NOCA’s Årsdag 14. april 2016

Organizational Review Strategy House

Our strategic priorities Grow faster than the market Grow profitably in mature and emerging markets Capture the full potential of the service business Reduce levelised cost of energy (LCOE) Improve operational excellence Create a scalable, flexible and customer oriented organisation Grow the service business by more than 40 percent Improve earnings capability Reduce cost of energy faster than market average Supporting initiatives:

The way we think and act as an organization has a direct link to profitability 4 Defines level of cost & complexity Enablers

Structured Development Approach 5 Strategy: Structured development approach

People Development at Vestas Performance & Development Dialogue, People Review, Employee Survey, Talent management Talent Mngt. Organizational Review

HR Delivery model

9 Delivery model for HR services in Vestas - Moving inquiries to the most appropriate channel Employee Groups Tier 3 support Centre of Excellence Service Centre Process Specialist Service Centre Generalist Self Service applications* Tier 1 support Tier 0 support Tier 2 support Shared Services Business Partner Normal point of entry for employee inquiries and request Inquiries related to strategic support, business advisory, coaching etc. (typically from managers) Employee Interaction Centre (P&C service desk) (mail, telephone, workflow, IT process support etc…) Including “Fast track” * E.g. kiosk solutions for hourly paid etc.

Examples of findings from HR analytics

High quality Leadership communication increases team performance Strategy comprehension (execution) drops by level Effect of diversity Internal candidates outperform externally recruited Span of Control and Layers Benchmarking: Internal across regions and external FTE benchmarking Engagement improves Customer Loyalty High PDD quality raises engagement Engagement by management layer Engagement is higher in small teams Sales incentives do not motivate What are the main drivers of Total Recordable Injuries? Health vs. Employee Engagement Engagement reduces Employee Turnover High Span of control increase flight risk What personality traits increase likelihood of performance? Engaged employees perform better Leadership & Strategy Structur e Engagement & development Health & Safety Employee Turnover Performance HR analytics Selected analytical topics

Turnover is 76% higher if Engagement and Span of control are outside recommended range Internal candidates outperform externals Diversity in operational teams reduces co-operation and employee engagement. Production teams with 15-20% employees above 50 years are less likely to experience Total Recordable Injuries Main drivers for reducing Total Recordable Injuries are: 1) Training 2) Team size 3)Team composition (50+ years) Marginal effect: Leadership safety focus, leadership quality manager profile Examples of findings

Employee Turnover Turnover is 76% higher if both Engagement and Span of control are outside recommended range If Employee Engagement is below 60 employee initiated turnover is 3 times higher Employee Turnover is twice as high if Span of control is above 25 Recruitment Internal candidates outperform externals In general the performance difference is largest in the first 6 months On average the gap is closed after months The pattern exist on all levels of management except Manager level Tests that indicate that the candidate has a high ability to think flexible, conceptual and holistic are the best predictors of future performance Diversity and Inclusion Diversity in operational teams reduces co-operation and employee engagement. Only mitigating factor is the managers’ ability to create a culture of inclusion Female managers are specially inclusive Total Recordable Injuries Production teams with 15-20% employees above 50 years are less likely to experience TRI Same goes for teams with average seniority above 3 years Main drivers for reducing TRI are: 1)Training 2)Team size 3)3)Team composition (50+ years) Marginal effect: Leadership safety focus, leadership quality manager profile Rules of thumb