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

Liquidity
Cash flow from operations in the first quarter of fiscal year 2000/2001 was negative at EUR 5.5 million.
This was due primarily to the increase in inventories and the reduction of liabilities. A perceptible
reduction in customer receivables compensated for this to an extent.
Both cash flow from financing activities (approx. EUR 20 million) and cash flow from investment
activities (approx. EUR -22 million) were, in the first quarter of fiscal year 2000/2001, influenced
significantly by extraordinary factors due to the fact that the Nordex Group was consolidated for the
first time and the capital of Nordex AG was increased. Similar extraordinary factors are not expected in
the following quarters.
Financial Condition
The following table compares the financial position as of December 31, 2000 to the position as of
September 30, 2000.
as of
December 31,
2000
as of
September 30,
2000
EUR million
Total assets 169.8 153.1
Fixed assets 41.8 21.4
Current assets 125.5 129.8
incl. receivables from supplies and services 45.2 63.4
Accruals 20.4 19.7
Liabilities 109.0 114.6
incl. financing 72.5 64.9
Fixed assets
The main change in fixed assets was to intangible assets in the period from September 30, 2000 to
December 31, 2000. The increase of EUR 20.4 million in fixed assets from September 30, 2000 to
December 31, 2000 was due primarily to goodwill resulting from the first time consolidation of the
capital of the companies comprising the Group. The increase in tangible fixed assets was on a similar
level to depreciation. Planned investments, especially into rotor blade production, will have an effect
only in the following quarters.
Current assets
Current assets as at December 31, 2000 amounted to EUR 125.5 million and consisted of inventories
and receivables from customers. There was a slight reduction in current assets from the position at
September 30, 2000, mainly due to the reduction of receivables.
As compared with the position at September 30, 2000, receivables from clients as of December 31,
2000 declined to EUR 45.2 million. Historically, receivables from clients have generally been paid within
90 days. The default risk for receivables from clients has been low, since orders were only accepted
where there was proof of financing.
Accruals
Accruals as of December 31, 2000 amounted to EUR 20.4 million, representing a slight increase since
the beginning of fiscal year 2000/2001. Accruals relate primarily to contract related accruals and
personal accruals. The Company maintained its methodology for accounting and for valuation.
Liabilities
Liabilities as of December 31, 2000 amounted to EUR 109.0 million, of which EUR 72.5 million related
to the Babcock Borsig Group to inter-company clearing facility. The inter-company clearing liabilities as
of March 31, 2001 (expected to be approximately EUR 92.6 million) are expected to be repaid out of the
proceeds of the Offering.
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