Interim financial report, third quarter 2015
Summary: In the third quarter of 2015, Vestas generated revenue of EUR 2,120m – an increase of 17 percent compared to the year-earlier period. EBIT before special items increased by EUR 69m to EUR 232m. The EBIT margin before special items was 10.9 percent and the free cash flow increased by EUR 53m to EUR 158m compared to the third quarter of 2014.
The intake of firm and unconditional wind turbine orders amounted to 1,508 MW in the third quarter of 2015. The value of the wind turbine order backlog amounted to EUR 8.2bn at 30 September 2015. In addition to the wind turbine order backlog, Vestas had service agreements with contractual future revenue of EUR 8.2bn at the end of September 2015. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 16.4bn – an increase of EUR 3.0bn compared to the year-earlier period.
Vestas upgrades the 2015 guidance of revenue from minimum EUR 7.5bn to EUR 8.0bn-8.5bn, EBIT margin before special items from minimum 8.5 percent to 9-10 percent, and free cash flow from minimum EUR 600m to EUR 800m-1,000m. The upgrades are based mainly on improved delivery visibility for the remainder of the year.
Group President & CEO Anders Runevad said: “Vestas has delivered another quarter with strong results on key financial and operational parameters. With greater clarity on deliveries for the remainder of the year and a very solid financial position, we are raising our guidance on revenue, EBIT margin, and free cash flow and initiating a share buy-back programme. I am very pleased that year-on-year for orders, Vestas is growing in all regions, consistent with our profitable growth strategy.”
Key highlights
Earnings improved
EBIT before special items at 10.9 percent – up 1.9 percentage points compared to Q3 2014.
Combined backlog continues at high level
Wind turbine and service order backlog of EUR 16.4bn.
Return on invested capital (ROIC) continues strong upward trend
ROIC increased to 71 percent (TTM).
Guidance increased
Guidance for 2015 increased on revenue, EBIT margin, and free cash flow based mainly on delivery visibility for the remainder of the year.
Share buy-back programme
EUR 150m share buy-back programme to adjust capital structure.
Information meeting (audiocast)
On Thursday 5 November 2015 at 10 a.m. 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: +44 203 428 1402
USA: +1 866 388 1923
Denmark: +45 8233 3176
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,
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