#1Vestas CONTA Vestas Wind Systems A/S SECOND QUARTER 2022 August 2022#2DISCLAIMER AND CAUTIONARY STATEMENT This document contains forward-looking statements concerning Vestas' financial condition, results of operations and business. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning Vestas' potential exposure to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions. A number of factors that affect Vestas' future operations and could cause Vestas' results to differ materially from those expressed in the forward-looking statements included in this document, include (without limitation): (a) changes in demand for Vestas' products; (b) currency and interest rate fluctuations; (c) loss of market share and industry competition; (d) environmental and physical risks, including adverse weather conditions; (e) legislative, fiscal, and regulatory developments, including changes in tax or accounting policies; (f) economic and financial market conditions in various countries and regions; (g) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, and delays or advancements in the approval of projects; (h) ability to enforce patents; (i) product development risks; (j) cost of commodities; (k) customer credit risks; (I) supply of components; and (m) customer created delays affecting product installation, grid connections and other revenue-recognition factors. All forward-looking statements contained in this document are expressly qualified by the cautionary statements contained or referenced to in this statement. Undue reliance should not be placed on forward-looking statements. Additional factors that may affect future results are contained in Vestas' annual report for the year ended 31 December 2021 (available at www.vestas.com/investor) and these factors also should be considered. Each forward-looking statement speaks only as of the date of this document. Vestas does not undertake any obligation to publicly update or revise any forward-looking statement as a result of new information or future events other than as required by Danish law. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this document. 2 Q2 2022 Classification: Public Vestas®#3KEY HIGHLIGHTS IN Q2 2022 Sustained price increases continue to pave the way towards profitability target Maintaining the discipline to protect value creation Order intake of 2.2 GW Wind turbine order backlog remains high at EUR 18.9bn Revenue of EUR 3.3bn Revenue decreased by 7 percent year-on-year caused by delay of offshore project Profitability negative in accordance with outlook revised on 1 May EBIT margin of (5.5) percent driven by supply chain disruptions and cost inflation Positive policy development in the USA and Europe Despite evidence of an energy crisis, still a lack of permitting progress 3 Q2 2022 Classification: Public Vestas®#4tas AGENDA Orders and markets Financials Outlook & Q&A Classification: Public Vestas#5GLOBAL BUSINESS ENVIRONMENT Renewables critical infrastructure Employee health and safety top priority Maintain business continuity Challenging global business environment and supply chain disruption expected to last throughout 2022 • Energy crisis underlines wind power's criticality to meet electricity demand, ensure energy supply, and lower CO2 emissions • Cost inflation, supply chain disruptions and COVID-related lock-downs continue to impact timelines and increase costs . Geo-political uncertainty continues to impact global business environment Mobility and site access a prerequisite Maintain supply chain continuity 5 Q2 2022#6POWER SOLUTIONS Increased pricing remains key to value creation • Highlights . Decrease in order intake driven by EMEA and APAC; impacted by delayed orders from customers balancing cost inflation and offtake uncertainty Increased focus on energy independence accelerating ambitions for renewable transition • Pricing continues to increase to mitigate cost inflation and secure future profitability - highest onshore ASP in last decade • Wind turbine order backlog remains high at EUR 18.9bn 11 Firm and unconditional order intake, MW 4,557 AME 1,302 Onshore (53%) 2,123 EMEA 2,758 1,199 896 APAC 497 28 Q2 2021 Q2 2022 733 Offshore 30 Q2 2021 Q2 2022 Average selling price of order intake, mEUR per MW 1.01 0.97 0.84 0.86 0.81 0.96 0.89 0.86 0.79 0.81 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 6 Q2 2022 Classification: Public ASP onshore ASP total Vestas®#7SERVICE BUSINESS Well positioned for further growth Highlights Service order backlog Up EUR 4.4bn comp. to Q2 2021 • • Increased activity level and higher transactional sales Vestas pioneers world's first hydrogen-powered offshore service vessel Average duration on new contracts continues to increase EUR 31.3bn (27.3bn onshore) Service fleet 7 Q2 2022 AMERICAS 54 GW 6 GW* * Compared to Q2 2021. Classification: Public Vestas GW under active service contracts Average backlog contract duration 138 GW (130 GW onshore) 10 Years →EMEA 66 GW 10 GW* APAC 18 GW 3 GW* Vestas®#8SUSTAINABILITY STRATEGY The most sustainable company in the world • Highlights Lifetime CO₂e avoided by produced and shipped capacity in the quarter decreased by 37 percent from Q2 2021, due to lower produced and shipped turbines Carbon emissions from our own operations decreased by 12 percent due to transitioning of the Daimiel factory heating system from gas to biomass as well as lower overall activity levels CO₂e avoided Expected CO2e avoided over the lifetime of the capacity produced and shipped during the period (million t) Carbon emissions Direct and indirect emissions of CO₂e (scope 1&2)(million t) 8 Q2 2022 Safety Total Recordable Injuries per million working hours (TRIR) Classification: Public 167 105 (37%) Q2 2021 Q2 2022 0.028 0.024 (12%) Q2 2021 Q2 2022 3.1 3.1 (0%) Q2 2021 Q2 2022 Vestas®#99 tas AGENDA Orders and markets Financials Outlook & Q&A Classification: Public Vestas#10INCOME STATEMENT Challenged profitability as expected in revised outlook Highlights • • • Revenue decreased 7 percent YoY driven by lower offshore installations from delayed project Gross margin decreased by 7.7 percentage points YoY, driven primarily by external cost inflation and supply chain disruption EBIT margin before special items decreased by 8.2 percentage points YoY, mainly driven by the lower gross profit and lower revenue Special items is driven by positive reversals partly offset by further impairments in Asia MEUR Revenue Production costs Gross profit SG&A costs* Q2 2022 Q2 2021** 3,305 (3,208) 3,536 % change (6.5%) (3,161) 97 375 1.5% (74.1)% (279) (281) 0.7% (182) 94 (294)% 35 0 (147) 94 (256)% Income from investments in joint 14 ventures and associates (119) Net profit Vestas 83 33 33 (57.6)% 83 (413)% EBIT before special items Special items EBIT after special items Gross margin EBITDA margin before special items EBIT margin before special items 2.9% 10.6% (7.7)%-pts 1.2% 8.9% (7.7)%-pts (5.5)% 2.7% (8.2)%-pts 10 Q2 2022 *R&D, administration, and distribution, including depreciations and amortisations. ** Comparative figures for 2021 are adjusted in relation to accounting policy change for configuration and customisation cost in cloud computing arrangements, refer to note 5.3. Classification: Public Vestas®#11POWER SOLUTIONS Profitability continuously challenged Highlights • Revenue decreased by 11 percent YoY, driven by project delay in offshore EBIT margin before special items of negative 8.6 percent, down 8.6 percentage points YoY driven by continued external cost inflation and supply chain disruptions resulting in increased costs and lower revenue Power Solutions revenue and EBIT margin before special items, mEUR Vestas (10.6%) 4,921 1,191 3,830 335 2,914 719 2,605 78 1,862 157 5.3% 0.9% 0.0% (8.6%) (20.4%) Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Offshore revenue Onshore revenue EBIT margin 11 Q2 2022 Classification: Public Vestas®#12SERVICE BUSINESS Higher activity levels but lower profitability Highlights Service revenue increased 13 percent compared to Q2 2021 driven by higher activity overall and transactional sales as well as inflation levers in contracts • EBIT before special items of EUR 124m corresponding to 17.7 percent driven by lower profitability on certain projects in USA and Africa 12 Q2 2022 -- Service revenue and EBIT margin, mEUR and percent +12.5% 721 700 622 617 623 27.8 22.5 21.5 20.4 17.7 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Service revenue EBIT margin Classification: Public Vestas®#13SG&A COSTS SG&A costs under control Highlights Relative to activity levels, SG&A costs amounted to 7.6 percent an increase of 1.8 percentage points compared to Q2 2021 primarily related to offshore impairment and transportation equipment 13 Q2 2022 SG&A costs (TTM)*, mEUR and percent 1,212 1,209 1,128 882 7.5 7.6 849 7.2 5.8 5.8 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 % of revenue SG&A costs *R&D, administration, and distribution on a 12 months basis. Classification: Public Vestas®#14NET WORKING CAPITAL Increased NWC in the quarter Highlights • Net working capital increased in Q2 2022 driven by an increase in the level of inventory partly offset by down- and milestone payments NWC change over the quarter, mEUR 32 (498) 716 (63) (66) (488) (609) NWC end Q1 2022 Receiv- ables Inventories and contract costs Contract assets/ liabilities Payables Other receivables NWC end Q2 2022 and liabilities 14 Q2 2022 Classification: Public Vestas®#15CASH FLOW STATEMENT Negative cash flow in the quarter • Highlights Negative cash flow from operating activities of EUR 188m driven by lower profitability and NWC development leading to negative free cash flow in Q2 2022 15 Q2 2022 MEUR Q2 2022 Q2 2021* *** Abs. change Cash flow from operating activities before change in net working capital (90) 107 (197) Change in net working capital* (98) 245 (343) Cash flow from operating activities (188) 352 540 Cash flow from investing activities** (174) (169) (5) Free cash flow before financial investments** (362) 183 (545) Free cash flow (381) 166 (547) Cash flow from financing activities (90) (255) 165 Net interest-bearing position (415) 334 (749) Change in net working capital impacted by non-cash adjustments and exchange rate adjustments with a total amount of net EUR 23m. ** Excl. acquisitions of subsidiaries, joint ventures, associates and financial investments. *** * Comparative figures for 2021 are adjusted in relation to accounting policy change for configuration and customisation cost in cloud computing arrangements, refer to note 5.3. Classification: Public Vestas®#16TOTAL INVESTMENTS Stable investments level Total net investments*, mEUR Highlights Investments of EUR 174m in Q2 2022, on par with • last year 16 | Q2 2022 168 247 214 193 174 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Cash flow from investing activities* * Excl. acquisitions of subsidiaries, joint ventures, associates and financial investments Classification: Public 新 Vestas®#17PROVISIONS & LPF Elevated warranty provisions and LPF • Highlights • LPF* continues at high level as a consequence of the extraordinary repair and upgrade level Warranty provisions made corresponding to 3.7 percent of revenue; elevated level driven by cost inflation and logistics challenges for repair and upgrade of existing cases * LPF measures potential energy production not captured by Vestas' onshore and offshore wind turbines. 17 Q2 2022 -->> Lost Production Factor (LPF), Percent 5 4 3 2 1 0 Dec 2009 Dec 2013 Dec 2017 Jun 2022 Warranty provisions made and consumed, mEUR 109 287 236 246 243 219 195 154 159 123 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Provisions made Provisions consumed Classification: Public Vestas®#18CAPITAL STRUCTURE Net debt to EBITDA increasing due to challenged profitability -- Net debt to EBITDA before special items Highlights • Net debt to EBITDA at 0.5 in Q2 2022 . Commitment to cash focus and capital allocation policy remains (0.2) (0.5) (0.9) 1.0 0.5 0.0 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Net debt to EBITDA, last 12 months Net debt to EBITDA, financial target 18 Q2 2022 Classification: Public Vestas®#19tas AGENDA Orders and markets Financials Outlook & Q&A 19 Classification: Public Vestas#20OUTLOOK 2022 20 Q2 2022 Revenue (bnEUR) - Service is expected to grow min. 10 percent EBIT margin before special items (%) - Service margin is expected to be approx. 23 percent Total investments (mEUR) Excl. acquisitions of subsidiaries, joint ventures, associates and financial investments • Outlook 14.5-16 (5)-0 Approx. 1,000 Important to note that basic assumptions behind the guidance are more uncertain than normal . The 2022 outlook is based on current foreign exchange rates Classification: Public Vestas®#2124 21 Q2 2022 Q&A Financial calendar 2022: Disclosure of Q3 2022 (2 November) Classification: Public Vestas®#22Vestas Wind. 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