Vestas has repeatedly said that we will deliver what we promise. In the first half of 2015, we have continued to do just that.
Since the launch of our Profitable Growth for Vestas strategy in 2014, Vestas has consistently delivered strong financial results while continuing to grow the business. In the first half of 2015, Vestas has improved on all parameters, including revenue, earnings, and free cash flow – all of which stand substantially stronger now than one year ago. Activity levels are increasing while we continue to efficiently manage working capital. Return on invested capital is high and improving. The balance sheet is solid.
Vestas’ recent growth is driven by demand from multiple markets. Confirming our truly global reach, Vestas has won orders in 27 countries on five continents since the beginning of the year. The US market continues to drive a substantial part of this demand, though we are pleased to see that order intake in important growth markets such as Brazil and China has also increased.
One important explanation for Vestas’ global appeal is our broad portfolio of wind turbines. Our technology strategy of building multiple variants based on the well-proven 2 MW and 3 MW platforms is paying off. Customers value Vestas’ ability to provide proven technologies across a very broad range of wind regimes and project conditions. Combined with industry-leading service capabilities, Vestas offers our customers unparalleled opportunities to maximise their business cases.
Our offshore joint venture with Mitsubishi Heavy Industries, MHI Vestas Offshore Wind, has been operational for more than a year, and we are pleased to observe the market’s positive reception. The V164-8.0 MW’s technical development is progressing as planned, which is also reflected in the joint venture having received all but EUR 12.5m of the EUR 200m in total of milestone payments from Mitsubishi Heavy Industries.
In summary, Vestas remains strongly positioned as the wind power industry leader. The profitable growth strategy is firmly on track, as we leverage our key strengths – global reach, technology & service leadership, and scale.