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

The main characteristics that distinguish the Nordex Group from its competitors are the fact that it
manufactures both stall-regulated and pitch-regulated (variable and constant rotational speed) wind
turbines and that it can provide the entire range of services itself, from the development of key turbine
components through to the manufacture of rotor blades and controllers to grid connection. Another
feature which distinguishes it from its competitors is that Nordex has a policy of acquiring in the
market other standardized components with relatively low margins instead of manufacturing these
components more expensively in-house, (see ‘‘—Products and Production—Production Sites and
Capacity’’).
The following table shows a comparison of the types of wind turbine produced by the Nordex Group
and its main competitors:
Manufacturer Primary wind turbine type produced:
Nordex Stall-regulated wind turbines with constant rotational speed and variable-speed pitchregulated
wind turbines
Bonus Energy Stall-regulated wind turbines with constant rotational speed and with active stall
regulation
Enercon GmbH Variable-speed pitch-regulated wind turbines and multiple generators
Enron Wind Corp. Variable-speed pitch-regulated wind turbines
Gamesa Eólica Variable-speed pitch-regulated wind turbines
Made Stall-regulated wind turbines with constant rotational speed
NEG Micon A/S Stall-regulated wind turbines with constant rotational speed and pitch-regulated wind
turbines
Vestas Wind Systems A/S Pitch-regulated wind turbines with OptiSlip (variable-speed)
The total market for wind turbines increased by approximately 46% in 1999 as compared to 1997 in
terms of newly installed capacity. As one of the leading companies in the megawatt, the Nordex Group
was able to increase its global share of this growing market from approximately 4.3% in 1997, to
approximately 5.0% in 1998, and further to approximately 7.8% in 1999. This corresponds to an
average increase of approximately 28% per year (source: BTM Consult ApS – March 2000). According to
the provisional results of the BTM study for 2000, the Nordex Group held a market share of 8.4% in
2000 (source: BTM Consult ApS – February 2001 (draft)). In terms of megawatt turbines, which in 1999
reached a 26.8% share of the total market based on newly installed capacity (prior year: 16%), the
Nordex Group had a market share of 20.4% in 1999 calculated on the basis of installed capacity.
Enercon also captured a market share of approximately 20.4%, while Bonus held approximately 18.7%
(source: BTM Consult ApS – March 2000).
The following diagram illustrates the market share held by the Nordex Group and its competitors in the
megawatt segment in terms of installed capacity in 1999:
Market share in the megawatt in 1999
Enron
(Tacke/Zond)
15.5%
Vestas
17.7%
(Source: BTM Consult ApS – March 2000)
42
Other
7.3%
Bonus
18.7%
Nordex
20.4%
Enercon
20.4%