Vestas: Annual report 2014

Summary: 2014 was the first year in the implementation of Vestas’ new strategic plan, Profitable Growth for Vestas, and it proved to be a year of strong performance. Compared to 2013, general performance substantially improved due to a successful execution of the strategic plan combined with a continued focus on the parameters which were at the centre of the previous turnaround plan. Wind turbine order intake increased by 10 per cent in 2014 and the service order backlog increased as well, providing continued evidence of Vestas’ strong position in the market.

For full year 2014, revenue amounted to EUR 6.9bn, EBIT margin before special items was 8.1 per cent, total investments was EUR 285m, and the free cash flow amounted to EUR 841m. This was all in line with the latest expectations of revenue of EUR 6.4bn-7.0bn, EBIT margin before special items of 7-8 per cent, total investments of approx EUR 250m, and free cash flow around EUR 850m. The activity level and earnings of the period were a result of stable execution throughout the year.

The wind turbine order intake increased from 5,964 MW in 2013 to 6,544 MW in 2014 and the value of the service order backlog increased by EUR 0.3bn to EUR 7.0bn, despite the carve-out of the offshore service order backlog during the year.

For 2015, Vestas expects revenue to amount to minimum EUR 6.5bn with an EBIT margin before special items of minimum 7 per cent, total investments of approx EUR 300m, and a free cash flow of minimum EUR 400m.
As a result of the strong performance during the year, Vestas’ capital structure targets have been met and, as per the dividend policy of the company, the Board of Directors recommends to the Annual General Meeting that a dividend of DKK 3.90 per share, equivalent to 29.5 per cent of the net profit for the year, be distributed to the shareholders.

“I’m pleased to see that Vestas’ financial performance continues to improve, with solid results on all key financial and operational parameters. One year on, the “Profitable Growth for Vestas” strategy is very much on track.  Vestas’ strong results are creating value for our shareholders, as illustrated by the Board’s recommendation to distribute a dividend for the first time since 2002,” says Anders Runevad, Group President & CEO.  He continues: “I also want to commend the Vestas employees for their tremendous efforts, leading to the strong results we present today”.