First half and second quarter 2011

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1 First half and second quarter 2011 Fierce competition in a very fragile world 7 August 2011 The London Marriott West India Quay Hotel London 17 August 2011 The London Marriott West India Quay Hotel London

2 Disclaimer and cautionary statement This presentation contains forward-looking statements concerning Vestas' financial condition, results of operations and business. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning Vestas' potential exposure to market risks and statements expressing management s expectations, beliefs, estimates, forecasts, projections and assumptions. There are a number of factors that could affect Vestas' future operations and could cause Vestas' results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) changes in demand for Vestas' products; (b) currency and interest rate fluctuations; (c) loss of market share and industry competition; (d) environmental and physical risks; (e) legislative, fiscal and regulatory developments, including changes in tax or accounting policies; (f) economic and financial market conditions in various countries and regions; (g) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, and delays or advancements in the approval of projects; (h) ability to enforce patents; (i) product development risks; (j) cost of commodities; (k) customer credit risks; and (l) supply of components. All forward-looking statements contained in this presentation are expressly qualified by the cautionary statements contained or referenced to in this statement. Undue reliance should not be placed on forward-looking statements. Additional factors that may affect future results are contained in Vestas' annual report for the year ended 31 December 2010 (available at and these factors also should be considered. Each forward-looking statement speaks only as of the date of this presentation. Vestas does not undertake any obligation to publicly update or revise any forward-looking statement as a result of new information or future events others than required by Danish law. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. 2 First half and second quarter 2011

3 Key points Activity level increased as planned. Better margins due to activity level and mix. Free cash flow improved. Fierce competition in a very fragile world. Guidance maintained. 3 First half and second quarter 2011

4 Agenda 1. First half and second quarter Order intake. 3. Guidance Questions & Answers. 4 First half and second quarter 2011

5 First half and second quarter 2011

6 Activity at Vestas Shipments MW Q vs. Q2 2010: Shipments up 141%. 1,456 1,626 1,417 H vs. H1 2010: Shipments up 110% Q1 Q2 Q3 Q4 Q1 Q First half and second quarter 2011

7 Deliveries to customers Deliveries MW 1,688 2,557 Q vs. Q2 2010: Deliveries up 34%. H vs. H1 2010: Deliveries up 25% ,127 Q1 Q2 Q3 Q4 Q1 Q First half and second quarter 2011

8 Profit and loss account First half breaks even EURm Q Q Change H H Change Revenue 1,401 1,032 36% 2,461 1,881 31% Cost of sales (1,153) (1,020) 13% (2,113) (1,768) 20% Gross profit ,967% % Fixed costs *) (171) (192) (11%) (340) (332) 2% Operating profit/(loss) 77 (180) - 8 (219) - Profit/(loss) for the period 55 (143) - (30) (182) Gross margin 17.7% 1.2% 14.1% 6.0% EBITDA margin 10.7% (9.8%) 6.1% (4.7%) EBIT margin 5.5% (17.4%) 0.3% (11.6%) *) Sum of research and development costs, selling and distribution expenses and administrative expenses. 8 First half and second quarter 2011

9 Fixed costs Fixed costs as per cent of revenue per cent 18.6% 16.5% 15.9% Effect of Q initiatives. Downward trend continues. 12.2% Relatively high fixed costs in Q % 6.3% Q Q Q Q Q Q First half and second quarter 2011

10 Net reduction in number of employees Employees Numbers at year-end / Q-end 20,829 20,730 23,252 22,216 21,700 15, Q Q First half and second quarter 2011

11 Net working capital meur H Q Change H Inventories 2,545 2,619 (3%) 4,135 Trade receivables % 470 Construction contracts in progress % 136 Other receivables % 238 Prepayment from customers (1,452) (1,457) (0.3%) (3,137) Trade payables (1,090) (936) 16% (873) Other current liabilities (252) (286) (12%) (314) Net working capital (4%) 655 As per cent of revenue 12% 13% 1 %-point 9% Net working capital to be further improved by reducing inventories and by higher order intake. 11 First half and second quarter 2011

12 Balance sheet Assets (meur) H Q1 H Change 2010 Change Intangible assets 1,145 1,095 5% % Property, plant and equipment 1,755 1,701 3% 1,705 3% Other non-current assets % 414 (30%) Current assets 3,954 3,924 1% 5,313 (26%) Total assets 7,144 7,009 2% 8,332 (14%) Equity and liabilities (meur) H Q1 H Change 2010 Change Equity 2,707 2,677 1% 2,372 14% Non-current liabilities 1,396 1,332 5% 1,228 14% Current liabilities 3,041 3,000 1% 4,732 (36%) Total equity and liabilities 7,144 7,009 2% 8,332 (14%) 12 First half and second quarter 2011

13 Cash flow statement Main lines meur Q Q H H Profit for the period 55 (143) (30) (182) Adjustment for non-cash transactions 69 (128) 146 (122) Corporation tax paid (25) 33 (32) (56) Interest received and paid (net) (11) (9) (25) (9) Cash flow from operating activities before change in working capital 88 (247) (59) (369) Change in working capital 38 (62) (200) (338) Adjustments for non-cash transactions are constituted by depreciation, exchange rate, interest, warranty provision and tax. Cash flow from operating activities 126 (309) (141) (707) Cash flow from investing activities (189) (202) (353) (351) Free cash flow (63) (511) (494) (1,058) Cash flow from financing activities First half and second quarter 2011

14 Warranty provisions and quality Warranty provision per cent of revenue Lost Production Factor per cent 6.6% 5.8% % % 2.3% 3 2 < 2.5% H First half and second quarter 2011

15 Sustainability Safety first Industrial injuries per one million working hours As green as it gets H1 15 First half and second quarter 2011

16 Order intake

17 The world is very fragile. 17 First half and second quarter 2011

18 Expected 2011 order intake Order intake MW Order intake 2011 MW split on geography 8,673 7,000-8,000 50% 6,019 25% 25% 3, E Europe Americas Asia Pacific 18 First half and second quarter 2011

19 Order intake Q1 and Q2 ~40 per cent of expected full-year order intake Order intake Q1 and Q2 MW Order intake Q1 and Q2 MW split on geography 2,265 46% 37% % China: Grid and liquidity constraints. Q1 Q2 Europe Americas Asia Pacific 19 First half and second quarter 2011

20 Order intake in Q3 and Q4 Order intake 2011 MW Mid-range 4,605 Order intake in Q3 and Q4 to be intensely backed by new products (V100 and V112). 3, , Q1 Q2 Q3 + Q4 20 First half and second quarter 2011

21 Valuable order intake to be created by competitive Cost of Energy offerings through our Products, Services, Global Presence and Quality. 21 First half and second quarter 2011

22 Our product platform It takes a variety of turbines to meet customers needs kw Platform 2 MW Platform 3 MW Platform 7 MW Platform High wind. Medium wind. Low wind. V52 V60 V80 V90 V100 V90 V100 V112 V164 Onshore. Offshore. 22 First half and second quarter 2011

Recent product launches More than 25 per cent of H1 2011 order intake constituted by V100 and V112.

23 Recent product launches More than 25 per cent of H order intake constituted by V100 and V112. Port of Sheerness, Kent (UK): Option secured, 70 hectares. Blade test facilities in operation on the Isle of Wight (UK). 23 First half and second quarter 2011

24 The V MW now in production Generators: Travemünde, Germany Nacelles: Ringkøbing, Denmark Blades: Lauchhammer, Germany Brighton, Colorado, USA 24 First half and second quarter 2011

25 Service and performance still more important to order intake Average length of service contracts on announced orders: 6.25 years (2008: 4 years) Service revenue meur per year per cent of all MW include service contracts E 25 First half and second quarter 2011

In the region for the region South American set-up, Brazil Sales office established in 2008. Assembly facility in 2011. Start of operations in Q4. Annual capacity of up to 800 MW.

26 In the region for the region South American set-up, Brazil Sales office established in Assembly facility in Start of operations in Q4. Annual capacity of up to 800 MW. Operations cluster responsible for: Service Centre Training Centre Supply Chain and Spare Parts Centre New facility is part of existing investment program. 26 First half and second quarter 2011

Key account customers Utilities with the

intake 1,500 MW firm + 600 optional 400 MW

>50% Europe >30% USA 26.04.2010 09.09.2010 30.

27 Key account customers Utilities with the power to invest is key to the 2011-order intake 1,500 MW firm optional 400 MW firm + 1,000 optional Share of Wallet: >50% Europe >30% USA First half and second quarter 2011

28 Firm and unconditional orders Order backlog MW split on geography ORDER BACKLOG: 55% 8.3 GW EUR 8.0bn 31% Order backlog constituted by firm and unconditional orders only. 14% Europe Americas Asia Pacific 28 First half and second quarter 2011

29 Guidance 2011

30 Please remember! Although nearly all orders for H2 are already firm and unconditional, the back-end loaded 2011 means that recognition of revenue and EBIT relies on smooth project execution in H2. 30 First half and second quarter 2011

31 Guidance 2011: Maintained, despite a very fragile world Order intake, firm and unconditional (MW) 7,000-8,000 Production and shipments (MW) 6,000 Revenue (meur) 7,000 - of which service revenue (meur) 700 EBIT margin (per cent) 7 EBIT margin service (per cent) 15 Financials, net (meur) (60) Tax rate (per cent) 28 Investments (meur) 850 Free cash flow (meur) > 0 Warranty provisions (per cent) < 3 Industrial injuries (per one million working hours) 5 Customer loyalty (index) 72 Share of renewable energy (per cent) 40 Share of renewable electricity (per cent) 95 Quality level (Sigma) 5 Revenue in Q on a par with revenue in Q First half and second quarter 2011

32 Cash generation Cash flow from operations of EUR 763m in H Cash flow from operations EURm 1, (200) (400) (600) (800) (1,000) Investments EURm Free cash flow The back-end loaded 2011 means heavy cash generation in Q First half and second quarter 2011

33 Revolving credit facility of EUR 1.3bn as of 1 July 2011 Nine participating banks in the new 5 (+1 +1) year facility: Commerzbank AG, DnB NOR Bank ASA, Nordea, HSBC, Rabobank, Royal Bank of Scotland, SEB, Unicredit and Société Générale. Considerable bilateral facilities on top of new revolving facility. Expected positive free cash flow in H gives comfortable headroom entering First half and second quarter 2011

34 Full year 2010 presentation, 9 February 2011 Uncertainty for 2011 still prevails. 34 First half and second quarter 2011

35 Financial Calendar 3 rd Quarter th Quarter November February 2012 Aarhus Denmark London United Kingdom 35 First half and second quarter 2011

36 Key points Activity level increased as planned. Better margins due to activity level and mix. Free cash flow improved. Fierce competition in a very fragile world. Guidance maintained. 36 First half and second quarter 2011

37 Q&A

Copyright Notice The documents are created by Vestas Wind Systems A/S and contain copyrighted material, trademarks, and other proprietary information. All rights reserved.

systems without the prior written permission of Vestas Wind Systems A/S.

38 Copyright Notice The documents are created by Vestas Wind Systems A/S and contain copyrighted material, trademarks, and other proprietary information. All rights reserved. No part of the documents may be reproduced or copied in any form or by any means - such as graphic, electronic, or mechanical, including photocopying, taping, or information storage and retrieval systems without the prior written permission of Vestas Wind Systems A/S. The use of these documents by you, or anyone else authorized by you, is prohibited unless specifically permitted by Vestas Wind Systems A/S. You may not alter or remove any trademark, copyright or other notice from the documents. The documents are provided as is and Vestas Wind Systems A/S shall not have any responsibility or liability whatsoever for the results of use of the documents by you. In case we have unintentionally violated copyrighted material, we want to be informed immediately in order to straighten things out and thus to honour any obligatory fees. 38 First half and second quarter 2011

Second quarter Vestas Wind Systems A/S. Aarhus, 20 August 2014

Second quarter Vestas Wind Systems A/S Aarhus, 20 August Disclaimer and cautionary statement This presentation contains forward-looking statements concerning Vestas' financial condition, results of operations