Suzlon Energy Limited

for a Brighter & Greener Tomorrow

2

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-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and 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.

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• Company overview

• Key highlights

• Strategy

Contents

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Suzlon10.5%

Vestas22.8%

Enercon14.0%

Repower^3.3%

Gamesa15.4%

GE Wind16.6%

Siemens7.1%

Others10.3%

Suzlon: Overview

Market Share as of December 31, 2007Source: BTM Consult ApS – March 2008

Amongst the Top 5 Wind Turbine Manufacturers Globally (2007) Amongst the Top 5 Wind Turbine Manufacturers Globally (2007)Amongst the Top 5 Wind Turbine Manufacturers Globally (2007)

Integrated Business ModelIntegrated Business Model

• End-to-end solution provider• No. 1 supplier to the Indian market for the last 9 years• Truly Global Player in terms of

• Markets and products• Wind turbine and component manufacturing and

R&D capability• Broad wind turbine product portfolio

Wind resource assessment & land

acquisition

Wind resource assessment & land

acquisition

Access roads, power evacuation,

grid interconnection and power lines

Access roads, power evacuation,

grid interconnection and power lines

WTG & Component design, development and manufacturing

WTG & Component design, development and manufacturing

EPC, project execution, installation,

commissioning & O&M

EPC, project execution, installation,

commissioning & O&M

ConceptualizationConceptualization InfrastructureInfrastructure Equipment supplyEquipment supply ServicesServices

^ REpower supply figuresare preliminary

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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

✚

Suzlon investment : REpower

Transaction RationaleTransaction Rationale

Transaction OverviewTransaction Overview

ó Suzlon successfully concludes bid to acquired REpower

ó Share Purchase Agreement with Martifer for its approx. 22% stake;

ó Controls or influences voting rights of approx. 90% through vote pooling agreement with Martifer

ó Deal financed by:

– Loan repayable up to 7 years

– Convertible bond issues totaling US$500 mn

– Follow-on equity offering proceeds (proposed utilization)

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Suzlon acquisition : Hansen

SuzlonHansen

ó Plugs a critical gap in Suzlon’s supply chain– Gearbox, one of the longest lead-time products

in WTG value chainó Develops a long-term growth driver in form of Wind

and Industrial gearbox business of Hansen Transmissions

ó Strategic acquisition of 100% equity of world’s leading gearbox and drive train manufacturer in May 2006

ó Consideration of € 431 mn for acquisition of ~100% stake in Hansen Transmissions

ó Hansen IPO successfully completed raising approx. €440 mn for 27.1% dilution

ó Hansen stock [HSN] listed on London Stock Exchangeó Post IPO holding of Suzlon 71.3%

Amongst top 5 wind energy

players globally

2nd largest globally in wind gearboxes

7

90% *

Suzlon: snapshot

14,300 (Gearbox MW) 1,7005,700Total Capacity Post Expansion (MW)

8,000 (Gearbox MW) 4503,000Expansion Planned (MW)

1,850 +1,150 +13,500 +Employee Base

Low to Medium capacity WTGs (350 kW – 2.1 MW)

2,700

India, the USA, China, Australia, Europe, Latin America with 10.5% global market share

5th Largest globally in Wind energy sector

Medium to High capacity WTGs (1.5 MW – 5 MW)

1,250

Europe, China (mainly Germany with 10% market share)

Recognized technology leader with strong presence in Europe

Product Portfolio

Current Capacity (MW)

Geographical Presence

WTG Gearbox (500 kW – 6 MW; 160 – 3,500 kNm)

7,300 (Gearbox MW)

2nd Largest globally in Wind gearboxes **

Europe, India, South Africa, USA

* 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

71.3% **

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• Company overview

• Key highlights

• Strategy

Contents

Key Highlights

Robust Order Book Position

Robust Order Book Position

Experienced Management Team

Experienced Management Team

Compelling Global Wind Industry

Dynamics

Compelling Global Wind Industry

Dynamics

Presence in Key global Markets

Presence in Key global Markets

Highest Level of Vertical IntegrationHighest Level of Vertical Integration

Broad Product Offering with In-

house R&D, Design capabilities

Broad Product Offering with In-

house R&D, Design capabilities

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Pioneering end-to-end Wind Power solutions

• Allows customers to benefit from cost-efficiencies and economies of scale in wind farms

• Avoids need for customers to undertake cumbersome wind farm development process

• Provides greater control over execution timeline

• Control on value chain from planning to maintenance stages

• Leverages Suzlon’s deep experience across Wind energy value chain

* Land acquisition business is mostly operated through associate concerns, not part of Suzlon value chain

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Vertical integration

Forgings &Machining BladesGearbox Panels Generator Tower

Significant expansion by FY09 in Belgium, China and India

Partial demand met through Hansen facilities in Belgium in Europe

✔

120,000 MT foundry & machining facility by Q3FY09

---

✔

Partial demand met through in-house facilities in India

Partial demand met through in-house facilities in India

Partial demand met through in-house facilities in India, China

Complete demand met by in-house production located in India, China & the US

---Existing Facility

Proposed Facility/ Expansion

Presence (Current/ Planned)

✔✔✔✔✔

Capacity expansion by Q2FY09 in India

70,000 MT forging & machining facility by Q3FY09

India Rotor Blade unit to be completed by Q2FY09

Panel unit at Coimbatore, India to be completed by Q2FY09

Planned expansion in India to be completed by 4Q FY09

Wind Turbine Generator (“WTG”) Supply Chain

• Wind Industry facing supply chain bottlenecks

• Long lead time of production in key components such as Bearings, Gearbox, Forging materials

• Critical Competitive Advantage with• Better control over time, cost & quality• Long-term service support to customers• Turbine technology integration• Faster product rollout

Integration

Foundry &Machining

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Integrated R&D and design capabilities

► Integrated product, component and system design under one organization

– Global resource pool for quicker design, development and upgrade

► Developed own MW and multi-MW WTG models and rotor blades

► Potential high-capacity onshore and offshore WTGs expertise through REpower

► Recognized technological leadership in Gearboxes (Hansen)

► In-house development expertise in key components

Wind Turbine R&D in Germany

Rotor blade R&D in The Netherlands

Product & process

engineering in India

Innovation Centre

in Europe*

Engineering Centre

in India*

WTGs and WTG Component Design, Development, Upgrade & Customization

Technology Campus

in Germany@

* Planned facilities

Results in high reliability and credibility among Customers

Plans to invest significant resources for R&D during the

next 5 years

Gearbox R&D

in Belgium

@ 50:50 Joint venture with REpower Systems AG

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USA • Rotor blade production unit

Europe & South America• Gearbox production in

Belgium

Note: Europe includes Denmark, France, Italy, Portugal, UK, Netherlands, Turkey Americas includes United States, Canada* CAGR growth over 2008-12 based on BTM, 2007, March 2008 report

Australia & New Zealand

India• Distributed manufacturing

facilities

China• Integrated manufacturing

facility at Tianjin

•Acclaimed growth in Indian market

•Presence in 8 windy states with over 30 wind farms

USA Europe and South America

India China

Global presence in highVolume, growth markets

18724 MW

14794 MW

7845 MW

5875 MW

29.04%

17.89%23.83%

48.46%

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International clientele

China•Shandong Luneng•Guohua•Datang•Honiton•Jingneng

USA•John Deere Credit•Edison Mission Group•PPM Energy•Horizon Wind•Tierra Energy

Brazil• SIIF Energies do Brasil Ltda

(SIIF) • Servtec Instalacoses

Australia / NZ• Australia Gas & Light• TrustPower• Renewable Power Ventures Pty Ltd. • Pacific Hydro

Italy:•NeoAnemos Srl

Portugal:•Techneira S.A•Energi Kontoret

Spain:•Iniciativas Energetitas•Eólia Renovables group•Spanish Savings Bank Unicaja

Turkey•Ayen Enerji

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Suzlon: high standards of growth

3,841

7,986

13,679

FY06 FY 07* FY 08*

1,882

1,296

884

FY06 FY07* FY08*

1,030

864

760

FY06 FY07* FY08*

SalesSales EBITDAEBITDA PATPAT

INR Cr.

CAGR 88.7%

CAGR 16.4%

CAGR 47.5%

* - Includes Hansen

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• Company overview

• Key highlights

• Strategy

Contents

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• Technology leadership in the Wind Energy 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

• To contribute to sustainable development of 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

Suzlon: Strategy

Vertical integrationVertical integrationR&Dand

Innovation

R&Dand

Innovation

• Strategic focus on customer needs

• End-to-end solutions

• Strategic focus on customer needs

• End-to-end solutions

Focus on High growth

markets

Focus on High growth

markets

Improvingcost efficiency

Improvingcost efficiency

Growth acceleration

Growth acceleration

Suzlon’s Vision Suzlon’s Mission

Strategy

A Look at the Windfarm

Thank you

Global Wind Industry - An Anemometer!

• The Context

• The Winds that Blew By

• Crystal Gazing: The Winds Ahead

• The Head Winds

• Harvesting the Winds

Structure of the Presentation

The Context

The Inconvenient Truth is…Global Warming has arrived!

Endangered Maldives due to Rising sea levels

Increasing floods / draughts due to extreme weather conditions

Devastating Tycoons like Katrina

Sources of GHG EmissionsWhat matters the most?

100 mins of operationFrom power station

1,615 tCO2

100 days of leaks from achilled foods plant

205 tCO2

100 cow’s bio-waste in one year

309 tCO2 100 cars in city

over one year

540 tCO2

Electric Power 31%

Fossil Fuel & Transportation

25%Agriculture

12%

Industrial Process

17%

Waste Disposal 15%

Renewable Energy Get the best of both the worlds

Sustainable EnvironmentCurtails further GHG emissions

Lowers carbon footprint

Pollution-free, clean and green

Helps conserve depleting fossil

fuels stock

Sustainable EconomyUses naturally ‘renewable’ sources of fuel

Techno-commercially viable & proven

CDM project activity

Favorable policies & fiscal incentives

The Winds that Blew By

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

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

Cumulative installed capacity in MW Cumulative installed capacity in MW Cumulative installed capacity in MW

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

94,005

74,306

59,399

47,912

40,301

CY03 CY04 CY05 CY06 CY07

CAGR 24.1%

Riding the High Winds

1,617

1,667

3,100

3,287

5,244

India

Germany

Spain

China

USA 35.7%

97.0%

21.2%

37.8%

10.2%

Average Growth *2007 Capacity Addition (in MW) 2007 Capacity Addition (in MW)2007 Capacity Addition (in MW)

Global Wind Power StatusCumulative MW by end of 2001, 2004 & 2007

0

10,000

20,000

30,000

40,000

50,000

60,000

Europe USA Asia Rest of World2001 (24,927 MW) 2004 (47,912 MW) 2007 (94,005 MW)Source: BTM Consult ApS - March 2008

Growth across Continents

28Source : American Wind Energy Association

BTM Consult ApS World Market Update 2006

The Drivers ~ Tail Winds

Price Hedging and Cost

Competitiveness

Price Hedging and Cost

Competitiveness

• Improvement in yields (cost/ kWh) • Cost / kWh of generation: US$ 0.03 - 0.06• Wind Energy directly competing with conventional power• Frozen lifecycle power cost for utilities

• Improvement in yields (cost/ kWh) • Cost / kWh of generation: US$ 0.03 - 0.06• Wind Energy directly competing with conventional power• Frozen lifecycle power cost for utilities

Global Warming and

Climate Change

Global Warming and

Climate Change

Æ Kyoto Protocol: CO2 emissions to reduce by 5.2% of 1990s levels by 2012• EU Proposal for Directive: 20% from RE by 2020• USA: 22 States with 10% to 20% RPS mandates• China targets 100,000 MW from RE by 2020• India: 10 States with 2% to 10% RPO mandates

Æ Kyoto Protocol: CO2 emissions to reduce by 5.2% of 1990s levels by 2012• EU Proposal for Directive: 20% from RE by 2020• USA: 22 States with 10% to 20% RPS mandates• China targets 100,000 MW from RE by 2020• India: 10 States with 2% to 10% RPO mandates

Energy SecurityEnergy Security• Hedge against geopolitical risks - secured supply• No risk of fuel price volatility• Socially, ecologically and economically sustainable

• Hedge against geopolitical risks - secured supply• No risk of fuel price volatility• Socially, ecologically and economically sustainable

Increased Electricity Demand

Increased Electricity Demand

• Energy - key to economic growth in developing countries•- Need to tap all available resources

• Wind’s global electricity generation contribution expected to increase from 0.82% in 2006 to 3.4% in 2030

• Energy - key to economic growth in developing countries•- Need to tap all available resources

• Wind’s global electricity generation contribution expected to increase from 0.82% in 2006 to 3.4% in 2030

Zero Carbon Solution

Zero Carbon Solution

National ResourceNational

Resource

Abundant ResourceAbundant Resource

Zero Fuel Cost

Zero Fuel Cost

ConcernConcern DemandDemand CatalystsCatalysts

Snap-shot

• Asia Pacific – High growth in China & India contributing to the success & the growth story of Asia Pacific

• USA/ Canada continue their growth pace

• Latin America & Middle East catching up

• Steady growth from European markets

• On-shore Continues to dominate in the short run, Off-shore has great potential

• Re-Powering to add business, especially in matured markets

Increasing Turbine & Project Size

Average Turbine

size is increasing

YoY, to maximize

Wind Potential

Global AverageWind project size

is increasing

Domination by Utilities and IPPs

• Major shift in ownership of wind assets

Source: Global Energy Outlook Report 2007 by Greenpeace International, European Renewable Energy Council (EREC)

Wind Energy & CDM Benefits

Crystal Gazing: The Winds Ahead

• Growing global energy demand

• Limited existing resources; high cost of new resources

• High energy needs for India and China

• Increasing per capita energy consumption

6.8%

9.8%

Source: Energy Information Administration (EIA)

Global Energy Demand

Energy as Oil Equivalent (MTOE)*

• The world energy requirement will continue to grow• Developed nations and BRIC economies will be major contributors for demand• Other Renewables (incl Wind and Solar) will grow most rapidly

MTOE = Million Tonnes of Oil Equivalent

Renewable: The Untapped Potential

• Amongst Other Renewables, Wind and Solar have the largest untapped potential (excluding Biomass)

The Wind Forecast

Global Wind Power ForecastCumulative MW by end of 2007 & Forecast 2012

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Europe USA Asia Rest of World

2007 (94,005 MW) 2012 (287,940 MW)Source: BTM Consult ApS - March 2008

Global Wind Power ProjectionsCumulative MW - Forecast 2012 & Prediction 2017

0

50,000

100,000

150,000

200,000

250,000

Europe North America Asia Rest of World

2012 (287,940 MW) 2017 (690,994 MW)Source: BTM Consult ApS - March 2008

Cumulative Global Wind Power DevelopmentActual 1990-2007 Forecast 2008-2012 Prediction 2013-2017

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

1990 2007 2012 2017

MW

Prediction Forecast Existing capacitySource: BTM Consult ApS - March 2008

2020 & Wind Energy!

300 GW

80 GW

48GW

0

50

100

150

200

250

300

350

1990

1995

2000

2005

2010

2015

2020

2025

2030

180 GW

Cumulativecapacity(Τargets 80 /180 / 300GW)

Real data

1.8-3.6%

0%Offshore

12%3%Wind Energy

35%15%Electricity

20%8.5%RES

20202005

To meet the RES targets wind has to contribute

180 GW by 2020

39

2.5

3.5

4.5

5.5

6.5

Nuclear CCGT Coal Steam IGCC Wind

(US

cen

ts/ k

Wh)

Wind-Renewable Energy Source: You Can Bet On!

125

227

4

82

36

56

1

4

50% 60% 70% 80% 90% 100%

1990

2004

Biomass & Waste Wind Geothermal Solar

Source: IEA WEO 2006 / BTM Consult ApS WMU 2006

Source: IEA WEO 2006 * Generation in TWh

✔(5 times present global energy

usage, 7 times electricity usage)

✔(72 TW potential estimated globally at 80m hub height)

✔(19.8 GW capacity addition in

2007)

✔(3-6 cents/kWh)

Wind Energy Status

Magnitude

Resource Availability

Established Base

Cost Competitiveness

Critical Success Parameters

Wind: Cost competitive with conventional powerWind: Cost competitive with conventional powerWind: Cost competitive with conventional power

Fastest growing renewable energy source*Fastest growing renewable energy source*Fastest growing renewable energy source*

Potential to power the futurePotential to power the futurePotential to power the future

Source: BTM Consult ApS WMU 2007 and Journal of Geophysical Research, 2005 : Stanford University

The Head Winds

The Wind Breakers

Onshore

Offshore

Infrastructure

Projects

Manpower

Ship Availability

Capital/Finance

Components

20152014201320122011201020092008

These temporary bottlenecks will restrict the growth of the Wind Industry

Hurricane, Cyclone or Twister?

• Current melt-down in the global financial markets has literally taken the wind out of our Sales– Almost non-existent liquidity

– Higher costs of funds

– Dampening of investment sentiments

• Everyone is conserving cash for a rainy tomorrow. Cash is King!

• Corporates are deferring even essential Capital Expenditure Plans, what to talk of investing in Wind

Old Friends…

• Wind is renewable energy source, but windy sites are not!

– Technology up-gradation to harness available Windy Sites

• Wind Power ~ ‘Terrorist’ Power

– Creates serious issues in Grid Management due to its infirm nature

• Increasing Capital Cost of Wind Turbine (Cost/MW)

– Reversal of Trends due to falling input costs

• Shortage of Critical Components

• Off-shore installations are still too expensive and hence less viable

– Infrastructure & transmission related issues

Harvesting the Winds

Way Forward

• Treat Renewable as PART of Power Sector and hence AT PAR with Power Sector

• Continually bring down WTG and Project Costs• Improve Technology and Enhance Productivity• Invest in Energy Storage devices and Energy Forecasting• Innovative Financing

- Better availability of Funds- Lower Costs- Longer Maturities

• Governments to implement time bound RPOs

People: Challenges and Opportunities

• Exponential growth of the industry ~ competent & committed personnel

– Young professional eager to work in the RE Industry

– Creation of ‘Green Jobs’

• White collar Greens – technology, research, corporate, Legal/IPR etc

• Blue collar Greens – manufacturing, installation, commissioning etc

• Need to proactively develop Capacity and Ability for the Industry

– Introduction of ‘Chairs’ in university and grants for deserving candidates pursuing RE studies

– Initiate development of manpower required for the Offshore Industry

– International labor laws, multicultural sensitivities and multiple languages

7 Ps to Success

• Passion & Pride• Perseverance• Patience• Planning• Preparedness• Pragmatism

Add PRAYERS for Good Luck PROFITS will follow….

We have to harvest the Winds in our WTGs to…

Power a Greener Tomorrow