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Wind Turbine Market India

March 2013

Executive Summary
Wind Energy has been the fastest growing renewable energy sector in the country till FY2012 With a cumulative installed capacity of over -- GW (by Dec 2012) wind power currently accounts for almost -% of the total installed capacity in the renewable energy sector The wind turbine sector is forecasted to grow at a CAGR of --% to reach -- GW by 2017 The market has slumped currently due to withdrawal of the flagship AD & GBI scheme by the Government p y g p y

Market

Drivers

Challenges
Withdrawal of GBI and AD Schemes Rise in Raw material Prices Land Acquisition Problems

Drivers & Challenges

Huge Untapped Wind Power Potential India Remains Energy Deficient Global Drive towards Clean Energy Volatile Oil Prices Depleting Coal Reserves Potential of Off-Shore Capacity Vertical Integration g Hybrid Generators Advent of Small Wind Turbines Major Regulatory Bodies & their roles Policy and Regulatory Incentives Major Players

Trends Regulatory Bodies B di

Competitive Landscape L d

Company A Company D

Company B Company E

Company C Company F

WIND TURBINE MARKET IN INDIA 2013.PPT

Macroeconomic Indicators Introduction Market Overview

Indian Market EXIM

Drivers & Challenges Trends Regulatory Bodies Competitive Landscape Market Entry Appendix
WIND TURBINE MARKET IN INDIA 2013.PPT

Economic Indicators (1/3)

GDP at Factor Cost: Quarterly
INR tn 14 13 12 11 10 Q1 Q2 2009-10 13.06 12.39 11.47 10.58 12.94 12 94 12.29 11.52 10.70

SAMPLE
13.40 12.62 11.66 12.13 13.95 13.24 2010-11 2011-12 Q3 2012-13 Q4

Inflation Rate: Monthly y

%
1.0 0.8 08 0.6 0.4 0.2 0.0 0.47 0.46 0.46 0.94 0.93

Jul 2012- Aug 2012

Aug 2012 - Sep 2012

Sep 2012 - Oct 2012

Oct 2012 - Nov 2012

Nov 2012 - Dec 2012 4

WIND TURBINE MARKET IN INDIA 2013.PPT

Wind turbines consists of twelve distinct and vital components

Wind Turbine Generator (WTG)

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11

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Wind turbine market is poised to grow with the potential revamp of the Generation Based Incentive scheme
Market Overview
Wind Energy has been the fastest growing renewable energy sector in the country till FY2012 This sector is forecasted to grow at a CAGR of --% to reach --GW by 2017 C Cumulative i t ll ti l ti installations of wind t bi generators stands at -- GW by 2012 end f i d turbine t t d t b d India has a manufacturing capacity of -- GW annually More than --% of the nations wind installations to date is concentrated in just five states in southern and western India Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, and Gujarat The market has slumped currently due to withdrawal of the flagship Accelerated Depreciation & Generation Based Incentive scheme by the Government However, the Ministry of New and Renewable Energy have indicated that the GBI scheme might be reinstated in the 2013 Union Budget

Market Size: Historical & Forecast (2007-2017)

GW yy xx x1 x2 x3 x4 x5 x7 x8 x9 x11 x10

x6

2007

2008

2009

2010

2011

2012

2013e

2014e

2015e

2016e

2017e 6

WIND TURBINE MARKET IN INDIA 2013.PPT

Drivers & Challenges Summary

Drivers
Huge Untapped Wind Power Potential India Remains Energy Deficient Global Drive towards Clean Energy Volatile Oil Prices Depleting Coal Reserves

Challenges
Withdrawal of GBI and AD Schemes Rise in Raw material Prices Land Acquisition Problems

WIND TURBINE MARKET IN INDIA 2013.PPT

Roll back of incentive schemes have led to an ebb in the wind turbine manufacturing sector
Withdrawal of GBI and AD Schemes
Wind turbine installation has registered slow growth in FY2013, in sharp contrast to the past years growth T il N d the windiest state, capacity addition h f ll b more than h lf while R j h Tamil Nadu, h i di i ddi i has fallen by h half hil Rajasthan has witnessed a drastic decline Withdrawal of generation-based incentive (GBI) and accelerated depreciation (AD) schemes have emerged as the main reasons behind this debacle The GBI scheme (launched in 2009) was in addition to the g ( ) governments p promotional scheme, , AD, launched in the 1990s Accelerated depreciation (AD) was withdrawn from April 1st, 2012 GBI also lapsed in March 2012 and was not renewed

Impact

GBI Scheme It entitled the wind energy producer to get INR 0.50/unit (over and above the tariff) of electricity y produced for the first 4 to 10 years of project life subject to maximum cap of INR 6.2 mn/MW The scheme could be availed only if AD Scheme had not been availed

Accelerated Depreciation Scheme Wind energy producer were entitled to claim up to 80 % AD in the 1st year itself (against the y g normal rate of 15%) Over the years AD was the major driver for the development of the wind industry in the country

However, the Ministry of New and Renewable Energy has given hope to wind power developers and turbine manufacturers that the GBI scheme may be reinstated in the near future
WIND TURBINE MARKET IN INDIA 2013.PPT

Trends Summary

Potential of Off-Shore Capacity Key Trends Advent of Small Wind Turbines

Vertical Integration

Hybrid Generators

SAMPLE
WIND TURBINE MARKET IN INDIA 2013.PPT

Bigger wind farm developers are slowly moving towards vertical integration along the industry value chain
Vertical Integration

Wind Power Line of Business

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Company As share of Indian wind-turbine market continues to be on the decline

Wind Turbine Market Market Share
The number of turbine suppliers in India almost doubled to -- in 2012 as compared to FY2010

x6 x5 x1 x4 a x3 x2 FY2012 d b e c f

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Competitive Benchmarking (2/5)

Key Ratios of Top 5 Companies Operational Basis (FY 2012) (1/3)
% Operating Margin Net Margin

A recorded operating margin of --%, higher than that of B, C and E which recorded operating margin of --%, --% and --% respectively but lower than that of D which recorded operating margin of --% Net margin for all the five companys are negative, however, A recorded the highest net margin of --%

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Company A (1/5)
Company Information
Corporate Address Tel N T l No. Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange Street A Maharashtra +91-22-12345678 91 22 12345678 +91-22-12345679 www.xyz.com 19--BSE Mumbai Head Office

Offices and Centres India

Products and Services

Category Wind Sector Products/Services Wind turbine generators, wind power systems and related components such as d i systems, annular generators etc. drive t l t t Land sourcing and permitting, wind resource assessment and installation and commissioning services Sale/sub-lease of land; infrastructure development; sale of f d l t l f foundry and f i d d forging components; generation and sale of power

Key People
Name N Person A Person B Person C Person D Designation D i ti Founder, Chairman, MD CFO Global Head of Public Relations Chief Economist 13

Project Services

Others

Company A Shareholding Pattern (2/5)

Shareholders of the Company as on 28.09.2012
Name P Q R S Total No. of Shares held -b ----a

Ownership Structure
Foreign Holdings Corporate Bodies p

Note: AGM as of 28th Sep 2012 WIND TURBINE MARKET IN INDIA 2013.PPT

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Company A (3/5)
Financial Snapshot
Total Income INR bn Net Profit/Loss INR bn

Key Ratios
Particulars y-o-y change (2012-11) 2012 2011 2010 2009

Profitability Ratios
Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets

2009

2010

2011

2012

Financial Summary
The company incurred a net loss of INR -- bn in FY 2012, as compared to net loss of INR -- bn in FY 2011 p y p The company reported total income of INR -- bn in FY 2012, registering an increase of --% over FY 2011 The company earned an operating margin of --% in FY 2012, an increase of -- percentage points over FY 2011 The company reported debt to equity ratio of -- in FY 2012, an increase of --% over FY 2011

Cost Ratios
Operating costs (% of Sales) Administration costs (% of Sales) Interest costs ( of Sales) (% )

Liquidity Ratios
Current Ratio Cash Ratio

Leverage Ratios
Debt to Equity Ratio q y Debt to Capital Ratio Interest Coverage Ratio

Key Financial Performance Indicators

Indicators
Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)

Value (26/12/2012)
-----

Efficiency Ratios
Fixed Asset Turnover Asset Turnover Current A t Turnover C t Asset T Working Capital Turnover Capital Employed Turnover
Improved Decline

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Company A (4/5)
Business Highlights
Description News -- is promoted by the -- and was incorporated in -- for the manufacture/assembly of wind turbine
generators (WTGs)

Overview

-- group acquired a controlling stake in --, an established -- design and consulting house in the wind
energy business in 2007 , through a holding company --

It has two full-scale production facilities in -- and -- with a total annual capacity of 950 MW. full scale Network The Indian manufacturing plant serves the Asia-Pacific market

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SWOT Analysis: Company A (5/5)

Point 1 Point 2

S
Point 3

W O
Point 4

SAMPLE
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Market Entry

SAMPLE
Header 2

Market Entry Strategies Indian Wind Turbine Industry (1/2)

Header 1

Header 3

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Thank you for the attention

Wind Turbine Market India 2013 report is a part of Netscribes, Inc.s Energy and Utilities Series.
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