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

Since it ceased being a member of the Babcock Borsig Group, Nordex AG has not been subject to codetermination
regulations. The Supervisory Board of Nordex AG therefore comprises only shareholder
representatives.
Investments
The following table is an overview of the Nordex Group’s investments, taking into account subsidies
received, for the past three fiscal years in thousands of euro. This table is prepared on the basis of the
IAS Pro Forma Consolidated Financial Statements:
Investments
Fiscal year
1997/1998
Fiscal year
1998/1999
EUR thousand
Fiscal year
1999/2000
Intangible assets 893 2,369 4,457
Property, plant and equipment 1,241 7,601 9,267
Financial assets 0 774 240
Total 2,134 10,744 13,964
Of the investments in intangible assets totaling approximately EUR 7,719 thousand in the past three
fiscal years, approximately EUR 2,125 thousand were related to the type approval for wind turbines and
software purchases (EUR 404 thousand in fiscal year 1997/1998; EUR 567 thousand in fiscal year 1998/
1999; EUR 1,154 thousand in fiscal year 1999/2000). Other investments related to development costs
for new wind turbines totaling approximately EUR 3,328 thousand (EUR 489 thousand in fiscal year
1997/1998; EUR 1,528 thousand in fiscal year 1998/1999; EUR 1,312 thousand in fiscal year 1999/
2000) and licenses and similar assets totaling EUR 2,266 thousand (EUR 290 thousand in fiscal year
1998/1999; EUR 1,976 thousand in fiscal year 1999/2000).
Investments in property, plant and equipment in the past three fiscal years amounting to
approximately EUR 18,109 thousand primarily comprise investments in the assembly plant in Rostock
of approximately EUR 2,546 thousand (EUR 41 thousand in fiscal year 1998/1999; EUR 2,505 thousand
in fiscal year 1999/2000). In addition, of the investments in property, plant and equipment in the last
three fiscal years, EUR 1,128 thousand was spent on the purchase of jigs (EUR 239 thousand in fiscal
year 1997/1998; EUR 763 thousand in fiscal year 1998/1999; EUR 126 thousand in fiscal year 1999/
2000), EUR 1,260 thousand (in fiscal year 1998/1999) on financing the purchase of a mobile crane, EUR
1,199 thousand on operating and office equipment in fiscal year 1999/2000 and approximately EUR
4,377 thousand on exhibiting prototypes (EUR 229 thousand in fiscal year 1997/1998; EUR 1,812
thousand in fiscal year 1998/1999; EUR 2,336 thousand in fiscal year 1999/2000). Other investments in
property, plant and equipment primarily related to wind turbines, processing equipment, assembly and
transport equipment and other technical plant and equipment as well as workshop fittings, vehicles,
tools and office and operating equipment.
Investments in financial assets in the past three fiscal years amounting to approximately EUR 1,014
thousand mainly related to Nordex Energy GmbH’s equity investments in China in the Xi’an Nordex
Windturbines Corp. Ltd. (in fiscal year 1998/1999) and in Nordex Omnical Energy Services (Shanghai)
Co Ltd. in Shanghai (in fiscal year 1998/1999).
These investments were mainly financed through the Babcock Borsig Group’s clearing system, which
will be maintained up to the Offering and is scheduled to be discontinued on April 4, 2001.
The Company plans to invest approximately EUR 21 million in the current fiscal year, approximately
EUR 14.7 million of which will be earmarked for the construction of Nordex Rotor GmbH’s new
assembly plants in Rostock on the GVZ site (see ‘‘—Real Estate and Real Property’’). This undertaking is
being subsidized with a 35% investment grant from the federal state of Mecklenburg-Vorpommern.
The net investment by the Company will amount to approximately EUR 10 million. Furthermore, Nordex
AG also intends to invest in the further development of wind turbines, particularly in the construction
of prototypes, software implementation, expansion of the production facilities in Rostock and
expansion of sites abroad. In the first quarter of the current fiscal year to December 31, 2000, the
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