Vestas Wind Systems A/s · OMXCOP:VWS
Vestas Wind Systems A/s — Q1 2024 Earnings Presentation
22 slides from Vestas Wind Systems A/s's earnings presentation, May 2, 2024
Slide 1: First quarter 2024
First quarter 2024 Vestas Wind Systems A/S Copenhagen, May 2024
Slide 2: Disclaimer and cautionary statement
Disclaimer and cautionary statement This document contains forward-looking statements concerning Vestas’ financial condition, results of operations and business. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statement
Slide 3: Key highlights in Q1 2024
Key highlights in Q1 2024 Revenue of EUR 2.7bn Decline of 5 percent YoY driven by lower activity in Power Solutions, offset by 12 percent growth in Service EBIT margin of minus 2.5 percent Disregarding the sale of technology, EBIT improved YoY due to higher project profitability Order intake of 2.3
Slide 4: Agenda
Orders and markets Financials Outlook Q&A Agenda Classification: Public 4 Q1 2024
Slide 5: Our current business environment
Our current business environment We drive industry maturity within our core circles of influence to power the energy transition Global Environment Raw material and transport costs down Geopolitical volatility Inflation and interest rates still high Global environment Market Environment Grid investme
Slide 6: Market shares – 2023
Market shares – 2023 Vestas continues to lead the industry Global onshore and offshore installations (excluding China) Highlights 100% = 40 GW 100% = 41 GW Global installations decreased slightly to 40 GW in 2023 from 41 GW in 2022. Vestas maintains the leading position as we continue to Vestas 29%
Slide 7: Power Solutions – Q1 2024
Power Solutions – Q1 2024 Lower order intake YoY due to strong finish to 2023 Firm and unconditional order intake, MW Highlights Onshore -30% Offshore Order intake of 2.3 GW, down 30 percent compared to last 3,303 year. The main reason for the decline is lower order intake in Americas where Q1 2023
Slide 8: Service – Q1 2024
Service – Q1 2024 High customer satisfaction Service order GW under active Average years Highlights backlog service contracts contract duration Service order backlog increased to EUR 34bn from 31bn a year ago; inflation indexation remains a vital mechanism to protect backlog profitability EUR 149 11
Slide 9: Vestas Development – Q1 2024
Vestas Development – Q1 2024 Development continues focus on high quality projects Order intake New secured Total project Highlights generated pipeline pipeline In Q1 2024, Vestas’ pipeline of development projects amounted to 30 GW with Australia, USA, and Brazil being the countries with the largest
Slide 10: Sustainability – Q1 2024
Sustainability – Q1 2024 Vestas remains the most sustainable energy company in the world CO2e avoided Highlights 395 393 (1)% Expected CO2e avoided Lifetime CO2e avoided by produced and over the lifetime of the capacity produced and shipped capacity decreased by 2 million tonnes shipped during the p
Slide 11: Agenda
Orders and markets Financials Outlook Q&A Agenda Classification: Public 11 Q1 2024
Slide 12: Income statement – Q1 2024
Income statement – Q1 2024 Underlying margins continues to improve mEUR Q1 2024 Q1 2023 % change Highlights Revenue 2,681 2,829 (5)% Revenue decreased 5 percent YoY, driven by lower Gross profit 244 188 30% delivery volumes but offset by higher prices on turbine SG&A costs* (312) (304) 3% deliveries
Slide 13: Power Solutions – Q1 2024
Power Solutions – Q1 2024 Earnings impacted by seasonality, while underlying profitability continues to improve Power Solutions revenue and EBIT margin before special items, mEUR and percent Highlights Offshore revenue EBIT margin Onshore revenue EBIT margin adj. for sale of technology Revenue decre
Slide 14: Service – Q1 2024
Service – Q1 2024 Growth in both revenue and earnings Service revenue and EBIT margin before special items, mEUR and percent Highlights Service EBIT Service revenue EBIT margin 938 Service generated EBIT of EUR 192m, corresponding to 904 920 902 5 percent earnings growth. 806 The improvement was dri
Slide 15: Net working capital – Q1 2024
Net working capital – Q1 2024 Increased NWC in the quarter reflecting normal seasonality NWC change over the quarter, mEUR Highlights Net working capital increased in Q1 driven by an increase in inventory levels, higher level of supplier payments in the quarter, partly offset by down- and milestone
Slide 16: Cash flow statement – Q1 2024
Cash flow statement – Q1 2024 Improved cash flow in the quarter Highlights mEUR Q1 2024 Q1 2023 Abs. change Operating cash flow was minus EUR 755 in the quarter, Cash flow from operating activities an improvement compared to last year. The improvement before change in net working capital (86) 248 (3
Slide 17: Total investments – Q1 2024
Total investments – Q1 2024 Investing into offshore and onshore in the USA Total investments*, mEUR Highlights Cash flow from investing activities* Total investments amounted to EUR 198m in Q1. +86 306 We continue to invest into our V236 offshore manufacturing footprint, particularly in Poland, wher
Slide 18: Provisions and LPF – Q1 2024
Provisions and LPF – Q1 2024 Lost Production Factor continues steady improvement Lost Production Factor (LPF), Percent Highlights 6 LPF*, although still at an unsatisfactory level, 5 continues to improve also in 2024 4 3 Warranty costs amounted to EUR 121m in the quarter corresponding to 4.5 percent
Slide 19: Capital structure – Q1 2024
Capital structure – Q1 2024 Solid capital structure and investment grade rating Net debt to EBITDA before special items Highlights Net debt to EBITDA, last 12 months Net debt to EBITDA, financial target Improved financial results are the main driver for our net debt to EBITDA ending the quarter at 5
Slide 20: Agenda
Orders and markets Financials Outlook Q&A Agenda Classification: Public 20 Q1 2024
Slide 21: Outlook 2024
Outlook 2024 Outlook Revenue (bnEUR) 16 – 18 EBIT margin before special items (%) 4–6 - Service is expected to generate EBIT b.s.i. of EUR 800-880m Total investments (bnEUR) Approx. 1.2 Total net investments in intangible assets and property, plant and equipment • The 2024 outlook is based on curren
Slide 22: Financial calendar 2024: Q&A
Financial calendar 2024: • Disclosure of Q2 2024 (14th August) Q&A • Disclosure of Q3 2024 (5th November) Classification: Public 22 Q1 2024