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REpower Systems AG
Conference Call
14 August 2006
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H1-Highlights
Revenues +46.9%:
Increased from EUR 121.5 million to EUR 178.5 million
Improvement of results: EBIT improved from EUR -12.7 million to EUR 2.4 million
Order backlog +25.9%:
Increased from 652.5 megawatts to 821.5 megawatts
Successful completion of an capital increase
Share capital increased by EUR 2,160,599.00, from EUR 5,941,198.00 to EUR 8,101,797.00
Largest single order in the company history and first order for the US-market
Signing of an agreement with enXco Inc., the US subsidiary of EDF Energies Nouvelles, to supply 56 MM92-turbines in 2007 with an option for 19 further turbines
First Half-year 2006
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Shareholder Structure
WKN: 617 703
ISIN: DE0006177033
Exchange symbol: RPW
Stock exchange: Prime Standard
Initial listing: March 26, 2002
Share capital: 8,101,797 Euro
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Business Modell
Grid-Integration: New or improved
REpower products by understanding customer requests
Turbineproduction
Wind farmfund manager
Wind farmowner
Operation and
maintenance
Components System deve-
lopment
Solution Provider
Software: Parkmanagement and Grid
Codes Integration Grid
Monitoring, Integration CMS Comfortable performance
analysis
REpower is supplying Wind Power Stations instead of wind turbines
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Activities worldwide:
Key Markets
Japan
Activities in Europe:
Portugal
Great Britain
Italy
France / Belgium
Australia
China
Germany
Spain
USA
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1. Development of the wind energy market
2. Products3. Finance and personnel4. Outlook
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Scarce resources
Dependency on imports
Climatic changes
Growth boosters: Renewable energies
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Oil price development
Oil price development in US dollars per barrel(Period 2003 to 2006)
Source: Bloomberg
The increased oil price and the subsequent rises in the prices of the raw materials coal and gas are currently having an inflationary effect on the price for electricity from fossil fuels
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Declining remuneration for electricity from wind power
Development of feed-in tariffs against stock market electricity price
1) EEX base load: quarterly weighted average price for base load electricity
2) Initially, a higher minimum rate per kWh is paid for each new wind turbine over five years. After this, remuneration is aligned with the energy the turbine would yield at a reference location with an average annual speed of 5.5 m/s at a height of 30 m above ground.
3) Remuneration after expiry of the increased remuneration under 2)
1
2
3
4
5
6
7
8
9
Q1/0
3
Q2/0
3
Q3/0
3
Q4/0
3
Q1/0
4
Q2/0
4
Q3/0
4
Q4/0
4
Q1/0
5
Q2/0
5
Q3/0
5
Q4/0
5
Q1/0
6
Q2/0
6*
in c
t/kW
h
EEX base load 1)
Remuneration for newwind turbines, weakwind 2)
Basic RenewableEnergies Actremuneration 3)
* July 2006: 7.34 ct/kWh
Market power price is considerably in excess of the EEG Basic-tariff
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Forecast 2005 – 2009 of Total Market Volume
Cumulative Wind Capacity
0
20000
40000
60000
80000
100000
120000
140000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Meg
aw
att
s
ForecastActual
Internal reasons
Total Market has Grown at 28% Compound Rate 1999 – 2004
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1. Development of the wind energy market
2. Products3. Finance and personnel4. Outlook
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Product Portfolio andR&D Outlook
MD 70:1998
MD 77:2000
MM 70:2002
MM 82:2003
MM 92:2005
MMX:2008
5M:2004
MD: 1.5 MW-Class
MM: 2.0 MW-Class
5M: 5.0 MW
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Technological Advantages
Conservative load assumptions and high safety factors
Reliable gearbox concept: Excellent weight balance prevents high loads and load peaks in the structure Low temperature level by an efficient, directly connected oil cooling system Three stage oil filtering system for maximum oil quality Design check test run under up to 240% load
Generating characteristics like a conventional power plant
Low sound power levels
Zone concept for lightning protection in line with IEC-regulation with inner and outer lightning protection
Technological advantages
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Project overview 5M launch I
0 series onshore
Planned projects:
E.on/Winkra: Cuxhaven EWE: Cuxhaven
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Project overview 5M launch II
Initial offshore project: Beatrice Wind Farm
25 kilometres from the Scottish coast, two REpower 5M turbines are to be installed in
water 44 metres deep In the Moray Firth
Ongoing Installation
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Offshore Wind Farms in the North and Baltic Sea
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4
2
8
7
5
6 9
1
10 34
3236
37
38
35
33
27
17
19
13
18
1123
15
16
2429
3031
22
21
20
25
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123
SwedenPlanned Windfarms North Sea
12 Meerwind13 Weisse Bank 201014 Forseti17 Godewind18 Uthland19 Weisse Bank20 Jules Verne21 Ventotec Nord 122 Ventotec Nord 223 Nördlicher Grund24 Windpark He dreiht25 TGB Nord26 H 2 – 2028 Riffgat29 Bard Offshore30 Austerngrund31 Deutsche Bucht
Approved WindfarmsBaltic Seae
10 Kriegers Flak
36 Baltic I
35 Sky 2000
37 Breitling
Geplante Parks Ostsee
32 Arcona Becken Südost
33 Beltsee
34 Ventotec Ost II
38 Wismar
Approved Windfarms North Sea
1 Emden2 Butendiek3 Borkum West4 Sandbank 245 Borkum Riffgrund West6 Borkum Riffgrund7 Amrumbank West8 Nordsee Ost9 ENOVA ONS Windpower11 Dan Tysk15 Globaltech16 Hochsee Windpark27 Nordergründe
Quelle: Kromrey, Mai 2005
25,000 MW
2,600 MW
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1. Development of the wind energy market
2. Products3. Finance and personnel4. Outlook
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Employee development
Number of employees(30 June 2006)
REpower Systems Group
Employee qualifications(31 Dec. 2005)
at REpower Systems AG
2 2 %
4 6 %
5 %
1 1 %
1 6 %
E n g in e e r s
T e c h n ic ia n s
A d m in is t r a t io n
O t h e r g r a d u a t e s
A p p r e n t ic e s , in t e r n s , d ip lo m a in t e r n s a n d o t h e r s
One in five employees has an engineering degree
Approximately 90% of employees agreed to a 41.5 to 42 hour week
0
100
200
300
400
500
600
2005 2006
554674
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Income Statement
Income Statement for the period from 1 January – 30 June
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Balance Sheet I
Consolidated financial statement as per 30 June 2006
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Balance Sheet II
Consolidated financial statement as per 30 June 2006
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Cash Flow Account
Cash flow statement for the first six months of 2006
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1. Development of the wind energy market
2. Products3. Finance and personnel4. Outlook
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Objectives
Provided that the current component bottlenecks do not result in further delays in delivery, REpower still expects to increase sales to EUR 450 million with an EBIT between EUR 11 million and EUR 13.5 million in 2006
In financial year 2007, REpower is planning to increase the number of wind turbines installed to around 325 and to improve its sales volume to EUR 650 million. The company expects to further increase its EBIT margin
REpower’s long-term planning assumes that the company’s strong growth will continue. Based on current estimates, the number of turbines installed in 2008 will be at least 400, with the sales volume increasing to EUR 800 million
Objectives
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Investment Highlights
Investment Highlights
REpower is working in a fast growing markets with attractive customers
REpower is well positioned for strong growth Technology leader First mover in the 5-megawatt class Well-positioned across the value chain Positioned in high-growth product segments International expansion
Successful completion of turnaround in Q1/2006
Highest Order Book Level in the Company History
Promising Shareholder Structure