Interim financial report, first quarter 2016
Summary: In the first quarter of 2016, Vestas generated revenue of EUR 1,464m – a decrease of 4 percent compared to the year-earlier period. EBIT before special items increased by EUR 6m to EUR 85m. The EBIT margin before special items was 5.8 percent compared to 5.2 percent in the first quarter of 2015 and the free cash flow amounted to EUR (296)m compared to EUR 146m in the first quarter of 2015.
The intake of firm and unconditional wind turbine orders amounted to 2,403 MW in the first quarter of 2016. The value of the wind turbine order backlog amounted to EUR 8.6bn at 31 March 2016. In addition to the wind turbine order backlog, Vestas had service agreements with contractual future revenue of EUR 9.4bn at the end of March 2016. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 18.0bn – an increase of EUR 3.0bn compared to the year-earlier period.
Vestas maintains its 2016 guidance on revenue of minimum EUR 9bn, EBIT margin before special items of minimum 11 percent, total investments of approx EUR 500m (incl. the acquisition of Availon Holding GmbH), and free cash flow of minimum EUR 600m (incl. the acquisition of Availon Holding GmbH).
Group President & CEO Anders Runevad said: “Vestas delivered record-high first quarter order intake as well as our largest ever combined wind turbine and service order backlog. EBIT margin also improved, while free cash flow, although at negative levels, was in line with expectations as we build up inventory preparing for a busy remainder of 2016. Full-year guidance remains unchanged.”
Key highlights
Record-high Q1 order intake
Order intake in the quarter reached 2,403 MW.
Highest combined order backlog ever
Wind turbine and service order backlog of EUR 18bn.
Improved earnings
EBIT margin before special items at 5.8 percent – an improvement of 0.6 percentage points.
Negative cash flow
Cash flow impacted by net working capital and service acquisition.
Information meeting (audiocast)
Today, Friday 29 April 2016 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: +44 203 008 9814
USA: +1 646 502 5118
Denmark: +45 3544 5576
Presentation material for the information meeting will be available approx one hour before the meeting at vestas.com/investor.
Contact details
Vestas Wind Systems A/S, Denmark
Hans Martin Smith, Senior Vice President,
Group Treasury and Investor Relations
Tel: +45 9730 8209
Vestas Wind Systems A/S
Hedeager 42
8200 Aarhus N
Denmark
Company reg. No.: 10 40 37 82
Tel: +45 9730 0000
Fax: +45 9730 0001
vestas@vestas.com
Download the interim financial report for Q1 2016: