REpower Systems AG: Nine-Month-Report

- Significant Increase in Revenues and positive EBIT in the third quarter
- Highest Order Book Level in the Company History
- Cautious optimism for the Outlook 2005

Hamburg, November 15, 2005. In the first nine months of the current financial year, REpower Systems AG (WKN 617703) has installed a total of 136 turbines, of which 96 had a full impact on sales with a total output of 170.0 megawatts. Yearon- year, this equates to a 37.7 percent increase in installed rated power (previous year: 75 systems and 123.5 MW). Consolidated gross revenues were increased from EUR 152.2 million to EUR 194.8 million in the reporting period. Year-onyear sales increased strongly from EUR 130.6 million to the current figure of EUR 195.1 million. EBIT for the period from January to September was minus EUR 12.4 million compared with minus EUR 7.9 million in the previous year. For the first quarter the EBIT amounted to EUR 0.3 million. As a result of the likely beating of the installation target, REpower expects a sales increase of 5 percent to 10 percent for the 2005 financial year. Moreover, as things stand, the company expects an EBIT result roughly in line with the previous year. With the planned installation of at least 250 turbines, which are already largely covered by the orders on hand, the sales volume in the 2006 financial year is likely to pass the EUR 400 million mark for the first time ever.

Between January and September 2005, REpower Systems AG installed a total of 136 turbines, of which 96 had a full impact on sales with a total output of 170.0 megawatts. Year-on-year, this equates to a 37.7 percent increase in installed rated power (previous year: 75 systems and 123.5 MW). The difference between installed systems and systems with an impact on sales mainly results from the growing extent of the projects and the larger transit distances due to international business. At project level, this leads to longer implementation periods, meaning that sales figures are not available for all systems in time for the balance sheet date. By using the percentage-of-completion method (PoC), this effect is partially ironed out in the consolidated financial statements according to IFRS. Year-on-year sales increased strongly from EUR 130.6 million to the current figure of EUR 195.1 million. Using the percentage-of-completion method (PoC) results in total sales of EUR 30,0 million.

EBIT for the period from January to September was minus EUR 12.4 million compared with minus EUR 7.9 million in the previous year. In addition to the usual seasonality, this was primarily due to non-recurring effects from ongoing restructuring, which were recorded back in the second quarter of 2005 at around EUR 5.0 million. In addition, for tax reasons, only EUR 1.9 million was recognised as income as a participation in additional proceeds from the sale of the wind park portfolio II to GE Capital on 1 July 2005. REpower had originally expected a participation of EUR 3.0 million to EUR 3.5 million.

The profit after tax amounts to minus 8.1 million EUR compared with minus 5.7 million EUR in the first nine months of the previous year. The earnings per share amount to minus 1.46 EUR compared with minus 1.06 EUR.

At the end of the period under review, orders on hand totalled 377 turbines (previous year: 243). This corresponds to an order volume of approximately EUR 561.2 million (previous year: EUR 353.8 million). 32.1 percent of the wind turbines in the orders on hand are assigned to the national market and 67.9 percent to the international market.

The positive development of the global wind energy market led to a significant shortage of main components for turbines on the supply market. Consequently, the savings potential planned in the Purchasing segment of the restructuring programme RE-Act will only be partially realised through renegotiation with the supply industry. In this respect, REpower expects a target shortfall of up to EUR 4 million in this segment.

However, this target shortfall can also be partially compensated in that we exceeded our original objective of installing 200 turbines as a result of the sound market situation. However, with regard to the number of installations, there is a high dependency on weather conditions, in the fourth quarter in particular.

As a result of the possibly beating of the installation target, REpower expects a sales increase of 5 percent to 10 percent for the 2005 financial year. Moreover, as things stand, the company expects an EBIT result roughly in line with the previous year. This takes into account the increased risk of a target shortfall for the reasons set out above.

With the planned installation of at least 250 turbines, which are already largely covered by the orders on hand, the sales volume in the 2006 financial year is likely to pass the EUR 400 million mark for the first time ever. The growth will mainly be generated in the first half of 2006, when around 100 systems are likely to be installed. An EBIT result in the double-digit euro range is expected.


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Key figures REpower Systems group

https://www.iwrpressedienst.de/repower/key-figures_Repower_3_quartal2005.pdf target=”blank”>https://www.iwrpressedienst.de/repower/key-figures_Repower_3_quartal2005.pdf


About REpower:

REpower Systems AG is active in the wind power industry. The company's range of business services includes the system development, licensing, production and marketing of wind turbines. This is supplemented by a comprehensive after sales service. Because of its presence in the decisive stages of the value creation chain, REpower has powerful overall competence in wind energy. With more than 600 employees, the company headquartered in Hamburg can rely on its experience in the production and installation of almost 1,300 wind turbines worldwide. The high-quality, technologically sophisticated turbines are designed in the development centre in Rendsburg and produced in the plants in Husum (North Frisia) and Trampe (Brandenburg). The internationally expanding company is represented through subsidiary companies and joint ventures in France, Greece, Great Britain, Italy, Portugal and Spain as well as in Australia.


Contacts:

REpower Systems AG
Daniela Puttenat Corporate
Communications & Public Relations
Phone:+49 - 40 - 53 93 07- 14
Fax: +49 – 40 – 53 93 07– 37
E-mail: d.puttenat@repower.de>d.puttenat@repower.de

Thomas Schnorrenberg
Investor Relations Phone: +49 - 40 - 53 93 07- 23
Fax: +49 - 40 - 53 93 07- 77
E-mail: t.schnorrenberg@repower.de>t.schnorrenberg@repower.de
Internet: http://www.repower.de

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