Flender/Flender Gear Units/Helical gear box H4
expand the market for offshore wind powerin Sweden. In spring 2, five NM 2/7turbines will be erected in demonstrationproject at

Yttre Stengrund near Gotland. Italy did not fulfil the expectations of the Group in 2. However, the market shows agreat

potential, and Italy is considered to be afuture core market for NEG Micon. Investments in Italy have been initiated with

view to capturing satisfactory share of thisattractive market for the Group in the future. The other markets in the geographical

area covered by the division have lived up to theGroups relatively modest expectations. Anumber of these markets - including Poland, Turkey and Greece - are currently distinguis-hed by remarkably high level of activity. TheGroup expects that these countries will devel-op into important markets in the future. Market Division Germany Market Division Germany contributed to theexpected turnover and profits on the basis ofa market that developed as expected. From the start of the year, this market was distinguished by reticence, as the new legis-lation - Erneubarer Energi Gesetz - was onlyadopted in April. The result of this legislationwas positive for the market, and gavegrounds for renewed growth. On this basis, NEG Micon expects that the German market will stabilise at its currentlevel. With the right incentives, there may beconsiderable potential for repowering. During the past year, NEG Micon entered into number of key framework agreements withleading project developers. This supports thebelief that Germany will continue to be coremarket for NEG Micon in years to come.The German market is marked by the fact thatcustomers focus increasingly on creating volume in the orders. For this reason, frame-work agreements are becoming increasinglycommon in this market. At the same time, the largest German developers are increasingly demonstratinginternational ambitions, and there is muchevidence to suggest that the internationallyoriented German developers are on their wayto becom