If you have any questions before the Annual General Meeting, please send an email.
What are the names of Vestas’ gearbox suppliers and what is the price of a gearbox? Which parts of a gearbox are most frequently replaced, incl. data from the last five to ten years?
Vestas works closely together with its suppliers to further improve both the quality of the products and the supply chain. Under the centralised global sourcing programme, Vestas collaborates with fewer but larger suppliers to purchase larger amounts of components or sets of components at lower prices. By working closely together with Vestas, selected suppliers are able to develop the best components at the lowest cost while Vestas reduces its need for in-house production.
Vestas has at least two suppliers on all key components. This also applies to the gearbox.
Vestas’ collaboration with its gearbox manufacturers is covered by a non-disclosure agreement – which also includes the names of the suppliers.
The price of a gearbox varies depending on the type, model, and where in the world the gearbox is to be used. For competitive reasons, Vestas does not disclose the price of a gearbox.
Furthermore, Vestas does not disclose information about which parts of the gearbox that are most frequently replaced or data on repairs during the last five to ten years, as this information is also covered by the non-disclosure agreement signed with the gearbox manufacturers.
What types of power cables does Vestas use - and which kinds of warranties does Vestas provide on them?
A wind turbine contains many different power cables. From very small pink-wires to large, medium, and high voltage cables.
Vestas uses land cables when establishing an onshore wind power plant. Typically, there will be cables between the individual wind turbines and a cable connecting the wind turbines to the transformer.
Sea cables are used when an offshore wind power plant is installed. The offshore business is handled by MHI Vestas Offshore Wind. For the major offshore wind turbine projects, the customers will typically be responsible for the purchase of cables.
The length and size of the warranties are agreed for each individual contract and for commercial reasons, Vestas does not disclose such information. Vestas’ power cable suppliers are responsible for ensuring that the quality of the cables meets Vestas’ requirements and specifications.
In which language will the Board’s report and the presentation of the annual report be conducted?
The Annual General Meeting will in general be conducted in Danish. However, the Chairman of the Board of Directors and the Group President & CEO will make their presentations in English.
Who has the right to receive dividend?
Trades completed on the day of the Annual General Meeting will be traded with dividend. This means that if an investor buys shares on the day of the Annual General Meeting the shares will be bought including dividend. If the share is traded on the first business day after the Annual General Meeting, the dividend will be accrued to the seller, not to the buyer.
How will Vestas withstand the increased competition in the market
Vestas stands strong in a competitive market as the wind turbine portfolio has a product for every site, a flexible production setup that can match the constant changing demands in the market, access to unique data from more than 35,000 wind turbines globally being monitored by Vestas 24/7 and more than 35 years of experience in the wind power industry.
Furthermore, Vestas stands strong in a changing market as it has a dedicated group of employees and a management team that trims and optimises the Group on an ongoing basis.
2017 was a year that saw fierce competition, price pressure and the continued maturity of the wind energy sector. In this environment, Vestas’ 2017 performance was strong, as it once again led the industry on profit margins and produced solid revenue, free cash flow, record order intake, and a growing and profitable service business. Vestas demonstrated that even in such challenging conditions, it can control costs and use its global presence and technology leadership to remain the industry leader.
Inevitably, short-term results are impacted by current market challenges, but Vestas strongly believe that successful execution of the strategy will lead to new growth opportunities and sound profitability.
That is why the Board of Directors together with management has set the ambitious target to be global leader in sustainable energy solutions.
Read more in the online publication “Shareholder Information 1/2018”.
How would the proposed US tariffs affect Vestas?
It is still too early to conclude on the implications of the proposed US tariffs, as all details are not yet clear.
With Vestas' large US manufacturing footprint, Vestas is, however, convinced that it can remain highly competitive in the US market and meet market demands. That said, given the amount of steel in a wind turbine, Vestas is naturally not immune to increasing steel prices that may arise as a result of the proposed increased tariffs.
Vestas has been under the influence of external events which have affected the share price and, consequently, the shareholders, negatively. Should we not then all be jointly liable - meaning should Vestas employees incl. the Board and management accept a 20 percent wage reduction?
Vestas has a general policy not to comment on the development of the Vestas share price - it is up to analysts who cover the Vestas share to comment on this development.
The Board believes that a competent, experienced, and loyal staff is one of the most important factors in maintaining Vestas' current leadership position in a highly competitive and changeable market - but also a necessity for Vestas to fulfil its strategic objectives. It is therefore essential to ensure a competitive remuneration package for employees and management and hence, the Board does not consider it in the interest of Vestas to reduce the employees’ and management’s remuneration by 20 percent. It is nevertheless always important to focus on reducing costs to ensure that the Vestas Group stays competitive.
Regarding the remuneration of the Board of Directors, the remuneration for the financial years 2017 and 2018 is determined by the shareholders at the Annual General Meeting 2018, see agenda items 5.1 and 5.2.
Note also that both the Board of Directors, management, and parts of the staff are Vestas shareholders - and therefore experience the same share price fluctuations as other Vestas shareholders.
Read more about Vestas’ achievements in 2017 in the online publication "Shareholder information 1/2018".
What is the equity ratio of Vestas?
In 2017, Vestas’ equity ratio was 28.6.
Is it possible to receive a printed copy of Vestas 'annual report 2017 by ordinary mail?
As from 2010, Vestas decided only to make its annual reports available electronically i.e. we no longer make printed copies. The decision was made in order to save costs as well as to save the environment from CO2 emissions in relation to printing, distribution, etc.
According to the shareholders' decision, Vestas’ annual report is available in English - and can be downloaded from the company's website (www.vestas.com/investor).
Twice a year, in February and August, Vestas’ “Shareholder Information” is published. An online publication in which the company’s management gives a brief presentation of the company’s state of affairs, development potential, and an overview of the financial highlights for the relevant period. The online publication is available in both Danish and English.
Registered shareholders can sign up via Vestas’ InvestorPortal and receive the shareholder information by email as soon as it has been disclosed at the website. An easy way for shareholders to be updated regarding the latest news about the company.
Share buy-back programmes - is that the right use of capital resources in Vestas? Or should the company rather keep the cash?
The purchase of treasury shares can only take place if the company's shareholders authorise the Board of Directors to do so. At the Annual General Meeting in 2017, the shareholders granted an authorisation to allow the company to acquire treasury shares in the period until 31 December 2018 up to an aggregate nominal value of 10 percent of the company’s share capital.
Purchase and subsequent cancellation of treasury shares equals payment of dividends to shareholders - and is just another way of distributing excess capital back to the shareholders.
Cancellation of the shares reduces the number of existing shares, resulting in a percentage increase in ownership for the remaining shareholders.
Vestas is in dialogue with its largest shareholders on a continuous basis regarding the preference for either dividends or share buybacks. Based on the shareholders’ feedback, the Board of Directors concludes on the optimal balance of dividends and share buybacks.
Therefore, the Board of Directors has again proposed that the Board of Directors be granted an authorisation to allow the company to acquire treasury shares, see the agenda item 7.2.
Which subjects can be discussed at the Annual General Meeting on 3 April 2018?
Only the items included in the convening can be put to the vote at the Annual General Meeting on 3 April 2018.
The Board of Directors invites the company's shareholders to express their views at the Annual General Meeting or to pose questions to the Company before the date of the General Meeting.
When and where will Vestas' Annual General Meeting take place?
Vestas' AGM will be held on Tuesday, 3 April 2018 at 1 p.m. (CET) at the Concert Hall (Musikhuset) Aarhus, Thomas Jensens Allé, 8000 Aarhus C, Denmark.
When will the convening notice for the AGM be disclosed?
The convening notice was disclosed on 28 February 2018.
How do I register my email address to ensure that I get the convening notice for the Annual General Meeting?
Log on to the InvestorPortal where you can register your email address and choose which materials you wish to receive from Vestas in the future.
Will Vestas Wind Systems A/S’ Annual General Meeting on 3 April 2018 be webcast?
No, there will be no webcast of the Annual General Meeting.