Improved quality, strengthened R&D efforts and increased regionalisation
| H1 2011*) |
Full year 2010 |
Full year 2009 |
Full year 2008 |
Full year 2007 |
Full year 2006 |
|
| Order intake (bnEUR) | 2.8 | 8.6 | 3.2 | 6.4 | 5.5 | 4.9 |
| Order intake (MW) | 2,895 | 8,673 | 3,072 | 6,019 | 5,613 | 5,559 |
| Revenue (mEUR) | 2,461 | 6,920 | 5,079 | 5,904 | 3,828 | 4,179 |
| Gross margin (%) | 14.1 | 17.0 | 16.5 | 19.1 | 15.3 | 11.1 |
| Warranty provisions (%) | 2.3 | 2.8 | 5.8 | 4.5 | 6.6 | 3.6 |
| EBIT margin before one-off costs (%) | 0.3 | 6.8 | 4.9 | 10.4 | 5.3 | 4.9 |
| Free cash flow | (494) | (733) | (842) | (403) | 384 | 454 |
| Return on invested capital before one-off costs (%)**) | 2.7 | 10.8 | 9.5 | 43.4 | 21.3 | 14.4 |
| Investments in property, plant and equipment (mEUR) | 201 | 45 | 606 | 509 | 265 | 153 |
| Number of employees, end period - of which outside Euorpe |
21,700 8,054 |
23,252 8,127 |
20,730 6,569 |
20,829 5,320 |
15,305 3,232 |
12,309 2,025 |
| Number of R&D employees, end of period | 2,052 | 2,277 | 1,490 | 1,345 | 650 | 519 |
**) Calculated over a 12-month period.
Vestas is managed and developed with a long-term perspective. Accordingly, Vestas should not be judged on the basis of its quarterly results as they may reflect fluctuations in the level of activity and capacity utilisation as well as changes in projects handed over. A key factor in Vestas’ further progress is the improved ability to identify, control and price risks at all project stages and during the operational period of a wind power plant. This work is organised under a Contract Review function, which reports to the CFO. Together with the CEO, the Contract Review function reviews all projects in excess of EUR 15m. Smaller projects are handled in the individual sales business units.
New products, such as the V112-3.0 MW, the V100-2.6 MW, the V100-2.0 MW and the V100-1.8 MW turbines and services like the AOM 5000 (Active Output Management) will together with ever-improving productivity and quality, regionalisation and more balanced output be the drivers behind the improved competitive strength. The regionalisation, most recently exemplified by Vestas' investment in an assembly facility in Brazil, also brings Vestas closer to its customers, allowing it to make faster deliveries. Vestas will continue to invest large amounts in production facilities, but the investments will be relatively smaller as the business volume is expected to rise and the sub-contractors will make a larger proportion of the investments. Going forward, Vestas also expects its headcount to rise at a significantly lower rate than its business volume because of enhanced efficiency, improved turbine performance and economies of scale. Vestas will therefore be able to maintain a competitive return on invested capital.
In connection with the disclosure of the third-quarter results for 2011, Vestas will provide the promised elaboration of the Triple15 targets.
