Progress in the business strategy 2011

Gamesa made considerable progress with its business strategy in 2011:

• Globalization and diversification. Wind turbine sales expanded, with 92% of sales being made outside Spain.
  
  • Sales increased 2.6-fold in India (accounting for 19% of the total).
  • Sales increased 3.8-fold in Latin America (Honduras, Mexico and Brazil; 15% of the total).
  • Europe (excluding Spain) accounts for 20% of the total, with Eastern Europe (Poland and Romania, in particular) representing 14%.
  • China accounts for 23% and the US for 14%.
  • Spain's share was less than 8% for the second consecutive year.

• In 2011, Gamesa set another record for capacity installed in a single year: 3,308 MW. Consequently, it climbed the world league table of wind turbine manufacturers to fourth place in terms of MW installed, according to consulting firms BTM and IHS Emerging Energy Research. International markets accounted for 87% of MW installed: the company strengthened its presence in major markets and installed its first turbines in Honduras, Costa Rica, Cyprus and Sweden.
• New markets, making its first sales in New Zealand and Canada.
• New wind turbines. 356 MW of orders for the G97-2.0 MW from Europe, the US, China and India in the first year after its launch.
• Framework agreements. in December, Gamesa and Iberdrola signed a new framework agreement under which the utility will buy, for its renewables business, at least 50% of the onshore fleet that it purchases in Spain and other countries between 2013 and 2022 or until it has acquired a total of 3,800 MW, if earlier. The new framework covers cooperation between the partners in other business areas that are strategic for Gamesa, such as operation and maintenance services (O&M) and offshore wind power.
  
  In May, Gamesa announced the signature of a framework agreement with Caparo Energy (now Mytrah) in India to supply 2,000 MW of wind generating capacity over the next five years. The agreement, the largest of its type in India to date and one of the largest wind contracts in the world, covers the supply, installation and commissioning of G58-850 kW and G97-2.0 MW (up to 1,300 MW in this case) wind generators between 2012 and 2016.
• Expanding manufacturing base. Gamesa commenced manufacturing in Brazil in July after inaugurating its first plant there, in Camaçari, in the north-east of Bahia state, in order to meeting growing demand in the Brazilian wind market in the short and medium term. Gamesa will use Brazil as an industrial and operations base from which to expand into other countries in the region, such as Uruguay and Chile, where the company has new wind projects planned in the coming years. In 2011, Gamesa signed agreements to supply 330 MW in Brazil for wind projects to be developed by Iberdrola Renovables and Corporación Inveravante.
  
  Early in 2012, Gamesa inaugurated its first blade plant in India, which will supply blades for the 850 kW and 2.0 MW platforms, mainly to supply wind projects in the northern states, such as Gujarat, Rajasthan, Madhya Pradesh and Maharashtra, which have considerable wind potential. With three plants in India (nacelles, blades and towers, the latter through joint venture Windar), Gamesa's plans in India will be completed in 2012 with the installation of a new nacelle plant in the state of Tamil Nadu.
• Gamesa had 16,300 MW under maintenance at year-end, having added 2,700 MW to its portfolio during the year.
  
  In 2011, the O&M services division entered the large component repair and overhaul business and extended its range of services for third-party fleets. Not only does the services area play a key role in the growth vector, but its new programmes also contribute decisively towards CoE optimisation. Gamesa's new GPA programme aims to achieve 99% availability of its fleet and reduce farms' operating costs by up to 10%.
• Development and sale of wind farms, a key area: sales agreements totalling 417 MW with some of the world's leading utilities, and delivery of 177 MW in Spain, Germany, France, Greece and the US in 2011. Gamesa also has 734 MW in the final phases of construction and commissioning.
• Historic agreement. Early in 2012, Gamesa signed an agreement to sell four wind farms in the US with a total installed capacity of 480 MW to Canadian utility Algonquin Power for 900 million dollars (700 million euro). Gamesa is currently developing and building the projects, which are scheduled to become operational in 2012. The deal represents 350 MW in new final orders for Gamesa turbines with delivery scheduled in 2012. It will also provide O&M services for the four wind farms for 20 years.