Annual Report 09 Global techology, everlasting energy Key figures Financial figures 2009 2008 2007 2006 2005 Revenues (€mn) 3,229 3,834 3,247 2,401 1,745 MW equivalent sold (*) 3,145 3,684 3,289 2,250 1,783 EBIT (€mn) 177 233 250 262 226 Net earnings after taxes (€mn) 115 320 220 313 133 Net debt/EBITDA 0.7 x 0.1 x 0.5 x 1.6 x 3.3 x Share price at 31 Dec. (€) 11.78 12.74 31.98 20.85 12.36 Earnings per share (€) 0.47 1.32 0.90 0.82 0.55 Gross dividend per share (€/share) 0.21 0.23 0.21 0.16 0.16 P/E 24.9 9.68 35.4 25.36 22.58 (*) MW equivalent of wind turbines sold is based on accounting standards. For more details, see the Management Report 2009.Note: figures include all the Group's businesses. Figures for 2006 include the sale of the aeronautics and services units. Figures for 2008 include the sale of the solar division. Labour figures 2009 2008 2007 2006 2005 Workforce 6,360 7,187 6,945 5,420 8,188 Accident frequency index 4.91 9.15 20.06 26.80 38.62 Accident severity index 0.158 0.19 0.30 0.40 0.70 % workforce in other countries 31 32 33 22 5,97 % women in workforce 25.52 25.34 22.30 23.51 22.00 % indefinite contracts 86 72 68 70 62 Hours training/employee 32.32 32.79 24.10 12.54 - Average age of workforce 4.9 4.06 3.8 2.5 3.5 Environmental figures 2009 2008 2007 2006 2005 Raw materials (t/€mn) 40 47 43 53 67 Energy consumption (GJ/€mn) 329 354 396 395 430 Water consumption (m3/€mn) 28 31 27 27 39 Waste produced (t/€mn) 5 5 5 4 6 Discharges produced (m3/€mn) 20 13 20 20 38 CO2 emissions (t/€mn) 15 17 19 13 16 CO2 emissions avoided (t/€mn) 1,036 1,239 1,467 1,405 1,532 Note:Environmental figures are expressed with respect to revenues (million euro). CSR figures 2009 2008 2007 2006 2005 Dow Jones Sustainability Indexes-World - - Dow Jones Sustainability Indexes-STOXX - - FTSE4Good KLD Global Climate 100 - Sustainable Business 20 (SB20) - - - - Ethibel Excellence Europe - - - Global Challeges Index - - Cleantech index - - - MILESTONES 2009 February June September • Gamesa was awarded a new contract • Commenced construction of the first • Gamesa was included in the Dow Jones to install 104 MW in Romania wind farm developed by Gamesa in Sustainability Index (DJSI) for the third China consecutive year • Developed a technology project for the design and automated manufacture • Presented the first prototype of • FTSE4Good recognised Gamesa as a of wind turbine blades Gamesa’s new G10X-4.5 MW wind global leader in sustainability for the March turbine fifth consecutive year July The US wind industry named Gamesa • Gamesa implemented an energy • as an example for the country’s efficiency plan at its production • Signed an agreement with Huadian economic and labour potential facilities, reducing consumption by for joint development of 200 MW of 20% wind capacity in Inner Mongolia and • Gamesa and Iberdrola Renovables April the supply of wind turbines with total implemented their strategic capacity of 300 MW agreement. • Signed contract with Neo Energia to Signed new contract to install 10 MW install 35 MW in Spain and France • October in Mexico May • Gamesa extended the 1.2 billion euro • Reached agreement with University of syndicated loan from more than 30 • Gamesa obtained two new contracts Delaware (US) to install a wind turbine domestic and international banks to install 98 MW in Italy in a coastal area • Jorge Calvet was appointed Chairman of Gamesa 2010 February April May • The Company strengthened its • Gamesa exhibits new G10X-4.5MW at • Gamesa expands its presence in China foothold in Asia with the start-up of EWEC 2010 fair with a fifth manufacturing facility its first production facility in India • Gamesa and its employees raise • CTL structure is reinforced to remain • Gamesa participated in the 61,500 euro for Haiti in the lead in logistics in the wind construction of wind farms in industry Presentation of an online weather Pennsylvania financed by Federal • forecasting service for wind farms Recovery Funds • Gamesa invites 70 technology centres in Spain to submit sustainable technology projects for development • Signed a Memorandum of Understanding to work with German company BARD on offshore wind energy • Gamesa will maintain Iberdrola Renovables’ wind farms in Spain and Portugal ANNUAL REPORT 2009 Global technology, everlasting energy EUROPE Manufacturing plants: 23 in Spain Manufacturing capacity: 2,000 MW AMERICA MW installed: Manufacturing plants: 13,236 MW 2 in Pennsylvania Manufacturing capacity: 1,200 MW MW installed: 2,382 MW NORTH AFRICA MW installed: 659 MW MARKETS WITH AN INSTALLED BASE MARKETS WITH NEW OFFERS NEW MARKETS WITH PROJECTS IN CONSTRUCTION Wind Turbine Design, Development and Sale Operation and Maintenance Manufacturing and Installation of Wind Farms Services Gamesa has installed 146 wind farms Gamesa’s end-to-end off ering in the With 18,000 MW capacity installed to in 15 countries with a total capacity of industry is evident in the comprehensive date, Gamesa is among the world leaders over 3,500 MW. Gamesa has a portfolio range of operation and maintenance in the wind energy market. Production of 22,000 MW at diff erent stages of services provided by 2,000 professionals plants in over 30 countries in Europe, the development in Europe, America and to over 130 clients worldwide (12,000 MW US and Asia, with production capacity of Asia. under maintenance). 4,400 MW per year. Global StrategyGamesa is applying a business Geographic breakdown strategy based on strengthening the sales arm, expanding of workforce 2009 the operation and maintenance area, enhancing the TOTAL: 6,360 EMPLOYEES competitiveness of its product portfolio by launching new platforms, and the decision to play a signifi cant role in the off shore market. 74% 12% 14% ASIA Europe US China Manufacturing plants: and RoW 4 in Tianjin (China) 1 in Chennai (India) Manufacturing capacity: MW sold in 2009 1,200 MW TOTAL: 3,145 MW MW installed: 1,969 MW 32% 11% 27% 15% 15% Spain US China Rest of EuropeRoW MW installed Development and sale Wind farms by Gamesa of wind farms developed ACCUMULATED FIGURES TOTAL PORTFOLIO (MW) MW ACCUMULATED 3,578 21,913 18,247 21,100 21,530 20,039 3,161 16,016 2,837 16,551 12,849 2,122 9,845 1,684 7,549 2005 2006 2007 2008 2009 2005 20062007 2008 2009 2005 2006 2007 2008 2009 CONTENTS>>> Annual Report 2009 MESSAGE FROM THE CHAIRMAN 2 BOARD OF DIRECTORS 4 MANAGEMENT COMMITTEE 5 GAMESA 09. STRATEGY AND SITUATION 6 Gamesa 2009 and Strategy 8 Situation 2009 and Prospects 14 WIND TURBINES 20 WIND FARM DEVELOPMENT 28 OPERATION AND MAINTENANCE SERVICES NEW BUSINESSES 38 CONSOLIDATED FINANCIAL STATEMENTS 42 Consolidated balance sheets 46 Consolidated income statements 48 Notes to the consolidated fi nancial statements 54 Directors' report 140 CORPORATE RESPONSIBILITY 162 Business ethics 166 Shareholders and investors 172 Customers 176 Human capital 180 Suppliers 184 Environment and Communities 186 GAM_MEM_ENG_A.indd 1 21/05/10 13:33 ANNUAL REPORT 2009 0.1 Gamesa continues to establish itself as a global company, a strategy in which we have progressed in the last 12 months in response to our customers' needs and in line with market growth. International markets now account for over 70% of wind turbine sales, specifi cally, Europe, the US and Asia. In 2009, Gamesa adopted an eff ective, In 2009, we also focused on reducing Gamesa's wind farm development realistic response to the complex debt to: 259 million euro, i.e. 0.7 times division, which has a portfolio macroeconomic and fi nancial situation EBITDA. Consequently, we ended the of 22,000 MW at various stages and to changes in legislation, which year with a solid fi nancial position on of development worldwide, also slowed many of our customers' wind which to base future growth: we have strengthened its international energy projects due to diffi culties in over 1.6 billion euro in credit lines. presence by an agreement with obtaining credit and sowed uncertainty Iberdrola Renovables, which will revive in the industry in general and in Gamesa continues to establish itself the sale of wind farms in Europe; we the wind generator manufacture, as a global company, a strategy in also expanded in China, where we installation and maintenance business, which we have progressed in the last 12 signed capacity agreements with local in particular. months in response to our customers' partners in the provinces with the needs and in line with market greatest wind power potential. In this context, Gamesa focused on growth. International markets now improving effi ciency and productivity account for over 70% of wind turbine Our leading position in the world wind rather than business volume, and sales, compared with 61% in 2008; energy market is, therefore, a reality, actively managed working capital specifi cally, Europe, the US, China, and our growth prospects are a safe (synchronizing manufacture and some countries in Latin America, and bet if we consider the road ahead delivery) while implementing an North Africa. and the commitments that various ambitious cost optimisation plan which countries around the world have made has enabled us to greatly improve As part of our eff ort to expand into to economic development coupled with margins. The EBIT margin in our core target markets overseas, during the safe, effi cient, emission-free energy.