Suzlon Energy Limited

Investor Presentation

December 2008
 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-
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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.

V36 20081205 2
 Contents

• Recent Developments

• Company overview

• Key highlights

• Strategy

• Q2 FY09 updates

3
 Recent developments

• Received repeat order from MSPL for supply of 14 MW

(part of existing order book)
• IDFC picks up 17.1% in Forging and Foundry unit,
SEFL, for Rs.400 crores
• Fresh issue of equity at Rs.96.6 per share
• Total capex Rs.1,100 crores
 Contents

• Recent Developments

• Company overview

• Key highlights

• Strategy

• Q2 FY09 updates

5
 Company overview

Amongst the Top 5 Wind Turbine Manufacturers Globally (2007)‫‏‬

(2007)‫‏‬

Gamesa
15.4%
Enercon • End-to-end solution provider
14.0%
• No. 1 supplier to the Indian market for the last 9 years
Suzlon
GE Wind
10.5%
• Truly Global Player in terms of
16.6%
• Markets and products
Repower^
3.3% • Wind turbine and component manufacturing and
Siemens
Vestas 7.1% R&D capability
22.8%
Others
• Broad wind turbine product portfolio
10.3%
Market Share as of December 31, 2007 ^ REpower supply figures
Source: BTM Consult ApS – March 2008 are preliminary

Integrated Business Model

Access roads, EPC, project execution,

Wind resource WTG & Component
power evacuation, installation,
assessment & land design, development
grid interconnection commissioning
acquisition and manufacturing
and power lines & O&M

Conceptualization Infrastructure Equipment supply Services

6
 Company snapshot

90% * 71.3% **

5th Largest globally in Wind Recognized technology leader 2nd Largest globally in Wind
energy sector with strong presence in Europe gearboxes **

India, the USA, China, Australia,

Europe, China (mainly Germany with
Geographical Presence Europe, Latin America with 10.5% Europe, India, South Africa, USA
10% market share)
global market share

Current Capacity (MW)‫‏‬ 2,700 1,250 7,300 (Gearbox MW)

Expansion Planned (MW)‫‏‬ 3,000 450 8,000 (Gearbox MW)

Total Capacity Post

5,700 1,700 14,300 (Gearbox MW)
Expansion (MW)‫‏‬

Low to Medium capacity WTGs (350 Medium to High capacity WTGs (1.5 WTG Gearbox (500 kW – 6 MW; 160
Product Portfolio
kW – 2.1 MW) MW – 5 MW) – 3,500 kNm)

Employee Base 12,250 + 1,150 + 1,850 +

* Suzlon had acquired nearly 67.2% stake and controls or influences 90% through vote pooling agreement with Martifer
** Post Hansen’s listing on LSE, the public holds approx. 28.7%of its issued share capital
7
 Suzlon investment : REpower

Transaction Rationale

Entry into large European markets of Germany, the UK and France

Complementary product portfolio with presence in offshore wind energy market

✚ Improve REpower margins and accelerate REpower volumes through Suzlon’s

supply chain linkages

Capitalize on REpower’s design and development know-how and brand equity

Transaction Overview

y Suzlon successfully concludes bid to acquired REpower

y Signed Share Purchase Agreement with Martifer for its approx. 22% stake
y Controls or influences voting rights of approx. 90% through vote pooling agreement with Martifer
y Deal financed by:
– Loan repayable up to 7 years
– Convertible bond issues totaling US$500 mn
– Follow-on equity offering proceeds (proposed utilization)

8
 Suzlon acquisition : Hansen

Amongst top 5 y Strategic acquisition of 100% equity of world’s leading

wind energy gearbox and drive train manufacturer in May 2006
players globally y Consideration of € 431 mn for acquisition of ~100%
stake in Hansen Transmissions
y Hansen IPO successfully completed raising approx. €
440 mn for 27.1% dilution
y Hansen stock [HSN] listed on London Stock Exchange
y Post IPO holding of Suzlon 71.3%

Hansen Suzlon

y Plugs a critical gap in Suzlon’s supply chain

– Gearbox, one of the longest lead-time products
in WTG value chain
y Develops a long-term growth driver in form of Wind
2nd largest globally
and Industrial gearbox business of Hansen
in wind gearboxes
Transmissions

9
 Contents

• Recent Developments

• Company overview

• Key highlights

• Strategy

• Q2 FY09 updates

10
 Wind: a promising renewable
energy source

Wind: Cost competitive with conventional power Potential to power the future

6.5 Critical Success Parameters Wind Energy Status

5.5
(US cents/ kWh)

Cost Competitiveness
✔
4.5
(3-6 cents/kWh)
3.5

2.5 ✔
Nuclear CCGT Coal Steam IGCC Wind
Established Base (19.8 GW capacity addition in
Source: IEA WEO 2006 / BTM Consult ApS WMU 2006
2007)
Fastest growing renewable energy source*
50% 60% 70% 80% 90% 100%
✔
Resource Availability (72 TW potential estimated
globally at 80m hub height)‫‏‬
1990 125 4 36 1

✔
Magnitude (5 times present global energy
2004 227 82 56 4 usage, 7 times electricity
usage)
Biomass & Waste Wind Geothermal Solar Source: BTM Consult ApS WMU 2007 and Journal of Geophysical Research,
Source: IEA WEO 2006 * Generation in TWh 2005 : Stanford University 11
 Compelling industry growth
dynamics

Concern Demand Catalysts

Aggressive global targets
• Kyoto Protocol: CO2 emissions to reduce by 5.2% of 1990s levels by 2012
Climate Change • EU declaration: 20% from RE by 2020
Zero carbon
and
solution • US: 22 States with 10% to 20% RPS mandates
Global Warming
• China targets 100,000 MW from RE by 2020
• India: 10 States with 2% to 10% RPO mandates

• Hedge against geopolitical risks - local and secured supply

Local
Energy Security • No risk of fuel price volatility
availability
• Socially, ecologically and economically sustainable growth

• Energy - key to economic growth in developing countries (India, China etc.

Increased Abundant require all sources quickly to bridge gap)‫‏‬
Electricity resource • Wind’s global electricity generation contribution expected to increase from
Demand
0.82% in 2006 to 3.4% in 2030

• Improvement in yields (cost/ kWh)‫‏‬

Cost • Cost / kWh of generation: US$ 0.03 - 0.06
competitiveness Zero fuel cost
• Wind Energy directly competing with conventional power
and hedging
• Frozen lifecycle power cost for utilities

Source : American Wind Energy Association

BTM Consult ApS World Market Update 2006 12
 Strong historical growth

• Installations in 2007 : 19,791 MW (32% YoY growth)

• Cumulative installations: 94,005 MW in Dec ‘07

2007 Capacity Addition (in MW)‫‏‬

MW)‫‏‬ Average Growth * Cumulative installed capacity in MW
94,005

USA 5,244 35.7%

74,306
%
4.1
G R2
China 3,287 97.0% CA
59,399

47,912
Spain 3,100 21.2%
40,301

10.2%
Germany 1,667

37.8%
India 1,617

CY03 CY04 CY05 CY06 CY07

Source : BTM Consult ApS World Market Update 2007
* Average growth over 2004 2007
13
 Robust growth expectation

Continued Strong Growth Distributed Growth Outlook (CY07-12)‫‏‬

(CY07-12)‫‏‬

MW
MW 287,940

50,785

44,835
25%
GR
CA 193,936
39,455

237,155
32,295
192,320
26,565

72,665
19,791 152,865

120,570 56,500
53,575
56,824 94,005

94,005
11,196
19,391 13,973 3,816
CY07 CY08 CY09 CY10 CY11 CY12
Europe Americas S&E Asia Others Total
Addition Cumulative Capacity Current Additions

Global Growth Opportunity

Source : BTM Consult World Market Update 2007, March 2008 14

 Suzlon’s key competitive
advantage: Vertical
integration
• Wind Industry facing supply chain • Critical Competitive Advantage with
bottlenecks • Better control over time, cost & quality
• Long lead time of production in key Integration • Long-term service support to customers
components such as Bearings, Gearbox, • Turbine technology integration
Forging materials • Faster product rollout

Wind Turbine Generator (“WTG”) Supply Chain

Foundry & Forgings &

Gearbox Blades Panels Generator Tower
Machining Machining

Presence
(Current/ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Planned)‫‏‬
Complete demand
Partial demand Partial demand Partial demand Partial demand
met by in-house
Existing met through met through in- met through in- met through in-
--- --- production located
Facility Hansen facilities in house facilities in house facilities in house facilities
in India, China &
Belgium in Europe India, China India in India
the US
120,000 MT 70,000 MT
Significant India Rotor Blade Panel unit at
Proposed foundry & forging & Capacity
expansion by unit to be Coimbatore, India
Facility/ machining machining expansion by ---
FY09 in Belgium, completed by to be completed
Expansion facility by facility by Q2FY09 in India
China and India Q2FY09 by Q2FY09
Q3FY09 Q3FY09

15
 Pioneering end-to-end wind
power solutions

• Allows customers to benefit Reliance

Wind resource mapping from cost-efficiencies and Energy
economies of scale in wind
Tata
farms
Power
Site Identification
• Avoids need for customers to
undertake cumbersome wind DLF
farm development process Leverage
Land acquisition* Bajaj Auto capabilities
• Provides greater control over in
execution timeline Essel International
WTG and Component Mining markets
manufacturing • Control on value chain from
planning to maintenance MSPL
Site-development, infrastructure stages
set-up & WTG installation ONGC
• Leverages Suzlon’s deep
experience across Wind
Operations & Maintenance British
energy value chain Petroleum
services

* Land acquisition business is mostly operated through associate concerns, not part of Suzlon value chain 16
 Integrated R&D and design
capabilities

► Integrated product, component and system design under one

organization
Results in high reliability and
– Global resource pool for quicker design, development and credibility among Customers
upgrade
► Developed own MW and multi-MW WTG models and rotor blades
► Potential high-capacity onshore and offshore WTGs expertise
through REpower Plans to invest significant
► Recognized technological leadership in Gearboxes (Hansen) resources for R&D during the
next 5 years
► In-house development expertise in key components

WTGs and WTG Component Design, Development, Upgrade & Customization

Product &
Rotor blade Gearbox Technology Engineering Innovation
Wind Turbine process
R&D in The R&D Campus Centre Centre
R&D in Germany engineering
Netherlands in Belgium in Germany@ in India* in Europe*
in India

* Planned facilities @ 50:50 Joint venture with REpower Systems AG 17

 International clientele

China
•Shandong Luneng
•Guohua
•Datang
USA •Honiton
•John Deere Credit •Jingneng
•Edison Mission Group
•PPM Energy
•Horizon Wind
•Tierra Energy

Italy:
•NeoAnemos Srl

Portugal:
•Techneira S.A
•Energi Kontoret
•Martifer Energy Systems

Romania:
•Martifer Energy Systems

Spain:
•Iniciativas Energetitas Australia / NZ
Brazil
•Eólia Renovables group • Australia Gas & Light
• SIIF Energies do Brasil Ltda
•Spanish Savings Bank Unicaja • TrustPower
(SIIF)‫‏‬
• Renewable Power Ventures Pty Ltd.
• Servtec Instalacoses
Turkey • Pacific Hydro
•Ayen Enerji
18
 Global presence in high
volume, growth markets
48.46%
18724 MW

14794 MW
29.04%
23.83%
17.89% 7845 MW

5875 MW

China
USA Europe and India China • Order Book **: 512 MW
South America • Integrated manufacturing
facility at Tianjin

USA
• Order Book **: 1,215 MW
• Rotor blade production unit India
• Order Book **: 236 MW
• Distributed manufacturing
facilities

Europe & South America

• Order Book **: 357 MW
• Gearbox production in
Belgium •Acclaimed
growth in
Indian market Australia & New Zealand
• Order Book **: 185 MW
•Presence in 8
Note: windy states
Europe includes Denmark, France, Italy, Portugal, UK, Netherlands, Turkey with over 30
Americas includes United States, Canada wind farms
* CAGR growth over 2008-12 based on BTM, 2007, March 2008 report
** Order book for Suzlon group as of 29 Oct., 2008, excludes Hansen and REpower
19
 Robust Sales Performance@

Increasing Global Mix Sales Break-up – H1 FY09

Region MW Sold
Sales volume in MW
2,311 MW Domestic 359

International 706
.7%
65 976
GR 1,456 MW Total 1,065
CA
1,065 MW
964 MW Geographical Breakup of Sales Book
955
359 China, 74
508 MW 1336 , 7%
883
706
508 501 ANZ, 132
, 12%
81 India,
FY05 FY06 FY07 FY08 H1 FY09 359 , 34%

International Domestic EU, 95 ,

9%

South
@ Does not inlcude REpower and Hansen USA, 380 America,
, 36% 25 , 2%

20
 Robust Order book@

Geographical Breakup of Order Book Order Book – Wind Turbine Generator Supply
29 Oct 2008

China, India, Orders MW Value

512 , 20% 236 , 9%

South
(US$ mn)
America,
189 , 8%
Domestic 236 268

ANZ, 185 International 2,269 2,724

, 7% USA,
1,215 ,
EU, 168 , 49% Total 2,505 2,992
7%

1 USD = INR 46.965

@ Does not inlcude REpower and Hansen

Order Book – Component Supply

29 Oct 2008

•Received orders for Supply of Rotor Blades and Supply of Forging

components worth Rs ~1000 Cr.

21
 Suzlon: high standards of
growth

Sales EBITDA PAT

INR Cr.
1,882 %
7%
13,679
.5
% 16.4
. 47 ^ 1,030
88 GR
R^ G R^ CA
864
G
CA CA
1,296 760

7,986
6,268 884
715

3,841

123

FY06 FY 07* FY 08* H1 FY06 FY07* FY08* H1 FY06 FY07* FY08* H1

FY09@ FY09@ FY09@

* - Includes Hansen
^ - CAGR from FY06-FY08
@ - Excludes Hansen and REpower

22
 Experienced management
team & strong employee base

Robust Employee Growth with

Experienced Top Management Team
Increasing International Mix

Mr.Tulsi Tanti,
Chairman and MD,
Founder and Promoter

Board Members
2683
2532

Group Management Team 12 7 9

9314 9663
Mr.Toine van Megen 7764
CEO

Mr.Sumant Sinha Mr. T. Pradeep Kumar Mr. R. Sridhar FY07 FY08 H1FY09
COO CTO CMO Domestic International

Mr.Pascal de Roeck Mr.Wim Dufourne

CFO * CHRO
CLO

* Mr. Kirti Vagadia is the interim CFO

23
 Contents

• Recent Developments

• Company overview

• Key highlights

• Strategy

• Q2 FY09 updates

24
 Suzlon: Strategy

Suzlon’s Vision Suzlon’s Mission

• Technology leadership in the Wind Energy • To contribute to sustainable development of

Space
• Be among the top 3 wind companies in all
the key markets of the World
• Be the global leader in providing profitable
end-to-end wind power solutions
• Be the “Stakeholders’ Choice” Company
the Wind Energy sector through an integrated
product design and manufacturing strategy
• To increase the contribution of wind power to
meet global energy demand
• To create a better, greener tomorrow for all

Strategy

Focus on
Improving Growth
High growth
cost efficiency acceleration
markets

R&D • Strategic focus on

and Vertical integration customer needs
Innovation • End-to-end solutions
25
 Group capacity expansion
plans

Group’s Expansion Plans (1)‫‏‬

Panel facility in Tamilnadu, India@
@ WTG & Rotor Blade Unit in Foundry & machining unit in
Karnataka, India@
@ Tamil Nadu, India##

FY08 4Q FY09 1Q 2Q 3Q Future

Composites testing centre Generator facility in Forging & machining Gearbox facilities in
in Gujarat, India Tamil Nadu, India@ @ unit in Gujarat, India## India and China
@ Capex planned for integrated wind turbine manufacturing facility is ~Rs.831 Crores
# Capex planned for Forging, Foundry and Machining units is ~Rs.1,100 Crores
Tower unit expansion plan dropped resulting in reduction of capex by Rs.669 Crores

Group Planned Capacity

(2)‫‏‬
Suzlon 5,700 Hansen (3)‫‏‬ REpower (4)‫‏‬ 1,700
14,300

1,250
Gearbox MW

2,700 7,300
MW

MW
3,600

Note: FY07/FY08 FY09 FY07 FY08 FY12 CY07 CY08

(1) Indicates expected date of commencement of operations
(2) Integrated capacity.
(3) Wind gear box capacity
(4) Suzlon Group controls or influences, either directly or through vote pooling agreements, approximately 90% of the votes in REpower 26
 Contents

• Recent Developments

• Company overview

• Key highlights

• Strategy

• Q2 FY09 updates

27
 Q2 FY09 Consolidated results
Excludes Hansen & REpower
and related acquisition cost
INR Cr.
Particulars Q2 FY09 Wind Q2 FY08 Wind H1 FY09 Wind H1 FY08 Wind FY08 Wind.
Unaudited Unaudited Unaudited Unaudited Unaudited
Sales MW 727.20 683.40 1,065.45 1,000.60 2,311.40
Sales 4,181.8 3,137.5 6,268.4 4,639.2 11,466.5
Raw Material cost (2,873.2) (2,132.2) (4,248.0) (3,149.1) (7,813.0)
Manpower cost (233.7) (117.3) (434.8) (228.3) (517.9)
Other operating expenses (662.3) (347.6) (870.8) (593.9) (1,422.0)
EBIDTA 412.6 540.4 714.8 667.9 1,713.6
EBIDTA margin 9.9% 17.2% 11.4% 14.4% 14.9%

Interest@ (116.8) (43.9) (187.2) (89.3) (185.6)

Exceptional Items (80.6) (42.7) (164.9) (65.5) (289.6)
Exchange (Loss) / Gain on FCCB (197.3) 26.2 (342.8) 28.3 4.4
Depreciation (62.5) (38.4) (111.1) (71.2) (170.3)
Other income@ 15.9 14.3 32.8 39.0 93.6
Taxes (30.2) (32.8) (65.4) (27.8) (149.3)
PAT (including FCCB FX effect) (59.0) 423.1 (123.6) 481.4 1,016.8
PAT (excluding FCCB FX effect) 138.3 396.9 219.1 453.1 1,012.4
@ Excludes interest (net) on Hansen & REpower acquisition loan for Q2FY09 INR 71.6 Cr. (Q2FY08 – INR 48.3 Cr) and for H1FY09 INR 95.8
Cr (H1FY08 – INR 89.25 Cr)
 Q2 FY09 Consolidated results
Excludes Hansen & REpower
and related acquisition cost
USD mln.
Particulars Q2 FY09 Wind Q2 FY08 Wind H1 FY09 Wind H1 FY08 Wind FY08 Wind
Unaudited Unaudited Unaudited Unaudited Unaudited
Sales MW 727.20 683.40 1,065.45 1,000.60 2,311.40
Sales 890.4 668.1 1,334.7 987.8 2,441.5
Raw Material cost (611.8) (454.0) (904.5) (670.5) (1,663.6)
Manpower cost (49.8) (25.0) (92.6) (48.6) (110.3)
Other operating expenses (141.0) (74.0) (185.4) (126.5) (302.8)
EBIDTA 87.9 115.1 152.2 142.2 364.9
EBIDTA margin 9.9% 17.2% 11.4% 14.4% 14.9%
Interest@ (24.9) (9.3) (39.8) (19.0) (39.5)
Exceptional Items (17.2) (9.1) (35.1) (13.9) (61.7)
Exchange (Loss) / Gain on FCCB (42.0) 5.6 (73.0) 6.0 0.9
Depreciation (13.3) (8.2) (23.7) (15.2) (36.3)
Other income@ 3.4 3.0 7.0 8.3 19.9
Taxes (6.4) (7.0) (13.9) (5.9) (31.8)
PAT (including FCCB FX effect) (12.5) 90.1 (26.3) 102.5 216.5
PAT (excluding FCCB FX effect) 29.5 84.5 46.7 96.5 215.6
@ Excludes interestS (net) on Hansen & REpower acquisition loan for Q2FY09 USD 15.25m (Q2FY08
1 USD = INR 46.965 – USD 10.28m and for H1FY09 USD 20.39m (H1FY08 – USD 19.00m)
 Thank you
For additional information please contact:
investorrelations@suzlon.com