OFFERING MEMORANDUM Global Offering of up to ... - Nordex

EUR 3.40 million as of September 30, 2000. These increases were primarily due to the establishment of
production facilities for Nordex Energy GmbH and Nordex Automation GmbH in Rostock, to the costs
of establishing Nordex Rotor GmbH’s rotor blade production at the same location as well as to the
establishment of new branches for Südwind Energy GmbH and the expansion of its activities
accompanied by an increase in its volume of business and internationalization.
Financial assets
Financial assets increased by approximately 27% from EUR 0.77 million as of September 30, 1999 to
EUR 0.98 million as of September 30, 2000. The Company did not hold any equity interests as of
September 30, 1998. The Company held interests in associated companies of EUR 0.23 million as of
September 30, 1999 and EUR 0.22 million as of September 30, 2000. These interests related to Nordex
GmbH’s foreign subsidiaries, Nordex Iberica Borsig Energy S.A., Spain, Ekter Eoliki A.E., Greece, and
Nordex Omnical Energy Services (Shanghai) Co. Ltd., China. The Company’s 40% interest in Xi’an Nordex
Wind Turbine Co. Ltd., China, increased by approximately 40% from EUR 0.54 million as of September
30, 1999 to EUR 0.76 million as of September 30, 2000.
Current assets
Inventories
The Company’s inventories increased by approximately 32% from EUR 16.6 million as of September 30,
1998 to EUR 21.9 million as of September 30, 1999, and then decreased by approximately 37% to EUR
13.9 million as of September 30, 2000. This decrease was primarily due to the increase in prepayments
received, which were deducted from the inventories for reporting purposes.
Required write-downs for raw materials and supplies were insignificant during the period under review.
Raw materials and supplies mainly comprise wind turbine components. Work in process relates to wind
turbines under construction and prepayments made for project development, as well as to rights and
infrastructure in connection with erecting wind turbines for which no customer-specific orders existed
at the relevant balance sheet date. Reasonable write-downs were made for slow-moving items and for
inventories whose fair market prices were below their carrying values.
Prepayments represent the situation on the particular balance sheet date in each case, and, therefore,
can provide only a limited amount of information.
Inventories Sept. 30, 2000 Sept. 30, 1999 Sept. 30, 1998
EUR thousand
Raw materials and supplies 27,785 29,742 14,171
Work in process 8,190 11,403 2,967
Prepayments made 9,746 4,756 4,435
45,721 45,901 21,573
Less prepayments received 31,817 23,985 5,012
Total 13,904 21,916 16,561
Future receivables under long-term construction contracts
This item is used to record orders which have not yet been completed, but which were accounted for
according to their percentage of completion. This item comprises the accrued contract costs incurred
as of the balance sheet date, proportionate revenues recognized using the ‘‘cost-to-cost’’ method for
the relevant contracts and the amount of the accrued contract costs for contracts for which it was not
possible to reliably calculate the total contract revenue. Prepayments received were deducted.
Future receivables under long-term construction contracts increased significantly by approximately
1,171% from EUR 1.07 million as of September 30, 1998 to EUR 16.7 million as of September 30, 1999.
This significant increase was primarily due to the Group’s expansion of its business and to a high level
of construction in progress prior to the end of the fiscal year. Orders in progress doubled to EUR 35.1
million as of September 30, 2000.
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