Products and Presence First quarter 2010 Four Seasons Hotel, New York City
Vestas largest order ever Through this agreement, EDPR contracts from Vestas the wind turbine technology that optimises productivity factors and the total cost of ownership, enabling EDPR to have a competitive edge within the wind developing industry. Ana Maria Fernandes, CEO of EDPR Monday, 26 April 2010 2 Vestas Wind Systems A/S First quarter 2010 28 April 2010
1 Wind, Oil and Gas: On Track 2 3,400 Total Chinese capacity reserved for China. Investment program up EUR 400m. new jobs in 2010. 3 Q1 earnings and revenue: Unsatisfactory as expected. NWC reflecting 09 industry sentiment. 3 Vestas Wind Systems A/S First quarter 2010 28 April 2010
Presence creating customers Vestas in Top 3 in nine out of the ten largest markets. 4 Vestas Wind Systems A/S First quarter 2010 28 April 2010 Source: BTM, WMU 2009, March 2010
Shareholder information, 10 February 2010 5 Vestas Wind Systems A/S First quarter 2010 28 April 2010
What happened? Revenue meur EBIT meur 1,105 715 760 701 755 76 6 20 34 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2010 reflects market sentiment in second half of 2009. Low capacity utilisation as expected. Prepared to capture the upside. (96) -96 6 Vestas Wind Systems A/S First quarter 2010 28 April 2010
Balance sheet meur 31 March 2010 31 March 2009 Change Total intangible assets 864 676 28% Total property, plant and equipment 1,550 1,155 34% Inventories 1,720 2,087 (18)% Receivables 1,715 1,204 42% Cash at bank and in hand 460 161 186% Financial liabilities, incl. Eurobond 864 370 134% Provisions 194 238 (18)% Total balance sheet 6,540 5,435 20% Solvency ratio 50% 37% 13 % points Robust balance sheet. Successful Eurobond issue. 7 Vestas Wind Systems A/S First quarter 2010 28 April 2010
Net working capital meur 31 March 2010 31 March 2009 Change Inventories 1,720 2,087 (18)% Receivables 1,715 1,204 42% Prepayments from customers (876) (1,340) (35)% Trade payables (700) (1,017) (31)% Other liabilities (391) (381) 3% Total 1,468 553 165% (% of revenue) 21 8 Prepayments reflecting lower order backlog. Trade payables and receivables reflecting high activity in Q4 2009. Still large inventories. 8 Vestas Wind Systems A/S First quarter 2010 28 April 2010
Cash flow meur Cash flow from operating activities before change in working capital Q1 2010 Q1 2009 (165) 59 Change in working capital (233) (254) Cash flow from operating activities (398) (195) Cash flow from investing activities (149) (185) Cash flow before financing activities (547) (380) Cash flow from financing activities 520 308 Change in cash at bank and in hand less current portion of bank debt (27) (72) Paying the price for a back-end loaded 2010. Prepared to capture the upside. 9 Vestas Wind Systems A/S First quarter 2010 28 April 2010
Non-financial reporting Safety First As Green as it Gets Diversity Q1 2010 Q1 2009 Change Industrial injuries per one million working hours 4.4 12.8 (66)% Renewable energy (%) 43 39 4% points Renewable electricity (%) 93 69 24% points Women at management level (%) 19 17 2% points Non-Danes at management level (%) 46 44 2% points 10 Vestas Wind Systems A/S First quarter 2010 28 April 2010
ORDERS the future. 11 Vestas Wind Systems A/S First quarter 2010 28 April 2010
On track for 8,000-9,000 MW ~2,000 Order intake (MW) 458 542 1,050 1,022 1,258 Q1 Q2 Q3 Q4 Q1 Announced orders April 2009 2010 12 Vestas Wind Systems A/S First quarter 2010 28 April 2010
Order backlog on the rise 7.2 6.5 4.8 4.8 5.2 4.9 bneur 3.5 3.4 3.1 4.0 4.0 4.3 4.1 4.0 3.5 2.9 2.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2006 2007 2008 2009 2010 13 Vestas Wind Systems A/S First quarter 2010 28 April 2010
Guidance 2010 meur 2010 Guidance Order intake, firm and unconditional (MW) 8,000-9,000 Revenue 7,000 - of which service revenue 600 EBIT margin 10-11% EBIT margin, service 15% Financial items, net (25) Tax rate 28% Net working capital as per cent of revenue 15% Warranty provisions 3% Investments, property, plant and equipment 650 Investments, intangible assets 350 Capacity, year-end (MW) 10,000 Incidence of industrial injuries (per one mill. working hours) <7.0 Customer loyalty (index) 70 Share of renewable energy (%) 55 Quality level, year-end (Sigma) 5 14 Vestas Wind Systems A/S First quarter 2010 28 April 2010
Investments up EUR 400m... V112-3.0 MW introduced faster and in larger volumes New Service and Maintenance centre in Brighton, Colorado 15 Vestas Wind Systems A/S First quarter 2010 28 April 2010
No. of colleagues year-end: 24,000 4,570 3,596 Order backlog (MW) 3,014 1,747 2,618 Q1 Q2 Q3 Q4 Q1 2009 2010 16 Vestas Wind Systems A/S First quarter 2010 28 April 2010
Order intake 8,000-9,000 MW: Distribution maintained Expected order intake (MW) Americas Europe Asia/Pacific 17 Vestas Wind Systems A/S First quarter 2010 28 April 2010
Order intake secured by 18 Vestas Wind Systems A/S First quarter 2010 28 April 2010
Vestas in China 19 Vestas Wind Systems A/S First quarter 2010 28 April 2010
Vestas has Long-term relationship with China 20 Vestas Wind Systems A/S First quarter 2010 28 April 2010
IN the region FOR the region Assembly Machining + Generators Blades Controls Foundry Sourcing Sales and HQ Hohhot Tianjin Tianjin Hohhot Tianjin Tianjin Xuzhou Shanghai Beijing + rep. offices 21 Vestas Wind Systems A/S First quarter 2010 28 April 2010
IN the region FOR the region Sourcing Nacelles Blades Towers Service and Maintenance R&D Sales and HQ Chicago, IL Brighton, CO Brighton, CO Windsor, CO Pueblo, CO Brighton, CO Houston, TX Boston, MA Brighton, CO Portland, OR + rep. offices 22 Vestas Wind Systems A/S First quarter 2010 28 April 2010
Global presence secures Local competitiveness. 23 Vestas Wind Systems A/S First quarter 2010 28 April 2010
Meeting customers demands kw Platform 2 MW Platform 3 MW Platform 6 MW Platform V52 V60 V80 V82 V90 V100 V90 V112 Power plants: High wind Low wind Onshore Offshore 24 Vestas Wind Systems A/S First quarter 2010 28 April 2010
V112-3.0 MW Release for sale end of August 2010 Onshore and Offshore 25 Vestas Wind Systems A/S First quarter 2010 28 April 2010
Please sign up! Capital Markets Day: 1 and 2 September 2010, Colorado, USA We ll take you through our manufacturing set-up in Colorado. Get to know the V112 from inside, and hear about our markets. The Vestas Government will be present. 26 Vestas Wind Systems A/S First quarter 2010 28 April 2010
27 Vestas Wind Systems A/S First quarter 2010 28 April 2010 On track for Triple15.
Estimated market growth 165,633 149,920 Installed capacity MW 122,351 CAGR 25% CAGR 17% CAGR 29% 2009 2014 Americas Europe Asia/Pacific BTM: 287,605 MW to be installed over the next five years. 28 Vestas Wind Systems A/S First quarter 2010 28 April 2010 Source: BTM, WMU 2009, March 2010
Main Risks Macro economics. Financing situation. Regulatory issues. Other Risks, inter alia Exchange rate. Interest rate. Patent disputes. Raw materials. Warranties. NIMBYism. 29 Vestas Wind Systems A/S First quarter 2010 28 April 2010
WIND. IT MEANS THE WORLD TO US TM 30 Vestas Wind Systems A/S First quarter 2010 28 April 2010
Full Wind! 2010 heavily back-end loaded. Investments substantially increased. Job creation back on track: 3,400 in 2010. Total Chinese capacity reserved for China. 31 Vestas Wind Systems A/S First quarter 2010 28 April 2010
Next quarterly presentations London New York City 10 February 2010 (Q4 09) 18 August 2010 (Q2 10) 28 April 2010 (Q1 10) 26 October 2010 (Q3 10) 32 Vestas Wind Systems A/S First quarter 2010 28 April 2010
33 Vestas Wind Systems A/S First quarter 2010 28 April 2010
Products and Presence First quarter 2010 Four Seasons Hotel, New York City 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, 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, or anyone 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 and Vestas 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 this presentation. 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.