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Vestas delivered record-high first quarter order intake as well as our largest ever combined wind turbine and service order backlog. EBIT margin also improved, while free cash flow, although at negative levels, was in line with expectations as we build up inventory preparing for a busy remainder of 2016. Full-year guidance remains unchanged.

Anders Runevad, Group President & CEO

Webcast

The Group President & CEO's and Executive Vice President & CFO's presentation of the interim financial report:
- webcast
- investor presentation (pdf)

Roadshow

The overview shows which cities Vestas will be visiting during the coming roadshow.

Summary

Earnings improved, while revenue and free cash flow decreased compared to the first quarter of 2015. Strong order intake and backlog at highest level recorded. Outlook for 2016 maintained.

In the first quarter of 2016, Vestas generated revenue of EUR 1,464m – a decrease of 4 percent compared to the year-earlier period. EBIT before special items increased by EUR 6m to EUR 85m. The EBIT margin before special items was 5.8 percent compared to 5.2 percent in the first quarter of 2015 and the free cash flow amounted to EUR (296)m compared to EUR 146m in the first quarter of 2015.

The intake of firm and unconditional wind turbine orders amounted to 2,403 MW in the first quarter of 2016. The value of the wind turbine order backlog amounted to EUR 8.6bn at 31 March 2016. In addition to the wind turbine order backlog, Vestas had service agreements with contractual future revenue of EUR 9.4bn at the end of March 2016. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 18.0bn – an increase of EUR 3.0bn compared to the year-earlier period.

Vestas maintains its 2016 guidance on revenue of minimum EUR 9bn, EBIT margin before special items of minimum 11 percent, total investments of approx EUR 500m (incl. the acquisition of Availon Holding GmbH), and free cash flow of minimum EUR 600m (incl. the acquisition of Availon Holding GmbH).

Key highlights 

 

Record-high Q1 order intake
Order intake in the quarter reached 2,403 MW.

Highest combined order backlog ever
Wind turbine and service order backlog of EUR 18bn.

Improved earnings
EBIT margin before special items at 5.8 percent – an improvement of 0.6 percentage points.

Negative cash flow
Cash flow impacted by net working capital and service acquisition.