Strong financial performance delivered

Strong financial performance delivered Marika Fredriksson, Executive Vice President & CFO London, 21 June 2016 Classification: Public

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; (l) supply of components from suppliers and vendors; and (m) customer readiness and ability to accept delivery and installation of products and transfer of risk. 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 2015 (available at vestas.com/investor) 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 CMD 2016 - Finance Classification: Public

Profitable Growth for Vestas Vestas has delivered strong financial results since the launch of the strategy 2½ years ago Market leader in revenue Revenue, 2015 bneur To be the undisputed global wind leader 8.4 Market leader in revenue Best-in-class margins Strongest brand in industry Bringing wind on a par with coal and gas 5.7 4.5 4.2 Deliver best-in-class wind energy solutions and set the pace in the industry to the benefit of Vestas customers and the planet Vestas Peer 1 Peer 2 Peer 3 Grow profitably in mature and emerging markets Capture the full potential of the service business and best-in-class margins Reduce levelised cost of energy (LCOE) EBIT margin, 2015 percent Improve operational excellence 10.2 10.1 8.4 Accountability, Collaboration, and Simplicity 5.2 Vestas Peer 1 Peer 2 Peer 3 Note: Peer data subject to public availability. 3 CMD 2016 - Finance Classification: Public

Agenda CMD Capital Markets Day, 21 June 2016 1. Is stability the new normal for Vestas? 2. Balance Sheet and Capital Structure reflections 3. Summary and questions & answers 4 CMD 2016 - Finance Classification: Public

Vestas business model has diversified over the last 5 years With strong positions in each of the three main business areas, Vestas is well positioned to reap the benefits of a more stable market situation Wind turbines Services MHI Vestas Offshore Wind Long-term PTC visibility. German energy law approved. RE targets in place or increasingly coming so. EMs establishing framework policies around REs. Order backlog: EUR 8.6bn*. Stable business with high profitability. Market for services expected to continue to grow. Installed base is only getting bigger. Order backlog: EUR 9.4bn*. JV on track and according to plan. Controlled ramp-up. Impeccable cooperation. Satisfactory exposure to promising offshore market. Announced firm orders ~1.2GW * As of Q1 2016. 5 CMD 2016 - Finance Classification: Public

Turbine business supported by broad-based demand Although fluctuating somewhat, turbine revenues have been increasing over time, supported by a diversified market footprint, second to none in the industry Project revenue meur 7,285 5,115 6,330 5,130 5,946 Order intake 2015: 8,943 MW 34 countries 5 continents 2011 2012 2013 2014 2015 6 CMD 2016 - Finance Classification: Public

Service business continues to contribute with stability Strong growth in service revenue, supported by sale of new turbines and the largest installed base in the industry Onshore service revenue meur 1,138 659 825 889 949 Installed base: > 75 GW 75 countries 6 continents 2011 2012 2013 2014 2015 7 CMD 2016 - Finance Classification: Public

MHI Vestas Offshore Wind: performance according to plan Solid order intake and continued strong performance of the existing fleet provide a firm base for the years ahead. Extensive V164 start-up costs expected to offset increased revenue in 2016. Key messages 2015/16 Solid order intake. Maturing V164-8.0 MW technology. Preparing extensive ramp-up of manufacturing. Ensuring strong performance of existing installed base. First year with extensive D&A on V164-8.0 MW. Outlook Activity level will continue to increase with factories ramping up for first offshore V164 project. Execution of existing V112 3 MW turbine and service order backlog. Increased activity level expected to result in higher revenue earnings to decline due to extensive start-up costs for V164 introduction. 8 CMD 2016 - Finance Classification: Public

JV net income not expected short term to absorb 8 MW ramp-up Quarterly fluctuations will remain. V164 start-up costs expected to negatively impact the JV in 2016. Income from investments accounted for using equity method meur Key takes: -2-17 -19 Q2 2014 4-11 -8 Q3 2014 2-6 -5 Q4 2014 Vestas share of JV profit 5 2 3 Q1 2015 26 6 20 Q2 2015 13 1 12 Q3 2015-10 0-10 Q4 2015 Effect of ToR difference in sale of 3 MW turbines to JV -19 0-19 Q1 2016 Vestas share of JV profit: Extensive start-up costs related to V164 will have a negative impact on the overall profit in the JV more than offsetting the expected higher revenue in 2016. Effect of ToR difference in sale of 3 MW turbines to JV: Dependent on ToR timing differences of Nobelwind, 165 MW (3 MW, expected Vestas ToR in 2016/17); and Rampion, 400 MW (3 MW, expected Vestas ToR in 2017); and potential new 3 MW offshore orders. 9 CMD 2016 - Finance Classification: Public

Agenda CMD Capital Markets Day, 21 June 2016 1. Is stability the new normal for Vestas? 2. Balance Sheet and Capital Structure reflections 3. Summary and questions & answers 10 CMD 2016 - Finance Classification: Public

Net Working Capital a key enabler in balance sheet journey Impressive NWC development which has been stabilising in current high-activity environment Net working capital meur Key takes: 672 Main cash conversion cycle opportunities: 317 233 Lower MW under completion. Better payment terms. (71) Lower inventory. Reduce lead times. (596) (957) (1,068) (1,383) FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 11 CMD 2016 - Finance Classification: Public

Cash increasingly generated by earnings Cash generation increasingly driven by operations in recent years, signalling longer term ability to sustainably generate cash Net debt to EBITDA EBITDA Change in net cash meur 1.8 1.9 < 1.0 260 (285) 484 1,411 1,075 397 (425) (188) 2,270 (0.1) 829 239 (23) 86 866 (1.5) (1.9) 900 419 2011 2012 2013 2014 2015 Net debt to EBITDA before special items, last 12 months Net debt to EBITDA, financial target Net cash YE12 CFFO before NWC NWC Investments Others Net cash YE13 CFFO before NWC NWC Investments Others Net cash YE14 CFFO before NWC NWC Investments Others Net cash YE15 Key takes: Leverage ratio far below the limit of 1 times EBITDA at any point in the cycle due to the strong net cash position. Strong cash generation from operations in 2015, payment of dividends for the first time in 12 years and the first ever share buy-back programme conducted in November-December 2015. 12 CMD 2016 - Finance Classification: Public

Solvency ratio a key metric in conservative capital structure Solvency ratio currently the more limiting factor in the re-distribution of cash Solvency ratio Percent Solvency ratio Percent/Percentage points 36 34 33.5 34.0 35.0 34.0 (1.1) 0.3 (1.1) 33.8 35.0 32 30 33.8 30.0 4.6 (4.0) 5.7 30.0 28 26 27.0 27.0 (2.2) 4.5 24 22 23.3 23.3 0.4 (0.9) 4.2 2011 2012 2013 2014 2015 Solvency ratio Solvency ratio, financial target range YE12 WC Liab Net profit Other YE13 WC Liab Net profit Other YE14 Dividend WC Liab Net profit Other Share buy-back YE15 Key takes: Solvency ratio is seen as a strong business enabler, as it is an easy to understand metric in customer discussions. A strong solvency ratio and credibility as it relates to maintaining a trustworthy capital structure policy is what enables improved flexibility, terms and conditions and gives better access to favourable credit and bonding facilities. 13 CMD 2016 - Finance Classification: Public

Risk-averse customers are still requiring certainty and hence, contingent obligations such as e.g. guarantees continue to play a role 1 Quotation/offer 2 Signing of contract 3 First shipment / delivery on site 4 Taking over Types of guarantees 1 Bid bond 2 Advance payment bond 3 Performance bond 4 Warranty bond Before shipment of wind turbines to the site After delivery of the first wind turbine to the site 14 CMD 2016 - Finance Classification: Public

The need for credit facilities has not vanished Vestas credit and bonding facilities are being utilised to support ongoing business operations Credit and bonding facilities, year end 2015 meur Amount Drawn Available Expiry Main credit facilities* 1,050 92 958 2021 Other credit facilities* 397 251 146 2017 First of two options to extend the final maturity by 1 year was exercised in May 2016. Final maturity now 3 June 2021. Corporate bonds 500 500 0 2022 Total credit facilities 1,947 843 1,104 Main credit facility consists of a EUR 1,050m revolving credit and bonding facility with a strong banking group: * The drawn amount is not cash but related to issuance of bonds. 15 CMD 2016 - Finance Classification: Public

Priorities for capital allocation In years without major extraordinary investments the total return to shareholders through dividends and share buy-backs may constitute the majority of the FCF Mid-term ambitions: Capital structure targets: Double-digit ROIC FCF 0 Net debt to EBITDA < 1.0x Solvency ratio = 30-35% Organic growth Acquisitions Dividend Share buy-back Investments. R&D. Strong balance sheet to enable growth. Bolt-on acquisitions (not building war chest for major acquisitions). 25-30% of the net result of the year after tax. Pay-out during H1 given AGM approval. From time to time to adjust capital structure. IF relevant launch during H2 based on realised FCF performance. Dividends Share buy-backs time H1 H2 16 CMD 2016 - Finance Classification: Public

Agenda CMD Capital Markets Day, 21 June 2016 1. Is stability the new normal for Vestas? 2. Balance Sheet and Capital Structure reflections 3. Summary and questions & answers 17 CMD 2016 - Finance Classification: Public

Summary 1 2 3 With strong positions in each of the three main business areas, wind turbines, service and offshore, Vestas is well positioned to reap the benefits of a more stable market situation. A strong balance sheet and credibility as it relates to maintaining a trustworthy capital structure policy is a strong business enabler. In years without major extraordinary investments the total return to shareholders through dividends and share buy-backs may constitute the majority of the FCF. 18 CMD 2016 - Finance Classification: Public

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