Adjustment of financial outlook for 2022

Vestas Wind Systems A/S, Aarhus, 2 November 2022
Company announcement no. 20/2022

In the third quarter of 2022, the business environment with supply chain instability and cost inflation did not wane. Additionally, delays on project deliveries lead to higher costs related to executing on customer commitments. Consequently, Vestas is adjusting the full-year guidance:

• Revenue is now expected to range between EUR 14.5bn and 15.5bn (previously EUR 14.5bn-16.0bn)
• EBIT margin before special items is adjusted to approx. (5) percent (previously (5)-0 percent)
• Total investments (excl. acquisitions of subsidiaries, joint ventures, associates, and financial investments) are now expected to amount to approx. EUR 850m (previously approx. EUR 1,000m)

Service revenue is now expected to grow min. 20 percent (previously min. 10 percent) due to strong performance and additional repowering activities. The Service EBIT margin before special items is now expected to be approx. 22 percent (previously approx. 23 percent).

It should be emphasised that there is greater uncertainty than usual around forecasts related to execution in 2022, and the outlook seeks to take into account the current situation and challenges.

In relation to forecasts on financials from Vestas in general, it should be noted that Vestas’ accounting policies only allow the recognition of revenue when the control with a project has passed to the customer, either at a point in time or over time. Disruptions in production and challenges in relation to shipment of wind turbines and installation hereof, for example bad weather, lack of grid connections, and similar matters, may thus cause delays that could affect Vestas’ financial results for 2022. Further, the full-year results may also be impacted by movements in exchange rates from current levels.

Vestas publishes its Interim Financial Report, Third Quarter 2022 on 2 November 2022.
 

Contact details
Vestas Wind Systems A/S, Denmark

Mathias Dalsten, Vice President
Investor Relations
Tel: +45 2829 5383