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

forecasts, Northern Africa, primarily Egypt, Morocco and Tunisia are expected to show stable growth in
the number of installations.
The following table contains information taken from the BTM Consult ApS report for 2000 and
illustrates the market forecast up to 2003 based for installed megawatt capacity for selected countries
and regions, which are important to the Company:
Country/Region
Total
installed
MW at end
of 1999
Newly
installed
MW in
1999 Forecast 2000 to 2003 in MW
Newly
installed Total
MW from installed
2000 to MW at end
2003 of 2003
1999 1999 2000e 2001e 2002e 2003e Subtotal Total
Germany 4,442 1,568 1,400 1,600 1,200 1,500 5,700 10,142
Spain 1,812 932 1,500 1,500 1,500 1,800 6,300 8,112
Denmark 1,738 325 300 200 300 400 1,200 2,938
UK 362 24 50 100 200 300 650 1,012
Greece 158 103 100 100 150 150 500 658
Portugal 61 10 30 30 40 50 150 211
France 25 4 75 100 125 200 500 525
Turkey 9 0 20 100 100 150 370 379
United States 2,445 477 300 600 400 500 1,800 4,245
China 262 25 150 150 200 300 800 1,062
India 1,035 43 100 150 200 300 750 1,785
Europe (total) 9,737 3,192 4,010 4,445 4,615 5,620 18,690 28,427
American
continent
(total) 2,667 548 400 800 600 750 2,550 5,217
Asia (total) 1,376 115 330 380 530 730 1,970 3,346
(Source: BTM Consult ApS – March 2000)
The Company anticipates that the cost of electricity generated from wind energy as compared with
conventional energy sources will decline significantly, although the price of wind-generated electricity
is strongly influenced by the location of the turbines. The Company believes that in a few years’ time,
wind turbines in favorable coastal locations will be able to produce electricity more economically than
gas-powered plants. The Company bases this belief on the continued decrease in the cost of producing
power from wind energy per kWh, and on increases as in the price of fossil fuels. The Company believes
that the reduction in the cost of producing power from wind energy will come from a reduction in
investment costs of wind turbines per kW of installed capacity. In the period from 1991 to 2000,
investment costs per kW of installed capacity declined by approximately 40% (source: BTM Consult
ApS-March 2000). According to the March 2000 study by BTM Consult ApS, costs per installed kW are
expected to fall by another 15%-20% in the next five years.
The Company believes that the falling investment costs per installed kW are principally the result of the
continually increasing kW capacity per turbine, which is increasing faster than turbine manufacturing
costs. In the coming years, the Company believes that the nominal output of wind turbines will
increase further.
Competition
The competitive position of the Nordex Group is characterized by strong market concentration of
manufacturers of wind turbines. In 1999 approximately 92% of the global market for wind turbines,
measured by installed capacity, was accounted for by only eight manufacturers, including the Nordex
Group (source: BTM Consult ApS – March 2000). Some individual regional markets such as China, Egypt
or The Netherlands are dominated by just two or three suppliers. The Nordex Group’s primary
competitors in the wind turbine manufacturing market are the Danish producers, NEG Micon A/S,
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