Circular Economy as a natural part of the companyKlaus Rønde, Quality, Safety and Environment, Vestas Wind Systems A/S

19 November 2018

Klaus Rønde, Global Business Partner for ServiceQuality, Safety & Environment

• Master in Science of Technology, Technical University of Denmark 2001

• Employeed at Vestas Wind Systems in 2001

• Worked at corporate level within in fields of• HSE management of Factories• HSE/Sustainability reporting and performance

management• Life Cycle Assessment• Auditing and Certification of Quality, Safety &

Environment• Integrated Management Systems • Business partner towards Vestas Service

21.11.2018Title (classification)2

Vestas in briefThe only global wind energy company

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We employ more than 24,300 people worldwide and have more than 35 years of experience with wind energy

+24,300We have a total of 40,228 combined turbines under service, or around 79 GW, producing ~ 210 TWhannually equallant to 51 million European households electricity consumption

+40,200We have more than 64,900 turbines or 94 GW of installed wind power capacity in 79 countries worldwide spanning six continents

+ 64,900Vestas’ revenue for Q1 2018 was EUR 2,260m

€ 2,260m

Keeping our onshore market leadershipVestas remains market leader with more than 16 percent market share in 2017

Corporate Slide Deck Q2/2018 (Public)4

Market shares developmentPercent

Source: Bloomberg New Energy Finance and MAKE Consulting.

14.6%

16.4%

Others

Enercon

Vestas

Nordex

Suzlon

Siemens Gamesa

GE

100% = 47 GW

3.2%5.7%

6.6%

11.6%

Envision

20.0%

2.9%

Goldwind

2017

2.6%Guodian UP

6.1%

10.3%

Senvion

Others

3.7%

25.0%

2016

4.2%

GE

Ming Yang

Vestas

Siemens

Nordex

16.5%

7.0%

Goldwind

Gamesa

12.3%

5.0%

Envision

100% = 53 GW

3.7%

Enercon6.6%

12.1%

3.9%

Guodian

Bloomberg New Energy Finance“Onshore installations”

Siemens Gamesa

Goldwind

14.7%

9.2%

6.9%

6.4%

19.3%

6.3%

3.1%

United Power

100% = 47 GW

GE

Vestas

3.0%Senvion

Nordex

Mingyang

2017

3.7%

Others

16.4%

EnvisionEnercon

11.0% Goldwind

3.5%

GE

5.7%

6.1%

100% = 54 GW

25.0%

Vestas

11.8%

2016

16.1%

8.1%

3.4%

Others

United PowerSiemens

13.2%

Enercon

EnvisionMing Yang

3.5%3.6%

Gamesa

Nordex

MAKE Consulting“Onshore grid-connected”

Vestas’ corporate strategy

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• Vision • Global leader in sustainable energy solutions

• Mission• Deliver best-in-class energy solutions for the benefit of Vestas’

customer and the planet

• Four Key objectives • Global leader in the wind power plant solutions market

• Global leader in the wind service solutions market

• Lowest cost of energy solutions

• Best in class global operations

Vestas’ value chain World leading wind energy solutions with a comprehensive range of capabilities

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Project planning & design

Ensuring high quality project planning and design helps us to maximise total return on investment from project start up.

Vestas’ versatile and agile procurement and manufacturing concept provides competitive advantage.

Vestas possesses construction and installation expertise to coordinate cooperative efforts or assumes full responsibility for wind power plant construction and commissioning.

Vestas provides preventative and corrective service and maintenance for consistently optimised performance.

Procurement & manufacturing

Construction & installation

Operation & maintenance

Research & Development

Vestas has a strong focus on continuously developing and optimising to lower the cost of energy thereby meeting customer needs and remaining the technology leader in the wind power industry

Vestas ServicesBusiness areas

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Optimise your business with upgrades designed to improve the performance of your wind park.

Parts & Repair Maintenance Partnering

FleetOptimisation

Benefit from a truly global supply chain and a strong local presence to decrease your Operations and Maintenance (O&M) cost.

Maximise the availability of your wind park with the most experienced maintenance partner in the industry.

Smart Data

Benefit from our digital solutions, delivering greater predictability, increased renewable energy production, more efficient operations, and better integration with energy grids.

How does wind perform?

Wind outcompeting gas and coalWind is increasingly the cheapest new power source

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Source: BNEF, LCOE comparison and visualization, BNEF, 1H 2017 Global LCOE Update, 04/2017; BNEF, 1H Wind/Solar/AMER/APAC/EMEA update 04/2017

Vestas turbines are energy neutral in a few monthsVestas turbines are an environmental choice with high energy payback

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Number of times paid back* (assuming a 20-year life cycle)

• Vestas 4 MW Platform turbines are energy neutral in 5 to 7.5 months of operation. In that period of time these turbines generate the same amount of energy that was needed to produce them.

• If you invest 1 unit of energy in coal your returns will always be less than 1 unit of electricity (typically around 0.34 KWh)

Source: https://www.vestas.com/en/about/sustainability#!energy-payback

32,0

12,0

37,0

V126-3.45 MW® (Medium Wind)

V117-3.45 MW® (Medium Wind)

46,0

V112-3.45 MW® (High Wind)

45,0

V136-3.45 MW® (Medium and Low Wind)

V105-3.45 MW™ (High Wind)

47,0

Oil

0,41,0

GasPhotovoltaics

8,0

Nuclear

10,0

Hydro

0,3

Coal

Average of Vestas’ WTGs

Industry Average

21 November, 201821 November, 2018

Vestas’ turbines have a low water consumptionVestas’ turbines have a significant low net use of water during their lifecycle

Grams of water used per kWh

46,043,0 54,045,0

350,0

700,0

350,0

1.900,0

Water consumption averageof Vestas’ turbines

V105-3.45 MW™

(High Wind)

V117-3.45 MW®

(Medium Wind)

V112-3.45 MW® (High

Wind)

Nuclear CoalOilGas

62,0

V136-3.45 MW®

(Medium Wind)

V126-3.45 MW®

(Medium Wind)

Industry Average (minimum water consumption)Vestas’ WTGs average

With significant lower net use of water throughout the lifecycleVestas turbines embody a strong alternative to conventional energy sources in regions with limited water resources.

Source: in notes

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Life Cycle AssessmentProduct Environmental Performance

Life Cycle Assessment (LCA)

• Fact-based environmental performance indicators• Supports tendering, sales, brand, external queries,

product development process and targets• Quantifies environmental impacts of entire plant over

the life cycle up to grid connection, accounting for around 25 000 parts per turbine

• State-of-the-art approach according to ISO14040/44*

Global Product Targets 2016-20

Publicly Available Reports

• Critically reviewed by third party international expert

• Provides transparent facts• SiteLCA™ service

*Garrett, P., Rønde, K., (2012). Life cycle assessment of wind power: comprehensive results from a state-of-the-art approach. Int. Journal of LCA (DOI) 10.1007/s11367-012-0445-4** measured as Product waste (g waste per kWh)

Recycling benefits

Transport impacts

Indicators per kWh

Entire wind plantEntire value-chain

1. Product Carbon

Footprint

↓ 5% CO2

2. Product Waste

↓ 3% Waste

3. Renewable energy

↑ 60%

Circular Economy

Market offerings:• BladeCare ™• GearboxCare ™• GeneratorCare ™• Branded spare parts • Minor Components

+19 warehouses placed geographically to secure close proximity to your turbines

+500,000 parts being supplied yearly to our customers

+1,000 global and local suppliers to minimize your parts & repair costs

+19,000 different parts in stock to support your O&M strategy

+7 internal repair workshops and repair partners located strategically across the world

Parts & Repair•Global Footprint

15

GearboxCare ™•Always an industry-leading repair solution

Carbon Footprint(tonnes CO2)

Fleet optimisationOptimise your business with upgrades

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Advanced plant and data management, diagnostics and forecasting combine to deliver increased Annual Energy Production (AEP) and valuable insight.UpgradesUpgrades from Vestas help customers manage wind energy assets with maximum profitability.• PowerPlus™ solutions increase turbine output and improve AEP by

enhancing performance at different stages of the power curve.• LifePlus™ offers customised lifetime extension solutions.• TurbinePlus™ features a wide selection of simple and effective

upgrades to improve safety, performance and lifetime.

VESTAS TURBINES EFFICIENTLY USE RESOURCES TO PRODUCE ELECTRICITY

49

Vestas’ Lost Production Factor continues below 2%

Lost Production Factor (LPF) (%)

0,00,51,01,52,02,53,03,54,04,55,05,56,0

2011Jan

2007Jan

2008Jan

2018Jan

2010Jan

2009Jan

2013Jan

2012Jan

2014Jan

2015Jan

2016Jan

2017Jan

2%

Lost Production Factor (LPF)measures potential energy production not captured by the wind turbines

Smart Data Benefit from our digital solutions

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As the global energy sector is transforming, Vestas offers customers digital solutions to deliver greater predictability, increased renewable energy production, more efficient operations, and better integration with energy grids. To support customers on this transition, Vestas acquired UtopusInsights, Inc. Utopus’ digital solutions are divided into three broad categories:

• Descriptive – for companies who are relatively early in their analytics strategy, Xplore enables intuitive and customizable visualization of time-series data

• Predictive – for companies with a good handle on real-time operations and thus are further ahead in their digital journey, HyperCast allows hyper-accurate prediction of renewable generation

• Prescriptive – for those companies seeking more sophisticated analytics, Pulse enables optimised asset management.

Service offeringensuringhigh LPF

Power Plus improvingperformance- Software- ”Hardware”- Life

extension

Repair SolutionsUp to 85%

materials saved

Secondarymarket for old

turbines

80% recyclablewindturbine –

but how to cometo 100%?

And can the Biologic circle be

activated?

100% renewableElectricity

Reduce WTG ressource draw for same or betterperformance

Material Circularity Indicator

MCI: A value between 0 and 1 for Circularity, where 1 is the ideal

Measuring:- The share of materials that is linear (virgin raw materials ending up as waste) against the total flow- The life time of the functional unit against benchmark

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From “Life Cycle Assessment of Electricity Production from an onshore V136-3.45 MW Wind Plant” the MCI is 0.61