Results
January - March 2016
Strong start to the year
5 May 2016
Contents
1. Period highlights
2. January-March 2016 results
and KPIs
3. Outlook
4. Conclusions
Period highlights
Commercial activity and record Q1 sales and profitability
assure attainment of the 2016 objectives
► Strong commercial performance


1,031 MW in new orders in Q1 16: +26% y/y
4,097 MW in the last 12 months
► Sustained profitable growth



+30% y/y in revenues: €1,064mn
+81%2 y/y in EBIT: €119mn; EBIT margin: 11.1%,
+82%2 y/y in net profit2: €80mn
► Sound balance sheet


€194mn net cash as of 31 March
Working capital/revenues: 4.1%
8 p.p. y/y improvement in ROCE: 19% in Q1 16
1.
2.
4
Firm orders and confirmation of framework agreements for delivery in the current and subsequent years. Including 660 MW in orders signed in Q1 16 and announced in Q2 16
Growth rates calculated using underlying figures pre-Adwen. The impact of Adwen in Q1 15 amounted to +€29mn in terms of EBIT and +€18.5mn in net profit. The impact of Adwen in
net profit Q1 16 amounted to -€8mn. No impact in EBIT
January-March 2016 Results
Strong commercial activity
1,031 MW of new firm orders1: +26% y/y
90% coverage of 2016 sales targets: +20 p.p. vs. Dec. 15
Order intake and order book 2015-16 (MW)1
+22%
3,167
2,602
+37%
2,369
1,732
+26%
818

Rising visibility: 90% coverage2
of activity in 2016
 ∆20 p.p. vs. December 15
1,031
 13 p.p.2 above coverage for
2015 at 31 March 2015
Order intake Q1
%
1.
2.
5
Change y/y
Order backlog @ march
Q1 15
Order backlog for
current year @ march
Q1 16
Firm orders and confirmation of framework agreements for delivery in the current and subsequent years. Including 660 MW in orders signed in Q1 16 and announced in Q2 16.
Coverage based on total order intake through 31 March 2016 for activity in 2016 with respect to average volume guidance for 2016 (≥3,800 MWe). Coverage in 2015 based on total order
intake through 31 March 2015 with respect to final volume in 2015 (3,180 MWe)
January-March 2016 Results
In line with expected order intake rate for 2016
4,097 MW of new firm orders signed in the last twelve months
Book-to-bill ratio: 1.16x2
Order intake LTM 2014-16 (MW)1
+13%
3,315
3,637
3,853
3,990 3,883 4,097
3,045
2,366
%
1.
2.
6
2,555
Q1 14 H1 14 9M 14 FY 14 Q1 15 H1 15 9M 15 FY 15 Q1 16
Change y/y
Firm orders and confirmation of framework agreements for delivery in the current and subsequent years. Including 660 MW in orders signed in Q1 16 and announced in Q2 16.
Book-to-bill ratio based on LTM sales and order intake
January-March 2016 Results
Supported by a solid competitive position
Gamesa was the world's fourth-largest onshore manufacturer in 2015
and the only one positioned among the top 10 in all regions1
Global market share 2015
18%
13%
11%
2%
3%
3%
3%
9%
3%
4%
8%
4%
4%
5% 5% 6%
Onshore market share 2015
C2
C8
C1
C3
C4 (Gamesa)
C13
C6
C14
C15
C7
C16
C17
C9
C18
C19
Regional split
1.
7
2%
12%
3%
3%
3%
3%
11%
3%
4%
6%
5%
5% 5% 5%
EMEA
Americas
C1
C2
C3
C4 (Gamesa)
C5
C6
C7
C8
C9
C10
Otros
13%
17%
C2
C3
C9
C11
C4 (Gamesa)
Otros
Source: MAKE
January-March 2016 Results
APAC
C8
C13
C14
C15
C16
C17
C18
C19
C20
Other
C2
C8
C1
C4 (Gamesa)
C13
C6
C3
C14
C15
C7
C17
C9
C18
C16
C19
Otros
And by strong geographical diversification
Presence in 54 countries. A leading position in emerging markets and
growth in developed markets, which contributed 34% of total volume
Geographical breakdown of order intake in Q1 16 vs. Q1 15
Q1 15
818 MW
Q1 16
+26%
1,031
MW
Europe & RoW
USA
APAC
India
LatAm
G114-2.0 MW and G114-2.5 MW accounted for c. 45% of order intake in
Q1 2016 (vs. 20% in Q1 2015)
8
January-March 2016 Results
Record Q1 sales: +30% y/y
Supported by strong growth in WTG sales
Sales trend year-on-year
Group revenues (€mn)
WTG sales (€mn)
WTG activity (MWe)
1,061
+30%
1,064
820
Q1 15
9
957
+34%
713
Q1 16
Q1 15
+49%
712
Q1 16
January-March 2016 Results
Q1 15
Q1 16
Controlling growth of structural expenses
Focus on operating break-even: structural expenses reduced by 0.7
points y/y to 7.9% of revenues
Structural expenses1 (€mn)

1,064
Goal of BP2015-17E:
Fixed
expenses/revenues
<8% in 2017
820
573
10.6%
-2.1 p.p.
8.6%
70
61
-0.7 p.p.
85
7.9%
Q1 14
Q1 15
Sales
1.
10
Q1 16
Structural expenses
Structural expenses with a cash impact (excluding D&A)
January-March 2016 Results
Record Q1 EBIT1 and net profit1: 2x Q1 2015 EBIT1 and net
profit1
EBIT Q1 16: €119mn vs. €66mn in Q1 15
EBIT margin Q1 16: 11.1% vs. 8.0% Q1 15
Net profit Q1 16: €80mn vs. €44mn in Q1 15
EBIT (€mn)1
119
~x2
11.1%
66
~x2
80
~x2,6
44
17
+2.0 p.p.
6.0%
EBIT rec
%
%
1.
11
EBIT margin
Change y/y
BN rec
Q1 14
Q1 15
Rising sales

Strict control over structural
expenses

Ongoing optimisation of variable
expenses

Net negative currency effect
~x2
+3.2 p.p.
8.0%
34

Q1 16

0.4 p.p in Q1 16
To reach a record quarterly EBIT in
the history of Gamesa
EBIT excluding impact of capital gains on the creation of Adwen in Q1 2015 (€29mn). NP excluding impact of consolidating Adwen (-€8mn in Q1 2016) and impact of capital
gains and consolidation of Adwen in Q1 2015 (€18.5mn).
January-March 2016 Results
With a sound balance sheet
In a context of rising activity and in line with the guidance
NFD trend y/y (€mn)
1,061
MWe
712
MWe
567
MWe
NFD under control in a context of rising
activity
 Activity (MWe): +49% y/y
 NFD/EBITDA: -0.3x
655
2.1x
Supported by
298
+232
 Rising profitability
 Control of working capital
125
0.3x
Q1 16
341
Q1 14
Q1 15
Q1
16
-0.3x
-23
Capital increase (Q3 14) / dividend payment (Q3 15)
-194
Net free cash flow generation LTM
NFD
NFD/EBITDA LTM
MWe
Sales volume
 Focused capex
Net cash on balance sheet for the first time in
a first quarter
 Quarter-on-quarter reduction in net cash
position vs. December 2015 due to normal
business seasonality
Access to 1,770 MM € in credit lines
and no material payments on the horizon plan
12
January-March 2016 Results
To accelerate shareholder value creation
ROCE: +8 p.p. in Q1 16 vs. Q1 15
ROCE
19,4%
19%
17%
+8,3 p.p.
11,1%
11%
7,6%
8%
5%
2010
5%
2011
0%
2012
2013
2014
2015
Q1 16
4,3%
+3,2 p.p.
Q1 13
Q1 14
+3,6 p.p.
Q1 15
Q1 16
VALUE CREATION PILLARS
Profitable growth through
 Competitive positioning
 Programmes for continuous optimisation
of variable costs, plus quality leadership
 Control of structural costs: focus on
break-even
13
Strong balance sheet
 By means of working capital control
and capex (modular) focused on
assuring expected growth
January-March 2016 Results
Generating cash
 During the peak and trough
of the cycle
Improving commitment to workplace health and safety
Frequency and severity indices improved ahead of the objectives in the
BP 15-17
Severity index2
Frequency index1
0.13
4.11
4.05
0.09
0.07
2.39
1.74
0.06
Goal in BP2015-17E: 0.049
1.72
Goal in BP2015-17E: 1.5
0.05
1.08
0.02
0.63
0.01
2010
1
14
2011
2012
2013
2014
2015
Q1 16
Frequency index: No. of accidents with days lost * 106/No. of hours worked
2010
2
2011
2012
2013
2014
Severity index:No. of days lost * 103/No. of hours worked
January-March 2016 Results
2015
Q1 16
January-March
2016 Results and KPIs
Consolidated group - Key figures
Underlying P&L pre-Adwen1 (€mn)
Q1 2015
Q1 2016
Chg. %
Group revenues
820
1,064
+29.7%
MWe
712
1,061
+49.0%
108
108
+0.1%
66
119
+80.9%
Underlying EBIT margin
8.0%
11.1%
+3.2 p.p.
O&M EBIT margin
12.5%
13.1%
+0.6 p.p.
44
80
82.2%
0.16
0.29
82.2%
EBIT2
95
119
25.2%
Net profit2
62
72
15.1%
O&M revenues
Underlying EBIT
Underlying net profit (NP)
Underlying NP per share (€)

Adwen
consolidation: Q1
impact above
average impact
expected for the
coming quarters

Financial
expenses: 37%
a/a

Tax rate: 27% in
line with company
expectations (25%
± 3 p.p.)
(1) The 50% stake in Adwen is carried by the equity method.
Reported P&L (€mn)
(2) Reported EBIT and NP include impact of creating and consolidating Adwen (offshore JV): €29mn of capital gains in EBIT
and €18.5mn in net profit in Q1 2016. Q1 2016 net profit includes a negative impact of €8mn from consolidating Adwen's
operations.
Balance sheet (€mn)
Working capital (WC)
WC/revenues LTM
Net financial debt (NFD)
NFD/EBITDA LTM
16
395
153
-242
12.8%
4.1%
-8.7 p.p.
125
-194
-318
+0.3x
-0.3x
-0.6x
January-March 2016 Results
Activity. WTG
Firming growth in activity: 10 consecutive quarters of double-digit
growth y/y to reach the highest volume of quarterly activity
MWe sold
2014: 2,623

2015: 3,180
+21%
1.200
1.061
+49%
1.000
600
791
+26%
800
567
620
645
712
770
880
819
1,60

1,40
1,20
1.00
1,00
0.90
0.83
0,80
-10%
400

(-) Currency effect (-5% in Q116)

(-) Scope of activity:  30 bps
assembly/MWe: 0.61 in Q1 16 vs. 0.91 in Q1
15.
0,40
0.96

0,20
0.93
-
-
Q1
1T
Q2
2T
2014
Q3
3T
Q4
4T
Q1
1T
Q2
2T
Q3
3T
Q4
4T
Q1
1T
2015

2016
MWe
ASP in the quarter: wind turbine sales, excluding O&M, divided by
MWe sold per quarter
ASP FY: wind turbine sales, excluding O&M, divided by MWe sold per
quarter
MWe +49% y/y in Q1
Trend in ASP in Q1 16: -10% including FX, aligned
with projections for the full year
0,60
200
17

2,00
1,80
Activity Q1 (1,061 MWe) supports volume
guidance for 2016 (>3,800 MWe)

January-March 2016 Results
Ratio to recover in the next few
quarters, with a positive impact on ASP
(+) New product launches (G114-2MW and
taller towers)
This trend in ASP is not indicative of the level or
trend in profitability
Activity. WTG
Activity continues to be shaped by diversification in terms of
geographies and clients

Commercial presence in 18 countries

35,257 MW installed in 53 countries

Relations with over 200 customers (utilities, IPPs, financial investors and self-providers)
Geographic mix (MWe sold)
Breakdown of MWe sold, by customer type
5%
16%
27%
5%
USA
43%
APAC
Utility
India
LatAm
26%
Europe & RoW
Other
52%
26%
Strong growth in sales to utilities and IPPs
18
IPP
January-March 2016 Results
Profitability. WTG
Higher profitability supported by stronger activity, containment of fixed costs
and continuous improvement of variable costs, compensating for cost pressures
caused by growth and new product launches
Margin in Q1 16 boosted by project mix and scope (+1 p.p.)
mci
WTG EBIT (€mn)
Continuous
improvement
programmes
105
x2
10.9%
+3.6 p.p.
Design improvements
52
7.3%
Improvements
in
competitiveness
(Processes)
Q1 15
Working with
suppliers
19

%
EBIT margin (%)
Q1 16
Currency impact on EBIT margin in line with guidance for
the year (-0.4 p.p.)
January-March 2016 Results
Activity and Profitability. Operation and maintenance
Sales and EBIT trends aligned with projections for the year
Revenues (€mn)
EBIT (€mn)
+5%
=
108
108
12.5%
Q1 15

20
Q1 15
Q1 16
First signs of recovery of fleet under maintenance:

Total fleet under maintenance (22,335 MW): +6.5% vs.
Dec. 2015; +5.5% y/y

Average post guarantee fleet (15.345 MW): +1% vs.
Dec. 2015; flat y/y

Order book: +18% y/y (>2,000 MM €)

Average life of contracts in backlog: 8 years (∆1.5
years since Q1 2015)
1.
14
13

+0.6 p.p.
O&M EBIT margin1
13.1%
Q1 16
Management plan aimed at offsetting pressure on
prices and scope of contracts to guarantee profitable
growth:

Cost reduction programmes in place: Diagnostika;
Craneless; TROM; Lean Organization Service

Progressive penetration of value added services in
mature markets

Capturing contracts with longer duration in
emerging markets
EBIT including parent company and structural expenses
January-March 2016 Results
Consolidated group - EBIT
Greater activity, continuous improvement of variable costs, and a
favourable project scope were the main factors driving growth in EBIT
margin in Q1 16
EBIT margin (%)
Margin improvement levers aligned with
2016 projections
Positive impact of
+1.8%
-1.4%
3.1%
-0.4%
11,1%
8,0%

Growth in volume

Optimization of variable expenses (inc.
raw materials)

Favorable project mix and scope
Partly offset by
EBIT Margin
Q1 16
FX
Fixed costs
(D&A inc.)
Project
mix/scope
WTG / O&M
mix
Variable
costs
Volume
EBIT Margin
Q1 15
21
January-March 2016 Results

Adverse exchange rate effect

Lower O&M contribution to sales mix

Higher fixed expenses, including D&A, needed
to grow, and in line with increase in capex
Consolidated Group - Working capital
Delivering better WC in a context of strong growth
Reduction in working capital
712
MWe
3,180
MWe
+49%/ +c.20%
1,061
MWe
Consolidation of WC/revenues LTM ratio
improvement
>3,800
MWe E
WC/rev. FY
131: 21%
WC/rev. FY
141: 13%
-128
21%
395
-61%
17%
12.8%
WC/rev. FY
151: 7%
-98
17%
13%
11%
-8.7 p.p.
153
8%
8.3%
4.1%
Q1 15
Activity volume Q1
Activity volume 12M
WC/revenues LTM (%)
4%
2.5%
FY 13
Q1 16
Q1
Q2
Q3
FY 14
Q1
Change in av. WC/revenues ratio in Q1 16 vs. Q1 15
1. Ratio of WC / revenues LTM
Reducing working capital in a context of rising activity as a
result of policies to

Align manufacturing with deliveries and receipts

Actively manage accounts payable and receivable

Control investment in wind farms and monetize operational
assets
22
-9 p.p.
Q2
Q3
0.3%
FY 15 Q1 16
Reduction in av. working capital
(€ mn)
Q1 16 vs. Q1 15 progress aligned with the 2016 guidance

 average working capital in the last 12 months: €130mn

 Working capital ratio Q1 16: -9 p.p. y/y

 Ratio of working capital/revenues LTM : 5.4% vs.
10.7% in Q1 15
January-March 2016 Results
Outlook
Development of the product portfolio aligned with PN15-17
After completing the Gamesa 2.5 platform with the launch of the G1262.5 CIII MW, Gamesa launches commercially G132-3.3 MW wind
turbine: the best CoE in the segment of 3.0-3.3 MW
Availability Gamesa fleet >98%

99% availability in Gamesa 2.5 MW
platform 1
New platform Gamesa 3.3 MW:
1.
24

G132-3.3 MW design certificate in
Q2 2016

G132-3.3 MW prototype in Q3
2016

Serial production in 2017

G132-3.465 MW also available

Reached the target of 18 months
time to market for new products
Gamesa 2.5 platform has reached levels of availability of 99% in those parks in Sweden and Belgium where are installed the first units.
January-March 2016 Results
Value creation prospects in 2016 are unaltered
Q1 2016
Volume (MWe)
Min. Var. in 16
Var. Q1 16 vs
2016
guidance
vs. FY 15
Q1 15 (%)1 Guidance2
(%)
1,061
49%
>3,800
19%

119
81%
>400
36%

EBIT margin
11.1%
3.2 p.p.
≥9%
0.6 p.p.

WC/revenues
4.1%
8.7 p.p.
≤2.5%
NA

33
+9 MM €
4%-5%
NA

19.4%
8.3 p.p.
Rising y/y
NA

≥25%
NA
Underlying EBIT
Capex (€mn)
(guidance: capex/revenues)
ROCE
Dividend proposal: payout ratio
1.
2.
More profitable growth:
activity >19%; operating
profitability ≥36%
Keeping capex and working
capital under control
Accelerating value creation
Offering attractive
remuneration
Change in Q1 16 vs. underlying pre-Adwen numbers in Q1 15. Impact of Adwen on EBIT Q1 15: €29mn No impact on EBIT in Q1 16
At Jan-Feb 2016 average exchange rate and assuming no change in consolidation scope

Volume of activity planned for H1 16 > H2 16; positive impact of the project mix/scope will tail off in
the coming quarters

Guidance is sensitive to exchange rates in 2016E: ± 0.5% p.p. in EBIT margin

Increase in shareholder return over minimum will depend on additional shareholder value creation opportunities
subject to strict control of ROCE>WACC and cash flow
Prospects for commercial strength and profitable growth beyond 2016
remain intact
25
January-March 2016 Results
Conclusions
Record performance in the quarter aligned with 2016
guidance
► Strong commercial performance in line with commitments


c.4 GW in orders signed in the last 12 months; 1GW in Q1 2016
3.2 GW order book, covering 90% of projected sales for 2016E
► Management focus on shareholder value creation

ROCE Q1 2016: 19%
► Through profitable growth: quarterly EBIT and net profit doubled y/y



Revenues +30%
EBIT +81%1
Net profit1 +82%1
► And a sound balance sheet, supported by control of working capital and modular
capex tailored to expected growth


€194mn net cash on the balance sheet
WC / revenues LTM ratio: 4.1%
► Against a backdrop of stable regulatory and demand conditions
 Product development focused on a successful transition to the auction model
1.
27
Numbers and changes are pre-Adwen. Impact of Adwen in Q1 15: €29mn in EBIT and €18.5mn in net profit. Impact of Adwen in Q1 16: -€8mn in net profit.
January-March 2016 Results
Aligned with the main international principles of corporate
ethics
Committed to respecting human rights and the environment
We form part of the main sustainability and corporate responsibility indices
28
January-March 2016 Results
Disclaimer
“This material has been prepared by Gamesa Corporación Tecnológica, S.A., and is disclosed solely for information purposes.
This document contains declarations which constitute forward-looking statements, and includes references to our current intentions, beliefs or
expectations regarding future events and trends that may affect our financial condition, earnings and share value. These forward-looking statements do
not constitute a warranty as to future performance and imply risks and uncertainties. Therefore, actual results may differ materially from those
expressed or implied by the forward-looking statements, due to different factors, risks and uncertainties, such as economical, competitive, regulatory or
commercial factors. The value of any investment may rise or fall and, furthermore, it may not be recovered, partially or completely. Likewise, past
performance is not indicative of future results.
The facts, opinions, and forecasts included in this material are furnished as of the date of this document, and are based on the company’s estimates
and on sources believed to be reliable by Gamesa Corporación Tecnológica, S.A., but the company does not warrant their completeness, timeliness or
accuracy, and, accordingly, no reliance should be placed on them in this connection. Both the information and the conclusions contained in this
document are subject to changes without notice. Gamesa Corporación Tecnológica, S.A. undertakes no obligation to update forward-looking statements
to reflect events or circumstances that occur after the date the statements were made.
The results and evolution of the company may differ materially from those expressed in this document. None of the information contained in this
document constitutes a solicitation or offer to buy or sell any securities or advice or recommendations with regard to any other transaction. This
material does not provide any type of investment recommendation, or legal, tax or any other type of advice, and it should not be relied upon to make
any investment or decision.
Any and all the decisions taken by any third party as a result of the information, materials or reports contained in this document are the sole and
exclusive risk and responsibility of that third party, and Gamesa Corporación Tecnológica, S.A. shall not be responsible for any damages derived from
the use of this document or its content.
This document has been furnished exclusively for information purposes, and it must not be disclosed, published or distributed, partially or totally,
without the prior written consent of Gamesa Corporación Tecnológica, S.A.
In the event of doubt, the Spanish language version of this document will prevail."
29
January-March 2016 Results
Q&A
Muchas Gracias
Obrigado
Thank you
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