Company Announcement:

Vestas Annual Report 2020 – Continued leadership in a challenging year

Vestas Wind Systems A/S, Aarhus, 10 February 2021
Company announcement no. 01/2021


Vestas Annual Report 2020 – Continued leadership in a challenging year

Summary: For the year 2020, Vestas’ revenue amounted to EUR 14.8bn, with an EBIT margin before special items of 5.1 percent, and total investments*) of EUR 659m, all in line with expectations. Compared to 2019, revenue increased while earnings decreased, and free cash flow*) stayed at around the same level. The value of the combined order backlog increased from EUR 34bn to 43bn as the offshore business is now included.

For 2021, Vestas expects revenue 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.

Vestas expects warranty provisions around 3 percent of revenue in 2021 and special items to amount to approx. EUR 100m related to the integration of the offshore business into Vestas’ organisation. 

As a result of the performance in 2020, the Board of Directors of Vestas Wind Systems A/S proposes to the Annual General Meeting that a dividend of DKK 8.45 per share be distributed to the shareholders, compared to DKK 7.93 last year, and equivalent to 30.0 percent of the net profit for the year.

Henrik Andersen, Group President & CEO says: “Renewable energy took another large step forward in 2020 by improving its competitiveness, showing great resilience during a global pandemic, and proving renewables can serve as the backbone of our societies in the future. In 2020, Vestas continued to play a key role in the fight against climate crisis, and we met our revised guidance on all parameters, leading the industry on revenue, order intake, and profitability despite COVID-19 affecting all parts of our value chain. In this environment, we achieved more than 17 GW of deliveries and bolstered our total order backlog to an all-time high of EUR 43bn through strong order intake, service growth, and the re-integration of offshore wind. Service performance was once again very strong with a 10 percent increase in revenue year-over-year and record EBIT margin of 28 percent. Group profitability was negatively impacted by warranty provisions and increased execution costs. In addition to acquiring MHI Vestas Offshore Wind, Vestas also made strategic strides to increase our presence across the value chain, including establishing a dedicated development business unit, launching the largest turbine in offshore wind and underlining our leading position within sustainability by reducing our own carbon emissions by 33 percent and reaching 186m tonnes of CO2 avoided on a yearly basis through our installed base. To position Vestas strongly for future growth and profitability, our focus in 2021 will be to fully integrate offshore and address executional challenges.

*) Excl. acquisitions of subsidiaries and any financial investments.
**) Excl. acquisitions of subsidiaries, any financial investments, and the investment in Copenhagen Infrastructure Partners P/S.


Financial and operational key highlights

FY 2020 guidance met on all parameters

Deliveries of more than 17 GW in a challenging COVID-19 environment; up 34 percent compared to 2019 and 59 percent compared to 2018

EBIT margin before special items of 5.1 percent impacted by higher warranty provisions and execution costs due to COVID-19

10 percent revenue growth in Service and 28 percent EBIT margin

Strong safety performance; Total Recordable Injury Rate down 15 percent

33 percent reduction in own CO2 emissions; Vestas continues as leader in displacing CO2 emissions from the atmosphere with 186m tonnes avoided in 2020

Strategic key highlights

Acquiring full control of offshore wind activities and launch of new platform

Expanding development activities and entering into strategic partnership with CIP

Sustainability strategy on track with first steps taken

Assigned Baa1 long-term issuer credit rating with Moody’s as a result of long-term outlook and market leadership

Communication policy
As of 10 February 2021, Vestas adjusts its Investor Relations Communication Policy in relation to firm and unconditional orders to the effect that, going forward, onshore wind turbine orders will be disclosed to the market as inside information when they have a capacity of 1 GW or more (previously 500 MW), in line with offshore wind turbine orders; and the threshold for service contracts will be adjusted to a value of EUR 1bn (previously EUR 500m). Orders below the mentioned thresholds may be communicated via news releases at Vestas’ discretion.

Information meeting (audiocast)
On Wednesday 10 February 2021 at 10 am CET (9 am GMT), Vestas will host an information meeting via an audiocast.

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

PIN code:       43045182# 

The presentation used at the information meeting will be available approximately one hour before the meeting and can be found at, together with the link to the audiocast.

Attached to this release is the Vestas Annual Report 2020 (pdf) as well as the full Company announcement (pdf), which also includes the condensed key figures for full-year and fourth quarter, and long-term financial ambitions. A ZIP file comprising an xHTML version of the report made in accordance with the new European Single Electronic Format, which is submitted to the Danish FSA, will furthermore be available at the corporate website.

In connection with the Annual Report 2020, Vestas publishes a comprehensive Sustainability Report 2020, which can be downloaded here.

Contact details
Vestas Wind Systems A/S

Patrik Setterberg, Vice President
Investor Relations
Tel: +45 6122 1913

Mathias Dalsten, Specialist
Investor Relations
Tel: +45 2829 5383

Anders Riis, Senior Director
Tel: +45 4181 3922