Vestas Wind Systems A/S · OMXCOP:VWS
Vestas Wind Systems A/S — H1 2010 Earnings Presentation
37 slides from Vestas Wind Systems A/S's earnings presentation, Aug 18, 2010
Slide 1: First half 2010: Mixed activity as expected
First half 2010: Mixed activity as expected The London Marriott West India Quay Hotel 18 August 2010
Slide 2: How well is Vestas really doing?
How well is Vestas really doing? 2 First half 2010
Slide 3: H1: Mixed activity as expected
H1: Mixed activity as expected 3 First half 2010
Slide 4: Low H1 activity; on track for order intake of 8,000-9,000 MW
Low H1 activity in Production Business Units. On track for order intake of 8,000-9,000 MW. Revised short-term guidance. 4 First half 2010
Slide 5: Income statement
Income statement mEUR Q2 2010 Q2 2009 H1 2010 H1 2009 Revenue 1,007 1,211 1,762 2,316 Gross profit 44 223 88 439 Gross margin 4.4% 18.4% 5.0% 19.0% EBIT (148) 78 (244) 154 EBIT margin (14.7%) 6.4% (13.8%) 6.6% Profit/(loss) before tax (165) 59 (279) 137 Profit/(loss) after tax (119) 43 (201) 99 H1 2
Slide 6: Shipments: Extremely low activity reducing EBIT margin
Shipments: Extremely low activity reducing EBIT margin 2,539 2,439 1,784 Shipments (MW) 1,635 1,458 1,479 1,245 1,172 1,090 855 885 684 588 387 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 2010 6 First half 2010
Slide 7: Balance sheet
Balance sheet 30 June 30 June mEUR Change 2010 2009 Total intangible assets 900 710 27% Total property, plant and equipment 1,705 1,315 30% Inventories 1,937 2,386 (19%) Receivables 1,680 1,187 42% Cash at hand and in bank 218 274 (20%) Financial liabilities 1,114 118 844% Provisions 155 220 (30%) T
Slide 8: Net working capital
Net working capital 30 June 30 June mEUR Change 2010 2009 Inventories 1,937 2,386 (19)% Receivables 1,680 1,187 42% Prepayments from customers (908) (1,359) (33)% Trade payables (873) (1,022) (15)% Other liabilities (314) (388) (19)% Total 1,522 804 89% Receivables reflect high level of orders in pr
Slide 9: Cash flow statement
Cash flow statement Q2 Q2 H1 H1 mEUR 2010 2009 2010 2009 Cash flow from operating activities (255) 71 (420) 130 before change in working capital Change in working capital (54) (251) (287) (505) Cash flow from operating activities (309) (180) (707) (375) Cash flow from investing activities (202) (260
Slide 10: Non-financial reporting
Non-financial reporting Work related injuries down by 87% since 2005 Q2 Q2 Change 2010 2009 Incidence of industrial injuries per 1 million 4.6 7.6 (39%) working hours Renewable energy (%) 49 39 10 % pts Renewable electricity (%) 78 64 14 % pts Women at management level (%) 19 17 2 % pts Non-Danes at
Slide 11: H1: Mixed activity as expected
H1: Mixed activity as expected 11 First half 2010
Slide 12: Order intake (MW)
Announced order intake YTD more than 5,500 MW - on track for 8,000-9,000 MW ~2,800 8,000 ‐ 9,000 8,000 6,000 ~1,400 Order intake (MW) 3,031 4,000 3,072 2,000 1,258 0 FY2009 Q1 ‐ 2010 Q2 ‐ 2010 Orders announced Rest of 2010 Full year expectation since June 12 First half 2010
Slide 13: 2/3 of expected order intake realised year to date
2/3 of expected order intake realised year to date H1 Since June Guidance Americas Europe Asia/Pacific MW Year to date Expected order intake Year to date Expected order intake Year to date Expected order 2010 2010 intake 2010 13
Slide 14: Order backlog: Largest increase in three years
Order backlog: Largest increase in three years 52% 6,529 5,848 93% 5,061 4,806 4,535 4,570 4,400 4,415 4,283 3,946 3,596 MW 3,014 2,618 1,747 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 2010 14 First half 2010
Slide 15: Overall market situation
Overall market situation Market liquidity: Market liquidity: Energy prices: Energy prices: Political momentum: Political momentum: 15 First half 2010
Slide 16: Bringing home orders in a challenging world
Bringing home orders in a challenging world 16 First half 2010
Slide 17: Terms & conditions
Terms & conditions Pre-payments: Reflecting larger projects with longer time span. Prices: No material changes, adjusted for input prices. 17 First half 2010
Slide 18: H1: Mixed activity as expected
H1: Mixed activity as expected 18 First half 2010
Slide 19: Technology R&D
Technology R&D V112, Australia Products & presence Melbourne, 19 First half 2010 12 August 2010
Slide 20: Technology R&D investments
Technology R&D investments: Fast Forward New testing facilities, Isle of Wight, UK 20 First Half 2010 Wind. It means the world to us.”
Slide 21: H1: Mixed activity as expected
H1: Mixed activity as expected 21 First half 2010
Slide 22: Guidance: Why are we changing it?
Guidance: Why are we changing it? 6,000 The future: Order backlog 5,000 4,000 MW 3,000 2,000 History: 1,000 Shipments 0 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 22 First half 2010
Slide 23: Guidance: This is why we change it
Guidance: This is why we change it NOT because of a poor H1 2010 revenue... ...BUT because expected orders – primarily from Spain, Germany and the US – are delayed, thus leading to a postponement in shipments. 23 First half 2010
Slide 24: Guidance as of 18 August 2010
Guidance as of 18 August 2010 mEUR 2010 Guidance Order intake, firm and unconditional (MW) 8,000-9,000 Revenue 6,000 - of which service revenue 600 EBIT margin 5-6% EBIT margin, service 15% Financials (35) Tax rate 28% Net working capital as per cent of revenue 15-20% Warranty provisions 3% Investme
Slide 25: EBIT guidance
Guidance as of 18 August 2010 EBIT + EUR 544-604m Strong rebound, Global financial leading to crisis hitting Vestas year-end profit. H1 2010 H2 2010 EUR (244)m 25 First half 2010
Slide 26: Internal implications of lower shipments
Internal implications of lower shipments Due to postponed shipments, layoffs at affected factories to be negotiated with employee representatives: 300 in Denmark Approx 300 staff on temporary hire – not to be prolonged Work sharing to reduce number of layoffs in Europe (incl. Denmark) No. of employe
Slide 27: Bonus
Internal implications of lower shipments Bonus As it looks right now, bonus will be challenging to obtain for 2010. 27 First half 2010
Slide 28: Policy makers, Planet
Policy The makers Planet 28 First half 2010 Wind. It means the world to us.”
Slide 29: Planet Earth's half-year result...
Planet Earth’s half-year result... Source: The National Oceanic and Atmospheric Administration (NOAA), July 2010 29 First half 2010
Slide 30: National Renewable Energy Plans (NREAP)
National Renewable Energy Plans (NREAP) - submitted so far Source: Vestas Wind power set to become a central part of the European energy mix by 2020. 30 First half 2010
Slide 31: Macarthur Wind Farm quotes
Penny Wong, Minister for Climate Change, Energy Efficiency and Water, Australia […] the 420 MW Macarthur Wind Farm will have the capacity to abate more than 1.7 million tons of greenhouse gases every year – the equivalent of taking more than 420,000 cars off the Financial Times, 15 July 2010 road ea
Slide 32: Main Risks
32 First half 2010 Main Risks Macro economics. Financing situation. Regulatory issues. Other Ris KS. inter alia Exchange rate. Raw materials. Interest rate. Warranties. Patent disputes. NIMBYism. Wind. It means the world to us.”
Slide 33: Capital Markets Day: 1-2 September, USA
Capital Markets Day: 1-2 September, USA 33 First half 2010
Slide 34: So how well is Vestas really doing?
So how well is Vestas really doing? 34 First half 2010
Slide 35: Next quarterly presentation
Next quarterly presentation 35 First half 2010
Slide 36: 36 First Half 2010
Leslas Vind power plants Vestasinsxte Wind. it means the world to us. Language Contact > Searc RSS teea About Vestas Press office Brochures Trade taws and events Jobs Investor Media interviews Videos images ews service News service RSS feea ress releases 2009 (not Hub articles) Sign up Subscribe res
Slide 37: Copyright Notice
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, electronic, or mechanical, inc