June 28, 2009

Suzlon Group Consolidated Revenues up 91% in FY09

Suzlon Wind grows 21% to 2,790 MW from 2,311 MW, FY09-vs-FY08**
Suzlon Group consolidated revenues grew 91% to INR 26,082 cr. from INR
13,679 cr., FY09-vs-FY08**
Suzlon Group consolidated EBIDTA grew 37% to INR 2,816 cr. from INR 2,051
cr., FY09-vs-FY08**
Suzlon Group consolidated PBT (before exceptional items) grew 10% to INR
1,613 cr. from INR 1,466 cr., FY09-vs-FY08**
Blade retrofit program 80% complete, full completion by mid-August, 2009
Suzlon Orderbook: 1,463 MW and INR 7,901 cr. as on 25th June, 2009
“The wind sector installed over 27,000 MW worldwide in CY2008 and the long term
outlook for wind remains strong with renewed government mandate and regulatory
supports. Suzlon and REpower have complementary strengths that will allow us to
reach on-shore and off-shore wind markets around the world and build on this
resurgence,” said Mr. Tulsi Tanti, CMD – Suzlon Energy Ltd.

“Despite a challenging year, we have registered strong topline growth in FY2008-
09, with sales growing to INR 26,082 cr. With the changing environment we have
focused on consolidating the business. While there is an industry wide slowdown in
the immediate-term, we see a rebound in CY2010 with long-term drivers gaining
momentum.” said Mr. Sumant Sinha, COO - Suzlon Energy Ltd.

Mumbai: Suzlon Energy Limited (SEL), the world’s fifth leading* and India’s largest
wind turbine manufacturer, reportedconsolidated revenues of INR 26,082 cr
for FY2008-09, a 91% growth over theprevious year. Profit Before Tax for the
year (before exceptional items) stood atINR 1,613 cr.

The Suzlon orderbook (excluding Hansenand REpower) stood at 1,463 MW and INR

Speaking on the industry Mr. Tulsi Tanti, Chairman and Managing Director of
Suzlon Energy Limited, said: “FY2008-09 has been a challenging year for all
industries, and the wind sector is no exception. However, despite a drastically changed
business landscape the past year, the wind sector installed over 27,000 MW worldwide
in CY2008 and the long term outlook for wind remains strong with renewed
government mandate and regulatory supports. Suzlon and REpower have
complementary strengths that will allow us to reach new on-shore and off-shore wind
markets around the world and build on this resurgence.”

Speaking on the company’s performance, Mr. Sumant Sinha, COO – Suzlon
Energy Limited, said: “Despite a challenging year, we have registered good growth
at a consolidated level with sales growing to INR 26,082 cr. With the changing
environment we have focused on consolidating the business after a period of very high
growth. We have undertaken several strategic initiatives to make our business more
efficient, competitive and financially healthy in the long term – and have started
delivering results. While there is an industry wide slowdown in the immediate term, we
see a rebound in CY2010 with long-term drivers gaining momentum.

"The current environment is changing the shape of the industry with more focus on
new markets, flexible supply chains, more near-horizon orders. With our highly
integrated supply chain, and concept to commissioning capabilities we are well
positioned to meet the changing needs of investors in wind.”


Strategic Priorities
With the challenging business environment, the company undertook several key
initiatives focusing on consolidation of the business. Key among them –

S88 Program
The planned retrofit program to strengthen all V2 blades is underway with 80%
of the project completed as on date. The program, previously scheduled for
completion in June, 2009, faced some overruns and is now scheduled for
completion in mid-August, 2009.

The S88 V2 retrofit program and other continuous improvement upgrades have
resulted in a steady improvement of availability and performance levels. The
S88 V3, introduced in early 2008, is consistently delivering targeted
performance at a fleet level. This reflects an overall stabilization of Suzlon’s S88
– 2.1 MW turbine platform, and becoming the base-platform for future product
development.

Financial Management/Liability Management
The company recently undertook a liability management exercise for Foreign
Currency Convertible Bonds (FCCB) of USD 500 mn issued in 2007. The
company successfully renegotiated the liability, reducing the debt by USD 111
mn through buy-back and exchange mechanisms. The exercise simultaneously
achieved a successful relaxation and modification of financial covenants for its
acquisition loan facility and FCCB – resulting in an improved financial flexibility.

Going into FY2009-10, the company has adopted very stringent policies on debt
management, working capital reduction, increasing operating efficiencies:
freeze on fresh capex, continuous performance monitoring and operating cost
rationalization. As a result of this, we have seen a gradual improvement in
working capital intensity, rationalized debt levels and increase operating
efficiency.

Order Outlook
With funding uncertainties and change in short and medium-term market
dynamics slowing down the order uptake in the wind sector, the company
achieved an orderbook of 1,463 MW.

Group Updates
Suzlon achieved the completion of the acquisition of 91% stake in REpower, marking
in a major step in harnessing group-wide synergies. Hansen Transmissions’ new
facilities in India and China commenced commercial manufacture.

SE Forge achieved commercial production, supplying components to Suzlon and SKF
Bearings.

All group companies demonstrated strong performance, with REpower reporting EUR
1,209 mn in revenues, EUR 76.9 mn EBIT, PAT of EUR 51.9 mn; and Hansen
Transmissions reporting EUR 609 mn in revenues, EUR 93.7 mn EBITDA, PAT of EUR
45 mn for FY2008-09.

Market Landscape
Changed market dynamics are projected to reshape wind sector growth in the medium
term, with a rebound expected in the second half of FY2009-10. Industry forecasts
project a de-growth in the sector in CY2009, followed by a rebound in CY2010 as more
government mandates and stimulus spending measures take ground. The long term
forecast for the industry is on track with government mandates, targets and regulatory
support, alongside stimulus spending commitments to the renewable energy industry.
Investment interest in the sector remains strong, despite the current financial climate.

“Looking ahead - the changing market landscape also presents exciting opportunities
as we are one of the few wind power companies with resources across development,
manufacturing and deployment – allowing us to be more responsive and flexible to the
market, and continue being exceptionally customer centric in all areas of our
operations,” added Mr. Sumant Sinha:


Contact Us

Murlikrishnan Pillai
Tel: +91 (20) 67025000
E-mail: ccp@suzlon.com