Slide 1: Second Quarter 2021
SECOND QUARTER 2021 Vestas Wind Systems A/S Copenhagen, August 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 Q2 2021
KEY HIGHLIGHTS IN Q2 2021 Strong order intake and first preferred supplier agreement on the 15 MW platform Wind turbine order intake of 5.3 GW with both onshore and offshore contributing. Revenue of EUR 3.5bn Revenue impacted by lower onshore activity level and continued supply chain constraints. EB
Slide 4: Agenda
AGENDA Orders and markets Financials Outlook & Q&A 4 Second quarter 2021 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 Renewables Maintain critical business • Energy and wind power remain critical infrastructure, infrastructure continuity supporting business continuity • Logistical chal
Slide 6: Power Solutions
Firm and unconditional order intake, MW POWER SOLUTIONS Positive order intake development Onshore Offshore 4,557 1,075 4,148 +10% Highlights 1,302 (32)% 1,346 733 AME EMEA • Strong total order intake at 5.3 GW, supported by 1,647 2,758 APAC both onshore and offshore utilising Vestas’ full global rea
Slide 7: Service Business
SERVICE BUSINESS Service order backlog GW under active Average years Well positioned for further growth +EUR 8bn comp to Q2 2020 service contracts contract duration Highlights EUR 119 10 26.9bn GW Years • Offshore service integration continues with (23.2 onshore) (115 onshore) operating model in pla
Slide 8: Sustainability Strategy
Displaced CO2e 176 201 SUSTAINABILITY STRATEGY Annual CO2e avoided by +14% the total aggregated Q2 Q2 Sustainability in everything we do installed fleet (million t) 2020 2021 Carbon emissions 30 17 +76% Direct and indirect Highlights emissions of CO2e Q2 Q2 (scope 1&2)(1,000 t) 2020 2021 Safety 3.2
Slide 9: Agenda
AGENDA Orders and markets Financials Outlook & Q&A 9 Second quarter 2021 Classification: Public
Slide 10: Income Statement
INCOME STATEMENT mEUR Q2 2021 Q2 2020 % change Stable activity levels compared to Q2 2020 Revenue 3,536 3,541 (0.1)% Production costs (3,160) (3,313) (5)% Gross profit 376 228 65% Highlights SG&A costs* (275) (194) 42% EBIT before special items 101 34 197% • Stable revenue YoY, mainly driven by incr
Slide 11: Power Solutions
POWER SOLUTIONS Profitability increased but still challenged Power Solutions revenue and EBIT margin, mEUR (4.0)% 4,267 Highlights 3,700 100 3,036 2,914 719 • Revenue decreased by 4 percent YoY, mainly 1,438 driven by a decrease in the onshore activity level 7.5% 92 6.7% • Offshore revenue driven by
Slide 12: Service Business
SERVICE BUSINESS Strong service performance Service revenue and EBIT margin, mEUR and percent +23.2% 622 Highlights 573 505 524 503 28.5% 28.6% 28.6% • Service revenue increased by 23 percent 26.2% compared to Q2 2020, mainly driven by higher 22.2% onshore activity levels and integration of the offs
Slide 13: SG&A Costs
SG&A COSTS SG&A costs under control SG&A costs (TTM)*, mEUR and percent 916 Highlights 813 835 799 788 • Depreciation and amortization (excluding 6.3 impairments) increased by EUR 66m YOY 5.7 5.4 5.7 5.3 primarily related to offshore • Relative to activity levels, SG&A costs amounted to 6.3 percent
Slide 14: Net Working Capital
NET WORKING CAPITAL NWC improved in the quarter NWC change over the quarter, mEUR Highlights (250) 434 • Net working capital positively impacted by down- and milestone payments and payables, offsetting the increased level of inventory to cater for the (334) higher levels of activities 38 (380) (124)
Slide 15: Cash Flow Statement
CASH FLOW STATEMENT Positive cash flow from operating activities mEUR Q2 2021 Q2 2020 Abs. Change Cash flow from operating activities Highlights before change in net working capital 115 296 (181) Change in net working capital* 245 (245) 490 • Positive free cash flow before financial investments Cash
Slide 16: Total Investments
TOTAL INVESTMENTS Investments stable year-over-year Total net investments*, mEUR 229 Highlights 177 157 152 141 • Investments of EUR 177m in Q2 2021, marginally higher compared to Q2 2020 Q2 Q3 Q4 Q1 Q2 2020 2020 2020 2021 2021 Cash flow from investing activities* * Excl. any investments in marketab
Slide 17: Provisions & LPF
PROVISIONS & LPF Lost Production Factor (LPF), Percent Focus on warranty provisions and LPF 5 4 3 Highlights 2 1 • LPF* increasing during Q2 2021 as a consequence 0 of the extraordinary repair and upgrade level Dec Dec Dec Jul 2009 2013 2017 2021 • Warranty provisions made corresponding to 3.1 perce
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 stable at low level of (0.2) in Q2 2021 (0.3) (0.2) (0.8) (1.1) • Following the Board of Directors’ proposal on AGM, (1.4) dividend of EUR 230m distributed in
Slide 19: Agenda
AGENDA Orders and markets Financials Outlook & Q&A 19 Second quarter 2021 Classification: Public
Slide 20: Outlook 2021
OUTLOOK 2021 Outlook Previous Outlook Revenue (bnEUR) 15.5 – 16.5 16 – 17 - Service is expected to grow approx. 15 percent EBIT margin before special items (%) 5–7 6–8 - Service margin is expected to be approx. 24 percent Total investments (mEUR) Excl. acquisitions of subsidiaries, joint ventures, a
Slide 21: Financial calendar 2021: Q&A
Financial calendar 2021: • Disclosure of Q3 2021 (3rd November) Q&A 21 Second 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,