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

Strategy
Nordex’s overall strategy is to increase its worldwide market share through a combination of internal
and external growth and to be one of the world’s top three manufacturers of wind turbines. To this
end, the Nordex Group intends to build upon its technological advantage in the megawatt segment and
also to further expand its international presence. Nordex’s strategy also focuses on increasing
profitability through the introduction of more intensive industrial manufacturing. Measures planned
for the implementation of this strategy include:
Expansion of Nordex’s Technological Advantage in the Megawatt-Class
The Nordex Group believes that it has a technological lead in the construction of large-scale, megawatt
turbines and plans to increase this lead through the introduction of new megawatt wind turbines to its
product range and continued development of its existing types of wind turbines. The particular focus in
this area will be on the development of a new blade technology for rotor blades with a length of more
than 40m, and the construction of new wind turbines with a capacity of over 2.5 megawatts.
As a further long term objective, the Company plans to develop offshore wind turbines, i.e. wind
turbines that can be operated in wind farms on the open sea up to 40km from the coast. In order to
serve the needs of the offshore market, which has already begun to develop with smaller turbines
closer to shore, the Company plans, in the medium term, to develop an offshore version of the N-80.
The Company believes that there will be market demand in the long term for larger, higher capacity
turbines for operation in offshore wind farms out at sea. For this reason, the Company has entered into
a joint venture with Jacobs Energie GmbH, a manufacturer of wind turbines, and pro + pro
Energiesysteme GmbH & Co. KG, a development company, for the development of a 5-megawatt model
with a rotor diameter of up to 120m. Plans for the development of such offshore wind turbines are
currently at a very early stage, however, due to the highly exacting technical and physical requirements
and the demanding conditions in which such turbines would operate.
Improvement in the Cost-efficiency of Generating Power from Wind Energy
The Company aims to improve substantially the cost-efficiency of power generation from wind energy
by reducing significantly the cost of generating electricity per kWh from the turbines it manufactures
and sells. Nordex plans to achieve this goal both by cutting manufacturing and assembly costs, and by
reducing operating costs of its wind turbines and infrastructure costs. Series production of wind
turbines, turbine weight reduction and the cutting of installation costs through a time-saving plugand-play
assembly are primary factors in reducing manufacturing and assembly costs.
In order to reduce the operating costs of its wind turbines, the Company is developing a Condition
Monitoring System currently as an addition to its Nordex Control system. This system will enable
operators to diagnose errors early while the turbines are in operation and is intended to help prevent
breakdowns, lengthen maintenance intervals for wind turbines in operation, and thus reduce
maintenance costs.
The Company believes that these measures, together with the planned increase in capacity rating, will
further improve the cost-effectiveness of generating power from wind energy.
Consistent and Early Presence in International Growth Markets
In order to increase its share of the world market, the Nordex Group plans to focus on expansion
overseas while continuing to expand within Germany, and aims, therefore, to increase its presence in
regional markets where it is already active and at the same time build up a presence in new regional
markets. The Company considers the most interesting future markets to be: Spain in particular, due to
the existing law regarding the supply of electricity into the public grid and its good wind conditions;
the UK, due to especially good wind conditions and the availability of tax credits for electricity
generated from renewable sources; the United States, also due to good wind conditions and tax
subsidies for wind turbines; France, where a law on power from renewable energies is being drafted;
and China, where the level of demand for energy is high and where the Nordex Group already has a
strong presence.
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