Embed Size (px)
Citation preview
First half 2010: Mixed activity as expectedThe London Marriott West India Quay Hotel 18 August 2010
First half 20102
How well is Vestas really doing?
H1: Mixed activity as expected
33 First half 2010
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
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 2010 reflects the low 2009 order intake.EBIT reflects low utilisation of production capacity, as expected.
5 First half 2010
Shipments: Extremely low activity reducing EBIT margin
855
1,090
1,245
1,784
684
1,458 1,479
2,539
885
1,172
1,635
2,439
387
588
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2007 2008 2009 2010
Shipmen
ts (M
W)
6 First half 2010
Balance sheet
First half 20107
mEUR 30 June 2010
30 June 2009 Change
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%)
Total balance sheet 6,702 6,050 11%
Equity ratio 47.4% 47.5% (0.1 %-pts.)
Net debt of EUR 896m reflects H1 deficit and investment program.Net debt constitute Eurobond, EIB and NIB.
Robust balance sheet.
Net working capital
mEUR 30 June 2010
30 June 2009 Change
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 progress.Prepayments reflect larger projects with longer time span and credit crisis.
Still too large inventories.
8 First half 2010
Cash flow statement
H1 cash flow weak due to back-end loaded activity level, as expected.
mEUR Q2 2010
Q2 2009
H1 2010
H1 2009
Cash flow from operating activities before change in working capital (255) 71 (420) 130
Change in working capital (54) (251) (287) (505) Cash flow from operating activities (309) (180) (707) (375) Cash flow from investing activities (202) (260) (351) (445) Cash flow before financing activities (511) (440) (1,058) (820) Cash flow from financing activities 248 540 768 848 Change in cash and cash equivalents less current portion of bank debt (263) 100 (290) 28
9 First half 2010
Non-financial reporting
DiversitySafety First Code of Conduct
As Green as it Gets
Q2 2010
Q2 2009 Change
Incidence of industrial injuries per 1 million working hours 4.6 7.6 (39%)
Renewable energy (%) 49 39 10 % ptsRenewable electricity (%) 78 64 14 % pts
Women at management level (%) 19 17 2 % ptsNon-Danes at management level (%) 47 44 3 % pts
Vestas has joined the WEF ‘Partnering Against Corruption Initiative’.4,402 employees attended safety courses in H1.
10 First Half 2010
Work related injuries down by 87% since 2005
H1: Mixed activity as expected
1111 First half 2010
Announced order intake YTD more than 5,500 MW - on track for 8,000-9,000 MW
12 First half 2010
3,072
1,258
8,000 ‐ 9,000
3,031
~1,400
~2,800
0
2,000
4,000
6,000
8,000
FY2009 Q1 ‐ 2010 Q2 ‐ 2010 Orders announced since June
Rest of 2010 Full year expectation
Order intake (M
W)
2/3 of expected order intake realised year to date
13
Since June
Year to date Expected order intake 2010
Europe
H1 Guidance
Year to date Expected order intake 2010
MW
Americas
Year to date Expected order intake 2010
Asia/Pacific
4,400 4,535
3,946
4,415 4,283
6,529
5,848
4,8064,570
3,596
3,014
1,747
2,618
5,061
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2007 2008 2009 2010
MW
Order backlog: Largest increase in three years
52%
93%
14 First half 2010
Market liquidity:
Energy prices:
Political momentum:
Overall market situation
Market liquidity:
Energy prices:
Political momentum:
15 First half 2010
Bringing home orders in a challenging world
16 First half 2010
Terms & conditions
Pre-payments:Reflecting larger projects with longer time span.
Prices:No material changes, adjusted for input prices.
17 First half 2010
H1: Mixed activity as expected
18 First half 2010
Technology R&D
19 First half 2010
Products & presence
V112, Australia
Melbourne, 12 August 2010
20 First Half 2010
H1: Mixed activity as expected
21 First half 2010
Guidance: Why are we changing it?
First half 201022
0
1,000
2,000
3,000
4,000
5,000
6,000
Q1 Q2 Q3 Q4 Q1 Q2
2009 2010
MW
The future:Order backlog
History: Shipments
Guidance: This is why we change it
First half 201023
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.
mEUR 2010 Guidance
Order intake, firm and unconditional (MW) 8,000-9,000Revenue 6,000- of which service revenue 600EBIT 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% Investments in property, plants and equipment 650Investments in intangible assets 350Capacity, year-end (MW) 10,000Incidence of industrial injuries (per one million working hours) <7.0Customer loyalty (index) 70Share of renewable energy (%) 55Quality level, year-end (Sigma) 5
Guidance as of 18 August 2010
Expected REVENUE reduced due to timing
of shipments.
Expected EBIT reduced due to
lack of volume only.24
NWC reflectschanged revenue
guidance.First half 2010
Guidance as of 18 August 2010
First half 201025
H1 2010 H2 2010
EBIT
H2 2010
+ EUR 544-604m
Global financial crisis hitting Vestas
Strong rebound, leading to
year-end profit.
EUR (244)m
Internal implications of lower shipments
First half 201026
No. of employees, beginning of 2010: 20,730
No. of employees, year-end 2010: 23,500
300 in Denmark
Approx 300 staff on temporary hire – not to be prolonged
Work sharing to reduce number of layoffs in Europe (incl. Denmark)
Due to postponed shipments, layoffs at affected factories to be negotiated with employee representatives:
Internal implications of lower shipments
First half 201027
Bonus
As it looks right now, bonus will be challenging to obtain for 2010.
First half 201028
Planet Earth’s half-year result...
29 First half 2010
Source: The National Oceanic and Atmospheric Administration (NOAA), July 2010
National Renewable Energy Plans (NREAP) - submitted so far
First half 201030
Wind power set to become a central part of the European energy mix by 2020.
Sou
rce:
Ves
tas
First half 201031
Financial Times, 15 July 2010
[…] 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 road each year […].
Penny Wong,Minister for Climate Change, Energy Efficiency and Water, Australia
Sydney Morning Herald, 12 August 2010
32 First half 2010
Capital Markets Day: 1-2 September, USA
First half 201033
First half 201034
So how well is Vestas really doing?
Next quarterly presentation
35 First half 2010
First Half 201036
Copyright NoticeThe 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 anymeans—such as graphic, electronic, or mechanical, including photocopying, taping, or information storage and retrieval systems without the prior written permission of Vestas Wind Systems A/S. The use of these documents by you, oranyone else authorized by you, is prohibited unless specifically permitted by Vestas Wind Systems A/S. You may not alter or remove any trademark, copyright or other notice from the documents. The documents are provided “as is” andVestas Wind Systems A/S shall not have any responsibility or liability whatsoever for the results of use of the documents by you. Vestas wishes to acknowledge and respect all copyrights in connection with the illustrations used in thispresentation. In case we have unintentionally violated copyrighted material, we want to be informed immediately in order to straighten things out and thus to honour any obligatory fees.
