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

Comparison of Fiscal Years 1999/2000, 1998/1999
and 1997/1998
Results of Operations
The following table shows a three-year comparison of selected data and key figures relating to the
Group’s results of operations:
Fiscal years
Results of operations 1999/ 2000 1998/1999 1997/ 1998
EUR thousand
Net sales 272,670 223,743 82,477
Total operating performance 270,191 232,624 85,259
Depreciation/amortization expense 3,725 2,096 862
Operating profit 13,214 10,000 2,816
Net financial result -2,865 122 -335
Taxes* 3,914 3,592 885
Net income 6,435 6,530 1,595
Cost of materials ratio 1
Personnel expenses ratio 2
Return on sales 3
Return on equity 4
* Income taxes and other taxes
1 Cost of materials : total operating performance
2 Personnel expenses : total operating performance
3 Net income : net sales
4 Net income : equity (less retained profits)
75.4% 81.2% 78.1%
7.1% 5.5% 6.9%
2.4% 2.9% 1.9%
101.3% 104% 25.5%
In addition to the above, selected figures from the Group’s pro forma consolidated income statements
are analyzed below.
Net sales and total operating performance
Net sales, which amounted to EUR 82.5 million in fiscal year 1997/1998, increased by approximately
171% to EUR 223.7 million in fiscal year 1998/1999, and by approximately 22% to EUR 272.7 million in
fiscal year 1999/2000.
Nordex Energy GmbH was the strongest performing unit and chief contributor to net sales. On an
unconsolidated basis, its sales accounted for EUR 77.1 million, approximately 93% of the Nordex
Group’s total sales in fiscal year 1997/1998. In fiscal year 1998/1999, on an unconsolidated basis this
subsidiary contributed EUR 211 million (approximately 94%) of the Nordex Group’s total sales and EUR
248 million (approximately 91%) in fiscal year 1999/2000. The Group’s main source of sales in fiscal
year 1998/1999 was the newly developed N-60/62 wind turbine with a total output of 1.3 megawatts.
In the following fiscal year, foreign sales (in particular from the Iberian peninsula, Greece, Denmark,
China and the United States) increased in particular due to the successful commencement of the
Company’s internationalization program, which was also reflected in the strategic establishment and
expansion of the Company’s foreign subsidiaries. The downturn in domestic sales during the same
period was due primarily to Nordex Energy GmbH’s focusing heavily on developing the next generation
N-80 wind turbine which prevented it from being able to meet the demand for smaller turbines from
the market and its existing customers.
Südwind Energy GmbH, which was included in the consolidation beginning with fiscal year 1998/1999,
produces wind turbines, erects turnkey wind farms and services wind turbines. Its net sales increased
by approximately 127% from EUR 10.9 million in fiscal year 1998/1999 to EUR 24.8 million in fiscal
year 1999/2000. This increase was primarily due to the expansion of its business with sales of the
mature S-46 wind turbine, which has a total output of 0.6 megawatt, and the introduction of the
modern S-70 wind turbine, which has a total output of 1.5 megawatts.
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