VESTAS

1. VESTAS Best in France // Casestudy 2009 Andreas Becker & Jens Riis Andersen

2. Agenda • Introduction to Vestas • Global Wind Energy Market (+ French Market) • Vestas in France & Process of Adaptation • Vestas’ Advice • Key Takeaways HEC School of Management, Paris

3. Agenda • Introduction to Vestas • Global Wind Energy Market (+ French Market) • Vestas in France & Process of Adaptation • Vestas’ Advice • Key Takeaways HEC School of Management, Paris

4. Introduction to Vestas • World’s largest maker of turbines • 23% market share • 38,000 wind turbines in 62 countries on five continents • One wind turbine every three hours • Generation of more than 60 million MWh of energy per year HEC School of Management, Paris

5. Introduction to Vestas • Total employees of 21,259 • Revenues of EUR 6.0bn • Return on invested capital of 34.1 per cent • Market capitalization of EUR 11.3bn • 60 per cent international investors HEC School of Management, Paris

6. Internationalization of Vestas • 1979: First wind turbine in Denmark and start of booming wind energy. • 1980 - 1999: Restructuring and large sell-off of business units followed by an expansion across Europe, USA and parts of Asia (India). • 2000 : Development of new markets including France and China. • 2002:Opening of a first branch in Montpellier (2002) and 8 maintenance centers across France. • 2009: Office opens in La Defense, Paris in order to service growing French market. HEC School of Management, Paris

7. Agenda • Introduction to Vestas • Global Wind Energy Market (+ French Market) • Vestas in France & Process of Adaptation • Vestas’ Advice • Key Takeaways HEC School of Management, Paris

8. Global Wind Energy Market HEC School of Management, Paris

9. Global Wind Energy Market HEC School of Management, Paris

10. Global Wind Energy Market HEC School of Management, Paris

11. French Wind Market • Biggest players: • Nordex, Vestas, Enercon & Repower • C4 concentration is 80% • Nordex is the biggest player and has been in France the longest • First areas to be used was around Marseille. Political focus on developing in around Paris and the Loire river CAGR: 20% HEC School of Management, Paris

12. Agenda • Introduction to Vestas • Global Wind Energy Market (+ French Market) • Vestas in France & Process of Adaptation • Vestas’ Advice • Key Takeaways HEC School of Management, Paris

13. Vestas in France • 175 employees • Based in Paris & Montpellier (incl. 8 regional centers) • 408 turbines with an installed capacity of 735 MW • 25% market share • Production of foundation & towers outsourced. Blades and turbines imported from Italy, Spain, Germany and Denmark HEC School of Management, Paris

14. Worries Coming to France • Governments inability to commitment • Ability to expand at the pace required • Ability to unite different values (DK Vs. FR) HEC School of Management, Paris

15. Cross Cultural Risk Framework Danish culture French culture Formal, French Informal, English Line, equality Hierachy, elite Individualistic, pragmatic Authoritative, theoretical HEC School of Management, Paris

16. Uniting Cultures HEC School of Management, Paris

17. Regulatory is King • Regulatory stability • 30 different authorizations • Difficult to understand all layers • Political commitment >> Easy procedures (HARD) • Lobbying activities • Ability to unite different values (DK Vs. FR) HEC School of Management, Paris

18. Adapting the Cost Structure • Paris prices, French prices • Salaries (Lower in France) • Performance Appraisal • Biggest problem is communicating the differences to Denmark (Paris is NOT France) HEC School of Management, Paris

19. Human Resources Challenges • Attracting young and talented people • Academic relationships • Role of the leader • French culture HEC School of Management, Paris

20. Importance of French Presence • People Business (Selling process) • “We do not sell our products on a website” • Regulatory Environment • Gain Local Expertise • Market Growth • In 2020, 23% of energy must come from renewables HEC School of Management, Paris

21. Agenda • Introduction to Vestas • Global Wind Energy Market (+ French Market) • Vestas in France & Process of Adaptation • Vestas’ Advice • Key Takeaways HEC School of Management, Paris

22. Advice from Vestas • Before coming to France • Particularities of the country • i.e. use consultants, lawyers etc. • Adaptation process • Biggest mistake is to impose local structure • Study failures • and the incapacity to understand local constraints HEC School of Management, Paris

23. Agenda • Introduction to Vestas • Global Wind Energy Market (+ French Market) • Vestas in France & Process of Adaptation • Vestas’ Advice • Key Takeaways HEC School of Management, Paris

24. Key Takeaways • World’s largest maker of turbines • 175 employees in France (Paris, 2009) • Growth potential of French market by feed-in tariff system • Getting the best from both worlds (DK+FR) • People Business • “Relationships are KEY” HEC School of Management, Paris

25. We Thank • Mr. Nicolas Wolff • CEO, Vestas France • Mrs. Marylen Schmidt • Communication Director, Vestas France HEC School of Management, Paris

26. Bibliography • References • www.vestas.com • Vestas shareholder information, 2009 • “Wind-power giant keeps to its course”, WSJ 6th May 2009 • World Wind Energy Report 2008, WWEA • Economist • WSJ HEC School of Management, Paris

27. Q & A