May 20, 2008

Suzlon reports high growth FY08

  • .  Annual Revenues up by 71% 
  • · Strong order backlog of INR 18,000 cr. 
  • · Proposed dividend 50% (INR 1-per-share)

Mumbai: Suzlon Energy Limited, the world’s fifth leading wind turbine maker with
10.5% of global marketshare, announced results for the financial year
ended March 31, 2008, reporting 71% growth in revenues.

The company reported consolidated wind turbine sales volume for FY08 at
2,311 MW, compared to 1,456 MW in the previous year – a growth of 59%.
Annual revenues stood at INR 13,679.43 crore in FY08, a 71% growth
over the previous year. Revenues from overseas sales stood at INR 8,107.83
crore, around 59.3% of total sales during the period.

Profit after tax before exceptional items stood at INR 1168.32 crore.
Exceptional items consist of INR 65.46 crore for site restoration, and INR
121.71 crore for rotor blade retrofit program affecting the PAT by INR
151.17 crore (net of tax). PAT after Exceptional Items, share in profit of
associates, and minority interest stood at INR 1,030.10 crore

Commenting on the results, Mr. Tulsi R. Tanti, Chairman and Managing Director
of Suzlon Energy Ltd., said: “Our global growth story continues ever stronger.
Suzlon has grown at over 71%, compared to an industry average of 24%. We continue
to outperform our peers on the global stage, and will continue our record breaking
growth even in this supply restricted environment. Our global marketshare in CY2007
grew to 10.5%, up from 7.7% in CY2006 – registering significant increase of 30%.

“In view of the company’s performance, the Board of Directors has declared a dividend
of INR 1.00 per equity share of face value INR 2 each, for the financial year 2007-08,
aggregating to INR 149.69 crore, excluding dividend tax. The remainder of the
company’s profit will be ploughed back into the business to drive future growth.”

Suzlon reported a strong order book (excluding Hansen and Repower) position of INR
18,308.59 crore (3,454.25 MW); with INR 886.49 crore (160.10 MW) in domestic
orders, and INR 17,422.10 crore (3,294.15 MW) in international orders, as on May 19,

“We entered several new markets in the last year, securing breakthrough orders in
Nicaragua, Turkey, Spain, Brazil, and taking the business from 16 to 21 countries
worldwide,” said Mr. Andre Horbach, CEO – Suzlon Group.

Key Developments
The company achieved another year of industry beating performance, securing
71% growth in highly supply restricted environment, compared to an industry
average of 20% – 25% growth. The growth came on the back of new orders and
continuing repeat orders from major customers the world over.

The company also achieved several significant landmarks in the past year. Among the
most significant was the successful bid for the acquisition of REpower Systems AG
of Germany. The successful bid is a major step forward in enabling both companies to
leverage potential synergies and complimentary strengths to drive growth across the
world. REpower, in the past year has continued its growth, adding capacity and market
share. REpower also secured its largest ever order in Canada for 954 MW of capacity,
as part of a consortium.

Suzlon subsidiary Hansen Transmissions raised Euro 440 million through an
IPO and achieved successful listing on the London Stock Exchange. The listing
establishes Hansen as one of the highest valued companies in the industry, and paves
the way for the company’s rapid growth. Capacity expansion plans proceed on track
with capacity in Belgium raised from 3,600 MW to 7,300 MW; and 5,000 MW and
3,000 MW of new capacity in India and China respectively scheduled to come onstream
in October, 2008. By 2012, total capacity worldwide will reach 14,300 MW.

The ‘Renewable Energy Technology Center GmbH’ (RETC) was established as a
joint venture between Suzlon and REpower Systems AG, in Hamburg, Germany. The
center aims to combine forces and cooperate strategically in the fields of research,
innovation, training, validation and technical processes. The intention of RETC is, to
implement innovative projects that will significantly influence the development of the
next generation of wind power solutions.

The group’s human resource grew from 10,734 in FY07 to 14,044 in FY08 across
various geographies, in line with the organizations increasing global spread.

Growing to take advantage of the vast opportunity, the company has invested in major
expansion plans – establishing new manufacturing facilities in India to act as a hub for
global markets. Work to establish 3,000 MW in new capacity are in an advanced state
of progress, with production scheduled to begin in July FY09 and to reach full
utilization levels by Q4 FY09 – more than doubling Suzlon’s manufacturing capacity
from 2,700 MW to 5,700 MW. The company’s project to establish Forging facilities of
70,000 MT capacity and Foundry facilities of 120,000 MT capacity - are also scheduled
to commence production in Q3 FY09. The aggregate investment on all Suzlon capex
projects (excluding Hansen) amounts to INR 2,961 crores.

Global Markets
The global market for wind energy continued steady growth – growing 24% worldwide
in 2007, with added impetus from skyrocketing oil and has prices, climate change
concerns. With high visibility and renewed emphasis on energy security across nations,
global wind energy is projected to demonstrate steady annual growth of 20% to 25%
over the next ten years.

“The global economy is struggling to sustain growth with oil above USD 120-perbarrel,
and expected to reach USD 200-per-barrel in two years. Climate change
concerns have made renewable power a key priority for people, governments and
nations. And with energy security firmly on every national agenda - wind energy is
poised to continue to grow strongly worldwide,” said Mr. Tanti.

All key markets demonstrated a renewed commitment to wind energy, with United
States setting a goal to achieve 20% of power production from renewable sources by
2030. Europe, the world’s largest wind energy market has set a more aggressive
target to secure 20% of its power needs from renewables by 2020. China has
committed to achieving 100,000 MW from renewables by 2020. India is also expected
to match global industry growth.

“The targets are proof that the world has woken up to the gravity of the challenge we
face. All key markets have shown strong initiatives in the renewable field, supported
by policy and legislative instruments such as Renewable Portfolio Standards in India
and Production Tax Credits in the US,” added Mr. Horbach.

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