In 2011, Vestas expects to make warranty provisions of less than 3 per cent of annual revenue. Provisions are made for all expected costs associated with turbine repairs, and any reimbursement is not offset unless a written agreement has been made with the supplier to that effect. Warranty provisions of EUR 34m in the third quarter, equivalent to 2.5 per cent of revenue, cover possible costs for remedy and other costs in accordance with specific agreements. Provisions are based on estimates, and actual costs may deviate substantially from such estimates.
The ongoing improvement of the Lost Production Factor (LPF) on Vestas' turbines means that our customers achieve a consistently better return on their investment, also on older wind power plants whose control software can be upgraded in an ongoing process. These sales are an important component in the further development of Vestas' service business
