Suzlon Energy Ltd · NSE:SUZLON
Suzlon Energy — Merger or Acquisition (February 2007)
24 slides from Suzlon Energy's merger presentation, Feb 9, 2007
Slide 1: Suzlon Energy: Friendly public offer for REpower Systems AG
Suzlon Energy Powering a Greener Tomorrow Hamburg, 9 February 2007 Friendly public offer for REpower Systems AG www.suzlon.com www.martifer.com 1
Slide 2: Disclaimer
Disclaimer This presentation is neither an offer to purchase nor a solicitation of an offer to sell shares in REpower Systems AG (“REpower”), nor an offer to purchase or sell any other securities. Any offer to sell the shares in REpower will be made, and any shareholder should make his investment de
Slide 3: Agenda
Agenda Proposed Transaction Suzlon at a Glance Transaction Rationale Conclusion 3
Slide 4: REpower and Suzlon: Natural Partners
REpower and Suzlon: Natural Partners Suzlon announces the intention to make a friendly offer for REpower which is supported by Martifer. The offer is made through a bidco, which is held 75% by Suzlon and 25% by Martifer REpower and Suzlon are two of the world’s leading wind turbine companies wit
Slide 5: Financial Offer Highlights
Financial Offer Highlights Suzlon offers to acquire REpower shares for €126 per share in cash, valuing the company at more than €1.0 billion Our offer represents a premium of • 20% over the offer price of Areva • 40% over the share price prior to Areva's offer announcement • 73% over REpower’s a
Slide 6: Martifer is Fully Committed to REpower's Success
Martifer is Fully Committed to REpower’s Success Martifer is one of the top European steel construction companies with strong sustainable growth over the past years and holds more than 25% of the shares in REpower Even in difficult times for REpower, Martifer fully supported the company as evide
Slide 7: Agenda
Agenda Proposed Transaction Suzlon at a Glance Transaction Rationale Conclusion 7
Slide 8: Suzlon at a Glance
Suzlon at a Glance The world’s fifth largest wind turbine company with over 6% of global market share and market leadership in Asia Headquartered in Europe and listed on the National and Bombay Stock Exchanges since 2005 Operations across Australia, Belgium, Brazil, China, Denmark, Germany, I
Slide 9: Suzlon's Vision
Suzlon’s Vision To be the technology leader in the wind industry To be among the top three wind energy companies in the world To be the most respected brand and preferred company for all stake holders To be the best team and best place to work To be the fastest growing and most profitable
Slide 10: Suzlon's Global Value Chain
Suzlon’s Global Value Chain Best of all worlds technology Vertical integration from India, China strategy components to turbine Aerodynamic R&D USA, Brazil Facilities in in the Netherlands Belgium, China, Italy, Portugal Product development in India and the USA Germany Australia, S
Slide 11: Suzlon - Key Competitive Strengths
Suzlon - Key Competitive Strengths Vertically integrated global wind player offering comprehensive solutions covering R&D and manufacturing to EPC project delivery and operations & maintenance services Strategically structured global supply chain to serve high growth markets; leveraging low-cost
Slide 12: Suzlon - Defined Strategic Focus
Suzlon - Defined Strategic Focus Vertical integration Focus on key R&D high-growth and markets Innovation Focus on Growth through customer M&A satisfaction Cost efficiency 12
Slide 13: Suzlon - Strong Financial Performance
Suzlon - Strong Financial Performance Sales EBITDA PAT 5,000 1,000 800 761 898 €141m €167m 3,841 800 4,000 600 €713m 3,000 600 469 365 400 1,943 €83m €65m 400 2,000 €344m 200 145 858 200 145 1,000 €27m €159m €27m 0 0 0 FY04 FY05 FY06 FY04 FY05 FY06 FY04 FY05 FY06 Sustainable high growth as evidenc
Slide 14: Agenda
Agenda Proposed Transaction Suzlon at a Glance Transaction Rationale Conclusion 14
Slide 15: A Perfect Match
A Perfect Match What REpower What REpower What Suzlon Offers What Suzlon Needs Needs Offers Shareholder A pure wind player, Accelerate growth in Strong market committed to wind committed to the Europe positions in Europe industry and environment and Broaden technological Highly skilled a
Slide 16: Complementary Technologies
Complementary Technologies REpower World-class wind turbine technology Technology access to key components – teams in Germany gearbox, rotor blades, generators and Impressive turbine expertise control systems Extensive experience in large multi-MW Rich operating experience with O&M turbine
Slide 17: Suzlon Provides Financial Muscle
Suzlon Provides Financial Muscle Suzlon (FYE Mar) 9M FY07* 12M FY06 12M FY05 MW Sold 923 964 508 Sales (€m) 666 713 344 % growth¹ 98% 127% EBITDA (€m) 114 167 83 % margin 17% 23% 24% PAT (€m) 87 141 65 % margin 13% 20% 19% Suzlon can provide the financial backing to support REpower’s growth Suzl
Slide 18: Agenda
Agenda Proposed Transaction Suzlon at a Glance Transaction Rationale Conclusion 18
Slide 19: Benefits for all of REpower's Stakeholders
Benefits for all of REpower’s Stakeholders Shareholders Employees Public Stakeholders Management A significant Natural partner, Suzlon/REpower will Suzlon looks forward premium over the long-term create jobs in to working with the competing offer commitment to Germany; 100-200 highly experie
Slide 20: Partnering for the Future
Partnering for the Future REpower REpower and Suzlon will together form the best team in the global wind energy industry The combination brings together strong R&D, excellent technology teams and access to European markets with a vertically integrated supply chain, global market reach, strong te
Slide 21: A True Commitment to Renewable Energy
A True Commitment to Renewable Energy Widely regarded as a visionary and pioneer, Mr. Tulsi Tanti has made Suzlon a formidable force in the wind power industry in just over a decade. Mr. Tanti's personal commitment and drive to help create a brighter future for the world has created a company that
Slide 22: Questions and Answers
Questions and Answers 22
Slide 23: REpower – Brief Overview
REpower – Brief Overview REpower was founded in 2001 and listed on the stock exchange in 2002 REpower is a recognised technology leader committed to improving its products and services • Focused on the development, production, and installation of multi-megawatt wind turbines • In August 2006 the
Slide 24: REpower – Key Figures
REpower – Key Figures REpower (FYE Dec) 12M FY04 12M FY05 9M FY05 9M FY06 Installed capacity (MW) 275 366 170 355 Total performance (€m) 301 335 195 297 % growth 1% 11% 40% 53% Operating result (€m) (4) (4) (13) 3 % margin -1% -1% -4% 1% Net income (€m) (10) (7) (8) 1 % margin -3% -2% -4% 0% Source:
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