Vestas Wind Systems A/s · OMXCOP:VWS
Vestas Wind Systems A/s — H1 2002 Earnings Presentation
25 slides from Vestas Wind Systems A/s's earnings presentation, Aug 22, 2002
Slide 1: Half-Year Report 2002
Half-Year Report 2002 22 August 2002
Slide 2: Agenda
Agenda • Highlights • Financial overview • Markets • Capacity extension • Order backlog and expectations for the future 2
Slide 3: Highlights
Highlights • High level of activity in Europe • 420 MW delivered outside the USA - an increase of 32% • Deliveries for the world’s largest offshore wind power plant • Production start-up in new facilities in Denmark, Germany and Scotland • Prototype of new V90-3.0MW turbine • Slow start in North Ame
Slide 4: Agenda
Agenda • Highlights • Financial overview • Markets • Capacity extension • Order backlog and expectations for the future 4
Slide 5: Accounting policies
Accounting policies • New Danish accounting policies implemented in 2002 - follows the IAS rules for recognition and measurement in general • Capitalisation of R&D costs • Effect on profit/loss mEUR 5 in 1H2002 • Effect on shareholders’ equity mEUR 21 in 1H2002 • Effect on balance sheet mEUR 30 in 1
Slide 6: Profit and loss account
Profit and loss account mEUR 1H2002 1H2001 2001 Net turnover 532 612 1.282 Growth in turnover -13% 100% 48% Gross profit 40 79 192 Growth in gross profit -49% 83% 48% Gross margin 7,5% 12,9% 15,0% Operating Profit (EBIT) 6 55 143 Growth in EBIT -89% 93% 53% EBIT margin 1,1% 9,0% 11,2% Profit from as
Slide 7: Balance sheet
Balance sheet mEUR 1H2002 1H2001 2001 Intangible fixed assets 32 24 27 Tangible fixed assets 251 176 204 Financial fixed assets 6 36 5 Current assets 943 640 772 Total assets 1.232 876 1.009 Equity capital 548 261 566 Provisions 86 66 97 Long term debt 115 74 78 Short term debt 483 474 268 Total lia
Slide 8: Cash flow statement
Cash flow statement mEUR 1H2002 1H2001 2001 Cash flow from operations (248) (78) (14) Capital expenditures 61 (48) 38 Cash flow from financing activities 186 121 (33) Net cash flow (1) (5) (9) Cash at bank and in hand 20 24 21 8
Slide 9: Key ratios
Key ratios 1H2002 1H2001 2001 Increase in turnover -13,0% 100,5% 47,6% Gross margin 7,5% 12,9% 15,0% Operating margin (EBIT) 1,1% 9,0% 11,2% Return on equity capital -0,1% 15,6% 84,1% Earnings per share (EPS) - 0,4 3,2 EPS growth -100% 39% 319% Net debt / equity (gearing) 60,1% 105,3% 21,6% Solvency
Slide 10: Agenda
Agenda • Highlights • Financial overview • Markets • Capacity extension • Order backlog and expectations for the future 10
Slide 11: Geographic overview 1H2002 sales - MW
Geographic overview 1H2002 sales - 461 MW Netherlands 10,2% USA/Canada Italy 8,9% 15,6% UK/Ireland 4,1% Australia 2,4% India 2,6% Other Japan 6,3% 1,7% Portugal Scandinavia 1,5% 24,5% Greece 0,7% Germany 27,8% 11
Slide 12: Market status
Market status • Germany • Continued positive development • Environmental permits create delays into 2H2002 - expected • High pressure on installation capacity in 2H2002 • Denmark • Positive development in 2002 • Deliveries for Horns Reef - the world’s largest offshore project • New energy policy - n
Slide 13: Market status (2)
Market status (2) • Benelux • 47 MW supplied in 1H2002 • Very good order backlog • Potential offshore market • USA • Late PTC extension in March 2002 for the end of 2003 • Order intake slower than expected • ”Energy bill” to be negotiated in autumn 2002 • The market is expected to be reduced in 2002
Slide 14: Market status (3)
Market status (3) • The British Isles • Renewables Obligation approved in spring 2002 • High level of activity - many permits in place • A stable market onshore • Future offshore market • Spain • Vestas - Danish Wind Technology A/S market responsible • Low market share short-term • Long-term strateg
Slide 15: Offshore
Offshore • Horns Reef in the North Sea • 80 Vestas V80-2.0 MW under installation • Valuable experiences being gained • Break through in the UK • Vestas selected as supplier for the first offshore wind park on North Hoyle • Approval for development of additional 17 projects • Plans on several markets
Slide 16: Agenda
Agenda • Highlights • Financial overview • Markets • Capacity extension • Order backlog and expectations for the future 16
Slide 17: Product- and production development
Product- and production development • V80-1.8 MW OptiSlip® ready for sale in North America • New generation of MW-turbines • V90-3.0 MW OptiSpeed prototype installed in 1H2002 • Several V90 prototypes will be installed in Europe and in North America • Preparations for start-up of serial production
Slide 18: Production facilities
Production facilities • Start-up on new blade factory in Germany • Full capacity of 900 blades annually from 2003 • Full capacity on assembly and tower factory in Scotland • 100-200 MW capacity depending on turbine size 18
Slide 19: Production facilities (2)
Production facilities (2) • Extension of blade factories in Denmark • Conversion from kW-turbines to MW-turbines • Additional production lines for MW-turbines established • Extensions in Nakskov and Lem • Establishment of new automated root joint factory 19
Slide 20: Production facilities (3)
Production facilities (3) • Timing difference for establishment in the USA • Sales and service activities moved to new American head office in Portland during the summer 2002 • Establishment of production plant delayed due to unclarified issues concerning final placing • Capacity effect is to be com
Slide 21: Employees and environment
Employees and environment • A fluctuating spring for the employees • Work sharing programme for approximately 1,200 employees in spring • 545 new employees in 1H2002 - an increase of 10% • Focus on integration, education and training • Environmental certification according to ISO 14001 • The Danish
Slide 22: Agenda
Agenda • Highlights • Financial overview • Markets • Capacity extension • Order backlog and expectations for the future 22
Slide 23: Order backlog - June 2002
Order backlog - June 2002 Firm and unconditional orders - 2002/2003 Netherlands Poland 14% 7% USA/Canada 3% Italy 4% UK/Ireland Scandinavia 3% 3% Australia 19% Iran Other 3% 10% Japan 2% Other 2% Germany The order backlog corresponds to approx. 40% 4 months average production 23
Slide 24: Vestas' expectations
Vestas’ expectations • 2002 • Expectation for level of turnover was increased from approx. bnEUR 1.4 to approx. bnEUR 1.6 in March 2002 • The order intake from the USA has been slower than expected • Current expectation - turnover of bnEUR 1.4-1.5 and EBIT- margin of approx. 9% • 2003 • Prognosis fr
Slide 25: 22 August 2002
22 August 2002 With quality and care we use the wind to create competitive environmentally friendly energy