Vestas Annual Report 2021 – Resilience and determination in challenging market conditions

Vestas Wind Systems A/S, Aarhus, 10 February 2022
Company announcement no. 02/2022

Summary: For the year 2021, Vestas’ revenue amounted to EUR 15.6bn (outlook: EUR 15.5-16.5bn), with an EBIT margin before special items of 3 percent (below outlook of around 4 percent), and total investments*⁾ of EUR 813m (outlook: below 1,000m). Compared to 2020, revenue and free cash flow*⁾ increased while earnings decreased. The value of the combined order backlog increased from EUR 43bn to 47bn across Power Solutions and Service.

As announced on 26 January 2022, Vestas’ outlook for 2022 is as follows: Revenue is expected to range between EUR 15.0bn and 16.5bn, including Service revenue. Vestas expects to achieve an EBIT margin before special items of 0-4 percent, and total investments*⁾ are expected to amount to approx. EUR 1,000m in 2022.

In addition to what has already been communicated, revenue in the Service segment is expected to grow by approx. 5 percent in 2022, with a service EBIT margin of approx. 25 percent.

As a result of the performance in 2021, the Board of Directors of Vestas Wind Systems A/S proposes to the Annual General Meeting that a total dividend payment of EUR 50m (corresponding to DKK 0.37 per share) be distributed to the shareholders in 2022, compared to a total of EUR 230m last year, and equivalent to 30 percent of the net profit for the year.

Henrik Andersen, Group President & CEO said: “In 2021, Vestas made strong strategic progress to strengthen our foundation and customer focus. In a challenging environment, everyone at Vestas did an outstanding job to ensure record-high revenue and deliveries of 16.6 GW without compromising on safety or quality. Together with rising energy prices, the supply chain disruptions and accelerated cost inflation from raw materials, transport, and turbine components, continued to amplify costs throughout the year, which severely impacted profitability. Under these circumstances, we achieved revenue of EUR 15.6bn, an EBIT margin before special items of 3 percent, and free cash flow of EUR 183m. By exercising a high degree of discipline, we achieved an order intake of 13.9 GW with an average selling price of EUR 0.83m per MW, 3 GW of preferred supplier agreements on our V236-15.0 MW offshore turbine as well as a 21 percent increase in revenue in Service. We remain focused on strengthening the industry’s discipline to protect profitability and improve value creation in the long term as well as executing our strategy to drive the energy transition forward with our customers. With supply chain disruptions expected to continue throughout the year, 2022 will be challenging for the industry, and on behalf of the Executive Management team, I want to extend a huge thank you to our colleagues, customers, and other partners for their continued support.”

*) Excl. acquisitions of subsidiaries, joint ventures, and associates, and financial investments.

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Key highlights

Revenue of EUR 15.6bn
Year on year revenue growth despite increasing supply chain challenges. High level of deliveries at 16.6 GW.

EBIT margin of 3 percent
EBIT hampered by supply chain disruptions, causing cost inflation, delays, and high warranty provisions.

Total order intake of 13.9 GW and increasing pricing throughout the year
Wind turbine order backlog remains strong at EUR 18bn; +3 GW preferred supplier agreements signed for new offshore platform.

The most sustainable company
Vestas ranked number one in the world by Corporate Knights in their 18th annual Global 100 ranking.

Strategic progress to become the global leader in sustainable energy solutions
Full integration of offshore, expanded development business, and two investments through Vestas Ventures.

Information meeting (audiocast)
On Thursday 10 February 2022 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:       82270986# 

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

Attached to this release is the Vestas Annual Report 2021 (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, is also attached hereto.

The Vestas Sustainability Report 2021 can be downloaded here.

Contact details
Vestas Wind Systems A/S

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

Media:
Anders Riis, Vice President
Communications
Tel: +45 4181 3922