24.01.03

24.1.2003: Meldung: NEG Micon reduces its expectations for 2002

NEG Micon reduces its expectations for 2002 from a result before tax and minority interests of approx. DKK 350m (approx. EUR 47m) to DKK 200- 225m (approx. EUR 27-30m). It is estimated that around half of the downgrading is attributable to postponements from 2002 to 2003.

NEG Micon reduces its expectations of the result for 2002

NEG Micon reduces its expectations for 2002 from a result before tax and minority interests of approx. DKK 350m (approx. EUR 47m) to DKK 200- 225m (approx. EUR 27-30m). It is estimated that around half of the downgrading is attributable to postponements from 2002 to 2003.

Beyond the unsatisfactory situation due to the profit warning itself, it is furthermore unsatisfactory that the decline of the result has only been registered at the reporting of the units mid-January.

For 2002 NEG Micon now expects a turnover of DKK 6.2b (approx. EUR 835m), an EBIT-margin of 4.5-5% and a result before tax and minority interests of DKK 200-225m (approx. EUR 27-30m).

The supplied capacity increased by 18% compared with 2001 and thus amounted to approx. 1,030MW in 2002.

NEG Micon"s deliveries to the German market are characterised by considerable seasonal fluctuations. This was also the case in 2002, but contrary to previous years there has been a considerable negative deviation in the result compared with the expectations in the autumn of 2002.

Towards the end of 2002 it became clear that German deliveries would be moved into 2003. However, it was not registered until mid-January that the situation in the German market would result in a further considerable decline of the result for NEG Micon. The total deviation compared with the expectations in the autumn of 2002 amounts to DKK 50-75m (approx. EUR 7-10m).

The Product Division is responsible for the manufacture of wind turbines in NEG Micon. The turbines are supplied to the five market divisions, which are in charge of the delivery and installation of the wind turbine projects. In connection with the closing of the annual accounts, a negative deviation of approx. DKK 70m (approx. EUR 9m) has been registered mid-January. The deviation is partly attributable to costs in connection with the start-up and running-in of new productions of primarily wind turbine hubs, partly extra costs in connection with deliveries for a few projects.

NEG Micon expected a positive development in the working capital in the second half of 2002. Only as a result of the development in the German market this goal will not be realised. The working capital at the end of 2002 is expected to be DKK 2.4b (approx. EUR 320m).

There has during 2002 been a considerable drain on the working capital of NEG Micon. This is due to the fact that the deliveries to the German and the Danish markets to a very large extent took place in the last months of the year combined with the fact that a large part of the payments takes place upon delivery. In 2002 NEG Micon delivered approx. 440MW to these two markets. The payments for these mainly take place at the end of 2002 and the beginning of 2003.

In 2003 the expected growth will to a large extent come from markets, where the payment takes place at milestones. Therefore NEG Micon does not see any problems in financing an annual growth of 20-30% in the coming years.

NEG Micon shall after the board meeting on 25 February 2003 publish the annual report for 2002 and in this connection the company"s expectations for 2003 will be announced.

NEG Micon will host a conference call today at 3.00 p.m. (CET). The conference call will be held in English. Interested parties from Denmark may call tel. +45 3271 4611, interested parties from the rest of Europe may call tel. +44 20 7162 0125 and interested parties from the US may call tel. +1 334 323 6203.

Yours faithfully,
NEG Micon A/S

Jørn Ankær Thomsen
Chairman

Torben Bjerre-Madsen
President

Any questions may be addressed to the President, Mr Torben Bjerre- Madsen, telephone +45 8710 5000.
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