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

The Company believes that profits partially realized to date from projects in process will remain after
these projects have been finally invoiced.
Receivables and other current assets
Receivables and other current assets increased by approximately 350% from EUR 6.7 million as of
September 30, 1998 to EUR 30.0 million as of September 30, 1999, and by approximately 160% to EUR
78.2 million as of September 30, 2000. The substantial increase in trade receivables from EUR 4.2
million as of September 30, 1998 to EUR 20.0 million as of September 30, 1999, and to EUR 63.4 million
as of September 30, 2000 resulted primarily from the expansion of the Group’s business.
More than half of the Group’s receivables as of September 30, 2000 were foreign receivables.
Receivables and other current assets Sept. 30, 2000 Sept. 30, 1999 Sept. 30, 1998
EUR thousand
Trade receivables 63,364 20,012 4,182
Due from Babcock Borsig Group companies 11,808 9,110 631
Receivables from under investor/investee relations 9 0 256
Sundry current assets 3,004 841 1,584
Total 78,185 29,963 6,652
Receivables due from Babcock Borsig Group companies relates to companies in the Babcock Borsig
Group, which are not included in the consolidated Nordex Group, and mainly relates to trade
receivables and receivables from clearing accounts.
Cash and cash equivalents
This cash and cash equivalents item decreased by approximately 37% from EUR 0.59 million as of
September 30, 1998 to EUR 0.37 million as of September 30, 1999, and increased by approximately
611% to EUR 2.63 million as of September 30, 2000.
However, because, for clearing purposes in the inter-company clearing account of the Babcock Borsig
Group, all accounts were generally settled by the parent company each working day, the above figures
only relate to cash and cash equivalents on the balance sheet dates and are of no particular economic
significance.
Equity
The following table shows that the Group’s equity increased by approximately 77%, from
EUR 7.15 million on September 30, 1998 to EUR 12.7 million September 30, 1999, and by
approximately 26% to EUR 16.0 million on September 30, 2000. The additional paid in capital remained
unchanged at EUR 6.05 million as of September 30, 1999.
Pro forma net earnings was derived from net income, retained profits/accumulated losses brought
forward, adjustments for intra-group allocations, imputed expenses for Nordex AG and profit transfers.
Equity Sept. 30, 2000 Sept. 30, 1999 Sept. 30, 1998
EUR thousand
Capital stock 307 232 207
Additional paid-in capital 6,047 6,047 6,047
Pro forma net earnings 9,660 6,384 893
Total 16,014 12,663 7,146
Accruals
Accruals increased by approximately 172% from EUR 3.0 million as of September 30, 1998 to EUR 8.2
million as of September 30, 1999, and by approximately 140% to EUR 19.7 million as of September 30,
2000. These accruals were primarily comprised of tax accruals and sundry accruals. The sundry accruals
as of September 30, 2000 of EUR 16.5 million were primarily related to contracts (including warranties,
follow-up costs and penalties) and personnel related accruals. The Company issues general warranties
96