Suzlon Energy Limited Q2 FY 2010-11 Earnings Presentation 30 th - PowerPoint PPT Presentation

Suzlon Energy Limited Q2 FY 2010-11 Earnings Presentation 30 th October 2010

Disclaimer This presentation and the accompanying slides (the “ Presentation ”), which have been prepared by Suzlon Energy Limited  (the “ Company ”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.  This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and  business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the wind power industry in India and world- wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. No offering of the Company’s securities will be registered under the U.S. Securities Act of 1933, as amended (the “Securities  Act”). Accordingly, unless an exemption from registration under the Securities Act is available, the Company’s securities may not be offered, sold, resold, delivered or distributed, directly or indirectly, into the United States or to, or for the account or benefit of, any U.S. Person (as defined in regulation S under the Securities Act).  The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. 2

Contents  Suzlon Group: Key highlights – Q2 FY2011  Growth in volume  Momentum in order inflow continues  Working towards a leaner balance sheet  Consolidates its holding in SE Forge  Outlook for the H2 FY2011  Robust long term growth expectations  Developed markets stagnant, however emerging and offshore markets continue to grow  Group continues to work towards stronger platform for future  Detailed financials – Q2 FY2011 3

Financial Performance snapshot INR Cr. Q2 FY2010-11 Q2 FY2009-10 H1 FY2010-11 H1 FY2009-10 FY2009-10 Particulars Unaudited Unaudited Unaudited Unaudited Audited (a) MW Volume (Suzlon Wind) 361 283 569 406 1,460 Suzlon Wind Business 2,188 1,868 3,628 3,031 9,635 Revenue REpower revenue 1,559 2,059 2,508 4,125 8,502 Consolidated Revenue 3,772 4,793 6,170 8,946 20,620 Consolidated EBITDA 148 121 (398) 134 943 Consolidated EBIT 11 (67) (622) (217) 280 Consolidated PAT / (Loss) (381) (450) (1,147) (1,035) (983) Pre FX loss / Gain Consolidated PAT / (Loss) (369) (356) (1,281) (808) (983) Post FX loss Gain Q2 Group performance highlights:  Revenues of INR 3,772crs  Positive EBIT of INR 11crs  Cost cutting initiatives and improving operational efficiencies 4 (a) Financial numbers for Hansen consolidated till November 2009 as subsidiary and subsequently as an associate

Group order book Firm group order book Announced Framework Contracts  300MW business agreement with Techno Suzlon Wind Electric  Order book as on 29 th Oct. 2010 is 1,550MW:  225 MW framework agreement with EUFER Rs.8,285crs (USD 1.85bln*) (JV between ENEL Green Energy and Union  India : 693MW Fenosa) for Spain  International : 857MW  RWE Innogy for upto 250 units of 5MW /  403MW orders received in India v/s 186MW 6MW offshore turbines aggregating to 1,250 received in Q2 FY10: 2 times – 1,500 MW REpower  295 MW of confirmed orders for 6M announced in Jan’10  Order book as on 30th Sept. 2010 is EUR 2.58bln (USD 3.55bln*)  EDF Energies Nouvelles and RES Canada for 954 MW onshore turbines  Order backlog of 2,254MW  Guaranteed minimum purchase of 748 MW for deliveries between 2011 to 2015 Suzlon Group: Firm order book of 3,804MW valuing ~USD 5.4bln 5 • Exchange rate: 29 th October ’10: 1 EUR= 1.3887 USD, 1 USD= 44.5325 INR

Significant progress towards leaner balance sheet FY11  Rupee Loan refinancing of Rs.10,694 crs closed  Refinancing of Rupee facilities of approx. Rs. 6,587 crs and trade credit facilities May 2010 (non-fund based) of Rs. 4,037 crs which provides liquidity  Holiday of 2 years in principal repayments and effective removal / relaxation of covenants across facilities  Removal of covenants and Reduction in conversion price achieved through third round of FCCB restructuring  The conversion price range is Rs.75 to Rs.100  A successful Rights Issue of Rs.1,188 crs July 2010  Reduction of debt  Promoter holding after Rights Issue is 58.14%  Preferential issue of ~3.2 Crs shares proposed to IDFC PE October 2010  Post the transaction, Suzlon will hold 100% of SE Forge Ltd  IDFC PE will hold ~1.8% in Suzlon post the deal Net Debt to Equity reduced to 1.48 as on 30 th Sept. 2010 6

Revenues continue to improve at SE Forge and we expect to have a profit for the full year (INR Crs)  Revenues have been improving FY2009-10 FY2010-11  Domestic demand picking up 149 Sales  Forging & foundry plants Gross Profit operational EBITDA  Positive EBITDA  Forging  Order book strengthened 77  Quick capacity ramp-up 61  Approx . half of the volumes sold to non-Suzlon customers 29 28  Foundry 15  Serial production commenced 5  Robust development pipeline  21 products already developed -7 in foundry -18 H1 FY10 H2 FY10 H1 FY11 7

Contents  Suzlon Group: Key highlights – Q2 FY2011  Growth in volume  Momentum in order inflow continues  Working towards a leaner balance sheet  Consolidates its holding in SE Forge  Outlook for the H2 FY2011  Robust long term growth expectations  Developed markets stagnant, however emerging and offshore markets continue to grow  Group continues to work towards stronger platform for future  Detailed financials – Q2 FY2011 8

Wind industry has grown steeply over last decade and will continue to outgrow other energy capacities Annual Installation (GW) Cum. Installation (GW) 126 140 1,000  Wind capacities New Installations (GW) 900 120 have grown at 29% Cumulative (GW) 800 CAGR from 2000 to 100 700 2009, while total 600 80 72 energy capacities 500 have grown at ~3- 60 400 4% 38 300 40 +29% 28 20 200 15 20 12  Despite the 9 8 7 7 100 4 growth, wind share 0 0 in total energy 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2014e 2019e generation has been Global Installed Capacity (GW) Global Energy Generation (TWh) minimal Bracket suggests share of wind energy in total Bracket suggests share of wind energy in total 5,993 26,247  This is set to change World (ex wind) 4,728 20,716 in next 10 years Wind 3,478 15,153 5,027 24,046 (84%) (92%) 4,568 20,384  Share of wind 3,460 (97%) 15,116 (98%) should grow to 8.4% (99%) (100%) 966 in 2019 from 1.6% 2,201 160 18 37 332 (16% ) (8%) in 2009 (3%) (2%) (1%) (0%) 2000 2009 2019 est 2000 2009 2019 est 9 Source: BTM Consult ApS March 2010

Industry reports suggest decent growth in medium term Annual new wind installations (2010-2015) CAGR (10-14) 42 49 65 59 72 28 38 GW 14% Projected Actual 29,800 Emerging Markets 27,000 35% Rest of world 2,750 24,050 2,350 21,250 1,600 19,325 1,100 16,372 825 9% 319 Asia Pacific 25,550 9,881 23,650 21,450 19,350 227 17,900 15,613 9,257 32% Latin America 1,500 800 1,000 1,000 397 440 600 2008 2009 2010 2011 2012 2013 2014 Developed Markets 41,850 38,400 35,425 12% Europe 20,600 27,800 17,900 17,400 22,705 21,731 11,800 18,309 9,400 10,993 9,130 21,250 20,500 22% North America 18,025 16,000 13,305 10,738 9,179 2008 2009 2010 2011 2012 2013 2014 10 Source: BTM Consult ApS March 2010