Spanish wind power sector: opportunities in Castilla-La Mancha

Classification: Restricted

Spanish wind power sector:

opportunities in

Castilla-La Mancha

Madrid, October 2020

@ Jesús M

artinez

SynopsisAbout Us

Pedro Huarte Mendicoa Tato Senior Director

Head of Public Affairs MED & Africa

[email protected]

Vestas is the Only Global Wind Energy Company

+25,000

We employ 25,748 people worldwide and

have 40 years of experience with wind

energy

+45,000

We have a total of 45,531 combined

turbines under service, or more than 100 GW

+ 70,000

We have a total of 72,142 turbines or more

than 117 GW of installed wind power

capacity in 81 countries worldwide spanning six

continents

€ 12.1bn

Vestas’ revenue in 2019

was EUR 12.1bn

3 Vestas Corporate Slide Deck Q4 2019


Vestas’ value chain

World leading wind energy solutions with a comprehensive range of capabilities

Vestas Corporate Slide Deck Q4 2019

Project planning & design

Ensuring high quality project planning and design helps us to maximise total return on investment from project start up.

Vestas’ versatile and agile

procurement and manufacturing concept provides competitive advantage.

Vestas possesses construction and installation expertise to coordinate cooperative efforts or assumes full responsibility for wind power plant construction and commissioning.

Vestas provides preventative and corrective service and maintenance for consistently optimised performance.

Procurement & manufacturing

Construction & installation

Operation & maintenance

Research & Development

Vestas has a strong focus on continuously developing and optimising to lower the cost of energy thereby meeting customer needs and remaining the technology leader in the wind power industry

4


Record Order Intake

17.9GW from 35 Countries in 2019

27% more orders in 10 more markets than in 2017

5

Top Markets


Classification: Restricted6

Renewables outperform Fossils

Onshore wind remains among the most cost-efficient renewable energy sources

Global LCOE ranges – H2 2019 update$/MWh

Renewables have started – on global average – to outperform fossil-fuel based electricity on costs.

Since 2009, the global average LCOE of onshore wind declined by -51% to

47 USD/MWh today. Over the same period, the global average LCOE of solar PV fixed axis

declined by -84% to 51 USD/MWh today. With a global average LCOE of

46 USD/MWh, solar PV tracking systems are today the most cost-efficient renewable energy source. Offshore wind has started to close in and stands

today at 78 USD/MWh on global average.


0 50 100 150 200 250 300 350

118

Onshore wind

344

Offshore wind

Solar PV tracking

Coal

Natural gas CC

Solar PV fixed axis

Nuclear

190

118

82

228

189

26

44

27

28

56

38

42

47

78

46

51



Technology strategy and solutions

Technology evolution



Global Manufacturing Footprint

8

A flexible setup with supply from Vestas’ own factories and Vestas’ subcontractors

USAAssemblyBladesTowers

BrazilAssembly

BladesTowers

Generators

ItalyBladesTowers

SpainBladesGeneratorsTowers

DenmarkAssemblyConvertersBladesTowers

GermanyBlades

Generators

IndiaAssemblyBladesBladesTowers

ChinaAssembly

BladesConvertersGenerators

BladesTowers

RussiaAssembly

BladesTowers

TurkeyBlades

GeneratorsTowers

Vestas’ own factory

Vestas’ subcontractor

MexicoBladesTowers

VietnamTowers

AustraliaAssembly

Towers

South AfricaTowers

ArgentinaTowers



Proven and Committed Service Partner

+100 GW Servicing 98,340 MW (45,531 turbines), including 8,049 MW of non-Vestas capacity under service.

+45,000 total combined turbines

under service

Unmatched ability to analyse turbine data and predict wind conditions anywhere in the world from a large fleet of monitored turbines

70countries

Global service organisation operating in 70 countries worldwide providing unmatched reach and knowledge sharing

€ 18.2bnbacklog

Strong service performance driven by high activity levels, providing a stable revenue stream to secure lifelong commitment

+10,000service employees

Certified and experienced people dedicate to service across Vestas.



Sustaining our Global Leadership Position

9,8%

3,7%3,9%

7,4%

9,6%

10,3%

13,1%

14,4%

18,1%

2.0%Guodian UP

2019

2.7%CSIC 2.6%

2.4%

Vestas

Goldwind

GE

Siemens Gamesa

Envision

Ming Yang

Windey

Nordex

Dongfang Electric

Enercon

Others

100% = 53 GW

Global onshore installations

9,3%

5,1%

7,3%

18,7%

25,1%

34,5%

2019

Vestas

GE

Siemens Gamesa

Nordex

Enercon

Others

100% = 26 GW

Global onshore installationsExcluding China

Source: Bloomberg New Energy Finance

10

* Compared to Q1 2019.

Wind turbines:

EUR 15.9bn

Service:

EUR 18.2bn

EUR +2.6bn* EUR +3.2bn*

All-time high order backlog of more than EUR 34bn Market Shares



Wind powerin Spain

Classification: Restricted12


Installed wind power in the Spain (26.5 GW)

Installed wind power

(MW)(09/2020)

Wind powergeneration

(GWh)(2019)Andalucía 3.477 6.848Aragón 3.613 5.358Asturias 519 1.186Cantabria 35 73Castilla la Mancha 3.878 8.523Castilla y León 6.190 12.439Cataluña 1.271 3.052Comunidad de Madrid 0 0Comunidad Valenciana 1.255 2.574Extremadura 39 91Galicia 3.829 8.698Baleares 4 6Canarias 440 1.138La Rioja 448 975Murcia 263 525Navarra 1.251 2.398País Vasco 154 329


The supply chain of the wind power industry

The Spanish wind power industry is a significant case of industrial development and supply with a 100% presence in the value chain.

Consultancy and studies. Development and resource evaluation

EngineeringWind turbine and component manufacturing

LogisticsConstructio

n and assembly

Turnkey O&M

COMPETITIVE ADVANTAGE OF THE SPANISH SUPPLY (MAIN FACTORS AND STRENGHTS

- Know-how

- Leader industry

- Technological development

- Know-how

- Leader industry

- Consolidated leadership

- Synergies with other industries (construction, naval, etc.)

- Know-how

- Leader industry

- Manufacturing ability and location

- Product quality

- Technological development

- Efficiency and improvement of benefits and cos

- Know-how

- Leader industry

- Specific equipment

- Local market

- Synergies with other industries (transport, naval, etc.)

- Know-how

- Leader industry

- International prestige

- Very specialized equipment

- Synergies with other industries (construction and civil works)

- Know-how

- Technical solvency


- Know-how

- Very specialized training

- Technical solvency



NECP: roadmap to 2030

100 % Renewable electricity sector

by 2050

The Plan foresees for 2030 a total installed capacity in the electricity sector of 161 GW of which 50 GW will be wind power

Evolution of the installed power of electrical energy (MW)

The weight of Renewable energies in the final Energy consumption evolves from the current 20% to 42% in 2030

Biomass

Marine energies

Pumping

Biogas

Geothermal

Hydraulics

CSP

PV

Wind Power


Vestas in Spain

Parque eólico GraiadeLa Coruña – V80-1.8 MW16


1989 1999 2004 2009 2012 2019

300 kW108 MW

1 GW

3 GW

4 GW

+4.8 GW

Primeras turbinas en

España: V10-100 kW y V25-200 kW en La

Coruña

Primer año que se instaló

+100 MW anuales

Instalación de la primera turbina de más de 1 MW

de potencia nóminal

Consolidación de VestasMED en Madrid

Instalación del prototipo de

V112 en Cantabria

155 parques eólicos en

España tienen turbinas Vestas

Working ‘in Spain for the world’

6,900 MWUnder O&M (includying non -Vestas)

4,807 MWInstalled in Spain

Madrid as Hub for all MED region

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True compromise with Spain, large presenceacross the country

4.8 GW installed capacity(155 Wind farms)

237 wind farmsunder service

We generate€ 700 M / yrbusiness to

1000 Spanishsuppliers

We buytowers from

4 Spanishsuppliers

O&M Services to6.9 GW (includy. 3rd party)

14 O&M centers

2 Factories: Ciudad Real (Blades), Lugo (Generators)

+2,200 employees:1.500 Factories

500 Service,200 in Madrid HQ

Headquarters for MED región in Madrid, includying the‘Surveillance Center’

which monitors > 25 GW in 200 wind farmsaccross the world

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What do we produce in Spain?

►Blades Daimiel (Ciudad Real)

+1300 employees

V126-3.3/3.45

V150-4.2

►Towers – Subcontract to 4 Spanishmanufacturers

►All WTG models

►Generators Viveiro (Lugo)

188 employees

19

VESTAS MANUFACTURING SPAIN Daimiel


Production

▪ Startup: July 2008

▪ V90 manufactured: 6000 blades

▪ V126 manufactured since 2015: 3000 blades

▪ V150 manufactured since 2018: 2000 blades

▪ Production capacity: 900 MW (2019) - 1,400 MW (2020)

Investment

▪ Initial Investment: 90M€

▪ Investment in 2015 extension: 50M€

▪ Investment in 2018 extension : 80M€

▪ Investment for SWR 2019: 50M€

▪ Training investment: 0,5M€/year

▪ Grants received: 10 M€

08/08/2008 Investment CR-328-PO3 9.946.630,80€

19/09/2008 Training CLM AS/2008/009 307.015 €

30/04/2010 Incentivox CR-0346-PO3 aprox 1.400.000 €

VESTAS MANUFACTURING SPAIN - DAIMIEL


Employment

▪ Direct employment: 1395

▪ Indirect employment : 1000

▪ Fixed employment has grown 50% in last 5 yr

(in production area 150%)

▪ From 80 different towns and cities in CLM, mainly from

Daimiel, Ciudad Real y Puertollano

▪ Average age is 4 years old (10 yr White collar)




Competitve Advantages

• There is a wide range of suppliers available in the region

• Workforce available

• Variety of University degrees with high level skills

• Local and Regional Administration Support

• Good location and well connected

Classification: RestrictedTitle 24

Well placed with direct connection by Highway to most industrial áreas (max 1 day driving disctance to all ports):• 367km to Valencia Port (East)• 475km to Algecira Port (South)• 335km to Motril Port (South-East)• 800km to Barcelona Port (North East)• 200km to Madrid Airport and Ciudad Real Airport 25km

Perfectly connected to the main Railway network in Spain (Madrid) and fully connected to Europe & China (Yiwu)

Industrial landfill available in the region with all neededInfrastructures.


Thank you for your attention

Questions and comments are welcome

Spanish wind power sector: opportunities in Castilla-La Mancha

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