to maintain its leading technological position in the multi-megawatt class by means of internal and external growth to rapidly improve its market position. This will occur through international expansion by involvement in international partnerships and/or joint ventures.

In summary the REpower Systems AG's strategy is based on four pillars:

- Expansion of the top technological position, in particular in the market for multi-megawatt systems,
- Small manufacturing depth (vertical integration),
- Utilization and expansion of long-standing know-how in project development,
- Promotion of the internationalisation of the business model.

Foreign countries and internationalisation (or globalisation?):
For the flexible development of foreign markets, REpower pursues a combination of different entry strategies. According to the requirements of each market, the business model is driven by licensing, joint ventures with local partners, or its own subsidiary and investment businesses. By means of this optimal adaptability to each market's needs, REpower manages to utilize the opportunities of growth-rich foreign markets quickly and effectively.

Regions which are very windy, such as Greece, Spain and the French Atlantic coast, are just beginning to develop as markets. Unlike Germany which is perceived to be fully utilized onshore these rising markets still remain under utilized. It is REpower's objective to increase its presence internationally by making use of this growth potential.

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