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MR. KIRTI VAGADIA, GROUP HEAD FINANCE –

SUZLON GROUP, INTERVIEW WITH ET NOW -

NOTES

1. The Good results and Questions around that.

Yes. Indeed, it is a good result.

Q4 has been a Strong Operational Performance with highest revenue in 8

Quarters and EBITDA and EBIT positive after 7 quarters

2. Highlights for the last quarter

Revenue:

o Q4 ~Rs.6600 – 54 % YoY growth,

o FY 14. ~20,000 crore – 8 % YoY growth

o Suzlon Wind 723 MW in FY14 against 250 MW FY 13

o 3x Volume growth

Positive EBITDA Rs 328 crore and Rs 116 crore EBIT in Q4

o Increase in Revenue, favourable market and product mix

o Strict Cost Control post Operational Restructuring.

Net Working capital at ~3% of Revenue from 13% last year:

o Business Model change - Make to Order from Make to Stock

o Reduced Business Cycle time

o Streamlined product portfolio

3. The FCCB Plan as scheduled in July

Signed term-sheet and stand-still agreement with Adhoc committee of

Bondholders in April-14

Expecting regulatory approvals shortly

Totally non-cash solution pushing payment obligation by 5 years and

conversion price at Rs 15.46 per share

Targeting to hold bondholders meeting on 9th July 2014

4. Listing plans

It is one of the option under consideration to rebalance Capital Structure

We have plan to Optimize Our Capital Structure in FY 15

Sector got strong momentum on valuation and availability of capital

Valuations of Wind OEM stock improved significantly 10X EBITDA from 4X

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5. Expectation from New Govt and Budget for your sector?

Reinstatement of Accelerated Depreciation (AD) to bring sizable domestic

investment from SME and MFG sector primarily for captive consumption and

to freeze their power cost for 25 years in high inflation times.

Stronger RPO obligation for States

Classification as Priority Sector

6. Current order book and outlook?

Robust Order book at Rs.46,000 Cr / USD 7.6bn

Strong order pipe line discussion from across various states in India

Expects global and local market to grow at 40%

Order-book Drivers

o Suzlon is a Global Company with presence across 32 countries

o Maintained No. 5 globally and Leadership in India even in last 2

challenging years

o Group well positioned in various Core Markets (Top 1,2,3)

o Suzlon Focus on India and EM, Senvion on rest of global markets.

o India remains key for driving growth over and above Germany,

France, UK, Canada, Australia and US.

7. Debt Reduction plans?

Rs. 9,000 Cr Plus USD 1.2 billion

Bullet Repayment for FX half in FY 19 and rest in FY 20

Ballooning Repayment Rupee Debt major back-ended (117,350, 466 in next 3

years)

Non-Core Asset Sale:

o Already raised about Rs. 700 cr from Big Sky and China

o Plan to raise Rs. 1,000 cr in FY 15

o Components, Manufacturing and Office

o Not a distress seller