Vestas Wind Systems A/s · OMXCOP:VWS
Vestas Wind Systems A/s — FY2004 Earnings Presentation
26 slides from Vestas Wind Systems A/s's earnings presentation, Mar 30, 2005
Slide 1: Annual Report 2004
Annual Report 2004 Vestas Wind Systems A/S 30 March, 2005
Slide 2: Agenda
Agenda • Highlights • Financial results • Market development • Technology and production • Integration status • Expectations V90-2.0 MW, Germany, 2004 2
Slide 3: A challenging year for Vestas
A challenging year for Vestas • Combination of Vestas and NEG Micon • Organisation • Product range • Capital increase of mEUR 283 and refinancing in place • Sales of 2,784 MW – Global market share of 35% (+2 percentage points) • Financial results • EBITA before one-off costs on target • Higher one-o
Slide 4: Agenda
Agenda • Highlights • Financial results • Market development • Technology and production • Integration status • Expectations V90-2.0 MW, Germany, 2004 4
Slide 5: Income Statement - Combined
Income Statement - Combined (EUR million) 2004R 2004E Net turnover 2.633 2.600 Growth in turnover 11,5% EBITA before one-off costs 146 156 EBITA margin before one-off costs 5,6% 6,0% One-off costs (153) (67) EBITA after one-off costs (7) 89 EBITA margin after one-off costs -0,3% 3,4% Pro forma summa
Slide 6: Specification of one-off costs
Specification of one-off costs (EUR million) 2004 Horns Reef 38 Termination costs 31 Business processes and systems 60 Loss making projects NEG Micon 24 One-off costs 153 6
Slide 7: Income Statement
Income Statement (EUR million) 2004 2003 2002 Net turnover 2.561 1.653 1.395 Growth in turnover 55,0% 18,5% 8,7% Gross profit 121 150 142 Gross margin 4,7% 9,1% 10,2% Operating Profit (EBIT) (9) 74 74 EBIT margin -0,4% 4,5% 5,3% Profit before tax (50) 54 60 Net result for the year (39) 36 45 The Gro
Slide 8: Balance sheet
Balance sheet (EUR million) 2004 2003 2002 Goodwill 308 11 1 Total assets 2.924 1.390 1.269 Equity 1.251 613 596 Provisions 214 166 130 Interest bearing net debt 390 228 244 Net working capital 853 603 627 Return on equity -4,2% 5,9% 7,8% Solvency ratio 42,8% 44,1% 47,0% Net debt / equity (gearing)
Slide 9: Cash flow statement
Cash flow statement (EUR million) 2004 2003 2002 Net profit for the year (39) 36 45 Non cash items 150 136 101 Change in working capital (90) 11 (244) Net financial items (41) (21) (14) Corporation tax paid (10) (9) (13) Cash flows from operating activities (30) 153 (126) Capital expenditures (118)
Slide 10: Agenda
Agenda • Highlights • Financial results • Market development • Technology and production • Integration status • Expectations V90-2.0 MW, Germany, 2004 10
Slide 11: Growth scenario intact
Growth scenario intact • IEA increases expectations • Kyoto Protocol ratified • New growth centres • Competitive kWh-price • Long-term growth scenario intact Source: Vestas’ calculations 11
Slide 12: Vestas Sales
Vestas Sales 2004 sales distribution (2003) • 2,784 MW sold (+4%) Africa Rest of Asia 2% (4%) 7% (6%) • Market share 35% Germany/Aut 27% (35%) India 9% (6%) (+2 percentage points) USA/Canada 7% (20%) • Decrease in Germany and North America Spain/Portugal Australia/N.Z 11% (3%) 13% (9%) Other Europea
Slide 13: Europe
Europe • Germany – 665 MW delivered (-20%) • More complex approval process • Market share 33% (+2%) • Lower market in 2005 • Spain – 316 MW delivered (+57%) • Strong growth • New targets expected • Strong interest for the V90 • Italy – 234 MW delivered (+359%) • Leading position maintained V80-2.0 M
Slide 14: Europe (2)
Europe (2) • Benelux – 178 MW delivered (+13%) • Strong position in Holland • Positive expectations for offshore • UK/Ireland – 150 MW delivered (+9%) • Growth below expectations • New planning policy (PPS22) • Two offshore projects in 2005 • Other European markets • Portugal - strong growth • Polan
Slide 15: Rest of the World
Rest of the World • USA/Canada – 204 MW delivered (-62%) • Large orders secured • Weak USD puts pressure on projects • Continued growth in Canada • Australia/NZ – 295 MW delivered (+354%) • Large orders – high market share • India – 241 MW delivered (+41%) • High growth in 2004 • China – 75 MW deliv
Slide 16: Agenda
Agenda • Highlights • Financial results • Market development • Technology and production • Integration status • Expectations V90-2.0 MW, Germany, 2004 16
Slide 17: Products
Products • From wind turbines to Wind Power Systems • A complete product range kW 2,0 MW 3,0 MW 4,5 MW • V120-4.5 MW V52 V80/V82/V90 V90/V100 for offshore V120 V100-3.0 MW V120-4.5 MW • For low and moderate wind • For offshore use • Serial production 2006 • Serial production 2007 • New global servic
Slide 18: Sourcing and production
Sourcing and production • Sourcing • Most competitive suppliers • Local requirements • New establishments • Blade factory in Australia • Blade factory in China • Blade factory in North America • Production • Future blade technology • Consolidated nacelle assembly • Stronger presence in Spain Blade f
Slide 19: Agenda
Agenda • Highlights • Financial results • Market development • Technology and production • Integration status • Expectations V90-2.0 MW, Germany, 2004 19
Slide 20: Integration status
Integration status Synergies (mEUR) • Integration process 70 • Overall goals achieved • Organisational structure in place 60 • Integration of administrative 50 systems continue in 2005 40 • Synergies 30 • As expected mEUR 14 in 2004 20 • Full synergy effect still expected to be mEUR 67 in 2006 10 0
Slide 21: Agenda
Agenda • Highlights • Financial results • Market development • Technology and production • Integration status • Expectations V90-2.0 MW, Germany, 2004 21
Slide 22: Order backlog 1 January 2005
Order backlog 1 January 2005 Firm and unconditional orders for delivery in 2005-2006 India Rest of Asia 3% 5% • Order backlog USA/Canada corresponds to UK/Ireland 25% approx. 5 months 15% average production • Large orders to USA Germany/Aut in 2005 has 7% Australia/N.Z 7% increased visibility Polen
Slide 23: Expectations for 2005
Expectations for 2005 • Global market expected to grow by more than 20% in 2005 • Turnover of bnEUR 3.0-3.2 • EBIT-margin of approximately 4% • Investments in tangible fixed assets mEUR 160-170 • 30-35% of turnover in the first half-year • NetWorkingCapital 30-35% of turnover • The half-year report
Slide 24: Strategic goals
Strategic goals • A global market share of at least 35% measured in MW of installed capacity • EBIT-margin of at least 10% • NetWorkingCapital at year end maximum 25-30% of turnover 24
Slide 25: New President & CEO
New President & CEO • Ditlev Engel • 40 years old • Previously, President and CEO of Hempel A/S • With Vestas from 1 March, 2005 • Acquaintance with Vestas’ strategy, business processes and organisation • President and CEO of Vestas as from 1 May, 2005 One Engel Ditlev V90-2.0 MW turbine at Høvsøre,
Slide 26: Q&A
Q&A With quality and care we use the wind to create competitive, clean and renewable energy 26