Ivan Brems, Hansen Transmissions’s chief executive officer, commented:

“Despite considerable economic turmoil during the year, Hansen has achieved significant progress. In the wind gearbox business, we have outperformed the overall wind market with 52% revenue growth. This success was driven by a solid first year of operations at the expanded factory in Lommel, Belgium. The delivery of our first gearboxes from the new factories in India and China has set the foundation for Hansen to build a strong position in these growth regions.”

Outlook

The Company remains confident in the projected medium and long term growth prospects of the international wind power market. Hansen’s strong product offering and the quality of its customer base ensure that the Company remains well positioned in this market.

The Company expects that the volume and pricing pressure resulting from the difficulties experienced in the credit markets will continue to cause volatility in 2009.

Revenue growth was 45% in the financial year 2009, compared to the prior financial year 2008. Revenue growth in the last quarter of the financial year 2009 was 7%, against the same quarter last financial year. This resulted from Hansen working together with its customers to manage their requirements.

Net profit in the last quarter of financial year 2009 was impacted by a higher tax charge compared to the previous year. In the fourth quarter of financial year 2008, Hansen booked EUR20 million tax deductible IPO-costs under Belgian Accounting rules.

In the financial year 2009, Hansen incurred one-time costs of EUR5.7 million relating to expansion projects compared to EUR3.5 million in the financial year 2008. These costs are included in EBITDA and EBIT.

The total investment in property, plant and equipment for the financial year 2009 was EUR221.6 million, mainly related to the new plants in India and China.

Market update

In 2008, new installations of wind energy worldwide reached around 28.000 MW, representing a 42% increase in cumulative installations over 2007. Current forecasts by BTM (Source: BTM Consult Aps “International Wind Energy Development – World Market Update 2008” – March 2009) indicate an average annual growth rate of around 18% until 2013, with an annual additional capacity installed in 2013 of around 60.000 MW.

Hansen’s Position

The Company has a dedicated and fully integrated production plant in Lommel, Belgium, which is designed to manufacture large pieces in serial production with a consistently high level of quality and reliability.

Through its expansion projects in India and China, Hansen is closely following the investment initiatives of its customers. In addition to providing proximity to the world’s fastest growing markets, this also gives Hansen access to low cost production countries.

Industrial Gearboxes

In the traditional heavy industrial markets, such as mining, power generation and water treatment, orders remained strong in the first half of last financial year. The outlook for industrial gearboxes weakened in the second half of the financial year 2009 as a result of the global impact of the financial crisis on capital goods investments. Over the year, this activity has seen a solid revenue growth of 15% to EUR94 million.

Hansen’s industrial gearboxes business is increasingly focusing on the development of close customer relationships, complementing its high quality product range with excellent service.

Manufacturing units

In the last three years, Hansen has invested in three dedicated wind turbine gearbox plants in Belgium, India and China resulting in an increase of its manufacturing capacity to 7,300 MW over the financial year 2009.

Belgium – Lommel

In April 2008, the Company completed the expansion of its Lommel plant in Belgium, which commenced in October 2006 from 2,200 MW to 6,000 MW manufacturing capacity per year from April 2008 onwards. Combined with capacity in the Edegem plant in Belgium, this creates today a total manufacturing capacity in Belgium of 7,100 MW.

India – Coimbatore

The first wind turbine gearbox was delivered from the Indian factory in September 2008. In August of 2007 Hansen began the construction of a fully integrated manufacturing plant for wind turbine gearboxes in Coimbatore. This project consists of a new factory with a product range of gearboxes up to 3 MW. The annual manufacturing capacity is anticipated to reach 1,200 MW in financial year 2010 and 2,000 MW in financial year 2011. The Company has already invested EUR162 million in this plant and has hired 400 employees in India.

China – Tianjin

The first wind turbine gearbox was delivered from the Chinese factory in March 2009. In September 2008, Hansen began the construction of a fully integrated manufacturing plant in the Beichen Hi-tech Industrial Park in Tianjin. The Company has so far invested EUR51 million and the annual manufacturing capacity is anticipated to reach 1,600 MW in financial year 2010 and 2,000 MW in financial year 2011. In its first phase, the Tianjin factory will perform assembly and testing activities with imported components.

US

The Company sees a strong base for medium- to long term growth in North America with the stated plans from the new US Government for renewable energy expansion, as well as several European wind turbine manufacturers setting up local factories. This presents an attractive opportunity for Hansen to widen its geographic footprint and to continue meeting the needs of its customers.

Hansen will start in the financial year 2010 with a service centre for wind turbine gearboxes in the US. In parallel, the Company will continue to evaluate production opportunities in North America.

Increased Capacity

The Company increased its sales in wind turbine gearboxes from 4,208 MW in the financial year 2008 to 5,956 MW in the financial year 2009. The average price per MW increased in the financial year 2009 to EUR86,400 per MW, from EUR81,000 in the previous year, mainly driven by the change in sales mix to higher value products and after market activities.

Hansen’s raw materials costs remained stable as a percentage of revenue at 53.0%.

Hansen’s direct labour costs as a percentage of revenue decreased to 5.7% for the financial year 2009, compared to 6.1% in the financial year 2008. This decrease was due to increased efficiency in the use of labour at the Lommel plant in Belgium as the Company increased production at this facility.

Finance and administrative costs

Finance and administrative costs increased from 4.9% in financial year 2008 to 6.1% in the financial year 2009. This resulted from costs linked to additional requirements as a public company and the general costs at the Indian and Chinese facilities.

Cost Control Plan

The financial crisis has impacted Hansen’s customers triggering requests to reschedule orders with Hansen. The Company has reviewed each case and has accommodated requests where appropriate, in view of strengthening its long term customer relationships.

The Company believes that in the short term economic conditions will remain volatile and challenging.

Balance Sheet

Inventories have increased to EUR209 million at March 31, 2009, from EUR136 million at March 31, 2008. This increase is driven by 1) the build up of security stock of critical components such as bearings, which were subject to an irregular supply in 2007 and in 2008, 2) the build up of components inventory for the new factories in India and China, 3) the rescheduling of orders in the last quarter of financial year 2009. Accounts receivables have increased to EUR182 million at March 31, 2009, from EUR88 million at March 31, 2008. This increase is caused by 1) overdue customer payments and 2) important year-end delivery of products, both in industrial and wind turbine gearboxes.