Slide 1: Third quarter 2024
Third quarter 2024 Vestas Wind Systems A/S Copenhagen, 5 November 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 Q3 2024
Key highlights in Q3 2024 Revenue of EUR 5.2bn Revenue increased 19 percent YoY, driven by higher volumes and higher pricing on deliveries EBIT margin of 4.5 percent Higher activity and better underlying performance improved EBIT margin by almost 3 percentage points YoY Service EBIT margin of 16 per
Slide 4: Agenda
Orders and markets Financials Outlook Q&A Agenda Classification: Public 4 Q3 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 stable Ongoing geopolitical and trade volatility Overall inflation declining, but specific components rising Global envi
Slide 6: Power Solutions – Q3 2024
Power Solutions – Q3 2024 Commercial discipline maintained Firm and unconditional order intake, MW Highlights Onshore +18% Offshore Q3 order intake of 4.4 GW was stable compared to last 2,827 year. Good market activity driven by onshore in all regions, 2,402 1,068 as well as two offshore projects in
Slide 7: Service – Q3 2024
Service – Q3 2024 Operational efficiency high on the agenda Service order GW under active Average years Highlights backlog service contracts contract duration We are scrutinising the Service business to address that costs are too high. It will take time to fix, but several steps have been taken incl
Slide 8: Vestas Development – Q3 2024
Vestas Development – Q3 2024 Generating good order intake Order intake New secured Total project Highlights generated pipeline pipeline In Q3, Vestas Development generated 324 MW of order intake for Vestas including the announced Lotus Creek Wind Farm in Australia 324 0.1 28 Lotus Creek is the first
Slide 9: Sustainability – Q3 2024
Sustainability – Q3 2024 Most sustainable energy company in the world CO2e avoided Highlights 409 454 Expected CO2e avoided Lifetime CO2e avoided by produced and over the lifetime of the capacity produced and shipped capacity increased by 45 million tonnes shipped during the period compared to a yea
Slide 10: Agenda
Orders and markets Financials Outlook Q&A Agenda Classification: Public 10 Q3 2024
Slide 11: Income statement – Q3 2024
Income statement – Q3 2024 Profitability continues to improve mEUR Q3 2024 Q3 2023 % change Highlights Revenue 5,177 4,353 19% Revenue increased 19 percent YoY, driven by higher Gross profit 544 351 55% volumes and higher average pricing on turbine deliveries in SG&A costs* (310) (295) 5% Power Solu
Slide 12: Power Solutions – Q3 2024
Power Solutions – Q3 2024 Execution and operating levering drives profitability 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 24 percent YoY, driven b
Slide 13: Service – Q3 2024
Service – Q3 2024 Margin improvement slightly slower than expected Service revenue and EBIT margin before special items, mEUR and percent Highlights Service EBIT Service revenue EBIT margin Revenue declined 1 percent YoY in Q3. Disregarding currency headwinds revenue was on par with last year. 938 9
Slide 14: Cash flow statement – Q3 2024
Cash flow statement – Q3 2024 Positive operating cash flow Highlights mEUR Q3 2024 Q3 2023 Abs. change Operating cash flow improved compared to last year to Cash flow from operating activities EUR 89m in the quarter, driven by improved profitability before change in net working capital 571 337 234 A
Slide 15: Net working capital – Q3 2024
Net working capital – Q3 2024 Working capital increased ahead of a busy fourth quarter NWC change over the quarter, mEUR Highlights Net working capital increased during Q3 due to a decrease in the level of customer down- and milestone payments, partly offset by a reduction in inventories The usual w
Slide 16: Investments – Q3 2024
Investments – Q3 2024 Focus on ramping up manufacturing footprint Total net investments*, mEUR Highlights Total net investments amounted to EUR 272m in Q3. While we are facing ramp-up challenges in both offshore and +45 onshore, we continue to make progress 306 269 272 The V236 offshore manufacturin
Slide 17: Provisions and LPF – Q3 2024
Provisions and LPF – Q3 2024 Improving LPF trend continues Lost Production Factor (LPF), Percent Highlights 6 LPF* continues to improve, a sign that our 5 heightened focus on quality in recent years is 4 working. Over time, an improved LPF should 3 lead to lower warranty provisions 2 In the quarter,
Slide 18: Capital structure – Q3 2024
Capital structure – Q3 2024 Financial leverage 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 5.8 is the main driver for our net debt to EBITDA ending the quart
Slide 19: Agenda
Orders and markets Financials Outlook Q&A Agenda Classification: Public 19 Q3 2024
Slide 20: Outlook 2024
Outlook 2024 Outlook Previous Outlook Revenue (bnEUR) 16.5 – 17.5 16.5 – 17.5 EBIT margin before special items (%) 4–5 4–5 - Service is expected to generate Lower end more likely EBIT b.s.i. of around EUR 450m (prev. around 500m) Total investments (bnEUR) Approx. 1.0 Approx. 1.2 Total net investment
Slide 21: Financial calendar 2025: Q&A
Financial calendar 2025: • Disclosure of FY 2024 (5th February) Q&A • Disclosure of Q1 2025 (6th May) • Disclosure of Q2 2025 (13th August) • Disclosure of Q3 2025 (5th November) Classification: Public 21 Q3 2024