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New Group President & CEO

Aarhus, 21 August 2013

Agenda

2

Introduction Bert Nordberg

New Group President & CEO as per 1 September 2013

Questions and answers Bert Nordberg

Second quarter of 2013

Marika Fredriksson

Marika Fredriksson

Marika Fredriksson

Marika Fredriksson and Lars Villadsen

1. Introduction

2. Financials

3. Order intake and outlook

4. Questions and answers

New Group President & CEO as per 1 September 2013

3

Anders RunevadNationality:

Education:1980-1984 Master of Science in Electrical Engineering,

University of Lund (Sweden)

2010-2013 President, Region West & Central Europe, Ericsson (United Kingdom)

Former management positions:

2006-2010 Director of the Board and Executive Vice President, Sony Ericsson (United Kingdom)

2004-2006 President, Ericsson Brazil(Brazil)

2000-2004 Vice President, Sales and Marketing, Business unit Networks (Sweden)

1996-2000 President, Ericsson Singapore(Singapore)

1991-1996 Product Manager to Director Product management, Ericsson (Sweden)

1989-1991 Product Manager, Ericsson-General Electric USA (USA)

Swedish

New Group President & CEO

1985-1989 MBA studies, University of Lund(Sweden)

Questions & answers

Second quarter of 2013The two-year turnaround continues – free cash flow outlook upgraded to at least EUR 200m

Aarhus, 21 August 2013

Agenda

6 Second quarter of 2013


1. Introduction

2. Financials

3. Order intake and outlook

4. Questions and answers

Marika Fredriksson

Marika Fredriksson

Marika Fredriksson

Marika Fredriksson and Lars Villadsen

This presentation contains forward-looking statements concerning Vestas' financial condition, results ofoperations 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 onmanagement’s current expectations and assumptions and involve known and unknown risks and uncertaintiesthat could cause actual results, performance or events to differ materially from those expressed or implied inthese statements.

Forward-looking statements include, among other things, statements concerning Vestas' potential exposure tomarket risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projectionsand assumptions. There are a number of factors that could affect Vestas' future operations and could causeVestas' results to differ materially from those expressed in the forward-looking statements included in thispresentation, including (without limitation): (a) changes in demand for Vestas' products; (b) currency and interestrate 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 andfinancial market conditions in various countries and regions; (g) political risks, including the risks of expropriationand renegotiation of the terms of contracts with governmental entities, and delays or advancements in theapproval 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 andability to accept delivery and installation of products and transfer of risk.

All forward-looking statements contained in this presentation are expressly qualified by the cautionarystatements contained or referenced to in this statement. Undue reliance should not be placed on forward-lookingstatements. Additional factors that may affect future results are contained in Vestas' annual report for the yearended 31 December 2012 (available at vestas.com/investor) and these factors also should be considered. Eachforward-looking statement speaks only as of the date of this presentation. Vestas does not undertake anyobligation to publicly update or revise any forward-looking statement as a result of new information or futureevents 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.

Disclaimer and cautionary statement

7 Second quarter of 2013

Introduction

New organisation and operating business model

New organisation

and operatingbusiness

model

Advancedwind turbine technology

Efficient manufac-turing of wind turbines

Sale and service of wind power plants

Improve capacityutilisation

Three core focus areas

ReducecostsI Reduce

investmentsII

III

III

II

I Reduce costs through operational excellence.

Reduce investments through asset-light solutions and simplified product roadmap.

Improve capacity utilisation and capital efficiency through divestments, supply to third parties and NWC management.

9

Vestas’ operating business model

Focus on turnaround through the new operating business model continues


Fixed cost savings

10

First half 2013 reduction of 525 employees

Employees, end of periodNumber of employees

I

243

H1 2013

17,253

Hourly paid employees

FY 2012

17,778

Salaried employees

(768)

The reduction of salaried employees of 768 in the first half year of 2013 contributes to fixed cost savings.

The increase of 243 hourly paid employees in the first half year of 2013 is activity based and primarily constitutes of insourcing of service technicians in Germany and ramp -up at the tower factory in Pueblo, USA.


Lower capexLast 12 months’ net investments lowered to EUR 220m

Net investments, last 12 monthsmEUR

220232

286

484

575

688

761740

791

Q2*2011

-62%

Q1*2013

Q4*2012

Q3*2012

Q2*2012

Q1*2012

Q4*2011

Q3*2011

Q2*2013

11

• Last 12 months’ net investment have been lowered by 62 per cent compared to one year ago.

• No new factories.• Low R&D investments despite V164-

8.0 MW development and new 3 MW wind turbine variants.

II

*12-month rolling net investments.


Capital efficiency and capacity utilisation

12

Improved net working capital during Q2 2013

Operational driversStrategic leavers

Net working capital


III

Assets held for sale

Improved cash collection has driven down receivables.

Sale of own wind power plant.

Still room for improvement in MW under completion. 2,014 MW under completion end Q2 2013.

Tower factory, Pueblo, USA: Activity level in the North American market is expected to result in full capacity utilisation in 2014. Decision to sell has been reversed.

Machining and casting units: Vestas’ ongoing negotiations with potential buyers for machining and casting units classified as assets held for sale indicate a lower value. Hence, these units were further written down in Q2 2013.

(56)

197 233

481

330

20

Q12012

Q22013

Q12013

Q42012

Q32012

Q22012

Financials

Shipments and deliveries

Produced and shippedMW

14

Shipments and deliveries decreased by 47 and 33 per cent, respectively

-47%

Q22013

1,144

Q12013

613

Q42012

1,464

Q32012

1,616

Q22012

2,160

Q12012

931

Q42011

1,478

Q32011

1,525

Q22011

1,417

Europe and AfricaAmericasAsia Pacific

Shipments by region Deliveries (TOR*) by region

• Delivery (TOR*) amounted to 877 MW in Q2 2013 – a decrease of 33 per cent.

• Poland, China, Romania and Canada drove deliveries in Q2 2013.

• Shipments amounted to 1,144 MW in Q2 2013 – a decrease of 47 per cent compared to the very busy Q2 2012.

• The decrease is primarily driven by lower shipments in Americas.

Deliveries (TOR*)MW

*Transfer of risk.

-33%

Q22013

877

Q12013

819

Q42012

2,160

Q32012

1,464

Q22012

1,307

Q12012

1,108

Q42011

1,956

Q32011

1,270

Q22011

1,127

Europe and AfricaAmericasAsia Pacific


Income statement

*R&D, administration and distribution

15

mEUR Q2 2013 Q2 2012 Change FY 2012

Revenue 1,185 1,611 (426) 7,216

Cost of sales (1,016) (1,363) 347 (6,420)

Gross profit 169 248 (79) 796

Fixed costs* (157) (208) 51 (792)

EBIT before special items 12 40 (28) 4

Special items (21) (22) 1 (701)

EBIT after special items (9) 18 (27) (697)

Net profit/(loss) (62) (8) (54) (963)

Gross margin 14.3% 15.4% (1.1)%-pts 11.0%

EBITDA margin before special items 9.6% 10.0% (0.4)%-pts 6.6%

EBIT margin before special items 1.0% 2.5% (1.5)%-pts 0.1%

• EBIT before special items decreased by EUR 28m.

• Q2 2013 special items driven by writedowns.

• EBIT margin decreased by 1.5 percentage points.

Q2 2013

• Gross profit decreased due to lower activity level and lower project margins, partly offset by lower capacity costs and lower depreciation.


EBIT development Q2 2013 vs Q2 2012

16

EBIT Q2 2013 vs Q2 2012mEUR

EBIT decreased by EUR 28m in Q2 2013 compared to Q2 2012 driven by:

• Lower project volume and lower project margins compared to the quite strong Q2 2012.

• However, this is partly offset by fixed capacity cost savings, lower depreciation and amortisation and growing service activity.

12

40

Service margin

1

Service volume

8

Warranty provisions

10

Project margin

(40)

Project volume

(95)

Q2 2012EBIT

D&A

69

19

Fixed capacity

costs

Q2 2013 EBIT

EBIT still positive despite significant decrease in activity


EBIT development Q2 2013 vs Q1 2013

17

EBIT Q2 2013 vs Q1 2013mEUR

• EBIT improvement of EUR 120m in Q2 2013 compared to Q1 2013 primarily driven by improved project margins of EUR 94m.

12 (6) 10

Q2 2013 EBIT

D&AFixed capacity

costs

Service margin

9

Service volume

10

Project margin

94

Project volume

3

Q1 2013EBIT

(108)

Project margins improved significantly compared to Q1 2013


Reduction of employee costs

2013 Q2

-24%

2013E

<16,000

17,253

2012 FY

17,778

2011 FY

22,721

• Maximum 16,000 employees by year-end 2013 despite keeping and ramping-up the US tower factory.

• Employee reductions in H2 2013 of at least 1,253through divestments of machining and casting (approx 1,000) employees, continuation of hiring freeze and layoffs.

• Number of employees will be scaled up and down depending on activity level.

18

Employees, end of periodNumber of employees

Employee reductions in 2013 of approx 1,800


Fixed costs*

19

Fixed costs* excluding D&AmEUR

140

160

135

155

130

145

95

90

135

Q22011

Q32011

156

Q42011

145

Q12012

141

Q22012

121

Q32012

114

Q42012

101

Q12013

93

125

120

150

110

105

100

Q22013

-63

0

5

85

154

115

• Headcount reductions is the major contributor to fixed costs savings.

• Note: Part of the more than EUR 400m of cost savings impacts cost of sales.

*R&D, administration and distribution.

Fixed costs excluding depreciation and amortisation continue to trend down


Service

• Service revenue increased by 10 per cent compared to Q2 2012.

• Q2 2013 EBIT before allocation of Group costs: EUR 73m. Margin: 29 per cent vs 26 per cent in Q2 2012.

• Q2 2013 EBIT after allocation of Group costs: EUR 53m. Margin: 21 per cent vs 17 per cent in Q2 2012.

• Around 5,000 employees in the service business.

20

Service revenuemEUR

250

217223233

227

203203

160169173169

149159

Q32012

Q22012

Q12012

Q42011

Q32011

Q22011

Q12011

Q42010

Q32010

Q22010

+10%

Q22013

Q12013

Q42012

Satisfactory development continues


Balance sheet

21

Assets (mEUR) Q2 2013 Q2 2012 Change FY 2012

Intangible assets 989 1,233 (244) 1,016

Property, plant and equipment 1,306 1,869 (563) 1,286

Other non-current assets 187 445 (258) 179

Non-current assets 2,482 3,547 (1,065) 2,481

Current assets 3,537 5,229 (1,692) 4,360

Non-current assets held for sale 21 0 21 131

Total assets 6,040 8,776 (2,736) 6,972

Liabilities (mEUR) Q2 2013 Q2 2012 Change FY 2012

Equity 1,375 2,438 (1,063) 1,622

Non-current liabilities 1,168 1,790 (622) 1,652

Current liabilities 3,497 4,548 (1,051) 3,698

Total equity and liabilities 6,040 8,776 (2,736) 6,972

Net debt 779 1,147 (368) 900

Net working capital (56) 330 (386) 233

Solvency ratio (%) 22.8% 27.8% (5.0)%-pts 23.3

• Net debt decreased by EUR 368m over the last year.

Q2 2013

• Negative NWC: An improvement of EUR 386m over the last year.

• Vestas’ non-current assets and equity decreased compared to Q2 2012 primarily driven by write-downs recognised over the past 12 months.


Assets held for sale

22

Assets held for salemEUR

Sale of tower factory, Pueblo, USA, has been reversed: Due to expected full capacity utilisation in 2014, the writing down of the factory in 2012 was partially reversed by EUR 25m and reclassified to property, plant and equipment.

Machining and casting units: Vestas’ ongoing negotiations with potential buyers for machining and casting units classified as assets held for sale indicate a lower value. Hence, these units were further written down by EUR 42m in Q2 2013.

25

(98)

(42)

21

136

Reclass. of US tower factory no

longer held for sale

Reversal of writedowns on US tower

factory

Q1 2013assets held

for sale

Q2 2013assets held

for sale

Further writing down of machining and casting

units

Change in the value of assets held for sale


• Decrease in inventories partly offset by lower prepayments and payables.

• Prepayments impacted by lower order intake.

Change in net working capital

*Construction contracts in progress.

NWC decrease over the last 12 months NWC improvement during Q2• Lower receivables due to improved cash collection.

• Higher payables only partly offset by higher inventories.

NWC change over the last 12 monthsmEUR

NWC change over the last three monthsmEUR

23

330

NWC endQ2 2012

NWC endQ2

2013

(56)

Other liabilities

(15)

Payables

543

Pre-payments

635

Inventories

(1,300)

CCP*

45

Receiv-ables

(294)

75

197

Pre-payments

Inventories

25

CCP*

(9)

Receiv-ables

(191)

NWC endQ1 2013

(115)

(56)

Other liabilities

(38)

Payables NWC endQ2

2013

Improved net working capital


Warranty provisions and Lost Production Factor

Warranty provisions and consumption Lost Production Factor (LPF)

• Warranty provisions made in Q2 2013 amounted to EUR 23m.

• Warranty consumption in Q2 2013 amounted EUR 28m i.e. EUR 5m lower than in Q2 2012.

• Warranty consumption constitutes less than 1.5 per cent of revenue over the last 12 months.

• End Q2 2013: LPF remains below 2 per cent.

• LPF measures potential energy production not captured by the wind turbines.

Warranty provisions made and consumedmEUR

Lost production factorPercentage

24

2323

14

3933

6258

3429 28

1718

3833

30

43

51

40

Q22013

Q12013

Q42012

Q32012

Q22012

Q12012

Q42011

Q32011

Q22011

-15%

Provisions consumedProvisions made

Warranty consumption and LPF continue at a low level


0

1

2

3

4

5

Dec 2012

Dec 2011

Dec 2010

Dec 2009

Jan 2009

Cash flow statement

25

mEUR Q2 2013 Q2 2012 Change FY 2012

Cash flow from operating activities before change in working capital 7 48 (41) 231

Change in working capital 254 (310) 564 (304)

Cash flow from operating activities 261 (262) 523 (73)

Cash flow from investing activities (64) (76) 12 (286)

Free cash flow 197 (338) 535 (359)

Cash flow from financing activities (274) 521 (795) 832

Change in cash at bank and in hand less current portion of bank debt (77) 183 (260) 473

• Free cash flow increased by EUR 535m to EUR 197m in Q2 2013.

Q2 2013


Net debt to EBITDA

Net debt to EBITDA×EBITDA

26

1.5

1.81.9

1.8

-0.1

Q22013

Q12013

FY2012

FY2011

FY2010

0.8

FY2009

-0.3

FY2008

Net debt to EBITDA before special items, last 12 months

Net debt to EBITDA at 1.5 and net debt reduced


779

972900

1,287

1,147

850

-32%

Q22013

Q12013

Q42012

Q12012

Q32012

Q22012

Net debtmEUR

Return on invested capital

Return on invested capital* (ROIC)Percentage

ROIC will increase by:• Improved earnings through

cost reductions, growth in service business and higher capacity utilisation.

• Better capital efficiency through capex-light solutions, improved net working capital and expected divestments.

27

6%

Q12013

4%

2%

0%

(2)%

Q42011

(4)%

(6)%Q2

2013Q3

2012Q4

2012Q2

2012Q1

2012

EBIT margin before special items, last 12 monthsROIC, last 12 months

* Invested capital includes net working capital, PPE and intangibles.

ROIC still at an unacceptable level


Order intake and outlook

Wind turbine order intake

Improved wind turbine order intake

• Q2 2013 order intake was 74 per cent higher than in Q2 2012.

• Global footprint and strong offering secure orders in different markets.

Order intakeMW

Average selling price of order intakemEUR per MW

Price per MW

• Price per MW increased by 9 per cent compared to Q2 2012.

• Price per MW depends on a variety of factors i.e. wind turbine type, geography, scope, uniqueness of offering.

• New products are higher priced per MW, but carry higher costs than more mature products.

29

1,641

644

1,123

401

945

1,269

3,186

1,316

2,265+74%

Q12013

Q42012

Q32012

Q22012

Q12012

Q42011

Q32011

Q22011

Q22013

1.041.091.07

1.000.95

1.021.040.910.93

+9%

Q12013

Q42012

Q32012

Q22012

Q12012

Q42011

Q32011

Q22011

Q22013

Vestas’ global footprint and strong offering secure orders


Backlog: Wind turbinesQ2 2013: Wind turbine backlog grew by EUR 0.1bn to EUR 7.1bn

30

Wind turbines:

EUR 7.1bn


• Due to uncertainty about a few customers’ ability to comply with the contractual obligations, Vestas has resolved to lower the backlog value by EUR 0.4bn.

• Approx half of the amount relates to a specific customer in Vestas Central Europe.

• This does not change the 2013 and 2014 delivery plan.

• Furthermore, the order backlog has been negatively impacted by EUR 0.2bn due to currency fluctuations during Q2 2013.

Backlog: ServiceQ2 2013: Service backlog grew by EUR 0.5bn to EUR 5.9bn

31

Service:

EUR 5.9bn


EUR 0.5bnGrowth in service order backlog

compared to Q1 2013

>7 yearsAverage length of service contracts

in the backlog

76 %Renewal rate in Q2 2013

Outlook 2013

32

Outlook

Shipments (GW) 4-5

Revenue (bnEUR) Min. 5.5

- of which service revenue (bnEUR) ~1

EBIT margin before special items (%) Min. 1

EBIT margin, service before allocation of Group costs (%) ~17

Free cash flow (mEUR) Min. 200

• Vestas expects to see deliveries, revenue and earnings peak in the fourth quarter.

• Based on the current delivery plan, margins on the delivered projects are expected to be higher in the fourth quarter than in the third quarter.

• Based on a strong foothold and a pick-up in market growth in the USA, Vestas expects to see a significant US order intake in the second half of 2013.

• There are no plans to invest in new production facilities, and thus investments in property, plant and equipment are expected to be around EUR 150m.

Free cash flow upgraded to at least EUR 200m


Questions & answers

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