Vestas Wind Systems A/s · OMXCOP:VWS
Vestas Wind Systems A/s — Q2 2009 Earnings Presentation
38 slides from Vestas Wind Systems A/s's earnings presentation, Aug 18, 2009
Slide 1: Second Quarter 2009
Second Quarter 2009 Goldman Sachs, London Tuesday, 18 August 2009 vestas.com The Vestas Willpower
Slide 2: H1: Weak order intake in the industry and regrettable lay-offs
H1: Weak order intake in the industry and regrettable lay-offs. Credit markets easing up. Effects of stimulus packages kicking in. Full-year expectations maintained. 2 | Second quarter 2009, 18 August 2009
Slide 3: Second quarter 2009 (vs. Q2-2008)
Second quarter 2009 (vs. Q2-2008) Shipments of 618 turbines.................................................... -12% Shipments of a total capacity of 1,172MW ......................... -20% Revenues of EUR 1.2bn........................................................+11% EBIT of EUR 78m..............
Slide 4: The Agenda
The Agenda Guidance 2009 Second Quarter 2009 The World and Vestas Questions & Answers 4 | Second quarter 2009, 18 August 2009
Slide 5: What we see is what you get.
What we see is what you get. 5 | Second quarter 2009, 18 August 2009
Slide 6: Guidance 2009: Maintained
Guidance 2009: Maintained mEUR 2009 2008 2007 Guidance Realised Realised Revenue 7,200 6,035 4,861 EBIT margin 11 - 13% 11.1% 9.1% EBIT 864 * * 668 443 Financials (20) 46 0 Tax rate 28% 28% 34% Net working capital as per cent of revenues Max 10% 5% (1)% Warranty provisions 3 - 4% 4% 5% Investments i
Slide 7: Our financial priorities
Our financial priorities 1. EBIT margin 2. Net Working Capital 3. Revenues 7 | Second quarter 2009, 18 August 2009
Slide 8: Vestas has seen it before
Order backlog: Vestas has seen it before EUR 7.2bn EUR 4.0bn 8,000 6,000 Asia/Pacific No customer has Americas cancelled orders. MW 4,000 Asia/Pacific 45% Americas Q2 order intake of 542 MW. 2,000 Europe Europe 0 Q2-2008 Q2-2009 8 | Second quarter 2009, 18 August 2009
Slide 9: This is what we see
This is what we see 9 | Second quarter 2009, 18 August 2009
Slide 10: Securing our profitability
The Vestas Contract Review Board: Securing our profitability From Q2 2005 Presentation From Q3 2008 Presentation 10 | Second quarter 2009, 18 August 2009
Slide 11: Vestas will gain
Vestas will gain Shortfall of orders in the entire industry More meticulous due diligence by all parties Prolonged process time BUSINESS CASE CERTAINTY ~ a turbine is no longer just a turbine! 11 | Second quarter 2009, 18 August 2009
Slide 12: Reducing risk while driving down Cost of Energy
Reducing risk while driving down Cost of Energy SAP introduced on time, on spec, on cost. Fewer People per MW. Moving Sigma levels*), Vestas and suppliers. Increasing Mean Time Between Inspections. Reducing CAPEX Aggressively developing skills base. per MW capacity. *) End of 2008 End of 2010 12 | S
Slide 13: Global wind financing
Global wind financing Effect of Stimulus is Kicking in …especially in the US Utilities are urged to Invest …especially in the EU “Financial markets have improved further in recent weeks" Ben Bernanke, Federal Reserve Chairman, 13 August 2009 13 | Second quarter 2009, 18 August 2009
Slide 14: Accelerating our Value Proposition
The credit crisis: Accelerating our Value Proposition i.e. customers and debt providers expect the same from Vestas. 14 | Second quarter 2009, 18 August 2009
Slide 15: Guidance maintained.
Guidance maintained. 15 | Second quarter 2009, 18 August 2009
Slide 16: The Agenda
The Agenda Guidance 2009 Second Quarter 2009 The World and Vestas Questions & Answers 16 | Second quarter 2009, 18 August 2009
Slide 17: Shipments Q2 2009
Shipments Q2 2009 1,600 Asia/Pacific 1,200 Asia/Pacific Americas 20% MW 800 Americas 400 Europe Europe 0 Q2-2008 Q2-2009 17 | Second quarter 2009, 18 August 2009
Slide 18: Deliveries Q2 2009
Deliveries Q2 2009 1,200 Asia/Pacific Asia/Pacific 900 Americas Americas 8% MW 600 Europe Europe 300 0 Q2-2008 Q2-2009 18 | Second quarter 2009, 18 August 2009
Slide 19: Three contract types
Three contract types Supply-only contracts Vestas delivers and commissions turbines. Vestas does not install the turbines. Customer is responsible for the project as a whole. Completed contract method applicable, based on transfer of risk. Supply-and-installation contracts Vestas delivers, installs
Slide 20: Income statement
Income statement mEUR 2009 2008 Change 2009 2008 Change Q2 Q2 Q2/Q2 H1 H1 H1/H1 Revenue 1,211 1,094 11% 2,316 1,795 29% Gross profit 223 228 (2)% 439 351 25% Gross margin 18.4% 20.8% - 19.0% 19.6% - Operating profit (EBIT) 78 92 (15)% 154 126 22% EBIT margin 6.4% 8.4% - 6.6% 7.0% - Profit before tax
Slide 21: EBIT margin
EBIT development 2005 2006 2007 2008 2009 20% 15% EBIT margin 10% 5% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -5% -10% EBIT still to vary between quarters. 21 | Second quarter 2009, 18 August 2009
Slide 22: Balance sheet
Balance sheet mEUR 2009 2008 Y-on-Y 2008 End H1 End H1 Change End Total property, plant and equipment 1,315 741 77% 1,030 Inventories 2,386 1,839 30% 1,612 Cash at hand and in bank 274 573 (52)% 162 Equity 2,876 1,606 79% 1,955 Solvency ratio 47.5% 32.9% - 36.8% Provisions (non-current) 72 85 (15)%
Slide 23: Net Working Capital
Net Working Capital mEUR 2009 2008 Change End H1 End H1 Y-on-Y Inventories 2,386 1,839 30% Receivables 1,187 992 20% Prepayments from customers (1,359) (1,832) (26)% Trade payables (1,022) (763) 34% Other liabilities (388) (289) 34% Total 804 (53) - Prepayments affected by slow order intake. Receiva
Slide 24: NWC: Development
NWC: Development 2005 2006 2007 2008 2009 25% 20% Net working capital 15% 10% 5% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -5% Huge variations in NWC during the year. Max 10 per cent end of full year. 24 | Second quarter 2009, 18 August 2009
Slide 25: Cash flow statement
Cash flow statement mEUR 2009 2008 2009 2008 Q2 Q2 H1 H1 Cash flow from operating activities (180) 222 (375) 98 Cash flow from investing activities (260) (136) (445) (216) Cash flow before financing activities (440) 86 (820) (118) Cash flow from financing activities 540 (16) 848 (64) Change in cash
Slide 26: Commitment to a cleaner future
Vestas Green Reporting: Commitment to a cleaner future 50 per cent Green Energy by 2010 Vestas now initiates quarterly reporting on sustainability performance. 26 | Second quarter 2009, 18 August 2009
Slide 27: The Agenda
The Agenda Guidance 2009 Second Quarter 2009 The World and Vestas Questions & Answers 27 | Second quarter 2009, 18 August 2009
Slide 28: Strong demand in all markets
Strong demand in all markets – except Northern Europe. However – challenges exists: • Exchange rates • Credit markets • NIMBYism 28 | Second quarter 2009, 18 August 2009
Slide 29: Vestas USA: Increasing activity level
Vestas USA: Increasing activity level PTC ITC RES Short Long term term 29 | Second quarter 2009, 18 August 2009
Slide 30: The necessary behavioural change can only be achieved if backed by legislation
The necessary behavioural change can only be achieved if backed by legislation. 30 | Second quarter 2009, 18 August 2009
Slide 31: It's not about feelings, it's about facts
It’s not about feelings, – it’s about facts ”One day we will run out of oil, it is not today or tomorrow, but one day we will run out of oil and we have to leave oil before oil leaves us, and we have to prepare ourselves for that day. […] The earlier we start, the better […]” Source: IEA., World Ene
Slide 32: Listen to the scientists. Take responsibility. Use bottom-up approach.
1. Listen to the scientists. 2. Take responsibility - Act. 3. Use bottom-up approach. 32 | Second quarter 2009, 18 August 2009
Slide 33: 33 | Second quarter 2009, 18 August 2009
33 | Second quarter 2009, 18 August 2009
Slide 34: What we see is what you get.
What we see is what you get. 34 | Second quarter 2009, 18 August 2009
Slide 35: High Risks / Other Risks
High Risks Credit markets Other Risks, inter alia Exchange rate Raw materials Execution Transportation Interest rate Warranties Patent disputes NIMBYism 35 | Second quarter 2009, 18 August 2009
Slide 36: Quarterly presentations 2009
Quarterly presentations 2009: 11 February 2009 (Q4 ’08) 28 April 2009 (Q1 ’09) 27 October 2009 (Q3 ’09) 18 August 2009 (Q2 ’09) 36 | Second quarter 2009, 18 August 2009
Slide 37: 37 | Second quarter 2009, 18 August 2009
37 | Second quarter 2009, 18 August 2009 &
Slide 38: Second Quarter 2009
Second Quarter 2009 London Tuesday, 18 August 2009 vestas.com 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 o