Vestas Wind Systems A/s · OMXCOP:VWS
Vestas Wind Systems A/s — Q1 2020 Earnings Presentation
25 slides from Vestas Wind Systems A/s's earnings presentation, May 5, 2020
Slide 1: First Quarter 2020
FIRST QUARTER 2020 Copenhagen, 5 May 2020 Vestas Wind Systems A/S
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 2020
KEY HIGHLIGHTS IN Q1 2020 Safety first in a challenging environment Measures to secure business continuity in the COVID-19 crisis in place Increased order intake Firm order intake of 3.3 GW; up 10 percent compared to Q1 2019 All-time high order backlog Combined order backlog of more than EUR 34bn Re
Slide 4: Agenda
AGENDA Orders and markets Financials Outlook & Q&A 4 First quarter 2020 Classification: Public
Slide 5: How is the COVID-19 crisis impacting Vestas
HOW IS THE COVID-19 CRISIS IMPACTING VESTAS Global situation and business environment Renewables Health and safety considered • Energy and wind power deemed critical infrastructure, supporting of all employees critical business continuity as a top priority infrastructure • Pandemic impacting global
Slide 6: Market Shares
MARKET SHARES Sustaining our global leadership position 100% = 53 GW 100% = 45 GW 100% = 26 GW 100% = 26 GW Vestas 18.1% 22.2% Vestas Vestas 34.5% 36.5% Vestas Goldwind 14.4% 14.7% Goldwind GE 13.1% 10.9% GE Siemens Gamesa GE 25.1% 18.5% GE Envision 10.3% 9.0% Siemens Gamesa Ming Yang 7.2% Envision
Slide 7: First Quarter Order Intake
FIRST QUARTER ORDER INTAKE Order intake at 3.3 GW, with an average selling price of EUR 0.72m per MW Order intake Average selling price of order intake MW mEUR per MW +10% 5,696 4,738 4,439 0.81 0.79 0.75 0.75 0.72 3,311 3,004 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2019 2019 2019 2019 2020 2019 2019 2019 201
Slide 8: All-time high order backlog of more than EUR 34bn
ALL-TIME HIGH ORDER BACKLOG OF MORE THAN EUR 34BN Combined backlog increased by EUR 5.8bn YoY, a growth of 20 percent Wind turbines: Service: EUR EUR 15.9bn 18.2bn EUR +2.6bn* EUR +3.2bn* * Compared to Q1 2019. 8 First quarter 2020 Classification: Public
Slide 9: Power Solutions
POWER SOLUTIONS Leveraging our global leadership position Q1 2020 highlights • Strong efforts globally to secure business continuity despite the COVID-19 situation; some postponement of auctions in Latin America while commitment to GW of installed turbines 2020 auction schedule remains in Europe 115
Slide 10: Service Business
SERVICE BUSINESS Well positioned as the world’s largest service provider Q1 2020 highlights • First 20-year full scope service contract signed in China GW of onshore turbines with • Service win in Australia covering a long-term AOM 5000 agreement on 98 active service contracts 126 MW of Senvion turb
Slide 11: MHI Vestas Offshore Wind
MHI VESTAS OFFSHORE WIND Growing portfolio of firm orders for Asia Pacific Q1 2020 highlights • 589 MW of firm orders signed for the Changfang and Xidao projects in Taiwan, the first MHI Vestas projects to reach financial close in APAC GW installed; more than 5.0 1,230 turbines • Firm order signed f
Slide 12: Agenda
AGENDA Orders and markets Financials Outlook & Q&A 12 First quarter 2020 Classification: Public
Slide 13: Income Statement
INCOME STATEMENT Decreased profitability driven by Power solutions in accordance with expectations Key highlights mEUR Q1 2020 Q1 2019 % change Revenue 2,235 1,730 29% • Revenue increased 29 percent driven by all regions; mainly Production costs (2,076) (1,495) 39% driven by high activity levels in
Slide 14: SG&A Costs
SG&A COSTS SG&A costs under control Key highlights SG&A costs (TTM)* EURm and percent 0.9 %-pts 778 • Continuing to leverage on SG&A costs 752 757 722 709 725 674 662 672 • Depreciation and amortisation (excluding impairments) increased EUR 25m YoY primarily due to introduction of new products • Rel
Slide 15: Service Business
SERVICE BUSINESS Strong service performance Key highlights Service revenue and EBIT margin, onshore mEUR and percent • Service revenue increased by 12 percent compared to Q1 2019, mainly driven by higher activity levels 12% 529 • 2020 Q1 EBIT before special items: EUR 124m 476 474 2020 Q1 EBIT margi
Slide 16: MHI Vestas Offshore Wind
MHI VESTAS OFFSHORE WIND Activity levels down as expected YoY Key highlights Revenue and net result* EURm • Revenue in the JV of EUR 220m; down 47 percent from Q1 2019 as 2020 will see lower activity levels • EBIT margin improved YoY -47% • Net profit of EUR 6m 534 412 399 22 220 10 4 90 6 (30) Q1 Q
Slide 17: Change in Net Working Capital
CHANGE IN NET WORKING CAPITAL Inventory increased to cater for increasing activity levels Key highlights NWC change over the year mEUR • Net working capital negatively impacted by increased level of inventory to cater for high activity levels; partly offset by down- and milestone payments • Other li
Slide 18: Cash Flow Statement
CASH FLOW STATEMENT Negative free cash flow in the quarter Key highlights mEUR Q1 2020 Q1 2019 Abs. change Cash flow from operating activities before change in net working capital (85) 156 (241) • Negative free cash flow before financial investments of EUR (919)m compared to EUR (876)m in 2019, nega
Slide 19: Total Investments
TOTAL INVESTMENTS Investments stable year-over-year Key highlights Total net investments* EURm • Investments of EUR 159m in Q1 2020; roughly unchanged (17) from EUR 176m in Q1 2019 232 • Optimisation of product portfolio to reduce total investment 195 need; focus on 2020 execution and long-term 176
Slide 20: Warranty Provisions and Lost Production Factor
WARRANTY PROVISIONS AND LOST PRODUCTION FACTOR Warranty consumption and LPF continue at a low level Warranty provisions made and consumed Lost Production Factor (LPF) mEUR Percent 6 118 5 93 4 80 70 73 3 58 36 41 44 39 2 1 0 Q1 Q2 Q3 Q4 Q1 Dec Dec Dec Dec Dec Mar 2019 2019 2019 2019 2020 2009 2011 2
Slide 21: Capital Structure
CAPITAL STRUCTURE Net debt to EBITDA well below threshold Key highlights Net debt to EBITDA before special items 1.0x • Net debt to EBITDA remains at low level of (1.0) in Q1 2020 • Liquidity position remains strong with EUR 2bn cash at hand • Total credit facilities available for cash drawing of EU
Slide 22: Agenda
AGENDA Orders and markets Financials Outlook & Q&A 22 First quarter 2020 Classification: Public
Slide 23: Outlook 2020
OUTLOOK 2020 Current guidance Initial guidance Revenue (bnEUR) Suspended 14 - 15 EBIT margin before special items (%) Suspended 7-9 Total investments (mEUR) Suspended approx. 700 Excl. any investments in marketable securities and short-term financial investments • Guidance suspended as per 7 April 2
Slide 24: Financial calendar 2020: Q&A
Financial calendar 2020: • Disclosure of Q2 2020 (11 August) Q&A • Disclosure of Q3 2020 (4 November) 24 First quarter 2020 Classification: Public
Slide 25: 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,