The Preferred Wind Power Provider in North AmericaMartha WyrschPresident, Vestas Americas
Capital Markets Day 2010, Colorado, USA2
President Vestas AmericasMartha Wyrsch
14 months with Vestas
Extensive experience with gas pipelines and electric markets
Influential Board Activity• National Infrastructure Advisory Council• National Petroleum Council• American Wind Energy Association (AWEA) • SPX Corp., a Fortune 500 company
25 years of experience in the North American energy sector
Capital Markets Day 2010, Colorado, USA3
Meeting Customer Needs in North America for Three Decades
2010Colorado factories in production
Blades (Windsor) Nacelles (Brighton)
Towers (Pueblo)R&D site opens in Colorado
January 2010 – August 20101,359 MW firm orders in North America
1981Vestas enters North
American market
2004 Merger with NEG
Micon A/S December 31, 2009 More than 8,500 MW
announced
1997Vestas delivers first
turbines to Canada —two V44-600 kW units
2006 First V90-3.0 MW
power plant in the U.S. installed in Rio Vista,
California
August 2010Vestas announces largest order for a
single site
1985 Vestas reaches 2,500 turbines sold in the
U.S. market
2005 Vestas signs frame
agreement for 800 MW with Horizon
2004 3,148 MW installed
2006 4,626 MW installed
Capital Markets Day 2010, Colorado, USA4
A Big Player in a Big Market
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OR, CA, WAMW serviced: 1,193Turbines serviced: 701
CanadaMW serviced: 1,837Turbines serviced: 1,017
TX, WY, KS, ND, NE, OKMW serviced: 1,345Turbines serviced: 656
IL, IA, MN, WI, MI, IN, TNMW serviced: 2,597Turbines serviced: 1,696
ME, MA, NY, CTMW serviced: 512Turbines serviced: 273
This year, more than 2,600 North American employees and growing.Total MW installed 9,000+
Total turbines installed 11,150+Total MW under construction 1,188Total turbines under construction 468
Sales and ServiceCurrently 1,200+ employees
Supply ChainCurrently 24 employees
R&DCurrently 135 employeesEstimated 235 employees in the next two years
ManufacturingCurrently 1,300+ employeesEstimated 2,000 employees in 2011
Spare Parts & RepairCurrently 35 employees
Our Track Record Speaks for Itself
Capital Markets Day 2010, Colorado, USA6
The Power Market is Growing Steadily
Source: Wood Mackenzie Long Term View (April 2010)
US & Canada Electricity Sales Forecast (TWh)
4,057
4,641
2010
622
4,380
5,002
2015
653
584
4,681
5,334
2020
CanadaUS
+15%
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Capacity Addition Forecast, US & CanadaWind and Gas Will Take Most of the Prize
0
10000
20000
30000
40000
50000
60000
70000
1950 1970 1990 2010 2030
Cap
acity
(MW
)
Other Non-RenewableOther RenewableHydroWindOilGasNuclearCoal
CoalRetiring coal replaced by base-load natural gas, driving up gas prices
NuclearGeneration growing more slowly than electricity demand
RenewablesDominated by wind
Natural GasStrongest competitor & best complement to wind
Source: Wood Mackenzie, Long Term View (Dec 2009)
Capital Markets Day 2010, Colorado, USA8Source: Vestas, based on IHS/EER data. Assumes 30% capacity factor.
37.9
2010-15 2016-20
Total selected states(GW)
(years)
CA
NV
CO KS
MN
WI
MI
OH
NYMA
NJ
MD
NC
PA
IL
Renewable Energy Capacity Needed to Comply with State Requirements and Goals
63.8
5.1 22.8
1.4 0.5
5.9 3.5
4.3 0.0
2.9 3.2
OK2.7 0.0
2.6 1.32.3 0.1
2.0 2.3
2.0 1.2
2.0 2.7
2.0 1.2
1.7 0.2
1.5 3.2
1.3 2.2
1.2 2.1
WV1.1 0.9
CT1.1 0.9
Other states with renewable energy requirements and goals
U.S. Cumulative MW Installed by State and Manufacturer
Source: American Wind Energy Association (AWEA)
Capital Markets Day 2010, Colorado, USA9
GE Energy43%
Vestas19%
Siemens11%
Mitsubishi7%
Gamesa5%
Suzlon5%
Clipper 3%
Acciona2% Repow er
1%Other4%
2009 Total Installed Base
35,066 MW
As of December 31, 2009
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Canada Cumulative MW Installed by Province and Manufacturer
Source: Canadian Wind Energy Association
2009 Total Installed Base
3,319 MW
Vestas48%
GE33%
Siemens9%
Enercon9%
Other1%
As of December 31, 2009
Source: Vestas
Capital Markets Day 2010, Colorado, USA11
0
2
4
6
8
10
12
14
0
20
40
60
80
100
120
140
US$ / MM
Btu
US$
/ MW
h
PJM SPP MISO ERCOT ISO-NE Henry Hub Gas Prices
Average Monthly Day-Ahead Price
Wind Generation Cost w/PTC (est.)
Source: PJM Interconnection, Southwest Power Pool, HIS Emerging Energy Research
Wind Brings Price Certainty in a Fluctuating Energy Market
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Our Approach – Understand Our Customers’ Needs
Business Case Certainty
Cost of Energy
Partnership with our Customers
Access to capital
Power markets and competition
Transmission constraints
Increasing choice among turbine manufacturers
Safety and Citizenship
Customers’ Business Environment Our Strategic Response
Permitting and siting
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Steps We Have Taken Focus Areas
Increase Profitability for our Customers and
Vestas
Drive Execution Excellence
Establish a safe and inspired workforce
REGIONALLY
> Restructured the sales team> Leveraged global relationships> Created key sales initiatives
> Segmentation: utility, IPP, special projects
> New types of agreements: yield-based guarantees, EPC, global MSAs with production flexibility
> Prioritized safety and reliability > Enhanced operations> Reduced overhead costs> Integrated manufacturing and R&D with
Sales and Service> Established regional locations> Helped customers win PPAs> Improved government policy positioning
SALES
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In the Region, For the Region
Vestas Blades America, Windsor
Vestas Nacelles America, Brighton Vestas Towers America, Pueblo
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The Approach is Working
Vestas has captured more than 50% of firm orders in
North America as of 8/19/10
EDPR Global Frame agreement will add to North America’s order book
Nine firm orders in 2010 totaling 596 turbines and 1,3591) MW
1) Project MW are rounded numbers
Utility12,3%
Others0,2%
IPP87,4%
TransAlta 54 MW
Terra-Gen Power 570 MW
RES Americas 250 MW
Noble Environmental Power 99 MW
Capital Power Corporation 142 MW
We Energies 162 MW
International Power Canada, Inc. 48 MW
Algonquin Power 26 MW
JK Scanlan 7 MW
Capital Markets Day 2010, Colorado, USA16
We anticipate order momentum through 2010 and into 2011.
A Sustainable North American Business Model
Enhancing customer relationsthrough Key Account Programs
Rolling outnew technology
Achievingsupply chain efficiencies
Enhancingservice offerings
Working to improveregulatory and policy stability
Remaining apure play company