Nordex with profitable growth in 2007 - further surge in earnings expected for 2008

- Net income for 2007 up almost fourfold to EUR 48.0 (12.6) million
- Increase in earnings per share to EUR 0.74 (0.21).
- RoS in 2007 widened to 5.4 (3.2) percent
- 2008 RoS expected to grow to 6 - 8 percent, sales by 50%


Hamburg - The final figures for 2007 of the Nordex Group (ISIN: DE000A0D6554) confirm the preliminary numbers announced in February and confirm its continued profitable growth.

As already stated, Nordex’s sales increased by 45% in 2007 to roughly EUR 747 (previous year: 514) million. Earnings before interest and taxes (EBIT) rose by around 142% to EUR 40.1 (previous year: 16.6) million. As a result, the return on sales widened to 5.4% (3.2%). The surge in profits was driven by economies of scale and the greater profitability of the projects completed. Thus, the personnel cost/sales ratio dropped to 6.8% (7.6%), with the cost of materials/sales ratio also receding slightly despite higher sourcing costs.

Net income in 2007 surged fourfold to almost EUR 48.0 (previous year: 12.6) million due, among other things, to a tax reimbursement of EUR 8.9 due to recognition of deferred tax assets on tax losses. At the same time, net borrowing costs fell to EUR 1.1 (previous year: 3.9) million due to the 61% increase in liquidity to EUR 212 (previous year: 132) million. Earnings per share climbed to EUR 0.74 (previous year: EUR 0.21). Equity ratio increased to 38.6% (previous year: 32.6%).

To prepare for contracts which were to be executed at short notice, Nordex increased its inventories by 65% to EUR 232 (previous year: 141) million as of the balance sheet date. However, these were financed by high advance payments received from customers as of the end of 2007. As a result, the ratio of advance payments to gross PoC receivables from construction contracts increased to 138% (previous year: 135%). This included reservation fees of EUR 121 million for medium-term delivery obligations (previous year: EUR 47 million). As a result, Nordex’s working capital ratio remained steady at a low 2.3% as previous year. Net cash flow from operating activities reached EUR 29.1 (previous year: 65.2) million and was thus sufficient to fully cover the capital expenditure of EUR 28.7 million in 2007.

Order books increased in value by 142% to EUR 2.9 (previous year: 1.2) billion and comprise firm orders of EUR 1.0 billion (previous year: EUR 513 million) and conditional orders of EUR 1.9 billion (previous year: EUR 674 million). This is fully sufficient to ensure that Nordex can meet its sales targets in full in both 2008 and 2009, based on sales growth of 50% per year.

"This year, we expect a top line growth of around 50% to more than one billion in sales", says Thomas Richterich, CEO at Nordex AG. However, variables such as final construction or grid connection permits may speed up or delay the completion of specific projects. This is tantamount to a possible difference in planned revenues of around EUR 100 million. Accordingly, the Company ultimately expects total sales of EUR 1.0 to 1.2 billion for 2008. Depending on whether sales end up being at the top or lower edge of this range, management projects a return on sales of 6 or 8 percent.

The full annual report will be published in April 2008.


Download survery annual result 2007 of Nordex:

https://www.iwrpressedienst.de/nordex/survey_annual_result_nordex_2007.pdf


Hamburg, April 9, 2008


Publication and Reprint free of charge; please send a voucher copy to
Nordex AG.


Attention editorial offices: For further questions please contact Mr. Ralf Peters, Nordex AG.

Bornbarch 2
22848 Norderstedt

Tel: 040/500 98 100
Fax: 040/500 98 333
E-mail: rpeters@nordex-online.com>rpeters@nordex-online.com
Internet: http://www.nordex-online.de

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