Vestas Wind Systems — Earnings Release 2011

Feb 8, 2012

• 2011 was a tough year with two profit warnings

Aarhus, Denmark, 2012-02-08 03:43 CET (GLOBE NEWSWIRE) --

Summary: 2011 was a very challenging year for the wind industry. The same
applies to Vestas which had to issue two profit warnings and abandon its
Triple15 targets. In 2011, Vestas recorded revenue of EUR 5.8bn and an EBIT
margin before special items of (0.7) per cent, slightly below the preliminary
financial figures for 2011 announced on 3 January 2012 due to
later-than-expected deliveries.

The results and revenue for the year are, however, substantially lower than the
original expectations of an EBIT margin of 7 per cent and revenue of EUR 7bn,
which is disappointing. It should be emphasised that the projects in questions
have not been cancelled but postponed and that they are expected to be handed
over and recognised as income in 2012, however, at a lower contribution margin
due to higher costs than originally anticipated.

On the other hand, the intake of firm and unconditional orders of 7,397 MW with
a value of EUR 7.3bn, was in line with expectations.

Net working capital amounted to EUR (71)m, an improvement of EUR 743m. The
improvement was attributable especially to the reduction of component
inventories following a successful make-to-order implementation, higher
pre-payments and trade payables.

Outlook
Based on, among other things, input from a number of the company’s large
shareholders, Vestas has decided to reduce the number of outlook parameters it
provides to the public. Furthermore, Vestas has decided to introduce guidance
ranges for earnings (EBIT), revenue and the free cash flow to take into account
the heavy fluctuations characterising these items depending on timing of order
intake, production, shipments and final delivery to the customers.

For 2012, Vestas expects to achieve an EBIT margin of between 0-4 per cent and
revenue of EUR 6,500-8,000m, including service revenue, which is expected to
rise to approx EUR 850m with an EBIT margin of around 14 per cent. The EBIT
margin will be adversely affected primarily by too high production costs for
the V112-3.0 MW turbine and the GridStreamer™ technology, which will be reduced
in the course of the year and by an expected increase in depreciation and
amortisation charges of approx EUR 100m. Total warranty and product provisions
are expected to account for less than 3 per cent of the expected revenue for
the year.

Shipments which are expected to increase to approx 7 GW with the present
production plans will peak in the middle of the year, while deliveries may
fluctuate heavily over the quarters. It should be emphasised that Vestas’
accounting policies only allow it to recognise ”supply-only” and
”supply-and-installation” projects as income when the risk has finally passed
to the customer, irrespective of whether Vestas has already produced, shipped
and installed the turbines. Disruptions in production and challenges in
relation to wind turbine installation, for example bad weather, lack of grid
connections and similar matters may thus cause delays that could affect Vestas’
financial results for 2012.

Total investments are expected to be EUR 550m, of which investments in
intangible assets are expected to amount to EUR 350m, which among other things,
includes higher investments in the development of the V164-7.0 MW offshore
turbine. Total research and development expenditure is now expected to amount
to EUR 450m in 2012. The lower investments in intangible assets and R&D
expenditure are caused by a more focused R&D organisation.

The free cash flow is expected to positive in 2012.

Press and analyst meeting in Aarhus, Denmark
Wednesday, 8 February 2012 at 2 p.m. (CET).

In connection with the disclosure of this annual report, an information meeting
will be held today, Wednesday at 2 p.m. (CET) for analysts, investors and the
media at:

Vestas Wind Systems A/S
Hedeager 44
8200 Aarhus N
Denmark

Further details at www.vestas.com/investor.

Any questions may be addressed to Ditlev Engel, President and CEO or to Lars
Villadsen, Senior Specialist, Investor Relations, telephone +45 9730 4593.

Attachments
Company announcement No. 8/2012,
Annual report 2011 and
Track record as of 31 December 2011.