Vestas Wind Systems A/s · OMXCOP:VWS
Vestas Wind Systems A/s — Shareholder Meeting (April 2025)
56 slides from Vestas Wind Systems A/s's shareholder meeting presentation, Apr 8, 2025
Slide 1: Vestas Wind Systems A/S Annual General Meeting 2025
. Vestas Wind Systems A/S Annual General Meeting 2025 8 April 2025
Slide 2: Welcome
Welcome Classification: Confidential
Slide 3: Agenda
Agenda 1. The Board of Directors’ report on the Company’s activities during the past year 2. Presentation and adoption of the Annual Report 3. Resolution for the allocation of the result of the year according to the adopted Annual Report 4. Presentation and advisory vote on the Remuneration Report 5
Slide 4: Agenda
Agenda 1. The Board of Directors’ report on the Company’s activities during the past year 2. Presentation and adoption of the Annual Report 3. Resolution for the allocation of the result of the year according to the adopted Annual Report 4. Presentation and advisory vote on the Remuneration Report 5
Slide 5: The Board of Directors' report on the Company's activities
The Board of Directors’ report on the Company’s activities during the past year Anders Runevad Chair
Slide 6: Wind energy key to affordability, security and sustainability
Wind energy key to affordability, security and sustainability Our global business environment Global environment Global Environment Raw material and transport costs stable Ongoing geopolitical and trade volatility Overall inflation stabilising and indices are converging Market Environment Vestas and
Slide 7: Market outlook: the green transition holds tremendous growth potential for wind
Market outlook The green transition holds tremendous growth potential for wind Global energy consumption 2023 Global wind capacity penetration ratios by scenario In percent Share of electricity in %; Average annual installations in GW Total electricity ~20% 30 Actuals Wind 1.6% Net Zero Net Zero 30%
Slide 8: Deep-dive: Energy security
Deep-dive: Energy security Ensuring energy security with wind power Geopolitical uncertainty and an energy deficit in many countries have turned energy policy into security A secure and resilient energy system requires power production that runs independently and can be deployed fast Vestas' wind en
Slide 9: Vestas in 2024
Update picture Vestas in 2024
Slide 10: A snapshot of Vestas in 2024
A snapshot of Vestas in 2024 Vestas continues to be the undisputed global leader in wind Strongest execution track-record Leading products for every segment Global scale and operating model and most trusted brand Onshore platforms +35,000 employees EnVentus 4 MW +12 GW installed +78 GW installed sin
Slide 11: Key highlights for full year 2024
Key highlights for full year 2024 Vestas continued the positive trajectory in 2024 and achieved its Outlook for the year Rising costs caused a challenging year for Service, but the scrutiny is complete and a recovery plan is in place A record year of order intake in terms of value, with a high ASP a
Slide 12: Long-term ambitions
Long-term ambitions Strategy and ambitions remain unchanged REVENUE EBIT ROCE FCF ESG Grow faster than the Best-in class 20 percent return on Free cash flow Carbon neutrality market and be earnings, at least 10 investment over the positive across our own market leader in percent EBIT margin cycle op
Slide 13: Board activities 2024 and remuneration
Board activities 2024 and remuneration
Slide 14: Board activity and evaluation 2024
Board activity and evaluation 2024 The 2024 Board evaluation was conducted in June to November and concluded: - Meetings are found to be run in a structured way by the Chair, creating a framework for open and direct dialogue. The dialogue is seen as being positive, constructive, direct, and without
Slide 15: Board of Directors: New members
Board of Directors: New members The Board of Directors proposes the following to join the Board: - Bruno Bensasson - Claudio Facchin
Slide 16: Board of Directors: Remuneration
Board of Directors: Remuneration Remuneration in 2024 The Board of Directors received a total remuneration of EUR 1,378,895. This was in accordance with the remuneration level approved by the shareholders at the Annual General Meeting in 2024, as well as with the Remuneration Policy. Members of the
Slide 17: Slide 17
Slide 18: Presentation and adoption of the Annual Report
Presentation and adoption of the Annual Report Henrik Andersen Group President & CEO
Slide 19: Key financials
Update picture Key financials
Slide 20: Achievements and challenges in 2024
Achievements and challenges in 2024 Progress in a challenging year Achievements Challenges Continued commercial discipline, leading to a Geopolitical uncertainty in some of our key record breaking order intake of EUR 19bn markets Successful turn around of the Onshore Manufacturing ramp-up challenges
Slide 21: Financial highlights
Financial highlights In 2024, Vestas continued the positive trajectory Revenue EBIT margin Free Cash Flow Investments Backlog, Backlog, bnEUR % mEUR mEUR turbines bnEUR Service bnEUR 36,8 34,1 31,6 30,4 26,0 17,3 15,4 19,1 14,5 1.142 991 771 835 4,3 245 1,5 -8.0 -874 2022 2023 2024 2022 2023 2024 20
Slide 22: Power Solutions - financials
Power Solutions - financials Highest quarterly profitability since 2017 Power Solutions revenue and EBIT margin, mEUR and percent Highlights Offshore revenue Onshore revenue EBIT margin EBIT margin of 12.9 percent in the fourth quarter, up 4,944 almost ten percentage points compared to last year, le
Slide 23: Power Solutions - order intake
Power Solutions - order intake Record high order intake of EUR 19.2bn from 30 countries Top markets Finland Sweden United Kingdom Denmark Belgium Netherlands Order intake development, EURbn Germany Poland Austria 18,5 19,2 Lithuania 12,7 11,6 11,9 Latvia Czech. Rep. 2020 2021 2022 2023 2024 Romania
Slide 24: Service: Heading 'back on track'
Service Heading ‘back on track’ Service revenue and EBIT margin before special items, mEUR and percent Highlights Service EBIT Service revenue EBIT margin 1.197 While Service had a difficult year in 2024, the 1.015 904 938 920 902 927 scrutiny of the business is over, and a recovery plan 817 806 700
Slide 25: Provisions and LPF
Provisions and LPF LPF is improving but challenged short-term by issue reported in Q3 Lost Production Factor (LPF), Percent Highlights 6 Heightened focus on quality is helping underlying 5 LPF improve, and warranty provisions decrease. 4 Over time, an improved LPF should lead to lower 3 warranty pro
Slide 26: Capital structure
Capital structure Financial strength allows for shareholder distribution Net debt to EBITDA before special items Highlights Net debt to EBITDA, last 12 months Net debt to EBITDA, financial target The combination of strong free cash flow and 5,8 improved earnings, lead to a further decreased of net d
Slide 27: Sustainability in everything we do
Sustainability in everything we do Emissions stabilised while GW under service has increased from 100 GW to +150 GW since 2019 Emissions from 150 114 Our sustainability strategy own operations 100 97 102 100 109 105 -8% Direct and indirect Carbon neutrality emissions of CO2e 50 Carbon neutral compan
Slide 28: Business environment, strategy and outlook
Update picture Business environment, strategy and outlook
Slide 29: Our current business environment
Wind energy key to affordability, security and sustainability Our current business environment Global Environment Ongoing geopolitical and trade volatility Global environment Market Environment Permitting improving in some markets but overall permitting, auctions and market design still challenging
Slide 30: Tyligul Wind Farm in Ukraine; Failed Offshore auction in Denmark
Tyligul Wind Farm in Ukraine Failed Offshore auction in Denmark 384 MW project with our partner DTEK 3 GW Offshore auction with no bids Tyligul Project Danish Offshore auction - This order adds to the 114 MW - Denmark’s latest 3 GW Offshore Tyligul Stage One order, which wind auction in December 202
Slide 31: Electricity prices in Europe remain elevated
Electricity prices in Europe remain elevated Examples Wholesale electricity price per country, EUR per MWh - In Denmark current electricity 550 prices are EUR 102 Germany (were EUR 26 in 2020) 500 France 450 Denmark - In France current electricity prices are EUR 108 400 (were EUR 32 in 2020) 350 ~30
Slide 32: Global strategic priorities
Global strategic priorities Strategic priorities to guide Vestas ‘back on track’ to double-digit profitability 2024-2025 2026-2030 Back on Track Sustainable Growth NEW Onshore Offshore Service Global Leader Capture full Ramp-up offshore Build operational momentum in excellence and in Sustainable Ene
Slide 33: Service recovery plan
3 Service recovery plan Getting Service ‘back on track’ Commercial resetting: Drive commercial Service OnePlan excellence with focus on price, scope, billing - Cross-functional and regional collaboration profiles and contract trimming. Wage inflation in mainland Europe settling around 2.5 percent -
Slide 34: Drivers to long-term financial ambition
Drivers to long-term financial ambition Drivers to achieve 10 percent EBIT margin Drivers - Project profitability: Continued journey of commercial culture and further improvement of project execution 2025e Ambition - Onshore volume: Operational leverage and better absorption of fixed costs - Service
Slide 35: Share price: Full climate sector under pressure
Share price: Full climate sector under pressure, down 70% from COVID peak Share price development Index 100 = 1 January 2020 1 January 2020 to 27 January 2025, % 280 -70% 260 240 220 200 180 MSCI Global 160 +61% Index 140 120 100 Clean Energy -17% 80 Index1 60 Vestas -27% 40 20 2020 2021 2022 2023 2
Slide 36: 10 year adjusted EPS development (EUR)
10 year adjusted EPS development (EUR) +40% 0,88 +60% 0,85 0,80 0,78 2025F based on most recent external 0,71 consensus 0,68 0,62 0,50 0,36 0,17 0,08 11 June 2025 -1.56 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025F
Slide 37: Outlook 2025
Outlook 2025 Outlook Revenue (bnEUR) 18 – 20 EBIT margin before special items (%) 4–7 Service is expected to generate EBIT b.s.i. of around EUR 700m Total investments (bnEUR) Approx. 1.2 The 2025 outlook is based on current foreign exchange rates
Slide 38: Wind energy is key to short- and long-term prosperity
Wind energy is key to short- and long-term prosperity Wind energy helps keep power prices down Global environment Wind energy is fast to deploy and independent Market Environment Wind energy reduces CO2-emissions Vestas and project delivery
Slide 39: 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 40: Slide 40
Slide 41: Agenda
Agenda 1. The Board of Directors’ report on the Company’s activities during the past year 2. Presentation and adoption of the Annual Report 3. Resolution for the allocation of the result of the year according to the adopted Annual Report 4. Presentation and advisory vote on the Remuneration Report 5
Slide 42: Agenda item 3: Allocation of the result of the year
Agenda item 3 Resolution for the allocation of the result of the year according to the adopted Annual Report The Board of Directors proposes that a dividend of DKK 0.55 per share be paid out for 2024. The proposed dividend distribution is in accordance with the Company’s dividend policy. Proposal to
Slide 43: Agenda
Agenda 1. The Board of Directors’ report on the Company’s activities during the past year 2. Presentation and adoption of the Annual Report 3. Resolution for the allocation of the result of the year according to the adopted Annual Report 4. Presentation and advisory vote on the Remuneration Report 5
Slide 44: Agenda item 4: Remuneration Report advisory vote
Agenda item 4 Presentation and advisory vote on the Remuneration Report The Board of Directors proposes that the Annual General Meeting approves the Remuneration Report 2024 by advisory vote. The Remuneration Report 2024 has been prepared in accordance with section 139b of the Danish Companies Act.
Slide 45: Agenda
Agenda 1. The Board of Directors’ report on the Company’s activities during the past year 2. Presentation and adoption of the Annual Report 3. Resolution for the allocation of the result of the year according to the adopted Annual Report 4. Presentation and advisory vote on the Remuneration Report 5
Slide 46: Agenda item 5: Approval of the Board of Directors' remuneration
Agenda item 5 Approval of the Board of Directors’ remuneration The Board of Directors proposes that the remuneration for 2025 be based upon a basic remuneration of DKK 487,583 per board member – an increase of 3 percent compared to 2024. The Chair receives three times the basic remuneration and the
Slide 47: Agenda
Agenda 1. The Board of Directors’ report on the Company’s activities during the past year 2. Presentation and adoption of the Annual Report 3. Resolution for the allocation of the result of the year according to the adopted Annual Report 4. Presentation and advisory vote on the Remuneration Report 5
Slide 48: Agenda item 6: Election of members to the Board of Directors
Agenda item 6 Election of members to the Board of Directors All board members elected by the general meeting are up for election. The Board of Directors proposes re-election of: Anders Runevad Eva Søfelde Berneke Helle Thorning-Schmidt Henriette Hallberg Thygesen The Board of Directors proposes that
Slide 49: Agenda
Agenda 1. The Board of Directors’ report on the Company’s activities during the past year 2. Presentation and adoption of the Annual Report 3. Resolution for the allocation of the result of the year according to the adopted Annual Report 4. Presentation and advisory vote on the Remuneration Report 5
Slide 50: Agenda item 7: Appointment of auditor
Agenda item 7 Appointment of auditor The Board of Directors proposes that Deloitte Statsautoriseret Revisionspartnerselskab (CVR no. 33963556) be re-appointed as the Company’s auditor in accordance with the Audit Committee’s recommendation in respect of statutory financial and sustainability reporti
Slide 51: Agenda
Agenda 1. The Board of Directors’ report on the Company’s activities during the past year 2. Presentation and adoption of the Annual Report 3. Resolution for the allocation of the result of the year according to the adopted Annual Report 4. Presentation and advisory vote on the Remuneration Report 5
Slide 52: Agenda item 8.1: Authorisations to increase the share capital
Agenda item 8.1 Renewal and amendment of the authorisations to increase the share capital The Board of Directors proposes that the authorisations of the Board of Directors to increase the Company’s share capital is renewed so Article 3(1) of the Articles of Association will hereafter read as they ar
Slide 53: Agenda item 8.2: Authorisation to acquire treasury shares
Agenda item 8.2 Renewal of the authorisation to acquire treasury shares The Board of Directors proposes, pursuant to section 198 of the Danish Companies Act, that the Board of Directors be granted an authorisation to allow the Company to acquire treasury shares in the period until 31 December 2026 u
Slide 54: Agenda
Agenda 1. The Board of Directors’ report on the Company’s activities during the past year 2. Presentation and adoption of the Annual Report 3. Resolution for the allocation of the result of the year according to the adopted Annual Report 4. Presentation and advisory vote on the Remuneration Report 5
Slide 55: Agenda
Agenda 1. The Board of Directors’ report on the Company’s activities during the past year 2. Presentation and adoption of the Annual Report 3. Resolution for the allocation of the result of the year according to the adopted Annual Report 4. Presentation and advisory vote on the Remuneration Report 5
Slide 56: Annual General Meeting
Annual g General Meeting |
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