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Dear Name Nameson Vestas is helping carbon-conscious corporations win with wind.


To win in business, corporations have to become carbon conscious As citizens, we are deeply aware of the impact corporations have on the development of prosperous society, and as consumers we are equally aware that we can influence how corporations act through our purchasing decisions. The citizen and the consumer in each and every one of us are coming together to make enlightened purchases. That is why Vestas has initiated a number of activities, including commissioning the groundbreaking Global Consumer Wind Study, which was conducted by TNS Gallup. In the largest survey of its kind, 31,000 consumers in 25 countries were asked about their demand for products made with renewable energy, as well as how energy decisions by some of the world’s largest companies affect consumer choices. In addition to this study, Vestas, in partnership with Bloomberg, released the global Corporate Renewable Energy Index* (CREX) which ranks the use of renewable energy by the world’s largest corporations. The two studies complement each other, one from a consumer demand perspective, the other detailing corporate energy usage, which together allow consumers and corporations to make decisions based on facts. The choice of energy and how a company procures it can present great opportunities in terms of brand equity and bottom line. By working in partnership with Vestas, a leader in wind energy, corporations can enhance their brand and financial opportunities through continued investments in wind energy. Learn more about the companies that have embraced energy transparency and how consumers are willing to reward them at: www.energytransparency.com/Name_Nameson

* Corporate Renewable Energy Index 2011 Global corporations are transforming the way they use energy. Consumers demand it – and investors expect it. In the largest mapping of global corporate renewable energy procurement, Vestas and Bloomberg New Energy Finance have introduced a pioneering index that provides transparency for consumers, NGOs, the business community and policymakers. Download the Corporate Renewable Energy Index 2011 white paper from your personalized website: www.energytransparency.com/Name_Nameson


The global investment in clean energy has risen dramatically 30% 243

Global total new investment in clean energy, 2004-2010 (billion USD)

4% 19%

186 180

34% 151 48%

Source: Bloomberg New Energy Finance. 113

48% 52

76

2004

2005

Note: Includes corporate and government R&D, small distributed capacity, and estimates for undisclosed deals. Adjusted for reinvested equity. Does not include proceeds from acquisition transactions. 2006

2007

2008

2009

2010

The top 20 corporations based on share of wind of total electricity consumption in 2010* company

TOTAL RANKING 2010

SHARE OF WIND OF TOTAL ELECTRICITY (%) 2010

Whole Foods Market Inc

1

100%

Toronto-Dominion Bank

2

78%

Adobe Systems Inc

3

65%

BNY Mellon Corp

4

61%

Bank of Montreal

5

58%

Starbucks Corp

6

58%

News Corp

7

53%

MetLife Inc

8

45%

State Street Corp

9

43%

Becton Dickinson and Co

10

38%

Johnson & Johnson

11

33%

Koninklijke KPN NV

12

29%

Deutsche Bank AG

13

24%

Staples Inc

14

23%

Kohl’s Corporation

15

21%

Advanced Micro Devices Inc

16

20%

Dell Inc

17

20%

Motorola Inc

18

17%

Genzyme Corp

19

15%

Applied Materials Inc

20

14%

* Corporate Renewable Energy Index 2010-2011


“Transparency in energy consumption enables consumers to make informed choices about the products and services they buy.� Ditlev Engel, President and CEO, Vestas


Consumers worldwide are willing to reward your commitment to wind energy* of surveyed consumers would have an improved perception of a brand that uses wind as its primary source of energy

79% PERCEPTION

of surveyed consumers would prefer to purchase products produced using wind energy

of surveyed consumers worldwide want more renewable energy

90%

65%

demand

INCLINATION TO BUY

* Global Consumer Wind Study 2011 In the largest survey of its kind, 31,000 consumers in 26 countries were asked about their demand for products made using renewable energy, as well as how energy decisions by some of the world’s largest corporations affect their choices. The study, commissioned by Vestas and conducted by TNS Gallup, provides fascinating insights that enable corporations to understand consumer perceptions about climate change and renewable energy, and how these relate to global brands. Download the Global Consumer Wind Study 2011 white paper from: www.energytransparency.com/Name_Nameson


Think of investments in wind energy as purchasing high-yield green bonds Renewable energy expenses can be converted into an asset. Instead of buying Renewable Energy Certificates to claim electricity from renewable sources, we recommend corporations invest in a source of renewable energy. For most companies, green energy consumption is an operating expense. Instead of buying Renewable Energy Certificates (RECs) to claim electricity from renewable sources, these corporations can invest in wind power – turning an operating expense into an asset with a return profile similar to that of a high-yield bond. Adding to the existing renewable energy infrastructure By investing in wind energy, corporations add to the installed base of renewable energy sources, which results in a greater aggregate and in turn in an indisputable positive environmental impact. When a corporation buys an REC, it allows it to claim electricity from an existing wind power plant – but when a corporation invests in a new wind power plant, it can say with certainty that it is adding to the amount of wind energy on the planet. Add to the bottom line The market for RECs is not totally transparent and there are varying degrees of quality. In addition, the future prices of RECs are uncertain, making a corporation’s yearly expenses inconsistent. By investing capital directly in wind energy projects, corporations can achieve general market returns of 8-12% (after tax) for 20 years with predictable cash flows, making investments in a wind energy project similar to purchasing a high-yield green bond.


From buying Renewable Energy Certificates Buying renewable energy and offsetting CO2 emissions via green certificates (Renewable Energy Certificates)

To investing in renewable energy Investing in wind energy to create assets that support a brand and generate financial returns

Example of an investment in a wind energy project in the US* An investment in a typical wind project has a steady return profile. The US-based example illustrated below generates 400,000 MWh of green electricity yearly and a pretax IRR of ~ 15%.

Y0

Y1

Y2

Y3

Y20

40

Revenue

30

Million USD

20

Total equity investment

10

Operating expenses

0 -10 -20 -80 Main assumptions High-quality REC prices based on Climate Friendly’s GoldPower™ products. PTA rate based on Macquarie Research (2011). Project qualifies for PTC. Remaining assumptions based on standardized wind project evaluation model developed by Vestas. * Values may vary based on market conditions and project specifications.


Corporations can increase brand equity and bottom line – by investing in wind energy An investment in wind energy is an investment in the health of a brand and a corporation’s finances.

Sustainable brand equity

CO2

Enhance the environmental profile Carbon-conscious corporations can establish a powerful and highly visible communication “signpost” that helps them differentiate their brand and gives them a strong communication platform to promote their brand as environmentally friendly

Protect the brand Carbon-conscious corporations can reduce their risk of brand exposure and the perception of greenwashing while improving relations with NGOs, customers and other stakeholders

GREEN

JOBS

Secure the license to operate Carbon-conscious corporations can create green jobs and ensure local and regional community support to strengthen their operations and entry into new markets

{

VALU

INVESTING


Sustainable financial returns

Increase the return on invested capital

}

Carbon-conscious corporations can get a significant potential return by investing in wind and treating renewable energy as an asset and not an expense

UE OF

Balance the risk

G IN WIND

Carbon-conscious corporations can secure access to renewable energy and reduce external risks such as carbon taxes, energy regulations and destabilization factors (political unrest, supply disturbances, natural disasters, etc.)

$

Hedge the energy costs Carbon-conscious corporations can neutralize their energy price volatility and hedge their energy prices for a 20-year period


Corporations can own their own energy How a carbon-conscious corporation invests in wind energy depends on its resources, brand considerations and energy and financial strategy. Owning your energy has many benefits. But how can a corporation successfully invest in wind energy? Here are some possibilities.

1. Leverage land assets Leverage land assets for a low-risk, limited-investment commitment to wind energy A carbon-conscious corporation can utilize unexplored resources by making noncapitalized land assets available to wind power producers through leasing or other financial arrangements. It can lease land to a wind developer who builds and sells a wind power plant to an independent power producer or utility for operation. In this scenario, the corporation may have the option to procure the electricity produced by the wind power plant. In addition, carbon-conscious corporations ensure a substantial positive environmental impact by utilizing land assets to produce wind energy as opposed to other non-climate-protective activities.


2. Invest in projects A low-risk investment in wind energy for a competitive return A carbon-conscious corporation can convert operating expenses from buying Renewable Energy Certificates into return-generating assets by taking an equity stake in a new wind project. Furthermore, it can procure clean energy from the wind power plant. The corporation can achieve substantial positive environmental impact by providing the financing needed to enable well-executed and robust wind energy projects to move forward.

3. Build new assets A highly profitable way to ensure a stable energy supply and boost the environmental profile Participate in developing a wind power plant at a corporation’s facilities or off-site will enhance its sustainability profile and secure access to a stable supply of clean electricity. Carbon-conscious corporations can ensure substantial positive environmental impact by taking an active role in installing new renewable energy capacity.


Explore, enable and communicate – Vestas is the right partner for carbon-conscious corporations For three decades Vestas has partnered with customers to design and deliver high-performance wind power solutions. We can share our expertise to help carbon-conscious corporations develop the optimal wind energy opportunities. Together with the corporation, Vestas can assess preferences, define the optimal approach, identify specific investment opportunities and support it in reaping the benefits of its wind energy investments.

WINDMADE™ Vestas has taken the initiative to launch WindMade™, the first global consumer label identifying brands and products made with wind energy. The WindMade™ label is independent of the wind turbine manufacturer, whether it be Vestas or other makers of wind turbines. The label is offered through the nonprofit Brussels-based WindMade™ organization, whose mission is to enable consumers to choose products created using renewable energy. The organization is supported by Vestas Wind Systems, the Global Wind Energy Council (GWEC), WWF, UN Global Compact, the LEGO Group, PwC and Bloomberg, which is the official data provider.


Explore •S  upport the development of a carbon-conscious corporation’s renewable energy roadmap • Translate corporate renewable targets into wind goals • Map out preferences and investment criteria • Discover the most suitable wind power solutions • Identify specific project opportunities

Enable • Prepare the feasibility study • Develop the business case • Structure and support the project • Project-manage construction • Implement service and maintenance

Communicate •P  rovide effective communication platforms such as the WindMade™ label, the Corporate Renewable Energy Index, the Global Consumer Wind Study and others • Partner and use Vestas’ channels to communicate efforts • Assist in developing communications based on wind energy LCA data


Wind power solutions can make global brands more competitive By bringing wind energy to the world’s leading global brands, Vestas is making the connection between consumer expectations and what global brands should do to remain competitive in a world that is transforming its sources of energy. Vestas builds on 30 years of experience with wind energy to help global brands in wind energy investment activities. A dedicated unit within Vestas has been designed to work with carbonconscious corporations and offer services that help corporations: • Understand the dynamics of investing in renewable energy • Identify investment opportunities and carry out feasibility studies • Advise on financial structuring of investments • Facilitate relationships with government authorities, environmental organizations, local suppliers and financial stakeholders


Name Nameson, please enter your personalized website

Find out how Vestas can help carbon-conscious corporations make the most of their renewable energy investments. In addition, download presentations, the Corporate Renewable Energy Index 2011 and the Global Consumer Wind Study 2011 white papers, and watch related videos.

Visit your website at:

www.energytransparency.com/Name_Nameson


This insert is directed specifically to the company – hereinafter the Company – whose name and/or logo appears throughout and on the front cover of the present insert, and as an integrated part of the present issue of Bloomberg Businessweek. The insert has been produced in a limited number and has been distributed only to a select number of employees in the Company. The insert may not be reproduced or used in any way. Any trademark depicted or mentioned in the insert is the property of either Vestas or the Company that holds the intellectual rights to the specific trademark.

Win with wind today and in the future

Vestas Wind Systems A/S Alsvej 21 • 8940 Randers SV • Denmark Tel. +45 9730 0000

www.energytransparency.com

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