Vestas Wind Systems A/s · OMXCOP:VWS
Vestas Wind Systems A/s — Q1 2023 Earnings Presentation
23 slides from Vestas Wind Systems A/s's earnings presentation, May 2023
Slide 1: First quarter 2023
First quarter 2023 Vestas Wind Systems A/S Copenhagen, May 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 Q1 2023
Key highlights in Q1 2023 Revenue of EUR 2.8bn Growth of 14 percent YoY driven by higher average pricing on deliveries, higher volume, and 29 percent Service growth EBIT margin of 1 percent Profitability improvement driven by the sale of the converter business, lower warranty provisions, and strong
Slide 4: Agenda
Orders and markets Financials Outlook Q&A Agenda 4 Q1 2023 Classification: Public
Slide 5: Global business environment
Global business environment Employee health and safety top priority Global business environment expected to remain challenging throughout 2023 Renewables Maintain critical business • Russia exit and geo-political uncertainty infrastructure continuity • Inflation becoming more pervasive, impacting pr
Slide 6: Market shares – 2022
Market shares – 2022 Leading the industry with discipline Global onshore and offshore installations (excluding China) Highlights 100% = 41 GW 100% = 47 GW Global installations outside China declined 13 percent in 2022 driven by lower installations in the USA, Vietnam and Sweden Vestas 28% Vestas 33%
Slide 7: Power Solutions – Q1 2023
Power Solutions – Q1 2023 Commercial discipline intact - a necessity for industry wide profitability Firm and unconditional order intake, MW Highlights Onshore +42% Offshore Strong order intake, up 12 percent YoY, driven 3,303 by Americas and South Africa 2,329 2,147 The 1.3 GW Casa dos Ventos order
Slide 8: Service – Q1 2023
Service – Q1 2023 Well positioned for further growth Service order GW under active Average years Highlights backlog service contracts contract duration Strong operational start to the year with continued high activity Service order backlog increased to EUR 31bn; EUR 147 11 inflation indexation conti
Slide 9: Vestas Development – Q1 2023
Vestas Development – Q1 2023 High activity level in major energy markets Order intake New secured Total project Highlights generated pipeline pipeline In Q1 2023, Vestas’ pipeline of development projects amounted to 32 GW with Australia, USA, and Brazil being the countries with the largest project p
Slide 10: Sustainability – Q1 2023
Sustainability – Q1 2023 The most sustainable energy company in the world CO2e avoided Highlights 118 93 (21)% Expected CO2e avoided Lifetime CO2e avoided by produced and over the lifetime of the capacity produced and shipped capacity decreased by 21 percent from shipped during the period Q1 2022, d
Slide 11: Agenda
Orders and markets Financials Outlook Q&A Agenda 11 Q1 2023 Classification: Public
Slide 12: Income statement – Q1 2023
Income statement – Q1 2023 Profitability improving from low level Highlights mEUR Q1 2023 Q1 2022 % change Revenue increased 14 percent YoY, driven by higher average pricing on wind turbine deliveries, higher volume, Revenue 2,829 2,485 14% and increasing Service activity Production costs (2,641) (2
Slide 13: Power Solutions – Q1 2023
Power Solutions – Q1 2023 Profitability improving Power Solutions revenue and EBIT margin, mEUR and percent Highlights Offshore revenue EBIT margin Onshore revenue Revenue increased by 9 percent YoY, driven +9% by higher activity in EMEA and Americas 3,768 325 EBIT margin before special items of neg
Slide 14: Service – Q1 2023
Service – Q1 2023 Strong growth and stable EBIT margin Service revenue and EBIT margin before special items, mEUR and percent Highlights Service revenue EBIT margin before special items Revenue increased 29 percent YoY, driven by +29% higher activity overall, inflation indexation in 1,015 contracts
Slide 15: SG&A costs – Q1 2023
SG&A costs – Q1 2023 Fixed capacity costs at same level SG&A costs (TTM)*, mEUR and percent Highlights SG&A costs % of revenue SG&A costs of 8.2 percent of revenue on a trailing 12- 1,270 1,212 1,209 1,217 1,223 month basis, which is the same level as last year 8.5 8.8 8.2 7.5 7.6 Q1 2022 Q2 2022 Q3
Slide 16: Net working capital – Q1 2023
Net working capital – Q1 2023 Increased NWC in the quarter reflecting normal seasonality NWC change over the quarters, mEUR Highlights Net working capital increased in Q1 driven by an increase in the level of inventory, high level of supplier payments in the quarter, partly offset by down- and miles
Slide 17: Cash flow statement – Q1 2023
Cash flow statement – Q1 2023 Cash flow in the quarter driven by typical seasonality Highlights Operating cash flow before change in NWC increased mEUR Q1 2023 Q1 2022 Abs. Change EUR 567m driven by higher profitability Cash flow from operating activities before change in net working capital 248 (31
Slide 18: Total investments – Q1 2023
Total investments – Q1 2023 Sale of converters and controls business to KK Wind finalised in the quarter Total net investments*, mEUR Highlights Cash flow from investing activities* Investments of EUR 107m in Q1, a decrease from Q1 last 253 year mainly driven by a cash inflow related to the sale of
Slide 19: Provisions and LPF – Q1 2023
Provisions and LPF – Q1 2023 Warranty provisions remain elevated but improved year-on-year Lost Production Factor (LPF), Percent Highlights 6 LPF* continues at high level as a consequence 5 of the extraordinary repair and upgrade level 4 3 Warranty provisions made in Q1 2023 corresponding to 4.0 per
Slide 20: Capital structure – Q1 2023
Capital structure – Q1 2023 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 As expected, net debt to EBITDA increased to 5.8x in Q1 mainly affected by the low EBITDA on 5.8
Slide 21: Agenda
Orders and markets Financials Outlook Q&A Agenda 21 Q1 2023 Classification: Public
Slide 22: Outlook 2023
Outlook 2023 Outlook Revenue (bnEUR) 14 – 15.5 - Service is expected to grow 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 ventures, associates and financ
Slide 23: Financial calendar 2023
Financial calendar 2023: • Disclosure of Q2 2023 (9th August) • Disclosure of Q3 2023 (8th November) 23 Q1 2023 Classification: Public