Vestas Wind Systems A/s · OMXCOP:VWS
Vestas Wind Systems A/s — Investor Day (December 2021)
96 slides from Vestas Wind Systems A/s's investor day presentation, Dec 15, 2021
Slide 1: Vestas Capital Markets Day
Vestas. — aYaGae we Ges Ga Day Borsen, Copenhagen | Denmark Vestas Capital Markets Day Wednesday 15% December 2021 Wind. It means the world to us.”
Slide 2: Agenda Capital Markets Day 2021
AGENDA Capital Markets Day 2021 Part I Part III Brian Mikkelsen, CEO, Anders Nielsen, EVP & Leading the way with 1. Welcome speech Danish Chamber of 5. CTO renewable solutions Commerce Henrik Andersen, Group Tommy Rahbek Nielsen, President & CEO & Building the future supply 2. Strategic perspectives
Slide 3: Strategic perspectives
Strategic perspectives Henrik Andersen Group President & Chief Executive Officer Kerstin Knapp Chief People & Culture Officer
Slide 4: Global leader in sustainable energy solutions
. GLOBAL LEADER IN SUSTAINABLE ENERGY SOLUTIONS 4 Capital Markets Day 2021 Classification: Public
Slide 5: Agenda
1 Wind market outlook 2 Vestas' position AGENDA 3 Our people 4 Growth foundation 5 Capital Markets Day 2021 Classification: Public
Slide 6: The world has become a better place
THE WORLD HAS BECOME A BETTER PLACE …not without costs – but luckily we have the solution Development in world wealth and CO2 emissions 1990 to 2020 Global levelised cost of energy (LCOE) Indexed to 1990 USD/MWh (2020 real) World GDP (at constant 2015 USD) Onshore wind Offshore wind 250 CCGT Coal 2,
Slide 7: For wind this means a step change in any scenario
FOR WIND THIS MEANS A STEP CHANGE IN ANY SCENARIO Vestas is fundamentally in the right place at the right time World energy consumption by source 2020 Global wind generation capacity scenarios In exajoule (EJ) and percent (%) In terawatts (TW) Wind electricity 1% Other electricity 19% 8 Net Zero 7 >
Slide 8: Near term issues need to be addressed
NEAR TERM ISSUES NEED TO BE ADDRESSED Across a spectrum of external and internal factors External factors Internal factors Stable and conducive framework conditions Competition and ability to pass through Scaling and professionalising operations Examples Examples Examples UNITED STATES AVERAGE TURBI
Slide 9: Vestas strongly positioned in a consolidating industry
VESTAS STRONGLY POSITIONED IN A CONSOLIDATING INDUSTRY Market leadership, commercial momentum and best-in-class financials Market share development for leading wind OEMs outside China 2010-2020 Key financial performance metrics Vestas In percent, based on total onshore and offshore commissioned capa
Slide 10: The best products and commercial offerings
THE BEST PRODUCTS AND COMMERCIAL OFFERINGS Across onshore, offshore, service and newer business segments EnVentus onshore platform based on advanced modular Our next generation offshore platform Industry leading architecture offering +6 MW turbine solutions spearheaded by V236-15.0 MW service capabi
Slide 11: Building strong partnerships for future success
BUILDING STRONG PARTNERSHIPS FOR FUTURE SUCCESS With best-in-class companies across the value chain Examples of our strategic partners across the value chain Not exhaustive Customers Business enablers Component suppliers 11 Capital Markets Day 2021 Classification: Public
Slide 12: Strong management team
STRONG MANAGEMENT TEAM New global operating model from Jan 2022 Global Functions Group President & CEO Regions Henrik Andersen* CEO & Staff Functions MarCom, Sustainability & Public Affairs Corporate Strategy, M&A & Global Intel Morten Dyrholm Nikolaj Tyge Gertz * Executive Management Mediterranean
Slide 13: Strengthening regional execution
STRENGTHENING REGIONAL EXECUTION Introducing one common regional blueprint to pave the way towards offshore leadership SIMPLIFYING EMPOWERING SCALABILITY ENABLE INTERFACES SUCCESSION AND OFFSHORE BETWEEN AND CAREER COMMONALITY LEADERSHIP FUNCTIONS DEVELOPMENT • One aligned organisational • Offshore
Slide 14: Building leadership for the future
BUILDING LEADERSHIP FOR THE FUTURE Talent management, diversity and inclusion as key enablers ~500 >21 % Participants on talent Women in corporate >3300 >60% programs leadership positions Positions part of Internal fill rate for succession baseline scope leadership positions • Global succession base
Slide 15: Acting global means acting diverse
VESTAS EMPLOYEE VALUE PROPOSITION It takes all kinds of people to change the world - Together we can #PowerTheSolution Acting global means acting diverse 15 Capital Markets Day 2021 Classification: Public
Slide 16: Global leader in sustainable energy solutions
. FUTURE H2 INNOVATION DEVELOPMENT OFFSHORE GLOBAL SERVICE LEADER IN SUSTAINABLE ONSHORE ENERGY SOLUTIONS 16 Capital Markets Day 2021 Classification: Public
Slide 17: With our long-term financial targets in place
WITH OUR LONG-TERM FINANCIAL TARGETS IN PLACE REVENUE EBIT MARGIN FCF ROCE Outgrow market >10% by 2025 Positive every year >20% over the cycle Service Technology Today Offshore Cost efficiency Raw materials and transport and pricing 10% Onshore volume 17 Capital Markets Day 2021 Classification: Publ
Slide 18: Ambitious targets for our sustainability journey
AND AMBITIOUS TARGETS FOR OUR SUSTAINABILITY JOURNEY CARBON FOOTPRINT CIRCULARITY Carbon neutral Producing zero-waste company by 2030 – wind turbines by 2040 without using carbon offsets PEOPLE ENERGY TRANSITION Safest, most inclusive Leading the transition & socially-responsible towards a world com
Slide 19: Vestas
Vestas. Wind. It means the world to us.”
Slide 20: Leading the renewable journey
Leading the renewable journey Javier Rodriguez Diaz Chief Sales Officer
Slide 21: Agenda
1 Wind market outlook to 2030 2 Value creation AGENDA 3 Market leadership 21 Capital Markets Day 2021 Classification: Public
Slide 22: Vestas Power Solutions at a glance
VESTAS POWER SOLUTIONS AT A GLANCE Revenue Today 15% • 146 GW track record €15bn • Installations in 85 countries €7bn Order Intake • EUR 19bn backlog (>24 Volume market share* GW) 2015 2020 11pp 14% 35% 17 GW 24% 9 GW 2015 2020 2015 2020 Source: *Wood Mackenzie, excl China 22 Capital Markets Day 202
Slide 23: Attractive long-term market potential for wind
ATTRACTIVE LONG-TERM MARKET POTENTIAL FOR WIND Short-term re-adjustment followed by strong long-term growth with significant upsides Wind installations towards 2030 In GW Near term re-adjustment Longer term growth Gap to ‘Net Zero’ scenario requires to new market scale towards a lower carbon reality
Slide 24: Key markets poised to drive wind potential
KEY MARKETS POISED TO DRIVE WIND POTENTIAL Broad based contribution led by established markets Global total wind market installations potential 2021-2030 across regions and key countries > 10 GW Tile size = relative size of market volume; Total 10 year potential > 1.1 TW Top 10 offshore markets AMER
Slide 25: Our ambition is profitable leadership across segments
OUR AMBITION IS PROFITABLE LEADERSHIP ACROSS SEGMENTS Driving customer centricity and commercial excellence to enable ambition A B C D Partner of Choice Commercial Excellence Onshore Leadership Offshore Leadership Create superior value Realign profitability Expand global leadership Create long-term
Slide 26: Continuing as partner of choice
CONTINUING AS PARTNER OF CHOICE A Global one-stop-shop for renewable energy projects and solutions We are reshaping our customer approach to reinforce global partnerships… 1. Continued focus on optimising the business case of our existing customers 2. Helping new customer segments as they are enteri
Slide 27: Creating value for both Vestas and customers
CREATING VALUE FOR BOTH VESTAS AND CUSTOMERS B Employing commercial excellence to optimise business case potential INTELLIGENCE Understanding broader market environment, Average WTG sales price (ASP) vs key competitors supply/demand, commodities, competition In million EUR per MW over last 12 months
Slide 28: Moving from cost of energy to value of energy
MOVING FROM COST OF ENERGY TO VALUE OF ENERGY B Maturing how we partner across the value chain to enable the renewable transition Wind industry evolution High level overview Early years Becoming mainstream Technology of choice Past Today Future Description Entrepreneurialism Consolidation • Industri
Slide 29: Continued leadership in onshore
CONTINUED LEADERSHIP IN ONSHORE C Onshore continues as core segment with steady growth Onshore leadership levers Leadership levers in action: Examples of how we drive leadership in specific markets Main levers Non-exhaustive HIGHLIGHT USA: Ability to optimise modular solutions for HIGHLIGHT POLAND:
Slide 30: Capturing offshore leadership
CAPTURING OFFSHORE LEADERSHIP D Offshore to drive growth on medium to long term Offshore leadership levers Offshore leadership levers in action Main levers Examples of how we drive Vestas leadership in specific markets NORTH AMERICA: NORTH AND CENTRAL EUROPE: Setting up right footprint & supply chai
Slide 31: Key takeaways
KEY TAKEAWAYS ATTRACTIVE MARKET COMMON VALUE MARKET LEADERSHIP OUTLOOK CREATION 1 2 3 Short term market Maturing how we partner Securing steady growth uncertainty followed by across the value chain to through continued strong long-term growth create maximum value for onshore leadership while with si
Slide 32: Unlocking renewable opportunities through development
Unlocking renewable opportunities through development Thomas Alsbjerg Head of Global Development
Slide 33: Agenda
1 Vestas’ development value proposition 2 Track record and ambition AGENDA 3 CIP acquisition 4 Development case study 33 Capital Markets Day 2021 Classification: Public
Slide 34: Renewables not being deployed quickly enough
RENEWABLES NOT BEING DEPLOYED QUICKLY ENOUGH Shortage of high-quality projects to reach net zero by 2050 95 GW 50 GW 100 GW By 2030 By 2030 By 2030 Source: Company websites 34 Capital Markets Day 2021 Classification: Public
Slide 35: Strategic rationale for the new business unit
STRATEGIC RATIONALE FOR THE NEW BUSINESS UNIT Creating value for partners and Vestas in a sizeable market 1 Global wind capacity will continue growing Vestas capabilities and network as enablers Market conditions Leveraging on existing competitive advantage and Vestas’ Following the ambitious decarb
Slide 36: Creating value in the initial stages
CREATING VALUE IN THE INITIAL STAGES Flexible project entry and exit to maximise value and accommodate partners’ needs Early stage Late stage Construction COD+2 Operation Phase (~2-3 years) (~1-2 years) (~1 year) (~1-2 years) (~20-30 years) • Project entry from greenfield to late-stage • Building pi
Slide 37: Strong value proposition with development
STRONG VALUE PROPOSITION WITH DEVELOPMENT Technical capabilities, financial strength and global reach build competitive advantage Technical expertise Financial strength Global reach • Extensive wind database • Grid bonds • Installations in more than 85 • +124 GW under operation • Warranties countrie
Slide 38: Strong performance to date, large pipeline ahead
STRONG PERFORMANCE TO DATE, LARGE PIPELINE AHEAD Strong pipeline of +130 projects with focus on activities within wind, solar, PtX, and hybrid solutions FOI generated from development activities Vestas Development Pipeline In years 2018-2021 At several stages of maturity with different risk levels a
Slide 39: CIP acquisition creating further opportunities
CIP ACQUISITION CREATING FURTHER OPPORTUNITIES Accessing long term value of projects, exploration of technology segments and entering new markets Overall structure of the acquisition Possibilities unlocked for Vestas through CIP Take part of the value creation related to ownership and asset manageme
Slide 40: Multiple successful divestment cases in 2021
MULTIPLE SUCCESSFUL DIVESTMENT CASES IN 2021 Case study: US Mile Creek project sold with FOI Development deal Divestment of 25 Mile Creek • 250 MW late-stage project, 60 x V150- 4.2 MW Securing FOI of 250 MW in August 2021 • Fully owned by Vestas Development since 2019 • Acquired as an early-stage p
Slide 41: Key takeaways
Key takeaways ENERGY TRANSITION CAPABILITIES & VALUE CREATION TRACK RECORD 1 2 3 Vestas Development will Our capabilities and 4.1 The 20 GW pipeline and play an influential role in GW track record position future Development xxxxxxxxxxxxxxx progressing deployment Vestas to become a portfolio create
Slide 42: Vestas
Vestas. Wind. It means the world to us.”
Slide 43: Leading the way with renewable solutions
Leading the way with renewable solutions Anders Nielsen Chief Technology Officer
Slide 44: Agenda
1 Vestas’ current technology portfolio 2 Modular foundation AGENDA 3 Onshore and offshore synergies 4 Future solutions 44 Capital Markets Day 2021 Classification: Public
Slide 45: Platforms: 2 MW, 4 MW, EnVentus
54+ GW 51+ GW 5+ GW 5+ GW 3 GW installed installed installed Firm Order Preferred since 2010 since 2014 Intake supplier since 2000 agreement Next 2 MW 4 MW 9 MW EnVentus™ generation Platform Platform Platform Proven System offshore Designs Designs 45 Capital Markets Day 2021 Classification: Public
Slide 46: Industry calls for new solutions
INDUSTRY CALLS FOR NEW SOLUTIONS Vestas’ modular approach as the foundation across the value chain Rapid volume growth increasing complexity across the value chain Availability of attractive sites in markets with high SITE CUSTOMISATION penetration INTERNAL STANDARDISATION SCALABILITY Increasing pe
Slide 47: Increased customisation without adding complexity
INCREASED CUSTOMISATION WITHOUT ADDING COMPLEXITY The larger no longer the better, modularisation to drive further value Note: Illustrative number of modules and turbine variants 47 Capital Markets Day 2021 Classification: Public
Slide 48: Key milestones on Vestas modularisation journey
KEY MILESTONES ON VESTAS MODULARISATION JOURNEY 2021 achievements pave the way for expanded modularity across the value chain Modular architecture at plant level Expanded modularity on entire turbine 2021 NEXT ENVENTUS RELEASE MODULARISED Onshore variant with NACELLE modularized nacelle V236-15.0 MW
Slide 49: Value creation through modular approach
VALUE CREATION THROUGH MODULAR APPROACH Unlocking customer value while increasing value creation for Vestas We are changing the energy DESIGN system, and we need to take TRANSPORT new steps to be able to scale Reducing time to market Breaking transport cost our technology efficiently to and developm
Slide 50: Modularised nacelle unlocks multiple benefits
MODULARISED NACELLE UNLOCKS MULTIPLE BENEFITS New architecture with main nacelle house & side-compartment Side-compartment Side-compartment with standardised and modularised Power Unit to use across onshore and offshore platforms Main nacelle house Industrialised and assembly-optimised nacelle arch
Slide 51: Interface design increases flexibility
INTERFACE DESIGN INCREASES FLEXIBILITY Connecting main nacelle house and side-compartment Click-on interface • For upholding vertical load Heavy-duty interface • Cater and optimise load distribution • Securing heavy loads directly to base in yaw motion frame • Eliminating stress in material and • E
Slide 52: Synergies across onshore & offshore
SYNERGIES ACROSS ONSHORE & OFFSHORE Shared side-compartment and main components Shared Standardised Common Standardised Optimised positioning architecture connection interface Power Unit transportation of heavy components 52 Capital Markets Day 2021 Classification: Public
Slide 53: Advanced modularity enables scalability
ADVANCED MODULARITY ENABLES SCALABILITY Future renewable solutions to build on the modular foundation CURRENT SOLUTIONS FUTURE POSSIBILITIES Modular Nacelle Transport solutions Service crane Future Innovation Grid Capability Battery Storage Power To X Note: This overview is only a representation of
Slide 54: Value creation through plant & energy solutions
VALUE CREATION THROUGH PLANT & ENERGY SOLUTIONS Platform of industry leading power plant and system integration capabilities Customer risk & value Efficient grid connection Full lifecycle operations prediction & lifetime compliance & value optimisation Modularised hardware & Opportunity identificati
Slide 55: Case study: first dynamic wind-to-ammonia plant
CASE STUDY: FIRST DYNAMIC WIND-TO-AMMONIA PLANT Partnering to shape the future wind-to-hydrogen opportunity World’s 1st commercial green ammonia plant Vestas playing a crucial role Vestas’ participation scope Wind Energy mgmt. Electrolyser Ammonia plant H2 offtake • Integrate power generation (wind
Slide 56: Case study: Vestas partners with industry leaders
CASE STUDY: VESTAS PARTNERS WITH INDUSTRY LEADERS Award winning AI operation to optimise overall plant production Conquering the largest source of operational losses with AI 56 Capital Markets Day 2021 Classification: Public
Slide 57: Key takeaways
KEY TAKEAWAYS LEADING TURBINE SCALABILITY RENEWABLE SOLUTIONS INTEGRATION 1 2 3 Enventus and V236 Modular approach is the New energy solutions are leveraging on strong solution to scalability and needed to enable the synergies and paving the sustainably expanding the integration of RE in the way for
Slide 58: Building the future supply chain
Building the future supply chain Tommy Rahbek Nielsen Chief Operating Officer
Slide 59: Agenda
1 Business starts with Safety & Quality 2 Volatility & cost headwinds AGENDA 3 Shaping the future supply chain 59 Capital Markets Day 2021 Classification: Public
Slide 60: Vestas global operations at a glance
VESTAS GLOBAL OPERATIONS AT A GLANCE Turbine deliveries 21 internal & 92 external GW +116% factories across the world 17 +400k shipments from 41 8 different countries Manufacturing across 600+ vessels used Four areas within the 2015 2020 +15 countries COO organisation 3,330 turbines 5,239 turbines P
Slide 61: Safety always comes first
SAFETY ALWAYS COMES FIRST Going the extra mile in challenging times Trend of total recordable injuries Remaining safe during a pandemic Per million working hours • Continued operations as critical infrastructure • COVID-19 protocol enforcement anchored with 5.9 leadership -14% 4.3 • Cross-functional
Slide 62: Quality leadership to continue as partner of choice
QUALITY LEADERSHIP TO CONTINUE AS PARTNER OF CHOICE Concrete quality programs launched and anchored throughout the organisation FROM TO Following Quality Living Quality • Product quality only • Internal focus • Increase customer value Stop & speak up • QSE department responsible for quality • “Quali
Slide 63: Preparing foundation for long-term growth
PREPARING FOUNDATION FOR LONG-TERM GROWTH While managing uncertainty on short term - three key operational priorities Short- to medium-term Longer-term 2025+ SCALING AND LEVERAGING FAST GROWTH A Cost inflation mitigation B Onshore & offshore synergies C Leverage supply chain synergies & scalability
Slide 64: Global headwinds increase cost: mitigations
GLOBAL HEADWINDS INCREASE COST A Partnerships to alleviate some of the impact • Partnerships Shipping cost level Avg. waiting time Partnership with Maersk to ensure Sea Transport Currency/container in CHI ports Days flexibility throughout the inbound 4X 4X container transport and delivery 2020 Q3 20
Slide 65: Vestas initiatives driving efficiency gains
VESTAS INITIATIVES DRIVING EFFICIENCY GAINS But only partially mitigating the impact from cost headwinds short term Cost per MW historical overview (manufacturing & transport) Improvement drivers 2016 = index 100 • Standard work and efficiency programs • Supply chain maturity and scale • Transport p
Slide 66: Realising synergies across onshore and offshore
REALISING SYNERGIES ACROSS ONSHORE AND OFFSHORE B Through designing an integrated supply network across the value chain Aligned onshore & offshore supply network PROCUREMENT MANUFACTURING LOGISTICS QUALITY Increasing the scale to Reducing the CAPEX Maximising collaboration Improving quality across s
Slide 67: Introducing value aligned eco systems
INTRODUCING VALUE ALIGNED ECO SYSTEMS c Unlocking profitability and scalability through partnership networks Unlocking the full potential ECO-SYSTEMS Business network optimization Continues cost out structure embedded E2E MULTI-FUNCTIONAL Full value chain optimisaiton Accelerate Earnings Phase III C
Slide 68: Leveraging value aligned partnerships
LEVERAGING VALUE ALIGNED PARTNERSHIPS To enable joint sustainable growth, and cost efficiencies within eco-systems Few, Bigger, Better Companies Invest in development, competences and capacity to mature industry for global, industrial approach leading to supplier Enabling Modularisation base consoli
Slide 69: Transforming our supply chain
TRANSFORMING OUR SUPPLY CHAIN Increased collaboration to drive both scalability and sustainability PREVIOUS FOCUS FUTURE FOCUS Safety, Quality, Delivery & Cost Safety, Quality, Delivery & Cost & Scalability, Sustainability & Supply Network 69 Capital Markets Day 2021 Classification: Public
Slide 70: Key takeaways
KEY TAKEAWAYS MANAGING SUPPLY CHAIN SUPPLIER COMPLEXITY EVOLVEMENT PARTNERSHIPS 1 2 3 Increased variants Supply chain The future managed by maturity must evolve to supplier is competitive, modularisation and next level within 5-10 sustainable & scalable standardisation years integrated into Vestas’
Slide 71: Vestas
Vestas. Wind. It means the world to us.”
Slide 72: Sustainable Service leadership
Sustainable Service leadership Christian Venderby Chief Service Officer
Slide 73: Agenda
1 Market and leadership position 2 Capturing growth AGENDA 3 Profitability journey 73 Capital Markets Day 2021 Classification: Public
Slide 74: World class scale with 124 GW under management
WORLD CLASS SCALE WITH 124 GW UNDER MANAGEMENT Ideally positioned to continue leadership and to gain market share within on- and offshore Vestas Service Track Record Fleet under Service1, GW Onshore Offshore • +11,000 employees dedicated to service 118 6 124 • +8,200 MW of Multibrand under Service #
Slide 75: Wind O&M market expected to reach USD 40bn by 2030
WIND O&M MARKET EXPECTED TO REACH USD 40BN BY 2030 Installed base ageing while new turbine introductions continue to reduce service costs Global wind O&M market, USDbn, CAGR Installed Onshore MW by age, Years O&M prices per WTG size, EURk/MW/yr Above 13 yrs 3 to 12 yrs 0 to 2 yrs Offshore -49% Total
Slide 76: Vestas ideally positioned to lead the industry
VESTAS IDEALLY POSITIONED TO LEAD THE INDUSTRY Delivering operational excellence to customers and serving them in the best possible way Digitally-enabled operating model Operational excellence through digital platforms Consolidating a fragmented market with Covento Operational Digitalisation Scalabi
Slide 77: Introducing the digital operating model
INTRODUCING THE DIGITAL OPERATING MODEL Leveraging Salesforce as the backbone of the new operating model to sustain scale Reaping scale benefits through standardisation To align and lift Service performance Increasing operational excellence through next-gen scheduling engine Our people Enabling ever
Slide 78: Delivering operational excellence
DELIVERING OPERATIONAL EXCELLENCE Utopus Insights provides a platform to create a shared reality between customers and Vestas Utopus Insights is Vestas’ SaaS provider… …and enables the next-gen service experience Customers Increasing operational excellence through industry-leading data science capab
Slide 79: Tackling the fragmented renewable supply chain
TACKLING THE FRAGMENTED RENEWABLE SUPPLY CHAIN Covento will simplify procurement process with unified steps for a next-gen experience THE RENEWABLE INDUSTRY VS. The process when a field engineer needs to buy a part Up to 15 people involved to support the Sellers and buyers are procuring directly on
Slide 80: Merging scale with digital capabilities
MERGING SCALE WITH DIGITAL CAPABILITIES Covento offers simplicity, efficiency, and scalability for buyers and sellers in a fragmented market Service’s starting point Covento as a one-stop-shop for the whole Renewable Energy industry Strong global supply chain with ✓ Buyers access a one- Seller Buyer
Slide 81: Next gen tools & robotics unlock customer value
NEXT GEN TOOLS & ROBOTICS UNLOCK CUSTOMER VALUE Driving innovations to bring down cost of renewables even further Drone inspections decrease costs… …using AI for advanced analytics… …and BladeRobotsTM to repair damage • More than 25,000 wind turbine • Analysing more than 200 photos per • In-house de
Slide 82: Offshore growth to drive service opportunities
OFFSHORE GROWTH TO DRIVE SERVICE OPPORTUNITIES Leveraging our vast experience to capture offshore leadership Global Offshore market is scaling up… …and Vestas is predestined for Offshore O&M leadership Cumulative installations 2020-2030 Winning customer value proposition through operational and comm
Slide 83: Service EBIT positioned to double by 2030
SERVICE EBIT POSITIONED TO DOUBLE BY 2030 Well positioned to continue value leadership EBIT, EURm Illustrative and not to scale >1,100 x2030 Vestas Service to double EBIT by x2 2030 through… 567 High double- digit growth* Medium double-digit growth* High Operational single-digit Scalability Digitali
Slide 84: Key takeaways
KEY TAKEAWAYS OPERATIONAL DIGITALISATION SCALABILITY EXCELLENCE 1 2 3 Leveraging scale and Merging industry-leading Largest, most scalable digitalisation to achieve digital capabilities with wind O&M provider in the operational excellence, domain expertise to world – ideally positioned the foundatio
Slide 85: Financial position
Financial position Marika Frederiksson Chief Financial Officer
Slide 86: Agenda
1 Financial situation and ambitions 2 Path to secure ambitions AGENDA 3 Sustainability 86 Capital Markets Day 2021 Classification: Public
Slide 87: Financial stability is the foundation
FINANCIAL STABILITY IS THE FOUNDATION Top-rated OEM in the wind turbine manufacturing industry Strong financial ambitions Market leader Leading market and technology position in revenue Strong growth of demand for renewable energy and good revenue visibility EBIT-margin Minimum 10% . Scale, profitab
Slide 88: Extraordinary costs impacting EBIT
EXTRAORDINARY COSTS IMPACTING EBIT Internal and external impacts weighing on profitability 2017-2021 EBIT hampered by The effect of extraordinary costs on EBIT extraordinary events Excluding special items • Industry-wide reduction in pricing of Zooming in on extraordinary costs 15% following roll-ou
Slide 89: Fixed costs under control
FIXED COSTS UNDER CONTROL Levering Vestas’ global scale to retain fixed cost efficiency Selling, General and Administrative costs EURm Priorities 788 733 757 • Secure leadership in Offshore 672 • Retain efficient operating model Drivers 7.4% 6.6% 6.2% ▲ Offshore capability and capacity building 5.3%
Slide 90: Investing to capture synergies
INVESTING TO CAPTURE SYNERGIES Creating CAPEX efficiencies across onshore and offshore Investments EURm, excl. M&A and divestments Priorities 850-1,050 • V236-15.0 MW launch and ramp up <1,000 • Bring Next generation EnVentus to market 729 659 603 Drivers 6.0% 6.0% 407 ~5.0% ▲ ~ 25% of investments i
Slide 91: Net working capital to remain negative
NET WORKING CAPITAL TO REMAIN NEGATIVE Retaining a sustainable net working capital is a key priority Net Working Capital EURm Priorities • Inventory management • Manufacturing footprint Drivers (1,127) ▼ Inventory optimisation (1.500) (1,583) ▼ Supplier flexibility (1,583) (2,040) ▼ Manufacturing fo
Slide 92: Drivers to long-term EBIT target
DRIVERS TO LONG-TERM EBIT TARGET Internal and external drivers to achieve 10 percent EBIT margin by 2025 Assumptions • Technology and pricing: keeping value creations from technology advancements and ensure pricing stability • Raw material and transport : To normalise or 2021e 2025e passed through t
Slide 93: Vestas Ventures – a strategic business enabler
VESTAS VENTURES – A STRATEGIC BUSINESS ENABLER Utilising financial strength to accelerate the sustainability journey Solutions that accelerate MODVION wooden towers renewable energy growth • Potential to significantly reduce CO2 emissions through grid stability and electrification • Modular design a
Slide 94: Key takeaways
KEY TAKEAWAYS SHORT-TERM IMPACTS FINANCIAL STRENGTH 10 PERCENT EBIT BY 2025 1 2 3 Significant impact from Financial stability and With current visibility and extraordinary costs over strength allows strategic the levers in place, we the last years and investments supporting aim for 10 percent EBIT e
Slide 95: Vestas
Vestas. Wind. It means the world to us.”
Slide 96: Global leader in sustainable energy solutions
. GLOBAL LEADER IN SUSTAINABLE ENERGY SOLUTIONS 96 Capital Markets Day 2021 Classification: Public