Vestas Wind Systems A/s · OMXCOP:VWS
Vestas Wind Systems A/s — Q1 2021 Earnings Presentation
22 slides from Vestas Wind Systems A/s's earnings presentation, May 2021
Slide 1: First Quarter 2021
FIRST QUARTER 2021 Vestas Wind Systems A/S Copenhagen, May 2021
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 2021
KEY HIGHLIGHTS IN Q1 2021 All-time high order backlog Combined order backlog of EUR 45bn despite lower order intake in Q1 2021 Integration of offshore ongoing Approx. 3,000 new colleagues welcomed in Vestas to capture future values Revenue of EUR 2bn Decreased compared to Q1 2020 due to lower activi
Slide 4: Agenda
AGENDA Orders and markets Financials Outlook & Q&A 4 Classification: Public
Slide 5: Global Business Environment
GLOBAL BUSINESS ENVIRONMENT Employee health and safety top priority Longevity of pandemic has ripple effects and entails challenges accumulate Renewables Maintain critical business • Energy and wind power remain critical infrastructure, infrastructure continuity supporting business continuity • Logi
Slide 6: Market Shares
MARKET SHARES Sustaining our global leadership position 100% = 94 GW 100% = 57 GW 100% = 39 GW 100% = 33 GW Vestas 15.3% 21.0% Vestas Vestas 33.7% 35.0% Vestas Goldwind 13.6% 15.4% GE GE 12.6% Goldwind Siemens Gamesa Envision 13.2% Envision Siemens Gamesa 10.6% GE 28.2% 25.8% GE Ming Yang Ming Yang
Slide 7: Power Solutions
POWER SOLUTIONS Leveraging our global leadership position Firm and unconditional order intake Highlights MW (39)% • Strong ambition levels from EU and USA targeting a CO2 reduction of 55 3,311 percent and 50 percent respectively 612 2,016 • Strong tendering activity in the offshore market laying fou
Slide 8: Service Business
SERVICE BUSINESS Well positioned as the world’s largest service provider Highlights • Integration of offshore service continues; leveraging global supply chain and scale EUR Service order backlog 25.3bn ➢ EUR 21.8bn onshore • Focus on long-term service contracts continues, with key deals +7.1bn* ➢ E
Slide 9: Sustainability Strategy
SUSTAINABILITY STRATEGY Sustainability in everything we do Highlights +14% 192 • Increase in carbon emissions driven by inclusion of offshore activities 169 Displaced CO2e Annual CO2e avoided by the total • Investment in bio-composite specialist Modvion to investigate wooden aggregated installed fle
Slide 10: Agenda
AGENDA Orders and markets Financials Outlook & Q&A 10 Classification: Public
Slide 11: Income Statement
INCOME STATEMENT Lower activity levels in Power Solutions mEUR Q1 2021 Q1 2020 % change Highlights Revenue 1,962 2,235 (12)% • Revenue decreased 12 percent; particularly driven by lower Production costs (1,773) (2,076) (15)% activity levels and impacted by supply chain contraints Gross profit 189 15
Slide 12: SG&A Costs
SG&A COSTS SG&A costs increased due to offshore SG&A costs (TTM)* Highlights mEUR and percent • Continuing to leverage on SG&A costs • Depreciation and amortisation (excluding impairments) 813 835 increased EUR 56m YoY primarily related to offshore 778 799 788 • Relative to activity levels, SG&A cos
Slide 13: Service Business
SERVICE BUSINESS Strong service performance Service revenue and EBIT margin Highlights mEUR and percent • Service revenue increased by 11 percent compared to Q1 2020, mainly driven by higher activity levels and integration 11% 573 of the offshore business 524 474 505 503 • 2021 Q1 EBIT before specia
Slide 14: Change in Net Working Capital
CHANGE IN NET WORKING CAPITAL Inventory increased to cater for high activity levels NWC change over the year Highlights mEUR • Net working capital negatively impacted by increased level of inventory to cater for high activity levels and integration of offshore; partly offset by down and milestone pa
Slide 15: Cash Flow Statement
CASH FLOW STATEMENT Negative free cash flow in the quarter mEUR Q1 2021 Q1 2020 Abs. change Highlights Cash flow from operating activities before change in net working capital 7 (85) 92 • Negative free cash flow before financial investments of EUR (898)m; slightly up from Q1 2020, mainly driven by C
Slide 16: Total Investments
TOTAL INVESTMENTS Investments stable year-over-year Total investments* Highlights mEUR • Investments of EUR 152m in Q1 2021; roughly unchanged 229 from EUR 160m in Q1 2020 160 157 152 141 Q1 Q2 Q3 Q4 Q1 2020 2020 2020 2020 2021 Cash flow from investing activities* * Excl. acquisitions of subsidiarie
Slide 17: Warranty Provisions and Lost Production Factor
WARRANTY PROVISIONS AND LOST PRODUCTION FACTOR Warranty consumption and LPF increased in the quarter Warranty provisions made and consumed Lost Production Factor (LPF) mEUR Percent 283 6 5 175 194 4 146 117 3 90 101 70 73 62 63 2 108 1 0 0 Q1 Q2 Q3 Q4 Q1 Dec Dec Dec Dec Dec Dec Mar 2020 2020 2020 20
Slide 18: Capital Structure
CAPITAL STRUCTURE Net debt to EBITDA well below threshold Net debt to EBITDA before special items Highlights 1.0 • Net debt to EBITDA remains at low level of (0.3) in Q1 2021 • New EUR 2bn credit facility to support onshore and offshore wind project guarantees (0.3) (0.8) (1.0) (1.1) (1.4) Q1 Q2 Q3
Slide 19: Agenda
AGENDA Orders and markets Financials Outlook & Q&A 19 Classification: Public
Slide 20: Outlook 2021
OUTLOOK 2021 Outlook Revenue (bnEUR) 16 – 17 - Service is expected to grow approx. 15 percent EBIT margin before special items (%) 6–8 - Service margin is expected to be approx. 24 percent Total investments (mEUR) approx. 1,000 Excl. acquisitions of subsidiaries, joint ventures, associates and finan
Slide 21: Financial Calendar 2021: Q&A
Financial calendar 2021: • Disclosure of Q2 2021 (11 August) Q&A • Disclosure of Q3 2021 (3 November) 21 First quarter 2021 Classification: Public
Slide 22: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION Copyright Notice The documents are created by Vestas Wind Systems A/S and contain copyrighted material, trademarks, and other proprietary information. All rights reserved. No part of the documents may be reproduced or copied in any form or by any means - such as graphic,