Agenda Vestas Wind Systems Opportunities and challenges in the wind renewable EU Perspective Vestas Perspective 2 BETS, Opportunities and challenges in the wind renewable, May 11 2010 1
Our Vision Wind Oil and Gas 3 BETS, Opportunities and challenges in the wind renewable, May 11 2010 Modern Energy Competitive Predictable Independent Fast Clean 4 BETS, Opportunities and challenges in the wind renewable, May 11 2010 2
What we do 5 BETS, Opportunities and challenges in the wind renewable, May 11 2010 Global outlook. Local presence Vestas Nacelles A/S Vestas Blades A/S Vestas Spare Parts A/S Vestas Towers A/S Vestas Control Systems A/S Vestas People & Culture Vestas Technology R&D Vestas Americas Vestas Northern Europe Vestas Mediterranean Vestas Central Europe Vestas Asia Pacific Vestas China Vestas Offshore 6 BETS, Opportunities and challenges in the wind renewable, May 11 2010 3
Growing revenue REVENUE, MILLION EURO 8000 7500 7000 6500 6000 5500 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 6636 6035 4861 3583 3854 2363 1395 1653 2002 2003 2004 2005 2006 2007 2008 2009 7 BETS, Opportunities and challenges in the wind renewable, May 11 2010 Ramping up our human resources EMPLOYEES 24000 22000 20000 9594 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 20829 20836 15305 12309 9594 10618 5999 6525 2002 2003 2004 2005 2006 2007 2008 2009 8 BETS, Opportunities and challenges in the wind renewable, May 11 2010 4
Opportunities and challenges in the wind renewable On average, the wind in Europe Let s get the baseline in place has employed 33 new people every day, seven days a week over the past five years in the five-year period 2002-2007 Wind power showed a growth rate of 31.7 % - the highest since Wind at Work 2001. Turnover: EUR 50 billion. The trend continued and wind capacity doubled every three years. In the years ahead, large, experienced and financially strong companies will join the race. 2009: 550,000 persons worldwide. 2012: Expectation for the first time to offer 1 million jobs. 10 BETS, Opportunities and challenges in the wind renewable, May 11 2010 5
Typical wind energy job profiles Occupations vary from entry-level installation to advanced engineering. Majority within manufacturing. Other examples of profiles required: Electrical, environmental and civil engineers for the management of plants. Technical staff for the Operations & Maintenance and repair of wind turbines. Programmers and meteorologists for wind energy forecasts and prediction models. Engineers - aerodynamics, computational fluid dynamics, etc. 11 BETS, Opportunities and challenges in the wind renewable, May 11 2010 Challenges in the wind renewable The wind energy sector is facing a serious shortage of candidates to fill the existing and future job vacancies. Wind at Work, 2008 The extraordinary performance of the sector itself has led to a multiplication of job offers in all the sub-sectors, especially in manufacturing and development activities. Today, the wind is facing a shortage of skilled workers. 12 BETS, Opportunities and challenges in the wind renewable, May 11 2010 6
Challenges in the wind renewable Generally speaking, the shortage is more acute for positions that require a high degree of experience and responsibility: A lack of trained technicians and engineers also weighs heavily on the minds of the industry. It "is an enormous challenge in Europe. Christian Kjaer, Chief Executive, EWEA From a manufacturer s point of view: Engineers dealing with research and development (R&D), product design and the manufacturing processes. Operation & Maintenance (O&M). Site management activities (technical staff). Wind energy promoters lack project managers: Getting the permits in the country where a wind farm is going to be installed. Require a combination of specific knowledge of the country and wind energy expertise - difficult to gain in a short period of time. Other profiles such as financiers or sales managers: Can sometimes be hard to find - but less of a problem. Possibly because the necessary qualifications are more general. 13 BETS, Opportunities and challenges in the wind renewable, May 11 2010 Challenges in the wind renewable What causes the shortage of workforce? Fewer students enrolled in relevant courses at universities. Annual number of engineers graduating from European universities every year is insufficient. Lack of clear and accurate information about opportunities: Wind energy as a In some cases, Secondary level career option discovered after they have already commenced studies in other areas. the educators lack the knowledge of new career paths such as wind energy. 14 BETS, Opportunities and challenges in the wind renewable, May 11 2010 of education: range and quality of courses are inadequate. Mainly Operations & Maitenance, health and safety, 7
Opportunities in the wind renewable Attractive opportunities for the younger generations. Wind companies in Western Europe can offer appealing manufacturing opportunities to skilled technical workers from the newer Member States.* Creating and promoting programmes to attract skilled workers into the industry. Keep public authorities updated and assist them in providing necessary training. Absorb some of the former workforce displaced from the declining economic sectors. 15 BETS, Opportunities and challenges in the wind renewable, May 11 2010 Opportunities in the wind renewable Improvements can be made in the educational system at university and pre-university levels. Particularly in activities related to: Operations & Maitenance Site management Transportation of heavy material Health and safety rules 16 BETS, Opportunities and challenges in the wind renewable, May 11 2010 8
Opportunities in the wind renewable Example of improvements: Partnerships with universities Vocational training with more focus on wind for unemployed people Job fairs Training centres University employment offices 17 BETS, Opportunities and challenges in the wind renewable, May 11 2010 Vestas perspective on skills in 2015 9
Since 2005, Vestas has recruited 10,112 employees. On 31 December 2009, Vestas 20,730 employees had an average seniority of 3.7 years; 48 per cent of employees have less than two years' seniority. Vestas Annual Report 2009 19 BETS, Opportunities and challenges in the wind renewable, May 11 2010 Vestas perspective on skills in 2015 - Profiles needed within the next 5 years Statistici ans Economics Aero mechanical system engineers Wind & Site engineer s SAP Consultant s Vestas Mechanic al Engineer s Electric Engineers Health, Safety & Enviro n- mental Service Technicia ns (Six Sigma + 5 yrs) Senior Project Managers + 10YRS Power Plant Engineers young/senio r 20 BETS, Opportunities and challenges in the wind renewable, May 11 2010 When it comes to our future workforce, we see the critical 'gaps' for Power plant engineers, Wind & Site engineers, Aero mechanical system engineers and Service technicians. Birgitte Brix, Global Employer Branding Director, Vestas 10
Vestas perspective on skills in 2015 - Examples of skills needed within the next 5 years Project Manager SAP knowledge Logistics management Planning, Organizing and Co-ordinating Contract Knowledge Project management Supplier Management Monitoring and Control HSE Bachelor Degree Engineering Certificate Six Sigma Green belt Certificate, Lead Auditor Sustainability management system Training and analytical Mechanical Technician Sourcing and Partnership Design Vestas business processes Project participation Training and education Communication Technology Development Risk Assessment 21 BETS, Opportunities and challenges in the wind renewable, May 11 2010 Vestas perspective on skills in 2015 - Why do we see the possible gap? Not enough students educate themselves in skilled trades and technical specialties. Some of the jobs don t attract the younger generations. In some fields: Knowledge is gained through on-the-job training or apprenticeships, which is a very lengthy and expensive process. Not enough development in technical and university courses related to wind technology. 22 BETS, Opportunities and challenges in the wind renewable, May 11 2010 11
Vestas perspective on skills in 2015 - How to overcome the challenges Workshops and case competitions for students Lengthy internal training programmes for new employees Global university programme Researchers network in order to face the challenges Graduate Programme Opportunities for all diverse candidates 23 BETS, Opportunities and challenges in the wind renewable, May 11 2010 THANK YOU FOR YOUR ATTENTION Copyright Notice The documents are created by Vestas Wind Systems A/S and contain copyrighted material, trademarks, and other proprietary information. All rights reserved. No part of the documents may be reproduced or copied in any form or by any means such as graphic, electronic, or mechanical, including photocopying, taping, or information storage and retrieval systems without the prior written permission of Vestas Wind Systems A/S. The use of these documents by you, or anyone else authorized by you, is prohibited unless specifically permitted by Vestas Wind Systems A/S. You may not alter or remove any trademark, copyright or other 24 notice BETS, from the documents. Opportunities The documents and are provided challenges as is and in Vestas the Wind wind Systems renewable A/S shall not have energy any responsibility sector, or May liability 11 whatsoever 2010for the results of use of the documents by you. Vestas wishes to acknowledge and respect all copyrights in connection with the illustrations used in this presentation. In case we have unintentionally violated copyrighted material, we want to be informed immediately in order to straighten things out and thus to honour any obligatory fees. 12