May 29, 2010
Suzlon Group revenues Rs. 20,620 cr. ($4.3 bn) for FY2009-10
- Group EBIDTA: Q4 Rs. 535 crore ($112 mn)*; FY10 Rs. 943 crore ($197 mn)*
- REpower Revenues up 8% to 1.3 billion, EBIDTA up 31% to 119 million
- Group Orderbook approx. Rs. 18,400 crore ($3.9 bn)
- Net Debt reduction of 17% by Rs. 2,036 crore ($453 mn)**
- Debt refinancing of Rs. 10,624 crore ($2.4 bn), $480 mn FCCB restructuring achieved
- Announced Rights Issue to reduce debt further
- New product / variants launched: Suzlon S97 2.1 MW turbine; REpower 3.XM turbines
Mumbai: Suzlon Energy Limited, the worlds third largest@ wind turbine supplier, reported
consolidated revenues of Rs. 20,620 crore ($4,319 mn)* and EBITDA of Rs. 943 crore
($197 mn)* for FY2009-10.
The Suzlon Group orderbook stood at approximately Rs. 18,400 crore ($3.9 bn). The Suzlon
Wind (excluding REpower) orderbook stood at 1,126 MW (Rs. 6,174 cr., $1.3 bn) as on 26th
May, 2010. REpower reported an order backlog, including purchase agreements, with a
potential sales volume of approximately 2.1 billion as on 31st March 2010, compared to
~1.5 billion as of 31st March 2009 - an increase of 40 per cent, and accompanied by a
major increase in orders of large-size wind turbines in the 3 MW to 6 MW class.
Mr. Tulsi Tanti, Chairman and Managing Director - Suzlon Energy Limited, said:
This has been a difficult year for the wind industry. While market conditions continue to be
challenging, we have made encouraging progress. We are working on improving order
pipelines the world over.
To compete in an increasingly dynamic global marketplace we are focusing on developing
group synergies with our portfolio of onshore and offshore turbines and market strengths;
with our new product additions designed specially for low wind speeds we now have the
industrys most comprehensive product portfolio helping us to push into promising new
markets while building on our position in key markets like the Americas, Australia, Europe,
India, China and other parts of the world.
Mr. Robin Banerjee, Chief Financial Officer - Suzlon Energy Limited, said: We have
maintained a strong focus on improving operating efficiencies and optimizing our capital
structure in the face of a challenging external environment. Over the year, we have made
progress on many fronts including reduction of net debt and net operating working capital,
as well as bringing down cost at various levels. We have greatly improved the capital
structure of the company by successfully achieving refinancing to the tune of Rs. 10,624
crore ($2.4 bn), including a holiday of two years in principal repayments and removal of
covenants, completing repayment of acquisition loans, and monetizing part of our stake in
Hansen Transmissions.
Key Updates:
New products / variants: With the growing development of wind markets
worldwide, harnessing low wind speed (i.e IEC# Class II and III) sites presents a
significant opportunity in both mature and new markets. With the introduction of
new wind turbines specially designed to perform at low-wind speeds, the Suzlon
Group brings to the market the most comprehensive product portfolio in the
industry, allowing the company to meet diverse needs across all geographies,
customer profiles and offshore & onshore markets. The new Suzlon and REpower
offerings are designed with larger rotor diameters, increased hub heights, improved
aerodynamic efficiency, and grid-friendly characteristics for delivering higher project
performance.
o Suzlon S97: The S97 2.1 MW platform, with a 97 meter rotor diameter, is
specially designed for optimized aerodynamic efficiency to harness widely
available lower wind speed (Class-III) sites.
o REpower 3.XM: REpower launched product variants to its 3.XM platform
the 3.2 MW with a 114 meter rotor diameter for Class-III wind sites, and the
3.4 MW with a 104 meter rotor diameter for Class-II wind sites.
Management updates:
o Mr. Andreas Nauen was appointed as CEO of REpower; he is scheduled to take on
the role on 1st October, 2010. Mr. Nauen was previously CEO of Siemens Wind
Power A/S.
o Mr. Derrick Noe was appointed as CFO of REpower. Mr. Noe was previously a
Senior Partner at Droege International AG. Before this, he worked with Pfleiderer
AG and with Kloeckner & Co AG as CFO.
o Mr. Ashok DSa was appointed as President South East Asia and Middle East. Mr.
DSa was previously leading the Global Services business of Siemens Building
Technology.
o Mr. Stephan Mey was appointed as CEO of Suzlon Europe. Mr. Mey was
previously Senior Vice President in charge of the global Power Plants Business
Unit of Man Diesel.
o Mr. Duncan Koerbel moved to take the position of President Global Services of
Suzlon, Mr. Koerbel previously was Chief Reliability Officer of Suzlon USA.
o Mr. Sumant Sinha has decided to step down from the position of COO, and the
company, from 1st June 2010 to pursue his entrepreneurial interests and set up
his own financial advisory consultancy. His first signed-up client is Suzlon, to
provide high level strategic advice and counsel to the Board and management
team.
Mr. Sinha commented: It has been a privilege to work for such a dynamic and
agenda-setting company like Suzlon. I have wanted to pursue my own
entrepreneurial path for some time now and a financial advisory firm allows me
to launch off on my own and deeper dive into many interesting areas. I look
forward to my continued association with Suzlon and I am delighted that it will be
my first client.
Added Mr. Tanti: Sumant has worked tirelessly for Suzlon since he came on
board a couple of years ago. He has been instrumental in steering the company
through this difficult economic environment. His contribution in building
relationships with important stakeholders has been very valuable in getting
Suzlon back on a track where it is now well positioned to ride through the current
turbulence in the global environment and to rediscover success once again. We
are very happy that through his new consultancy, he will continue to work with
us in our quest for a position of global leadership.
REpower: REpower Systems reported its most profitable year in FY2009-10 with the
highest revenues in the history of the company to date. For FY10, REpower increased
its overall performance and turnover in a challenging market environment. Revenues
rose to 1,324.5 million, compared to 1,220.5 million in the previous year. EBIDTA
rose to 119 million, compared to 91 million in the preceding year. REpower also
projected a 10 - 20 per cent increase in the overall performance in FY2010-11,
corresponding to revenues of approximately 1.5 to 1.6 billion and an increase in the
EBIT margin to 7.5 - 8.5 per cent.
Orders and Projects:
o During the year Suzlon secured repeat and new orders in India from
customers such as ACC, GACL, GAIL, ITC and SBI; and internationally with
Infigen Energy in Australia, Al Yel Elektrik in Turkey, Triventus AB in Sweden
and Technomash in Bulgaria. Suzlon also completed key projects for
customers such as Gujarat State Petroleum Corporation, L&T, GreenInfra
Limited and SBI in India, Huaneng in China, Uniwindet Praque Eolico in Spain,
Iberdola in the US, and SIIF in Brazil among others.
o Over the year, REpower announced major orders from leading players such as
enXco, EDF Energies Nouvelles Company, RES Canada and E.ON Climate and
Renewables, with several more orders secured across Italy, Poland, France,
Germany and Turkey. Germanys first offshore windfarm Alpha Ventus
featuring six units of the REpower 5M turbine also became operational in
April.
Sales Agency Agreement: To leverage complementary strengths, Suzlon and
REpower entered into an agreement where Suzlon will support REpower as sales
agent in the U.S. and Australian/New Zealand markets providing both companies
with a major competitive advantage.
Rights Issue: Suzlon Board approved a Rights Issue, subject to any regulatory or
governmental approval if required, to non-U.S. persons who are outside the United
States and formed a Committee of Directors for implementation of the issue.
Net Debt Reduction: Achieved a total reduction of net debt of Rs. 2,036 crore
($453 mn)** to Rs. 9,765 crore ($2,175 mn)** from Rs. 11,800 crore ($2,628
mn)**.
Refinancing Update: The Company achieved a broad-based refinancing and
consolidation of its debt facilities and solidifying a long-term sustainable capital
structure. The repayment and refinancing of acquisition loans aggregating ~$780
million was completed in December 2009. The consolidation and refinancing of
existing Rupee denominated term loans and working capital loans was achieved
through new facilities from a syndicate of 22 banks, achieving a total quantum of Rs.
10,624 crore ($2.4 bn).
Fundraising: Suzlon successfully undertook strategic fund raising of $198 million,
issued Global Depository Receipts (GDRs) of $108 million, and secured $90 million
through an issue of Zero Coupon Convertible Bonds.
FCCB: In addition, Suzlon completed the restructuring of its Foreign Currency
Convertible Bonds aggregating $480 million, removing financial covenants and
reducing the conversion price in $333 million of bonds issued in June and October
2007.
Hansen Divestment: Suzlon completed a divestment of 35.22 per cent of its
holding in Hansen, realizing ~$370 million. Suzlon continues to hold 26.06 per cent
stake in Hansen and remains the largest shareholder in the company with two board
positions.
Operating Efficiency: A continuous focus on improving operating efficiency and
financial management has resulted in absolute reduction in Net Operating Working
Capital of Rs. 1,050 crore ($234 mn)** from March, 2009 levels. Project ACE
(Achieving Collective Excellence), aimed at implementation of processes for
improving product development and design, lowering cost of procurement,
streamlining project execution, improving order fulfillment and reducing
manufacturing time have resulted in growing efficiency across the board.
Stock Options: Suzlon on 1st April, 2010, granted 1,500 stock options each to over
9,400 employees aggregating to 14 million shares.
Suzlon HQ recognized as worlds greenest: Suzlon was awarded the Leadership
in Energy and Environment Design (LEED) Platinum award for its new Corporate
headquarters Suzlon One Earth - powered 100 percent by renewable energy. This
makes the facility the highest rated LEED Platinum Certified building in the world in
the new construction category with respect to its area, and the first LEED - Platinum
rated headquarters in the wind energy sector.
