Annual report

2019

Delivered best-in-class results and record high order intake.

Wind energy manifested its position as a leading global energy source in 2019, driving Vestas’ order intake to a record 17.9 GW, 20 percent growth in revenue and expected high activity levels in the coming years. In an extraordinarily busy year, Vestas extended its industry leadership, met its guidance on all parameters and scaled the company to deliver on our highest-ever order backlog of EUR 34bn. Once again, our Service business delivered year-on-year growth and improved profitability, underlining its strategic importance in a tough market. In 2019, the industry thus faced challenges from trade wars and tariffs, causing execution costs to increase, which we expect to continue in an even busier 2020. Together with our customers and partners, everyone at Vestas worked vigorously to create the momentum to finish 2019 strongly, and we must continue this momentum to achieve our goals for 2020. As we continue to lead the transition towards a world powered by sustainable energy, we remain focused on executing our strategy and pushing the industry to higher levels on technology, profitability and sustainability.
Henrik Andersen, Group President & CEO

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Annual report 2019

Who we are
Strategy and ambitions
Group performance
Sustainability
Vestas people
Governance
Consolidated financial statements
Statements
Vestas Wind Systems A/S financial statements

Audiocast

The Group President & CEO's and Executive Vice President & CFO's presentation of the annual report:

- audiocast
- investor presentation (pdf)

Roadshow

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

Summary
- Delivered best-in-class results and record high order intake

For full year 2019, revenue amounted to EUR 12.1bn, the EBIT margin before special items was 8.3 percent, and total investments* were EUR 729m, all in line with the expectations. Compared to 2018, revenue and earnings increased while free cash flow decreased. Order intake increased in 2019 compared to 2018, and the value of the combined order backlog increased to EUR 34bn.

The wind turbine order intake increased year-on-year by 3,663 MW to 17,877 MW in 2019 and the value of the service order backlog increased by EUR 3.5bn to EUR 17.8bn.

For 2020, Vestas expects revenue to range between EUR 14bn and 15bn, including service revenue, which is expected to grow by approx. 7 percent. Vestas expects to achieve an EBIT margin before special items of 7-9 percent, with a service EBIT margin of approx. 25 percent. Total investments** are expected to amount to approx. EUR 700m in 2020.

As a result of the performance during the year, the Board of Directors of Vestas Wind Systems A/S proposes to the Annual General Meeting that a dividend of DKK 7.93 per share be distributed to the shareholders, compared to DKK 7.44 last year, and equivalent to 30.0 percent of the net profit for the year.

*) Excl. the acquisition of SoWiTec Group GmbH., any investments in marketable securities, and short-term financial investments.
**) Excl. any investments in marketable securities and short-term financial investments.

Key highlights

Financial and operational results 2019

Vestas generated revenue of EUR 12,147m – an increase of 20 percent
Gross profit amounted to EUR 1.761m – an increase of EUR 130m
EBIT margin before special items amounted to 8.3 percent – a decrease of 1.2 percentage points
Total net investments* amounted to EUR 729m – an increase of EUR 126m
Vestas reported a free cash flow* of EUR 94m – a decrease of EUR 324m
The order intake was 17,877 MW – an increase of 3,663 MW
The incidence of total recordable injuries per one million working hours was 3.9

Financial and operationa results fourth quarter 2019

Vestas generated revenue of EUR 4,650m – an increase of 38 percent
Gross profit amounted to EUR 610m – an increase of EUR 111m
EBIT margin before special items amounted to 8.7 percent – a decrease of 0.1 percentage points
Total net investments* amounted to EUR 232m – an increase of EUR 27m
Vestas reported a free cash flow* of EUR 840m – a decrease of EUR 561m

*) Excl. the acquisition of SoWiTec Group GmbH, any investments in marketable securities, and short-term financial investments.

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Company announcements
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Annual report 2019

Download our annual report 2019 here. The report accounts for our performance during the year 2019 and our strategy and ambitions for the coming years.

Read the report