Vestas: Annual report 2013

Summary: 2013 marked the final year of Vestas’ two-year turnaround. Vestas has delivered on the main focus areas over the turnaround period; annualised fixed capacity costs have been lowered by EUR 484m compared to the fourth quarter of 2011, net investments have been lowered by more than EUR 500m to EUR 239m since 2011 and working capital has been lowered to EUR (596)m – the lowest level ever.

For full year 2013, revenue amounted to EUR 6,084m, EBIT before special items was EUR 211m and the free cash flow amounted to EUR 1,009m. This was all above the latest expectations of minimum EUR 5.5bn, minimum 2 per cent and around EUR 1bn, respectively. The higher-than-expected revenue and EBIT were primarily driven by a smooth execution in terms of installation and transfer of risk combined with favourable weather conditions in December.
For 2014, Vestas expects revenue to amount to minimum EUR 6bn with an EBIT margin before special items of at least 5 per cent and a free cash flow of minimum EUR 300m.

“A double-digit EBIT margin in the fourth quarter and a free cash flow generation of more than EUR 1bn in 2013 are major achievements for Vestas and our dedicated employees,” says Anders Runevad, Group President & CEO, and he continues: “Yet, the satisfactory completion of the two-year turnaround is at least as important as it creates a solid starting point for the future strategy for Vestas, where Vestas will continue to focus on profitable growth.”