Slide 1: Full year 2024
Full year 2024 Vestas Wind Systems A/S Copenhagen, 5 February 2025
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 for full year 2024
Key highlights for full year 2024 Revenue of EUR 17.3bn and an EBIT margin of 4.3 percent Vestas achieved its Outlook for the year and continued the positive trajectory in 2024 Service EBIT of EUR 448m Rising costs caused a challenging year for Service, but the scrutiny is complete and a recovery pl
Slide 4: Agenda
Market, orders and sustainability Financials Strategy Update Outlook Agenda Q&A Classification: Public 4 FY 2024
Slide 5: Our current business environment
Our current business environment Wind energy key to affordability, security and sustainability amidst geopolitical uncertainty Global Environment Raw material and transport costs stable Ongoing geopolitical and trade volatility Overall inflation stabilising and indices are converging Global environm
Slide 6: Power Solutions – Q4 2024
Power Solutions – Q4 2024 Another strong end to the year Firm and unconditional order intake, MW Highlights Onshore -44% Offshore Strong Q4 order intake of 6.5 GW, with continuous 7,468 momentum across all regions for Onshore, and good market activity for Offshore in EMEA and APAC Americas 4,669 4,1
Slide 7: Service – Q4 2024
Service – Q4 2024 Scrutiny of Service is complete Service order GW under active Average years Highlights backlog service contracts contract duration While Service had a difficult year in 2024, the scrutiny of the business is over, and a recovery plan is in place Service reached 155 GW under service
Slide 8: Vestas Development – Q4 2024
Vestas Development – Q4 2024 Strong order intake and new secured pipeline Order intake New secured Total project Highlights generated pipeline pipeline In Q4, Vestas Development generated 612 MW of order intake for Vestas from two development projects in the USA 612 1.3 28 At the end of Q4, Vestas’
Slide 9: Sustainability – FY 2024
Sustainability – FY 2024 Vestas is the most sustainable energy company in the world GHG avoided Highlights 396 455 +15% Expected CO2e avoided over the lifetime of the Lifetime emissions avoided by produced and shipped capacity produced and capacity increased by 59 million tonnes compared to a year s
Slide 10: Agenda
Market, orders and sustainability Financials Strategy Update Outlook Agenda Q&A Classification: Public 10 FY 2024
Slide 11: Income statement – Full year 2024
Income statement – Full year 2024 Revenue and EBIT within Outlook range mEUR 2024 2023 % change Highlights Revenue 17,295 15,382 12% In 2024, revenue increased 12 percent YoY to EUR Gross profit 2,057 1,283 60% 17.3bn, in the upper end of the guided range. Growth was SG&A costs* (1,318) (1,247) 6% p
Slide 12: Income statement – Q4 2024
Income statement – Q4 2024 Double-digit profitability achieved at year-end mEUR Q4 2024 Q4 2023 % change Highlights Revenue 6,141 4,771 29% Revenue increased by 29 percent YoY in the fourth Gross profit 1,113 523 113% quarter, driven by higher revenue in both Power Solutions SG&A costs* (355) (341)
Slide 13: Power Solutions – Q4 2024
Power Solutions – Q4 2024 Highest quarterly profitability since 2017 Power Solutions revenue and EBIT margin, mEUR and percent Highlights Offshore revenue EBIT margin Onshore revenue EBIT margin adj. for Sale of Technology +28% Revenue increased by 28 percent YoY, driven by higher MW delivered in bo
Slide 14: Service – Q4 2024
Service – Q4 2024 Heading ‘back on track’ Service revenue and EBIT margin before special items, mEUR and percent Highlights Service EBIT Service revenue EBIT margin 1,197 In Service, revenue increased by 30 percent YoY, driven by record-high high transactional sales in the quarter, and 4 1,015 938 9
Slide 15: Cash flow statement – Q4 2024
Cash flow statement – Q4 2024 Finishing the year with a net cash position Highlights Operating cash flow was EUR 2.2bn in the quarter, an mEUR Q4 2024 Q4 2023 Abs. change improvement compared to Q4 last year, driven by higher Cash flow from operating activities profitability and net working capital
Slide 16: Net working capital – Q4 2024
Net working capital – Q4 2024 Working capital decreased in a busy fourth quarter NWC change over the quarter, mEUR Highlights Net working capital decreased considerably in Q4, as usual, driven by a reduction in inventories, while higher customer down- and milestone payments were largely offset by hi
Slide 17: Total investments – Q4 2024
Total investments – Q4 2024 Investing for growth Total investments*, mEUR Highlights Total investments* +97 We made investments of EUR 403m in Q4, an increase compared to last year, as we continue to prioritise the 403 manufacturing ramp-up in both Offshore, and our 4 MW platform in the USA, in part
Slide 18: Provisions and LPF – Q4 2024
Provisions and LPF – Q4 2024 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 LPF 5 improve, and warranty provisions decrease. Over time, an 4 improved LPF should lead to lower warr
Slide 19: Capital structure – Q4 2024
Capital structure – Q4 2024 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 improved 5.8 earnings, lead to a further decrease
Slide 20: Agenda
Market, orders and sustainability Financials Strategy Update Outlook Agenda Q&A Classification: Public 20 FY 2024
Slide 21: The World faces an immense challenge to reduce emissions
The World faces an immense challenge to reduce emissions CO2 emissions in World Energy Outlook scenarios over time, 2000-2050 Temperature rise in 2100, by scenario Stated Policies Scenario (STEPS) Announced Pledges Scenario (APS) Net Zero Emissions Scenario (NZE) Net Zero scenario corresponds to 1.4
Slide 22: Tremendous growth potential for wind
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% +300 GW Pledged Policy 28% 25 Pledged Pol
Slide 23: 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 24: Service recovery plan
Service recovery plan Scrutiny and cost challenges in 2024 lead to revised operating model Scrutiny of Service business complete. As Challenge Description previously mentioned, the scrutiny highlighted Unit costs Wage inflation, rising material costs, three main cost challenges – equally important:
Slide 25: Service recovery plan
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 • Gl
Slide 26: Long-term ambitions
Long-term ambitions Our financial and ESG ambitions remain unchanged REVENUE EBIT ROCE FCF ESG Grow faster than the Best-in class 20% return on Free cash flow Carbon neutrality market and be earnings, at least investment over the positive across our own market leader in 10% EBIT margin cycle operati
Slide 27: 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 28: Agenda
Market, orders and sustainability Financials Strategy Update Outlook Agenda Q&A Classification: Public 28 FY 2024
Slide 29: 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 Classification: Public 29 FY 2023
Slide 30: Financial calendar 2025: Q&A
Financial calendar 2025: • Annual General Meeting (8th April) Q&A • Disclosure of Q1 2025 (6th May) • Disclosure of Q2 2025 (13th August) • Disclosure of Q3 2025 (5th November) Classification: Public 30 FY 2024