Vestas Wind Systems — Management Reports 2012

Jan 12, 2012

Vestas reorganises to increase customer focus and earnings and to reduce
investments required for future growth

Aarhus, Denmark, 2012-01-12 08:17 CET (GLOBE NEWSWIRE) --

Summary

-- Vestas will reduce its fixed costs by more than EUR 150m – with full effect
as from the end of 2012 – primarily through streamlining of support
functions and closing of factories to align capacity with market demand. A
total of 2,335 employees are expected to be made redundant.
-- The reorganisation will make Vestas an even more inclusive organisation.
Executive Management is extended to six members to allow greater functional
focus on all key parts of the value chain and to drive a stronger
performance management.
-- A Global Solution and Services unit will contribute to improving the
performance of both existing and upcoming wind power plants and accelerate
the development of the services and solution business.
-- Manufacturing is consolidated to capture cost synergies and reduce capital
required for future growth as well as to increase flexibility in case of a
prolonged industry slowdown.
-- In addition to the planned layoffs of 2,335 employees in the coming months,
Vestas prepares for a potential slowdown in the US in case the present
Production Tax Credit (PTC) is not extended. This can result in lay off of
an additional 1,600 employees at plants in the US. The potential savings in
this respect will be in addition to the more than EUR 150m mentioned above.

Press conference today

A press conference will be held today, 12 January 2012 at 2.00 p.m. CET, at the
Radisson Blu Royal Hotel in Copenhagen, Denmark. President and CEO, Ditlev
Engel, will present and explain the strategic reorganisation of Vestas.
Following the presentation, it will be possible to ask questions, in plenum as
well as during one-on-one interviews.
The press conference can be followed live at www.vestas.com.

Attached you will find the full wording of the company announcement and two
press releases from Vestas Wind Systems A/S.