Vestas Wind Systems A/s · OMXCOP:VWS
Vestas Wind Systems A/s — Q2 2023 Earnings Presentation
22 slides from Vestas Wind Systems A/s's earnings presentation, August 2023
Slide 1: Second quarter 2023
Second quarter 2023 Vestas Wind Systems A/S Copenhagen, August 2023
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 Q2 2023
Key highlights in Q2 2023 Order intake of 2.3 GW Wind turbines orders in GW grew by 8 percent YoY with an Onshore ASP of EUR 0.97m/MW Revenue of EUR 3.4bn Growth of 4 percent YoY driven by 29 percent Service growth, higher average pricing on deliveries, partly offset by lower volume EBIT margin of n
Slide 4: Agenda
Orders and markets Financials Outlook Q&A Agenda Classification: Public 4 Q2 2023
Slide 5: Global business environment
Global business environment Global business environment expected to remain challenging throughout 2023 Employee health and safety top priority • Market design and permitting pose a barrier to Renewables Maintain new installations critical business infrastructure continuity • Industry still needs to
Slide 6: Power Solutions – Q2 2023
Power Solutions – Q2 2023 Commercial discipline intact – order intake slowly improving Firm and unconditional order intake, MW Highlights Onshore (1)% Offshore Order intake of 2.3 GW, up 8 percent YoY, 2,123 2,095 driven by EMEA and the Hibiki Offshore project 756 in Japan AME 1,199 Onshore ASP retu
Slide 7: Service – Q2 2023
Service – Q2 2023 Strong position for further profitable growth Service order GW under active Average years Highlights backlog service contracts contract duration Service continued with high activity and strong operational first half Service order backlog increased to almost EUR EUR 150 11 32bn, and
Slide 8: Vestas Development – Q2 2023
Vestas Development – Q2 2023 Selective pipeline additions in major energy markets Order intake New secured Total project Highlights generated pipeline pipeline At the end of Q2 2023, Vestas' pipeline of development projects amounted to 30.5 GW with Australia, the USA and Brazil being the countries w
Slide 9: Sustainability – Q2 2023
Sustainability – Q2 2023 The most sustainable energy company in the world CO2e avoided Highlights 105 114 +9% Expected CO2e avoided In the second quarter of 2023, Vestas and over the lifetime of the capacity produced and Ørsted, announced a partnership in which shipped during the period Ørsted will
Slide 10: Agenda
Orders and markets Financials Outlook Q&A Agenda Classification: Public 10 Q2 2023
Slide 11: Income statement – Q2 2023
Income statement – Q2 2023 Gross margin continues to improve Highlights mEUR Q2 2023 Q2 2022 % change Revenue increased 4 percent YoY, driven by increasing service activity and higher value of turbine deliveries, partly Revenue 3,429 3,305 4% offset by lower MW delivered Production costs (3,208) (3,
Slide 12: Power Solutions – Q2 2023
Power Solutions – Q2 2023 Profitability improved Power Solutions revenue and EBIT margin, mEUR and percent Highlights Offshore revenue EBIT margin Onshore revenue Revenue decreased by 3 percent YoY, driven by lower activity in APAC partly offset by higher activity in South America and Offshore (3)%
Slide 13: Service – Q2 2023
Service – Q2 2023 Strong growth and solid EBIT margin Service revenue and EBIT margin before special items, mEUR and percent Highlights Service revenue EBIT margin before special items +29% Revenue increased 29 percent YoY again this quarter, driven by higher overall activity and 1,015 inflation ind
Slide 14: SG&A costs – Q2 2023
SG&A costs – Q2 2023 Fixed capacity costs at same level SG&A costs (LTM)*, mEUR and percent Highlights SG&A costs % of revenue Relative to activity levels, SG&A costs amounted to 8.4 percent on a trailing 12-month basis 1,270 1,251 1,209 1,217 1,223 The increase compared to Q2 last year is mainly dr
Slide 15: Net working capital – Q2 2023
Net working capital – Q2 2023 Stable NWC over the quarter NWC change over the quarter, mEUR Highlights Net working capital was stable over the quarter. An increase in the level of inventories was largely offset by down- and milestone payments from customers as well as a decrease in receivables (228)
Slide 16: Cash flow statement – Q2 2023
Cash flow statement – Q2 2023 Positive operating cash flow in the quarter Highlights Operating cash flow increased to EUR 48m driven by mEUR Q2 2023 Q2 2022 Abs. Change improved profitability and lower warranty consumption Cash flow from operating activities compared to Q2 last year before change in
Slide 17: Total investments – Q2 2023
Total investments – Q2 2023 Investment level remains stable Total net investments*, mEUR Highlights Cash flow from investing activities* Investments of EUR 188m in Q2 were slightly up compared 253 to Q2 last year, driven by higher capex for our V236-15.0 MW™ offshore turbine, offset by lower investm
Slide 18: Provisions and LPF – Q2 2023
Provisions and LPF – Q2 2023 Warranty provisions remain elevated but LPF showing signs of improvement Lost Production Factor (LPF), Percent Highlights 6 LPF* showing signs of improvement, but 5 remains at high level mainly from extraordinary 4 repair and upgrades 3 Warranty provisions of EUR 171m in
Slide 19: Capital structure – Q2 2023
Capital structure – Q2 2023 Financial leverage decreased as earnings slowly recover Net debt to EBITDA before special items Highlights Net debt to EBITDA, last 12 months Net debt to EBITDA, financial target Net debt to EBITDA decreased to 4.5x in Q2 due to higher EBITDA on a trailing 12-month basis,
Slide 20: Agenda
Orders and markets Financials Outlook Q&A Agenda Classification: Public 20 Q2 2023
Slide 21: Outlook 2023
Outlook 2023 Outlook Revenue (bnEUR) 14 – 15.5 - Service is expected to grow around 10 percent (previously min. 5 percent) EBIT margin before special items (%) (2) – 3 - Service margin is expected to be approx. 22 percent Total investments (bnEUR) approx. 1 Excl. acquisitions of subsidiaries, joint
Slide 22: Financial calendar 2023
Financial calendar 2023: • Disclosure of Q3 2023 (8th November) Classification: Public 22 Q2 2023