Vestas Wind Systems A/s · OMXCOP:VWS
Vestas Wind Systems A/s — Q2 2024 Earnings Presentation
21 slides from Vestas Wind Systems A/s's earnings presentation, Aug 14, 2024
Slide 1: Second quarter 2024
Second quarter 2024 Vestas Wind Systems A/S Copenhagen, August 2024
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 2024
Key highlights in Q2 2024 Revenue of EUR 3.3bn Revenue decreased 4 percent YoY, affected negatively from Service, offset by higher delivery ASP Service impacted by adjustment to planned costs Service EBIT negative EUR 107m in Q2 due to approx. EUR 300m in negative adjustment – no cash flow effect Un
Slide 4: Agenda
Orders and markets Financials Outlook Q&A Agenda Classification: Public 4 Q2 2024
Slide 5: Our current business environment
Our current business environment We drive industry maturity within our core circles of influence to power the energy transition Global Environment Raw material and transport costs down Geopolitical volatility Overall inflation declining, but specific components rising. Interest rates remain high Glo
Slide 6: Power Solutions – Q2 2024
Power Solutions – Q2 2024 Good order intake across markets Firm and unconditional order intake, MW Highlights Onshore +40% Offshore 2,936 Order intake of 3.6 GW, up 54 percent compared to last 178 year. Good activity driven by onshore projects in both Europe and Asia Pacific, as well as the Nordseec
Slide 7: Service – Q2 2024
Service – Q2 2024 Service remains a strong business area Service order GW under active Average years Highlights backlog service contracts contract duration Service order backlog increased to almost EUR 35bn from 32bn a year ago Inflation indexation remains a key mechanism EUR 151 11 to protect backl
Slide 8: Vestas Development – Q2 2024
Vestas Development – Q2 2024 Mississippi wind farm commissioned with Amazon as main offtaker Order intake New secured Total project Highlights generated pipeline pipeline In Q2, Vestas Development commissioned Mississippi’s (USA) first-ever wind project, the 185 MW Delta Wind project. Amazon will pu
Slide 9: Sustainability – Q2 2024
Sustainability – Q2 2024 Vestas remains the most sustainable energy company in the world CO2e avoided Highlights 404 415 Expected CO2e avoided Lifetime CO2e avoided by produced and over the lifetime of the capacity produced and shipped capacity increased by 11 million tonnes shipped during the perio
Slide 10: Agenda
Orders and markets Financials Outlook Q&A Agenda Classification: Public 10 Q2 2024
Slide 11: Income statement – Q2 2024
Income statement – Q2 2024 Underlying business still improving mEUR Q2 2024 Q2 2023 % change Highlights Revenue 3,296 3,429 (4)% Revenue decreased 4 percent YoY, affected by the Gross profit 156 221 (29)% adjustment to planned costs in Service and lower volumes SG&A costs* (341) (307) 11% delivered.
Slide 12: Power Solutions – Q2 2024
Power Solutions – Q2 2024 Profitability significantly improved Power Solutions revenue and EBIT margin before special items, mEUR and percent Highlights Offshore revenue EBIT margin Onshore revenue EBIT margin adj. for sale of technology Revenue increased by 4 percent YoY, as higher average 4% prici
Slide 13: Service – Q2 2024
Service – Q2 2024 Adjustment to planned costs impact profitability Service revenue and EBIT margin before special items, mEUR and percent Highlights Service EBIT Service revenue EBIT margin Service generated negative EBIT of EUR 107m, as a consequence of adjustment to planned costs, which due to 904
Slide 14: Cash flow statement – Q2 2024
Cash flow statement – Q2 2024 Strong cash flow in the quarter Highlights mEUR Q2 2024 Q2 2023 Abs. change Operating cash flow was EUR 831m in the quarter, a Cash flow from operating activities considerable improvement compared to Q2 last year. The before change in net working capital 83 137 (54) imp
Slide 15: Net working capital – Q2 2024
Net working capital – Q2 2024 Improved working capital despite preparing for a busy second half NWC change over the quarter, mEUR Highlights Net working capital decreased in Q2 due to a decrease net contract assets driven by customer down- and milestone payments in Power Solutions, partly offset by
Slide 16: Investments – Q2 2024
Investments – Q2 2024 Preparing to ramp up production in both Europe and USA Total net investments*, mEUR Highlights Total net investments amounted to EUR 269m in Q2. +80 We continue to invest in our V236 offshore manufacturing 306 platform in Europe, as we prepare for first deliveries in 2025 269 W
Slide 17: Provisions and LPF – Q2 2024
Provisions and LPF – Q2 2024 Warranty costs improving further Lost Production Factor (LPF), Percent Highlights 6 LPF*, although still at an unsatisfactory level, 5 continues to improve steadily. Concerted 4 efforts to address the most challenged sites is 3 beginning to pay off 2 Warranty costs amoun
Slide 18: Capital structure – Q2 2024
Capital structure – Q2 2024 Financial leverage back within target Net debt to EBITDA before special items Highlights Net debt to EBITDA, last 12 months Net debt to EBITDA, financial target Combination of better profitability and cash flow is the main driver for our net debt to EBITDA ending the quar
Slide 19: Agenda
Orders and markets Financials Outlook Q&A Agenda Classification: Public 19 Q2 2024
Slide 20: Outlook 2024
Outlook 2024 Outlook Previous Outlook Revenue (bnEUR) 16.5 – 17.5 16 – 18 EBIT margin before special items (%) - Service is expected to generate 4–5 4–6 EBIT b.s.i. of around EUR 500m (prev. 800-880m) Total investments (bnEUR) Approx. 1.2 Approx. 1.2 Total net investments in intangible assets and pr
Slide 21: Financial calendar 2024: Q&A
Financial calendar 2024: • Disclosure of Q3 2024 (5th November) Q&A Classification: Public 21 Q2 2024