ICEF 7 30th September 2020

The global opportunity for offshore wind

MHI Vestas Offshore Wind

MASATO YAMADA 1 | MHI Vestas Offshore Wind | September 30 2020 | Classification: PUBLIC Vice President, Regional Manager Asia Pacific © 2016 MHI Vestas Offshore Wind A/S MHI Vestas Offshore Wind: established in 2014 on decades of experience A partnership between two leaders in offshore

● A joint venture between two industry leaders: Vestas Wind Systems A/S (50%) and Mitsubishi Heavy Industries Ltd (50%)

● Founded 1 April 2014, now employing ~3,500 employees

● Sole focus on offshore wind

● Our business is to design, manufacture, install and service wind turbines

● Our approach is truly collaborative – we aim to create strong partnerships with customers, suppliers and other stakeholders in the industry

● MHI Vestas is the expert with 25 years of offshore wind experience

2 | MHI Vestas Offshore Wind | September 30 2020 | Classification: PUBLIC

© 2016 MHI Vestas Offshore Wind A/S Expanding markets and decreasing costs through 2040 As offshore wind reaches more oceans, the cost of energy decreases through learnings

Growing markets and falling costs for offshore wind

Source：IEA (International Energy Agency) 「World Energy Outlook 2019」

3 | MHI Vestas Offshore Wind | September 30 2020 | Classification: PUBLIC

© 2016 MHI Vestas Offshore Wind A/S Key markets and potential for offshore wind Japan has the potential to catch up to other leading markets, and may surpass some major ones

Offshore Wind Potential and demand Market Forecast 2040 30 60 90 120 150 GW

Potential 9 times higher than demand

25GW Potential

Demand

4GW 0 10 000 20 000 30 000 TWh

Source：IEA (International Energy Agency) 「Offshore Wind Outlook 2019」

4 | MHI Vestas Offshore Wind | September 30 2020 | Classification: PUBLIC

© 2016 MHI Vestas Offshore Wind A/S Quantum leaps / Incremental improvements in turbine technology Bigger, stronger, smarter.

1995 2002 2005 2013 2014 2017 2019

V39-500 kW V80-2.0 MW V90-3.0 MW V112-3.0 MW V164-8.0 MW V164-9.5 MW V174-9.5 MW

5 | MHI Vestas Offshore Wind | September 30 2020 | Classification: PUBLIC

© 2016 MHI Vestas Offshore Wind A/S Technological advancements are key: size of turbines rapidly increasing Heavy industry for mass production

Dimensions Fuji Television

Swept Area 23,779 m2

Output 9.5 MW Airbus A380 Blade 85 m

Hub Height Approx. 110 m

Rotor Diameter 174 m

Height Approx. 197 m

Weight ・Rotor Approx. 500 t

6 | MHI Vestas Offshore Wind | September 30 2020 | Classification: PUBLIC

© 2016 MHI Vestas Offshore Wind A/S Offshore wind is the most grid friendly and stable renewable power Digitalization and advanced power electronics lead to enhanced stability and flexibility

7 | MHI Vestas Offshore Wind | September 30 2020 | Classification: PUBLIC

© 2016 MHI Vestas Offshore Wind A/S Floating wind: expanding the potential of offshore wind to new areas Foundation designs are varied, but locations deeper than 60m can now be used

8 | MHI Vestas Offshore Wind | September 30 2020 | Classification: PUBLIC

© 2016 MHI Vestas Offshore Wind A/S Installation of the world’s largest offshore in Portugal Our V164-8.4 MW turbines at WindFloat Atlantic are the largest installed on floating platforms

9 | MHI Vestas Offshore Wind | September 30 2020 | Classification: PUBLIC

© 2016 MHI Vestas Offshore Wind A/S Offshore wind – a flexible and multi-purpose energy source Paired with electrolysis to produce green hydrogen

Direct use of power

Electrolysis

H2 Indirect use of excess power

H2

CH4

Provisions of heat, cold and operating power Methanation

10 | MHI Vestas Offshore Wind | September 30 2020 | Classification: PUBLIC

© 2016 MHI Vestas Offshore Wind A/S By 2050, innovative offshore wind designs are planned for Europe One example is the North Sea Wind Power Hub project

North Sea Wind Power Hub

11 | MHI Vestas Offshore Wind | September 30 2020 | Classification: PUBLIC

© 2016 MHI Vestas Offshore Wind A/S Let’s move the horizon.

12 | MHI Vestas Offshore Wind | September 30 2020 | Classification: PUBLIC

© 2016 MHI Vestas Offshore Wind A/S