Vestas Wind Systems — M&A Activity 2015

Dec 7, 2015

The acquisition accelerates Vestas' profitable growth strategy and strengthens
Vestas' ability to service non-Vestas turbines.

Aarhus, Denmark, 2015-12-07 16:29 CET (GLOBE NEWSWIRE) --

Vestas has today acquired UpWind Solutions, Inc. and its subsidiaries (“UpWind
Solutions“), a leading independent service provider in North America, with
headquarters in San Diego, California. With about 310 employees, UpWind
Solutions currently services wind power plants in nine US states with a total
capacity of more than 3 GW. The wind power plants under service represent a
diverse customer base and include turbines from a number of manufacturers.
UpWind Solutions also supplies parts for most major turbine technologies,
performs blade inspections, and offers various performance upgrades.

“The acquisition accelerates our profitable growth strategy and helps Vestas to
capture the full potential of the service business. We are broadening our
capabilities and increasing the size of our addressable market for all major
turbine technologies. In short, the acquisition is a strong strategic fit,”
says Group Senior Vice President Christian Venderby, Vestas Global Service.

“North America is an important market for Vestas, and this acquisition will
contribute to Vestas becoming the customers’ preferred fleet-wide service
partner,” says Chris Brown, President of Vestas Sales and Service Division in
the United States and Canada. “We are very pleased to welcome UpWind Solutions
and its 310 employees to become part of the Vestas organisation.”

Vestas has more than 50 GW under service worldwide, and together Vestas and
UpWind Solutions will service approximately 17 GW of Vestas and non-Vestas
turbines in the USA and Canada with ambitions for further growth.

“Vestas represents high quality technology and service and shares UpWind
Solutions’ passion for excellence. We’re delighted to become part of the
global wind industry leader, and look forward to jointly ensuring that our
expanded customer base receives the best possible operations and maintenance
service for their fleets,” says CEO Peter Wells, UpWind Solutions.

The acquisition price for UpWind Solutions is USD 60m (approximately EUR 55m)
on a debt and cash free basis. The consideration has been paid in cash from
readily available sources. On a standalone basis excluding synergies, UpWind
Solutions is expecting for 2015 to report consolidated revenues of USD 55m
(approximately EUR 50m), an EBITDA of USD 3.4m (approximately EUR 3.1m), and
total assets of approximately USD 20m (approximately EUR 18m).

The acquisition of UpWind Solutions is effective as of today. Vestas expects
the acquisition will have only a limited effect on Vestas’ expected result for
2015. Outlook for 2015 revenue and EBIT margin before special items are
maintained, while total investments are now expected to amount to approximately
EUR 400m and free cash flow is consequently expected to be between EUR 750m and
950m for 2015.

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

Christian Venderby, Group Senior Vice President, Vestas Global Service

Chris Brown, President of Vestas Sales and Service Division in the United
States and Canada

For more information, or to arrange an interview with Christian Venderby or
Chris Brown, please contact:

Michael Zarin, Head of External Communications
Tel: +45 4084 1526