Vestas Wind Systems — Earnings Release 2016

Nov 8, 2016

Compared to the third quarter of 2015, earnings improved significantly, mainly
driven by high activity levels in the quarter and to a lesser extent higher
average project margins. Free cash flow was at the same level as in the third
quarter of 2015. While order intake was satisfactory, the backlog decreased due
to the higher activity levels. Outlook for 2016 upgraded.

Aarhus, Denmark, 2016-11-08 08:27 CET (GLOBE NEWSWIRE) --

Summary: In the third quarter of 2016, Vestas generated revenue of EUR 2,903m –
an increase of 37 percent compared to the year-earlier period. EBIT before
special items increased by EUR 201m to EUR 433m. The EBIT margin before special
items was 14.9 percent compared to 10.9 percent in the third quarter of 2015
and the free cash flow amounted to EUR 155m compared to EUR 158m in the third
quarter of 2015.

The intake of firm and unconditional wind turbine orders amounted to 1,769 MW
in the third quarter of 2016. The value of the wind turbine order backlog
amounted to EUR 7.2bn at 30 September 2016. In addition to the wind turbine
order backlog, Vestas had service agreements with expected contractual future
revenue of EUR 9.9bn at the end of September 2016. Thus, the value of the
combined backlog of wind turbine orders and service agreements stood at EUR
17.1bn – an increase of EUR 0.7bn compared to the year-earlier period.

Vestas upgrades the 2016 guidance on revenue from minimum EUR 9.5bn to EUR
10-10.5bn, EBIT margin before special items from minimum 12.5 percent to 13-14
percent, and free cash flow from minimum EUR 800m to minimum EUR 1,000m. The
upgrades are based mainly on improved delivery visibility for the remainder of
the year. Vestas also adjusts 2016 guidance on total investments from approx
EUR 500m to approx EUR 600m.

Group President & CEO Anders Runevad said: “I am very pleased with Vestas’
solid third quarter performance. Revenue and earnings are up strongly, as are
deliveries across all regions. Order intake is up 17 percent, while combined
turbine and service order backlog declined this quarter, largely due to high
turbine delivery activity. With better visibility toward the end of the year,
we are also upgrading the full-year guidance.”

Key highlights

High activity levels
Deliveries up by 44 percent in third quarter of 2016 – driven by all regions.

Strong earnings
EBIT margin before special items of 14.9 percent – up by 4.0 percentage points
compared to third quarter of 2015.

Solid free cash flow
Free cash flow amounted to EUR 155m in third quarter of 2016 – on a par with
the third quarter of 2015.

Combined order backlog remains high
Combined order backlog at EUR 17.1bn. Wind turbine order backlog impacted by
high activity levels in third quarter of 2016.

Outlook 2016
2016 has proven to be an extraordinary year and based mainly on better
visibility for the remainder of the year, guidance for 2016 is increased on all
parameters.

Information meeting (audiocast)
Today, Tuesday 8 November 2016 at 10 a.m. CET (9 a.m. GMT), Vestas will host an
information meeting via an audiocast. The audiocast will be accessible via
vestas.com/investor.

The meeting will be held in English and questions may be asked through a
conference call. The telephone numbers for the conference call are:

Europe: +44 203 008 9814
USA: +1 646 502 5118
Denmark: +45 3544 5575

Presentation material for the information meeting will be available approx one
hour before the meeting at vestas.com/investor.

Contact details
Vestas Wind Systems A/S, Denmark
Hans Martin Smith, Senior Vice President,
Group Treasury and Investor Relations
Tel: +45 9730 8209