Vestas Wind A/S : – Interim financial report, third quarter 2020

Vestas Wind Systems A/S, Aarhus, 4 November 2020
Company announcement No. 36/2020

Vestas -Interim financial report, third quarter 2020

Summary: Strong performance with highest ever quarterly deliveries in spite of challenging environment; revenue increased compared to same quarter last year. Full-year guidance maintained.

In the third quarter of 2020, Vestas generated revenue of EUR 4,770m - an increase of 31 percent compared to the year-earlier period. EBIT before special items amounted to EUR 412m, resulting in an EBIT margin before special items of 8.6 percent, compared to 11.8 percent in the third quarter of 2019. Free cash flow* amounted to EUR 546m, compared to EUR 205m in the third quarter of 2019.

The quarterly intake of firm and unconditional wind turbine orders amounted to 4,232 MW. The value of the wind turbine order backlog was EUR 14.6bn as at 30 September 2020. In addition to the wind turbine order backlog, at the end of third quarter 2020, Vestas had service agreements with expected contractual future revenue of EUR 19.3bn. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 33.9bn - an increase of EUR 1.1bn compared to the year-earlier period.

Vestas maintains its full-year guidance for 2020: Revenue of EUR 14-15bn, an EBIT margin before special items of 5-7 percent, and total investments^*) below EUR 700m. This guidance, it should be emphasised, is based on assumptions that are subject to greater uncertainty than under normal circumstances, due to COVID-19.

Group President & CEO Henrik Andersen said: 'Vestas achieved its highest ever deliveries in a single quarter and grew revenue 31 percent year-on-year to EUR 4.8bn, although the widespread impact of COVID-19 continued in the third quarter. Our momentum towards the end of the year continued to grow, which contributed to an EBIT margin before special items of 8.4 percent. With total order intake of 4.2 GW from all regions and stable pricing, the demand for wind energy remained strong in the quarter, even though green stimulus packages are yet to materialise. Service achieved a high EBIT margin of 28.6 percent and grew by 14 percent compared to the same quarter last year, ensuring a combined order backlog of EUR 34bn and stable energy supply in 75 countries. Although uncertainty around COVID-19 will continue for the rest of the year, our sustained leadership in onshore wind energy and the acquisition of MHI Vestas Offshore Wind underline our progress towards becoming the global leader in sustainable energy solutions.'

Key highlights

Highest ever quarterly deliveries
Continued strong activity level in challenging COVID-19 environment.

Revenue increase of 31 percent compared to Q3 2019
Revenue of EUR 4.8bn; EBIT margin before special items of 8.6 percent.

Solid performance in Service
Revenue growth of 14 percent in Service compared to Q3 2019; EBIT margin of 28.6 percent.

Continued contribution to Paris Agreement target
Vestas'installed fleet at the end of Q3displaces 165m tonnes of CO₂ on an annual basis.

Vestas and Mitsubishi Heavy Industries to strengthen partnership
Long-term move to increase competitiveness and leadership in growing offshore wind market.

*) Excl. any investments in marketable securities, and short-term financial investments.

Information meeting (audiocast)
Today, Wednesday 4 November 2020 at 10 am CET (9 a.m. GMT), 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: [phone]
USA: [phone]
Denmark: [phone]

Conference PIN code: 52293946#

Presentation material for the information meeting will be available at vestas.com/investor approximately one hour before the meeting.

Contact details

Vestas Wind Systems A/S, Denmark

Patrik Setterberg, Vice President,
Investor Relations
Tel: [phone]

Mathias Dalsten, Specialist
Investor Relations
Tel: [phone]

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201104 36 Company Announcement