Vestas: Interim financial report for the first quarter of 2015

Summary: In the first quarter of 2015, Vestas generated revenue of EUR 1,519m – an increase of 18 percent compared to the year-earlier period. EBIT before special items increased by EUR 39m to EUR 79m. The EBIT margin before special items was 5.2 percent and the free cash flow increased by EUR 170m to EUR 146m compared to the first quarter of 2014.

The intake of firm and unconditional wind turbine orders amounted to 1,750 MW in the first quarter of 2015. The value of the wind turbine backlog amounted to EUR 7.5bn at 31 March 2015. In addition to the wind turbine order backlog, Vestas had service agreements with contractual future revenue of EUR 7.5bn at the end of March 2015. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 15bn – an increase of EUR 1.2bn compared to the year-earlier period.

Vestas upgrades the 2015 guidance on revenue from minimum EUR 6.5bn to minimum EUR 7.5bn and EBIT margin guidance before special items is upgraded from minimum 7 percent to minimum 8.5 percent. Total investments are increased from approx EUR 300m to approx EUR 350m and guidance on free cash flow is upgraded from minimum EUR 400m to minimum EUR 600m.

Group President & CEO Anders Runevad said:  “This has been a historically strong first quarter on revenue, margins, order intake, and return on invested capital. The first quarter results reaffirm that Vestas is making good progress toward achieving its profitable growth objectives and that we are in a very strong position in an otherwise highly competitive industry.”

Key highlights

• Record-high Q1 order intake: Order intake in the quarter 1,750 MW.
• Highest combined order backlog ever: Wind turbine and service order backlog of EUR 15bn.
• Return on invested capital (ROIC) at highest level ever: ROIC increased to 44 percent (TTM).
• Earnings improved – highest Q1 ever: EBIT margin before special items at 5.2 percent – up 2.1 percentage points compared to Q1 2014.
• Guidance increased: Guidance for 2015 has been increased based on higher than expected order intake year to date, greater visibility for the year, and USD exchange rate development.