Vestas Outsourced Warehouse and Distribution

Jan Rietdijk

24th June 2015

SVP Global Sourcing

DSV Presentation 18th November 2014

VestasToday

Vestas in brief

3

The only global wind energy company

We employ around

16,000 people worldwide

and have more than 30

years of experience with

wind energy

16,000We monitor almost

25,000 turbines, or

46,000 MW, day and

night and the data is

used for efficient service

planning and pre-

emptive maintenance

25,000We have more than

51,000 turbines in 73

countries worldwide

spanning six continents

51,000Vestas revenue at the

end of 20134was EUR

6.9 billion

€ 6.9b

From blacksmith to global wind leader

4

Vestas’ journey

1898:

Blacksmith H.S. Hansen arrives in

Lem

1945:

VEstjysk

STaalteknik A/S

becomes VESTAS

1979:

First turbine after

agricultural

vehicles, etc.

1987:

Vestas

Wind Systems

A/S

1991:

Turbine no.

1000

2013:

Anders Runevad,

CEO

2004:

Merger: NEG

Micon & Vestas

2012:

50 Gigawatt

milestone.

2014:

Profitable Growth for

Vestas & V164

prototype

2010:

Wind. It means

the world to us.

Vestas has a unique global reach in sales, installation and manufacturing

Global headquarters

Sales & Service

Production

Research

Vestas locations around the world

5

Backlog: Wind turbines and serviceCombined backlog increased by EUR 1.3bn to record-high EUR 15bn. Wind turbines

increased by EUR 0.8bn, while service increased by EUR 0.5bn.

Wind turbines:

EUR

7.5bn

Service:

EUR

7.5bn

EUR +0.8bn* EUR +0.5bn*

* Compared to Q4 2014.

6 │ First quarter 2015

Wind market forecast 2013-2020

7

Growth rates of 4-10 per cent expected

IHSMAKE

2019e

65

40

35

50

2016e2015e

55

2020e2018e

60

2014e2013e

45

02017e

CAGR:

+10 per cent

CAGR:

+4 per cent

Sources: IHS Emerging Energy Research December 2013. MAKE Consulting November 2013.

Wind market forecast (gw)

Different views

but growth is expected.

Key takes

Global Sourcing

Global Sourcing

9

Global Sourcing

ALVBU

CFO CSOCOOCTO

CEO

Controls & Generators

AssemblyGlobal QSEBlades

Global

Service

PEX

Business Development & Operations

Construction & Service

Powertrain & Nacelles

Towers, Castings &

Blades

BESVE KEIFO JAWRD TORAN

Indirect Goods & Services/

P2P

HEBEJ

Supplier Quality &

Development

TBD

Tower manufacturing from at multiple dedicated workshops

25/06/2015

10

Installation of the internals at the tower manufacturer

11

Full functionality and test to limit installation time on site

Section leaving to Site

12

Tower Manufacturing Footprint -

Anand

Engineering

Suppliers in scope for

QSE assessment/approvalAME - Americas

EMEA – Europe, Middle East & Africa

APAC – Asia-Pacific & China

Offices & Regions

14

Planning, Purchasing & Logistics

Beijing, CN

Aarhus & Esbjerg, DK

Madrid, ES

PPL Offices

AME - Americas

EMEA – Europe, Middle East & Africa

APAC – Asia-Pacific & China

All components are Vestas specified and supplied

15

Combining components per section in boxpallets

3 main WTG lines

156 different towers

HH 80 – HH 140

3-7 sections

116t-400t

64 different platforms

Lift optional

Building approval

Process of outsourcing the warehouse and distribution.Very tight timeline kept through intense cooperation from both sides.

Pre outsourcing

• Own warehouse in Esbjerg with 42 FTE.

• Own warehouse in Tianjin with 15 FTE

Fast turnaround project to outsource with DSV

• Discussions started August 2013 for Denmark. Decision September 2013.

• September/October 2013 decision for China.

• January 2014 start-up with DSV in Venray (NL) and Suzhou (PRC).

Post outsourcing

• Outside warehouse DSV in Netherlands. Small own logistic team in Esbjerg

• Outside warehouse DSV in China. Small own logistic team in Beijing.

• Combined with Project Management and direct deliveries.

16

17

Function Suppliers Sections PO PO Lines Deliveries FTE

Planning

26 Tower Suppliers

4 Supply Centers

(DSV, DHL, BSB)

93848633 Sections

1543 Anchor Cages

3342 Site Parts

5

Direct Delivery Buying 55 3715 32470 8

Internals Kit Sets

Buying56 3166 13888 12892 Sections 4

Anchor Cages & Site

Parts17 948 3110

1543 Anchor Cages

3342 Site Parts

414 Internals(Customer Supplied)

1

Logistics & Continues

Improvements

12892 Sections

414 Internals(Customer Supplied)3

AME -Tower

Production5 718 616 Sections 2

EMEA -Tower

Production17 6594 6076 Sections 5

APAC -Tower

Production4 2072

1941 Sections

414 Customer Supplied Sections3

Systems & Supplier

Development6

Management 4

Sum 7829 49468 41

Integrated activities in Global teamTower components in numbers for 2015

Working day to day on the supply centreOutside in view on day-to-day business

DSV strength

• Very professional warehouse provider.

• Good cooperation on day to day business

• DSV actions are tuned to their capability.

Reviews

• Professional collection of data

• Focussed on having the Vestas work fitting into the DSV system.

Specific elements for China

• Tax and Customs

• Bonded and non-bonded.

18

Thank you for

your attention.

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