Vestas – Interim Financial Report, First Quarter 2021
Vestas Wind Systems A/S, Aarhus, 5 May 2021
Company announcement no. 10/2021
Summary: Revenue and EBIT decreased compared to same quarter 2020. Record high combined order backlog as a consequence of the integration of offshore. Full-year guidance maintained.
In the first quarter of 2021, Vestas generated revenue of EUR 1,962m – a decrease of 12 percent compared to the year-earlier period. EBIT before special items decreased by EUR 17m to EUR (71)m. This resulted in an EBIT margin before special items of (3.6) percent, compared to (2.4) percent in the first quarter of 2020. Free cash flow* amounted to EUR (898)m compared to EUR (920)m in the first quarter of 2020.
The quarterly intake of firm and unconditional wind turbine orders amounted to 2,016 MW. The value of the wind turbine order backlog was EUR 19.4bn as at 31 March 2021. In addition to the wind turbine order backlog, at the end of March 2021, Vestas had service agreements with expected contractual future revenue of EUR 25.3bn. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 44.7bn – an increase of EUR 10.6bn compared to the year-earlier period.
Vestas maintains its full-year guidance for 2021, with revenue expected to range between EUR 16bn and 17bn, including service revenue, which is expected to grow by approx. 15 percent. Vestas expects to achieve an EBIT margin before special items of 6-8 percent, with a service EBIT margin of approx. 24 percent. Total investments*) are expected to amount to approx. EUR 1,000m in 2021.
Group President & CEO Henrik Andersen said: “Following a strong end to 2020, continued impact from COVID-19 and lower activity levels affected Vestas’ results for the first quarter of 2021. Our order backlog reached an all-time high of EUR 45bn, and as a reflection of the continued positive price development, our underlying profitability improved in the quarter. Logistical challenges and supply chain bottlenecks were, however, amplified by COVID-19 restrictions in strategic markets and extraordinary events, and as a result our EBIT margin decreased year-over-year. Our service backlog and revenue increased significantly in the first quarter, and we started welcoming around 3,000 new colleagues in our offshore business as well as partnering with customers on upcoming offshore projects. At the same time, we continued the build-out of our global development business to capture a larger share of the value chain and accelerate the deployment of renewables. Although we have started the year a bit slower than expected, we remain positive we will catch up throughout the rest of the year by maintaining a strong focus on executing our 2021 goals and mid-term strategic priorities.”
All-time high order backlog
Combined order backlog of EUR 45bn despite lower order intake in Q1 2021.
Integration of offshore ongoing
Approx. 3,000 new colleagues welcomed in Vestas to capture future values.
Revenue of EUR 2bn
Decreased compared to Q1 2020 due to lower activity levels and impact from supply chain constraints.
EBIT margin of (3.6) percent
Slightly down from Q1 2020, impacted by lower revenue and logistical challenges.
Annual displacement of CO2 reaches 192m tonnes
Vestas’ installed fleet at the end of Q1 displaces 192m tonnes of CO2 on an annual basis.
*) Excl. acquisitions of subsidiaries, joint ventures, associates, and financial investments.
Information meeting (audiocast)
Today, Wednesday 5 May 2021 at 10 a.m. CEST (9 a.m. BST), Vestas will host an information meeting via an audiocast. The audiocast will be accessible via vestas.com/investor.
The meeting will be held in English and questions may be asked through a conference call.
The telephone numbers for the conference call are:
Europe: +44 3333 000 804
USA: +1 6319 131 422
Denmark: +45 3544 5577
Conference PIN code: 29163702#
Presentation material for the information meeting will be available at vestas.com/investor approximately one hour before the meeting.
Vestas Wind Systems A/S, Denmark
Mathias Dalsten, Senior Director
Tel: +45 2829 5383
Anders Riis, Vice President
Tel: +45 4181 3922