Wind. It means the world to us.
TM
Company announcement No. 07/2024
Company Reg. No.: 10403782
Interim Financial Report
First Quarter 2024
Vestas Wind Systems A/S Page 2 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Contents
Summary ........................................................................................................................................ 3
Financial and operational key figures ......................................................................................... 4
Sustainability key figures ............................................................................................................. 5
Group financial performance ....................................................................................................... 6
Power Solutions ............................................................................................................................ 8
Service ......................................................................................................................................... 10
Sustainability ............................................................................................................................... 11
Strategy and financial and capital structure targets ................................................................ 12
Outlook 2024 ................................................................................................................................ 13
Consolidated financial statements 1 January - 31 March ........................................................ 14
Statement by the Board of Directors and the Executive Management ................................... 25
Conference call (audiocast)
On Thursday 2 May 2024 at 10 am CEST (9 am BST),
Vestas will host a conference call with a presentation on
the results. The presentation will be audiocast and can
be viewed live or replayed via vestas.com.
The presentation will be held in English and will conclude
with a Q&A. Details on how to register for the Q&A are to
be found at vestas.com/en/investor.
Contact details
Vestas Wind Systems A/S, Denmark
Investors/analysts:
Daniel Patterson, Vice President
Investor Relations
Tel: +45 2669 2725
Frederik Holm Jacobsen
Senior Specialist, Investor Relations
Tel: + 45 2835 3365
Media:
Anders Riis, Vice President
Communications
Tel: +45 4181 3922
Vestas Wind Systems A/S Page 3 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Summary
Summary: Quarterly revenue of EUR 2.7bn with an EBIT
margin before special items of (2.5) percent. Order intake
of 2.3 GW and record-high combined order backlog of
EUR 61.0bn. Full-year guidance maintained.
In the first quarter of 2024, Vestas generated revenue of
EUR 2,681m – a decrease of 5.2 percent compared to the
year-earlier period. EBIT before special items amounted
to EUR (68)m, resulting in an EBIT margin before special
items of (2.5) percent. The underlying EBIT margin
increased with 1.5 percentage points compared to the first
quarter of 2023, when disregarding the effects of the sale
of the converters and controls business in the comparison
quarter.
Adjusted free cash flow amounted to EUR (997)m
compared to EUR (1,280)m in the first quarter of 2023.
The quarterly intake of firm and unconditional wind turbine
orders amounted to 2,300 MW, a 30 percent decrease
from first quarter 2023. The value of the wind turbine order
backlog was EUR 26.6bn as at 31 March 2024.
In addition to the wind turbine order backlog, at the end of
the quarter, Vestas had service agreements with
expected contractual future revenue of EUR 34.4bn.
Thus, the value of the combined backlog of wind turbine
orders and service agreements stood at EUR 61.0bn – an
increase of EUR 10.3bn compared to the year-earlier
period.
The full-year guidance is maintained: Revenue is
expected to range between EUR 16bn and 18bn,
including Service revenue. Vestas expects to achieve an
EBIT margin before special items of 4-6 percent, and total
investments
1)
are expected to amount to approx. EUR
1.2bn in 2024.
Group President & CEO Henrik Andersen said: “Vestas’
underlying performance continued to improve in the first
quarter of 2024, and our financial results were in line with
expectations. Our revenue was EUR 2.7bn with an EBIT
margin of minus 2.5 percent, which represents a 30
percent increase in gross profit driven by higher project
profitability and service growth, but lower project
deliveries. Following a very strong finish to 2023, we
secured 2.3 GW of orders, while maintaining a strong
commercial discipline. As we ramp up to deliver on our
growing backlog and deliver across both onshore and
offshore, we continue to lead the industry and focus on
achieving our financial goals. We maintain our guidance
for 2024 and want to thank our customers, partners, and
shareholders for their ongoing support, and our more than
30,000 colleagues for the dedication to both Vestas and
the energy transition.“
Key highlights
Revenue of EUR 2.7bn
Decline of 5 percent YoY driven by lower activity in Power Solutions, offset by 12 percent growth in Service.
EBIT margin of minus 2.5 percent
Disregarding the sale of technology, EBIT improved YoY due to higher project profitability.
Order intake of 2.3 GW
Order intake declined by 30 percent YoY due to strong finish to 2023.
Solid capital structure
Improved earnings are the main driver for a leverage of 1.1x net debt / EBITDA, compared to 5.8x a year ago.
Vestas continues to lead the industry
Through commercial discipline, Vestas maintains the leading position in the global market.
1) Net investments in intangible assets and property, plant and equipment
Vestas Wind Systems A/S Page 4 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Financial and operational key figures
mEUR
Q1
2024
Q1
)
2023
FY
)
2023
Financial key figures
Income statement
Revenue
2,681
2,829
15,382
Gross profit
244
188
1,283
Operating profit/(loss) before amortisation, depreciation and impairment (EBITDA) before
special items
131
236
1,028
Operating profit/(loss) (EBIT) before special items
(68)
40
231
Operating profit/(loss) before amortisation, depreciation and impairment (EBITDA)
132
262
1,089
Operating profit/(loss) (EBIT)
(67)
66
292
Net operating profit after tax (NOPAT)
(48)
34
223
Net financial items
(35)
(34)
(164)
Profit/(loss) before tax
(105)
31
102
Profit/(loss) for the period
(75)
16
78
Balance sheet
Balance sheet total
22,599
19,914
22,514
Equity
3,064
3,024
3,042
Investments in property, plant, and equipment
104
76
457
Net working capital
(622)
(167)
(1,507)
Capital employed
6,495
5,947
6,429
Interest-bearing position (net), end of the period
(979)
(1,121)
32
Interest-bearing debt, at the end of the period
3,431
2,923
3,387
Cash flow statement
Cash flow from operating activities
(755)
(974)
1,027
Cash flow from investing activities
(215)
(111)
(782)
Free cash flow
(970)
(1,085)
245
Adjusted free cash flow
1)
(997)
(1,280)
(51)
Financial ratios
2)
Financial ratios
Gross margin (%)
9.1
6.6
8.3
EBITDA margin (%) before special items
4.9
8.3
6.7
EBIT margin (%) before special items
(2.5)
1.4
1.5
EBITDA margin (%)
4.9
9.3
7.1
EBIT margin (%)
(2.5)
2.3
1.9
Return on capital employed (ROCE)
3)
(%) before special items
1.6
(12.7)
2.9
Net interest-bearing debt / EBITDA
3)
before special items
1.1
5.8
0.0
Solvency ratio (%)
13.6
15.2
13.5
Return on equity
3)
(%)
(0.2)
(22.9)
2.6
Share ratios
Earnings per share
4)
(EUR)
(0.0)
(0.8)
0.1
Dividend per share (EUR)
-
-
-
Pay-out ratio (%)
-
-
-
Share price at the end of the period (DKK)
193.0
199.0
214.3
Number of shares at the end of the period (million)
1,010
1,010
1,010
Operational key figures
Order intake (bnEUR)
2.2
2.9
18.5
Order intake (MW)
2,300
3,303
18,386
Order backlog – wind turbines (bnEUR)
26.6
19.7
26.0
Order backlog – wind turbines (MW)
25,852
20,596
23,315
Order backlog – service (bnEUR)
34.4
31.0
34.1
Produced and shipped wind turbines (MW)
2,645
2,983
11,666
Produced and shipped wind turbines (number)
492
604
2,554
Deliveries (MW)
1,720
2,317
12,685
1) Free cash flow adjusted for acquisitions and divestments of businesses and activities, lease liability repayment, special items, net investments in joint ventures and associates
that are deemed outside Vestas’ core business activities, net investments in marketable securities, and other financial assets.
2) The ratios have been calculated in accordance with the guidelines from The Danish Finance Society (Recommendations & Financial ratios).
3) Calculated on a Last Twelve Months (LTM) basis
4) Earnings per share has been calculated over a 12-month period and in accordance with IAS 33 on earnings per share.
Sustainability key figures
Q1 2024
LTM
Q1 2023
LTM
FY
2023
Environmental
Utilisation of resources
Consumption of energy (GWh) 650 635 658
- of which renewable energy (GWh)
211
228
213
- of which renewable electricity (GWh)
160
180
166
Renewable energy (%) 32 36 32
Renewable electricity for own activities (%)
100
100
100
Withdrawal of fresh water (1,000 m³)
285
318
279
Waste
Volume of waste from own operations (1,000 t)
39
46
44
- of which collected for recycling (1,000 t)
25
28
30
Recyclability rate of hub and blade
1)
(%) // // 90
Material efficiency (tonnes of waste excl. recycled per MW produced and shipped)
1.2 1.4 1.2
Carbon emissions
Direct emissions of CO
2
e (scope 1) (1,000 t)
108
95
108
Indirect emissions of CO
2
e (scope 2) (1,000 t)
1 2 1
Indirect emissions of CO
2
e from the supply chain (scope 3)
1)
(million t)
//
//
7.66
Indirect emissions of CO
2
e from the supply chain (scope 3)
1)
(kg per MWh generated)
//
//
6.30
Products
Expected CO
2
e avoided over the lifetime of the capacity produced and shipped during the
period (million t)
393
395
396
Expected annual CO
2
e avoided by the total aggregated installed fleet at the end of the period
(million t)
235
222
231
Social
Safety
Total Recordable Injuries per million working hours (TRIR)
2.9
3.2
3.0
Lost Time injuries per million working hours (LTIR)
1.2
1.1
1.3
Total Recordable Injuries (number)
222
204
216
- of which Lost Time Injuries (number) 92 73 91
- of which fatal injuries (number)
0
1
1
Employees
31,363
28,567 30,586
Average number of employees (FTEs)
Employees at the end of the period (FTEs)
Diversity and inclusion
Women in the Board and Executive Management at the end of the period (%)
27
27
21
Women in leadership positions at the end of the period (%)
2)
24 23 24
Human rights
1)
Community grievances (number)
//
//
3
Community beneficiaries (number) // // 9,769
Social Due Diligence on projects in scope (%)
//
//
59
Governance
Whistle-blower system
1)
EthicsLine compliance cases (number)
//
//
667
- of which substantiated // // 128
- of which unsubstantiated
//
//
461
For general definitions and specifications on these sustainability key figures, see the Notes to Sustainability key figures in the Annual Report 2023, page 128-129. Note that as of Q1
2024, as a standard, sustainability key figures are presented on a Last Twelve Months (LTM) basis.
1) Data only reported on an annual basis.
2) Employees of our subsidiary Utopus Insights, Inc. are not included.
Vestas Wind Systems A/S Page 5 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Vestas Wind Systems A/S Page 6 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Group financial performance
Income statement
Revenue
Revenue in the first quarter of 2024 amounted to EUR
2,681m (Q1 2023: EUR 2,829m), a decrease of 5.2
percent, primarily driven by a lower volume of MW
delivered, but partially offset by higher average prices in
Power Solutions and increasing Service activity. Revenue
for the first quarter of 2024 reflected a negative impact of
approx. EUR 13m from foreign exchange rates compared
to 2023.
Revenue and EBIT margin before special items
mEUR and percentage
Gross profit
Gross profit amounted to EUR 244m in the first quarter of
2024, corresponding to a gross margin of 9.1 percent (Q1
2023: EUR 188m; 6.6 percent), which is a 2.5 percentage
point increase compared to the first quarter of 2023,
despite the lower level of revenue. The increase was
mainly attributable to improved margins on projects in the
Power Solutions segment.
Warranty costs
Warranty costs amounted to EUR 121m in the first quarter
of 2024 (Q1 2023: EUR 113m). The warranty costs are
equivalent to a warranty ratio of 4.5 percent of revenue;
on a higher level than last year (Q1 2023: 4.0 percent) but
lower than 5.3 percent for full year 2023.
Research and development costs, Distribution
costs and Administration costs
Total research and development, distribution and
administration costs amounted to EUR 312m in the first
quarter of 2024 (Q1 2023: EUR 304m), equivalent to 8.2
percent of revenue in the last twelve months.
Research and development costs recognised in the
income statement amounted to EUR 85m in the first
quarter of 2024 (Q1 2023: EUR 92m). The decrease
reflects a lower depreciation level on technology projects.
Distribution costs amounted to EUR 128m in the first
quarter of 2024 (Q1 2023: EUR 107m). The first quarter
of 2023 was affected by reclassification of impairment
losses, which were recognised in production costs
instead.
Administration costs amounted to EUR 99m in the first
quarter of 2024 (Q1 2023: EUR 105m). The decrease was
driven by lower IT costs.
Depreciation, amortisation, and impairment
In the first quarter of 2024, overall depreciation,
amortisation, and impairment before special items
amounted to EUR 199m (Q1 2023: EUR 196m).
Income from investments in joint ventures and
associates from core activity
In the first quarter of 2024, no income from investments
in joint ventures and associates related to Development
activities was realised (Q1 2023: gain of EUR 9m).
Operating profit (EBIT) before special items
EBIT before special items amounted to negative EUR
68m in the first quarter of 2024, equivalent to an EBIT
margin of negative 2.5 percent (Q1 2023: EUR 40m; 1.4
percent). The operating profit in the first quarter of 2023
was significantly impacted by the sale of the converters
and controls business. The underlying EBIT increased
with 1.5 percentage points compared to the first quarter
of 2023, when disregarding the effects of the sale in the
comparison quarter. This increase was driven by
improved project margins in the Power Solutions
segment.
Operating profit (EBIT) after special items
In the first quarter of 2024, EBIT after special items
amounted to negative EUR 67m, equivalent to a margin
of negative 2.5 percent (Q1 2023: EUR 66m; 2.3 percent).
Income from investments in joint ventures and
associates from other activities
Income from investments in joint ventures and associates
amounted to a loss of EUR 3m in the first quarter of 2024
(Q1 2023: loss of EUR 1m), mainly impacted by a loss of
EUR 2m on the Blakliden Fäbodberget Holding AB wind
farm investment.
Net financial items
Financial items amounted to a net loss of EUR 35m in the
first quarter of 2024 (Q1 2023: loss of EUR 34m).
Financial items were impacted by negative development
in foreign exchange rates of EUR 12m from various
exposures in EMEA and increasing financing costs of
EUR 5m, but partially offset by a gain of EUR 15m from
revaluation of earn-out related to the investment in
Copenhagen Infrastructure Partners.
Income tax
Income tax amounted to an income of EUR 30m,
equivalent to an effective tax rate of 29 percent in the first
quarter of 2024 (Q1 2023: Effective tax rate of 48.4
percent). The high effective tax rate in 2023 was related
to a profit before tax close to zero.
Vestas Wind Systems A/S Page 7 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Net result for the period
The net result amounted to a loss of EUR 75m in the first
quarter of 2024 (Q1 2023: profit of EUR 16m).
Financial ratios
Earnings per share calculated over a 12-month period
amounted to negative EUR 0.01 in the first quarter of
2024 (Q1 2023: negative EUR 0.8). The increase of EUR
0.78 was driven by the higher result in the period.
Return on capital employed (ROCE) before special items
calculated over a 12-month period was 1.6 percent in the
first quarter of 2024 (Q1 2023: negative 12.7 percent), an
increase compared to 2023 driven by the higher EBIT
before special items in the period.
Working capital and free cash flow
Net working capital
Net working capital amounted to a net liability of EUR
622m as at 31 March 2024 (31 March 2023: a net liability
of EUR 167m). Compared to first quarter 2023, the
development is primarily attributable to a higher level of
contract liabilities from prepayments related to firm order
intake and project milestones achieved during the past
year.
Cash flow from operating activities
Cash flow from operating activities was negative EUR
755m in the first quarter of 2024 (Q1 2023: negative
974m). The positive development in cash flow compared
to last year was primarily driven by the development in net
working capital.
Cash flow from investing activities
Total net investments
1)
amounted to a net outflow of EUR
198m in the first quarter of 2024 (Q1 2023: outflow EUR
112m), with the increase primarily reflecting the disposal
of the converters and controls business in the first quarter
of 2023. The underlying investment level increased
slightly due to ramp-up of production related to the V236
offshore turbine.
Adjusted free cash flow
Adjusted free cash flow amounted to negative EUR 997m
in the first quarter of 2024, reflecting an improved cash
flow from the Power Solutions segment (Q1 2023:
negative EUR 1,280m).
1) Net investments in intangible assets and property, plant and equipment.
Adjusted free cash flow
mEUR
*) Includes net investments in joint ventures and associates, outside core business.
Capital structure and financing items
Equity and solvency ratio
As at 31 March 2024, total equity amounted to EUR
3,064m (31 March 2023: EUR 3,024m) and the solvency
ratio dropped 1.6 percentage points to 13.6 percent as at
31 March 2024. The lower solvency was mainly a result
of the issuance of a sustainability-linked Eurobond of
nominal EUR 500m to finance increasing investment
levels and to strengthen liquidity position during 2023. In
addition, prepayment levels have increased significantly
from a high level of firm order intake during 2023.
Net interest-bearing position and cash position
As at 31 March 2024, the net interest-bearing debt
amounted to negative EUR 979m (31 March 2023:
negative EUR 1,121m). The development was a result of
positive free cash flow during the last 12 months.
Cash and cash equivalents amounted to EUR 2,294m as
at 31 March 2024, compared to EUR 1,707m at the end
of the first quarter of 2023.
The ratio net interest-bearing debt/EBITDA was 1.1 as at
31 March 2024, compared to 5.8 at the end of the first
quarter of 2023. The ratio was impacted by improved
financial result during the last 12 months.
Q1
2024
Q1
2023
Cash flow from operating activities
(755)
(974)
Cash flow from investing activities
(215)
(111)
Free cash flow
(970)
(1,085)
Net acquisitions in businesses/activities*
)
(2)
(165)
Payment of lease liabilities
(47)
(35)
Special items
2
3
Investments in financial assets
20
2
Adjusted free cash flow
(997)
(1,280)
Vestas Wind Systems A/S Page 8 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Power Solutions
Result for the period
In the first quarter of 2024, revenue from the Power
Solutions segment amounted to EUR 1,779m (Q1 2023:
EUR 2,023m), which corresponds to a 12.1 percent
decrease compared to the first quarter of 2023. The
decrease was driven by lower volume of MW delivered,
but partially offset by higher average prices.
EBIT before special items amounted to negative EUR
169m in the first quarter of 2024, equal to an EBIT margin
of negative 9.5 percent (Q1 2023: negative EUR 54m;
negative 2.7 percent). The EBIT margin in the first
quarter of 2023 benefited from sale of technology, and
therefore the underlying EBIT margin increased by 0.4
percentage points, highlighting improved margins from
projects in the Power Solutions segment as commercial
discipline is being strengthened.
Power Solutions revenue and EBIT margin before special
items
mEUR and percentage
Wind turbine order intake
In the first quarter of 2024, wind turbine order intake
amounted to 2,300 MW, corresponding to a value of
EUR 2.2bn (Q1 2023: 3,303 MW; EUR 2.9bn). This
represents a decrease of 30 percent in MW order intake
compared to the first quarter of 2023. The decrease was
mainly related to strong onshore order intake in the
fourth quarter of 2023, and the 1.3 GW onshore order in
Brazil in first quarter 2023.
The average selling price (ASP) per MW was EUR
0.97m in the first quarter of 2024 compared to EUR
0.89m in the first quarter of 2023.
Wind turbine order intake, first quarter 2024
MW
EMEA
Ameri-
cas
Asia
Pacific
Total
Onshore order
intake
1,045
1,138
117
2,300
Offshore order
intake
-
-
-
-
Total order
intake
1,045
1,138
117
2,300
Wind turbine deliveries
Deliveries to customers amounted to 1,720 MW in the
first quarter of 2024 (Q1 2023: 2,317 MW). Offshore
deliveries decreased from 214 MW in the first quarter of
2023 to 81 MW in the first quarter of 2024.
Deliveries
MW
By the end of March 2024, Vestas had installed a total
capacity of 179 GW in 88 countries.
Vestas Wind Systems A/S Page 9 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Deliveries (onshore and offshore)
MW
Q1
2024
Q1
2023
FY
2023
Germany
172
367
1,486
Italy
156
13
265
France
84
186
735
South Africa
63
-
37
Finland
48
4
723
Belgium
40
13
65
Greece
33
76
161
Poland
32
106
292
United Kingdom
29
175
896
Estonia
27
-
101
Czech Republic
9
7
9
Austria
6
16
197
Spain
6
13
177
Portugal
5
50
107
Sweden
4
-
165
Lithuania
4
-
68
Ireland
1
-
36
Denmark
-
10
53
Egypt
-
82
145
Netherlands
-
102
287
Turkey
-
-
32
Utd. Arab Emir.
-
-
42
Romania
-
-
72
EMEA
719
1,220
6,151
o/w Offshore
11
191
563
Brazil
549
420
1635
Argentina
87
57
420
Chile
15
6
41
USA
15
299
2079
Colombia
-
(9)
*)
332
Dominican Rep.
-
11
18
Puerto Rico
-
11
11
Canada
-
-
275
Mexico
-
-
1
Americas
666
795
4,812
o/w Offshore
-
-
-
Australia
249
127
822
Taiwan
70
17
458
India
16
68
193
Japan
-
48
95
New Zealand
-
24
84
South Korea
-
13
21
Sri Lanka
-
2
6
Vietnam
-
3
9
China
-
-
21
Philippines
13
Asia Pacific
335
302
1,722
o/w Offshore
70
23
452
Total
1,720
2,317
12,685
o/w Offshore
81
214
1,015
*) Negative values can result as part of Vestas’ deliveries are based on a percentage-
of-completion method requiring estimates in relation to stage of completion.
Wind turbine order backlog
At the end of the first quarter of 2024, the wind turbine
order backlog amounted to 25,852 MW, which
corresponds to a value of EUR 26.6bn (31 March 2023:
20,596 MW / EUR 19.7bn), of which EUR 5.3bn relates
to offshore wind power projects (31 March 2023: EUR
2.5bn). The development reflects significant offshore
order intake in Poland and Germany as well as a high
level of onshore order intake in the USA and Brazil.
Order backlog per region
MW
EMEA
Ameri-
cas
Asia
Pacific
Total
Total backlog as at 31
March 2023
8,775
8,284
3,537
20,596
Order intake
8,564
7,933
886
17,383
Deliveries
(5,635)
(4,722)
(1,770)
(12,127)
Total backlog as at 31
March 2024
11,704
11,495
2,653
25,852
o/w Offshore
3,397
-
829
4,226
Development business
In the first quarter of 2024, Vestas’ pipeline of
development projects amounted to 30.1 GW, allocated
with 16.7 GW in APAC, 7.6 GW in Americas and 5.8 GW
in EMEA, with Australia and the USA being the countries
with the largest project pipelines. During the quarter,
Vestas secured 1.0 GW of new pipeline projects, mainly
in Australia, Brazil, and Latvia.
Vestas Wind Systems A/S Page 10 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Service
Result for the period
The Service segment generated revenue of EUR 902m
in the first quarter of 2024 (Q1 2023: EUR 806m), which
corresponds to an 11.9 percent increase compared to
the first quarter of 2023. The increased revenue was
mainly driven by higher contract activity and indexation
mechanisms, as well as slightly higher transactional
sales compared to the same quarter last year. Foreign
exchange rates had a EUR 13m negative effect on
revenue growth.
Service revenue and EBIT margin before special items
mEUR and percentage
EBIT before special items amounted to EUR 192m in
the first quarter of 2024 (Q1 2023: EUR 183m),
corresponding to a 4.9 percent increase compared to
first quarter last year. The EBIT margin decreased to
21.3 percent (Q1 2023: 22.7 percent), primarily due to
lower profitability on certain contracts in EMEA and
Americas.
Wind turbines under service
At the end of March 2024, Vestas had around 55,500
wind turbines under service, equivalent to 149 GW.
Regional validation and clean-up in contract data was
conducted during the first quarter of 2024, which showed
premature inclusion of not-yet-active contracts. The
clean-up led to a 3 GW reduction in active service
contracts; this has no effect on customers, employees,
the service order backlog, or financials.
Lost Production Factor
*)
Percent
*) Data calculated across more than 40,000 Vestas wind turbines under full-scope
service. The lost production factor includes both onshore and offshore turbines.
The overall Lost Production Factor continues to improve,
although still at an unsatisfactory level at the end of first
quarter 2024.
Service order backlog
At the end of March 2024, Vestas had service contracts
in the order backlog with expected contractual future
revenue of EUR 34.4bn, an increase of EUR 3.4bn
compared to end of the quarter last year (31 March
2023: EUR 31.0bn). The service backlog increased
EUR 1.4bn from indexation mechanisms in contracts
and decreased EUR 0.4bn due to development in
foreign exchange rates.
Service order backlog
bnEUR
At the end of the quarter, the average duration of the
service order backlog was 11 years (31 March 2023: 11
years).
Vestas Wind Systems A/S Page 11 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Sustainability
The Vestas Sustainability Strategy
Vestas has been leading the transition to a world
powered by sustainable energy for over four decades.
But in 2020, we launched our sustainability strategy to
embed sustainability in everything we do with four clear
ambitions: achieving carbon-neutrality of our own
operations by 2030 – without using carbon offsets, and
with a 45 percent reduction in our supply chain CO
2
e
intensity; creating zero-waste wind turbines by 2040;
becoming the safest, most inclusive and socially
responsible workplace in the energy industry; and
leading the transition to a world powered by sustainable
energy.
Vestas is currently implementing CSRD regulation for
reporting full-year ESG data for 2024. As a result of this,
definitions for some indicators may change at the end of
the year.
Note that as of this interim report, our key sustainability
figures will, as a standard, be presented on last twelve
months (LTM) basis to remove seasonal fluctuations and
focus on long-term progress.
Carbon footprint
Turbines produced and shipped in the last twelve months
are expected to avoid 393 million tonnes of CO
2
e over
the course of their lifetime. This is a decrease of 2 million
tonnes from the same period last year, due to a lower
volume of MW produced and shipped in the period.
In the last twelve months, our total scope 1 and 2
emissions increased to 109,000 tonnes from 97,000
tonnes. This reflects a 12 percent increase compared to
the last twelve months the year prior. During this period,
we saw higher activity levels in both offshore service and
offshore construction, leading to increased fuel usage.
In the first quarter of 2024, we announced a new offering
of low-emission steel to our customers. Low-emission
steel emits 66 percent less CO
2
e compared to
conventional steel during production. Finding ways to
decarbonise the emissions connected to steel
production, is vital to the achievement of our scope 3
target.
Scope 3 emissions are reported annually in the
Sustainability Report.
Circularity
In the last twelve months, our material efficiency rate
improved to 1.2 tonnes of waste per MW produced and
shipped, compared to 1.4 tonnes in the same period the
year before, a 14 percent decrease.
This improvement is primarily due to a significant
increase in the recycling rate of waste across several of
our factories and represents significant progress towards
our 2030 commitment to landfill less than 1 percent of
manufacturing waste.
Safety
Working towards becoming the safest workplace in the
energy industry, we aim to reduce the Total Recordable
Injury Rate (TRIR) to 1.5 by 2025 and 0.6 by 2030,
equivalent to a 15 percent annual reduction from 2019.
The TRIR decreased to 2.9 in the last twelve months,
compared to 3.2 in the same period last year, driven by
an improved safety performance particularly in the
Northern & Central Europe and Americas Regions. In
2023, we implemented a risk-based approach to
addressing our risks in our operations and we are
continuing to build a strong risk-based understanding in
the organisation and safety culture by incorporating
elements like psychological safety, human performance
and growth mindset to drive performance further.
Incidence of total recordable injuries (LTM)
Per million working hours
Most sustainable energy company globally
The Corporate Knights index lists the top 100 of the
world's most sustainable corporations. Vestas has been
named the most sustainable company in the entire
energy industry the third year in a row and overall the
third most sustainable company in the world in 2024.
Vestas Wind Systems A/S Page 12 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Strategy and financial and
capital structure targets
(For an extended introduction to the Vestas strategy,
please refer to the Annual Report 2023.)
Net zero requires Vestas to scale
For the world to reach net zero, we estimate wind power
installations will need to increase to more than 290 GW
per year by 2050, from 78 GW in 2022
1)
, and Vestas is
ready to meet demand. Through strong partnerships with
key suppliers and customers, through modularisation
and the development of digital solutions, and by investing
in talent and capabilities, we are laying the foundation for
a Vestas that is ready to scale.
Business area strategy
Onshore wind
Our strategic priorities in Onshore continue to be a focus
on value over volume, driving modularisation to ensure
highly competitive products at high quality and lower
cost, and working with digitalisation and efficiency
measures across the value chain. Further, we will
cultivate strategic customer partnerships, and continue
to mature industry dynamics to improve some of the
fundamentals in onshore wind. This means we must
continue to lead the effort to industrialise the wind energy
industry, with the aim of restoring and improving
profitability.
Offshore wind
Ramping up Offshore to deliver on significant market
ambitions require discipline and continuous attention to
our business plan. To achieve our goals, we must secure
profitable order intake, sustainably scale up our
manufacturing capacity, and ensure operational
readiness and execution capabilities for the new V236
platform. At the same time, we will lead a market that is
profitable and sustainable in the long term.
Service
To extend our leading position in wind energy service
solutions, we remain focused on maximising customer
returns and energy production when electricity demand
is highest. To achieve this goal, we are employing an
incremental approach to scaling our operations
efficiently. This enables us to reap the full benefit of our
unparalleled service backlog and prepare for expected
growth, onshore and offshore.
Development
Most of our projects are still in early stages of
development. To grow our Development business
profitably, our strategy focuses on maturing the project
pipeline while ensuring project quality. Building on our
industry expertise and experience, we will de-risk
projects and maximise the value of our pipeline while
maintaining commercial and financial discipline.
Capital structure
When it comes to financial management, our objective is
to create the necessary flexibility and stability to
implement strategic development work, while achieving
our financial ambitions in the long term. At the same time,
we aim to have the most effective cost of capital.
We apply the following priorities to capital allocation:
• Reinvest in our manufacturing footprint and R&D to
realise our corporate strategy.
• Make value-creating acquisitions to accelerate or
increase profitable growth and explore divestments
of non-core assets.
• Pay 25-30 percent of net result after tax in dividend.
• Initiate share buy-backs from time to time.
Long-term sustainability ambitions
We are committed to carbon neutrality of our own
operations by 2030 – without using carbon offsets. At the
same time, we are working to decarbonise the entire
wind energy supply chain by working with strategic
suppliers to lower the carbon intensity of energy
generated by our turbines by 45 percent
2)
by 2030.
We are committed to creating zero-waste wind turbines
by 2040. Through our industry-leading Circularity
Roadmap, we have outlined our pathway and interim
targets towards this goal, one of which is to improve our
material efficiency rate to 0.2 by 2030. Further, we aim
to reduce our injury rate (TRIR) to 0.6 by 2030, and to
increase the share of women in leadership positions to
30 percent by 2030.
Long-term financial ambitions
Our industry needs structural change to increase
profitability, especially within the wind turbine segment.
The structural changes primarily entail strengthening the
commercial discipline in customer dialogues, working
closer across the industry supply chain, and lowering the
frequency of new technology introductions as well as
maturing the assessment of risk. In 2023, Vestas
managed to get ‘back in black’ as our commercial and
operational discipline is paying off. The year underlined
that Vestas is on the right strategic path to improve the
industry structurally and continue to build the commercial
and operational maturity to achieve our financial
ambitions. In that context, a 10 percent EBIT margin
remains achievable in the mid-term.
Vestas has the following long-term financial ambitions:
• Grow revenue faster than the market and be the
market leader in revenue.
• Positive free cash flow
• Reach at least 10 percent EBIT margin before
special items.
• Achieve 20 percent ROCE over the cycle.
1) Source: Global Wind Energy Council: Global Wind Statistics 2023. March 2023. 2) Baseline year: 2019
Vestas Wind Systems A/S Page 13 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Outlook 2024
In 2024, continued geopolitical volatility is expected to
cause uncertainty. Nonetheless, we expect a
combination of higher installations and increased pricing
to drive growth in revenue. Our profitability should also
continue to improve gradually but will still be held back
by execution and completion of low-margin projects from
the backlog.
Revenue is expected to range between EUR 16bn and
18bn, including Service revenue. Vestas expects to
achieve an EBIT margin before special items of 4-6
percent, and total investments
1)
are expected to amount
to approx. EUR 1.2bn in 2024.
The Service segment is expected to generate EBIT
before special items in 2024 in the range of EUR 800m
to 880m.
In relation to forecasts on financials from Vestas in
general, it should be noted that Vestas’ accounting
policies only allow the recognition of revenue when the
control has passed to the customer, either at a point in
time or over time. Disruptions in production and
challenges in relation to shipment of wind turbines and
installation hereof, for example bad weather, lack of grid
connections, and similar matters, may cause delays that
could affect Vestas’ financial results for 2024. Further,
the full-year results may also be impacted by movements
in exchange rates from current levels.
Outlook 2024
Revenue (bnEUR)
16-18
EBIT margin (%) before special items
4-6
Total investments
1)
(bnEUR)
approx. 1.2
1) Net investments in intangible assets and property, plant and equipment.
Vestas Wind Systems A/S Page 14 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Consolidated financial statements 1 January - 31 March
Condensed income statement 1 January - 31 March
mEUR
Note
Q1
2024
Q1
2023
Revenue
1.1, 1.2
Production costs
(2,437 )
(2,641 )
Gross profit
Research and development costs
(85 )
(92 )
Distribution costs
(128 )
(107 )
Administration costs
(99 )
(105 )
Sale of technology
1.3
Income from investments in joint ventures and associates
Operating profit/(loss) (EBIT) before special items 1.1 (68 ) 40
Special items
1.4
Operating profit/(loss) (EBIT) (67 ) 66
Income from investments in joint ventures and associates
(3 )
(1 )
Net financial items
(35 )
(34 )
Profit/(loss) before tax
(105 )
Income tax
(15 )
Profit/(loss) for the period
(75 )
Profit/(loss) is attributable to:
Shareholders of Vestas Wind Systems A/S
(68 )
Non-controlling interests
(7 )
Earnings per share (EPS)
Earnings per share for the period (EUR), basic
(0.07 )
Earnings per share for the period (EUR), diluted
(0.07 )
Condensed statement of comprehensive income 1 January - 31 March
mEUR
Q1
2024
Q1
)
2023
Profit/(loss) for the period
(75 )
Items that may be reclassified to the income statement subsequently:
Exchange rate adjustments relating to foreign entities
(22 )
Fair value adjustments of derivative financial instruments for the period
Gain/(loss) on derivative financial instruments transferred to the income statement
(58 )
(51 )
Share of fair value adjustments of derivative financial instruments of joint ventures and associates
(1 )
(1 )
Tax on items that may be reclassified to the income statement subsequently
(26 )
(4 )
Other comprehensive income after tax for the period
(5 )
Total comprehensive income for the period
The above condensed statement of comprehensive income should be read in conjunction with the accompanying notes.
Vestas Wind Systems A/S Page 15 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Condensed balance sheet – Assets
mEUR
Note
31 March
2024
31 March
2023
31 December
2023
Goodwill
Completed development projects
Software
Other intangible assets
Development projects in progress
Total intangible assets
Land and buildings
Plant and machinery
Other fixtures, fittings, tools and equipment
Right-of-use assets
Property, plant and equipment in progress
Total property, plant and equipment
2.1
Investments in joint ventures and associates
Other investments
Tax receivables
Deferred tax
Other receivables
3.4
Financial investments
3.4
Total other non-current assets
Total non-current assets
Inventories
Trade receivables
Contract assets
Contract costs
Tax receivables
Other receivables
3.4
Financial investments
3.4
Cash and cash equivalents
3.2
Total current assets
Total assets
The above condensed balance sheet should be read in conjunction with the accompanying notes.
Vestas Wind Systems A/S Page 16 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Condensed balance sheet – Equity and liabilities
mEUR
Note
31 March
2024
31 March
2023
31 December
)
2023
Share capital
3.1
Other reserves
(6 )
(39 )
(102 )
Retained earnings
Attributable to shareholders of Vestas
Non-controlling interests
Total equity
Provisions
2.2
Deferred tax
Financial debts
3.4
Tax payables
Other liabilities
3.4
Total non-current liabilities
Financial debts
3.4
Contract liabilities
Trade payables
Provisions
2.2
Tax payables
Other liabilities
3.4
Total current liabilities
Total liabilities
Total equity and liabilities
The above condensed balance sheet should be read in conjunction with the accompanying notes.
Vestas Wind Systems A/S Page 17 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Condensed statement of changes in equity – three months 2024
Reserves
mEUR
Share
capital
Transla-
tion
reserve
Cash flow
hedging
reserve
Other
reserves
Total
reserves
Retained
earnings
Non-
control-
ling
interests
Total
Equity as at 1 January 2024
(80 )
(24 )
(102 )
Profit/(loss) for the period
(68 )
(7 )
(75 )
Other comprehensive income for the period
(1 )
Total comprehensive income for the period
(1 )
(68 )
(6 )
Transfer of cash flow hedge reserve to the initial
carrying amount of hedged items
Transaction with shareholders:
Share-based payments
Tax on equity transactions
(4 )
(4 )
Total transactions with shareholders
Equity as at 31 March 2024
(60 )
(6 )
Condensed statement of changes in equity – three months 2023
Reserves
mEUR
Share
capital
Transla-
tion
reserve
Cash flow
hedging
reserve
Other
reserves
Total
reserves
Retained
earnings
Non-
control-
ling
interests
Total
Equity as at 1 January 2023
(1 )
Profit/(loss) for the period
Other comprehensive income for the period
(21 )
(1 )
(4 )
(1 )
(5 )
Total comprehensive income for the period
(21 )
(1 )
(4 )
(0 )
Transfer of cash flow hedge reserve to the initial
carrying amount of hedged items
(50 )
(50 )
(50 )
Transaction with shareholders:
Share-based payments
Tax on equity transactions
Total transactions with shareholders
Equity as at 31 March 2023
(11 )
(33 )
(39 )
The above condensed statement of changes in equity should be read in conjunction with the accompanying notes.
Vestas Wind Systems A/S Page 18 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Condensed cash flow statement 1 January - 31 March
mEUR
Note
Q1
2024
Q1
2023
Profit/(loss) for the period
(75 )
Adjustment for non-cash transactions
Interest paid / received, net
(1 )
Income tax paid
(40 )
(15 )
Cash flow from operating activities before change in net working capital
(86 )
Change in net working capital
(669 )
(1,222 )
Cash flow from operating activities
(755 )
(974 )
Purchase of intangible assets
(94 )
(94 )
Purchase of property, plant and equipment
(104 )
(76 )
Proceeds from sale of intangible assets
Proceeds from sale of property, plant and equipment
Dividends from investments in joint ventures and associates
Purchase of other non-current financial assets
(63 )
(3 )
Proceeds from sale of other non-current financial assets
Proceeds of investments in joint ventures and associates
(1 )
Net cash flow from deconsolidation of subsidiary
(8 )
Cash flow from investing activities
(215 )
(111 )
Free cash flow
(970 )
(1,085 )
Payment of lease liabilities
(47 )
(35 )
Proceeds from borrowings
Payment of financial debt
(11 )
(50 )
Cash flow from financing activities
(36 )
Net change in cash and cash equivalents
(1,006 )
(649 )
Cash and cash equivalents at the beginning of period
Exchange rate adjustments of cash and cash equivalents
(18 )
(22 )
Cash and cash equivalents at the end of the period
3.2
The above condensed cash flow statement should be read in conjunction with the accompanying notes.
Vestas Wind Systems A/S Page 19 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Notes
1 Result for the period
1.1 Segment information
In the first quarter of 2023, an income of EUR 26m was recognised in special items impacting the Power Solutions segment.
The income relates to a reversal of a previously recognised write-down of inventories of EUR 34m, partly offset by other
costs of EUR 5m, both relating to the adjustment of the manufacturing footprint in India, as well as a net expense of EUR
3m relating to the Russian invasion of Ukraine.
In the first quarter of 2023, a gain of EUR 154m was recognised relating to the sale of the converters and controls business
to KK Wind Solutions impacting the Power Solutions segment. Of this gain, EUR 147m was recognised in sale of
technology and EUR 7m was recognised in production costs.
mEUR
Power
Solutions
Service
Not allocated
Total
Group
Q1 2024
Revenue
1,779
902
-
2,681
Total revenue
1,779
902
-
2,681
Total costs
(1,948)
(710)
(91)
(2,749)
Operating profit/(loss) (EBIT) before special items
(169)
192
(91)
(68)
Special items
1
-
-
1
Operating profit/(loss) (EBIT)
(168)
192
(91)
(67)
Income from investments in joint ventures and associates
-
-
(3)
(3)
Net financial items
-
-
(35)
(35)
Profit/(loss) before tax
(105)
Amortisation and depreciation included in total costs
(151)
(36)
(12)
(199)
mEUR
Power
Solutions
Service
Not allocated
Total
Group
Q1 2023
Revenue
2,023
806
-
2,829
Sales of technology
147
-
-
147
Income from investments in joint ventures and associates
9
-
-
9
Total income
2,179
806
-
2,985
Total costs
(2,233)
(623)
(89)
(2,945)
Operating profit/(loss) (EBIT) before special items
(54)
183
(89)
40
Special items
26
-
-
26
Operating profit/(loss) (EBIT)
(28)
183
(89)
66
Income from investments in joint ventures and associates
-
-
(1)
(1)
Net financial items
-
-
(34)
(34)
Profit/(loss) before tax
31
Amortisation and depreciation included in total costs
(149)
(33)
(14)
(196)
Vestas Wind Systems A/S Page 20 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
1.2 Revenue
The illustration below shows the process from order intake to revenue recognition in Vestas.
Disaggregation of revenue
In the following section, revenue is disaggregated for the two reportable segments, by primary geographical market, major
contract types, and timing of revenue recognition.
mEUR Power Solutions Service Total
Q1
2024
Q1
2023
Q1
2024
Q1
2023
Q1
2024
Q1
2023
Timing of revenue recognition
Products and services transferred at a point in time
1,202
1,216
114
102
1,316
1,318
Products and services transferred over time
577
807
788
704
1,365
1,511
1,779
2,023
902
806
2,681
2,829
Revenue from contract types
Supply-only
13
277
-
-
13
277
Supply-and-installation (at a point in time)
1,189
938
-
-
1,189
938
Supply-and-installation (over time)
331
634
-
-
331
634
Turnkey (EPC)
246
174
-
-
246
174
Service
-
-
902
806
902
806
1,779
2,023
902
806
2,681
2,829
Primary geographical markets
EMEA
767
1,116
488
403
1,255
1,519
Americas
640
643
331
334
971
977
Asia Pacific
372
264
83
69
455
333
1,779
2,023
902
806
2,681
2,829
Vestas Wind Systems A/S Page 21 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
1.3 Sale of technology
There was no sale of technology during the first quarter of 2024. During the first quarter 2023, sale of technology includes
consideration received of EUR 147m relating to a perpetual manufacturing license granted to KK Wind Solutions under the
agreement for the sale of the converters and controls business.
1.4 Special items
mEUR
Q1
2024
Q1
2023
Write-down of inventory
-
33
Provisions
-
(1)
Impairment loss on intangible and tangible assets
-
-
Other costs
1
(7)
Staff costs
-
(1)
Derecognition of net assets in Russia
-
2
Special items
1
26
During the first quarter of 2024, a net income of EUR 1m was recognised in special items primarily related to the adjustment
of the manufacturing footprint in India.
During the first quarter of 2023, an income of EUR 26m was recognised in special items. The adjustment of the
manufacturing footprint in India resulted in an income of EUR 29m. This was offset by an expense of EUR 3m related to
exiting the Russian market and deconsolidating the Russian entities.
2 Other operating assets and liabilities
2.1 Property, plant and equipment
In the first quarter of 2024, Vestas acquired assets with a cost of EUR 104m mainly related to manufacturing blade moulds,
acquisition of land, transport equipment, and construction tools, compared to EUR 76m in the first quarter of 2023.
Lease contracts recognised as right-of-use assets during the first quarter of 2024 amounted to EUR 94m, compared to
EUR 72m in the first quarter of 2023.
2.2 Warranty provisions (included in provisions)
mEUR
31 March
2024
31 March
2023
31 December
2023
Warranty provisions, 1 January
1,747
1,490
1,490
Provisions for the period
118
119
845
Warranty provisions consumed during the period
(112)
(129)
(588)
Warranty provisions
1,753
1,480
1,747
The provisions are expected to be payable as follows:
Non-current
1,034
883
1,031
Current
719
597
716
1,753
1,480
1,747
During the first three months of 2024, net warranty provisions charged to the income statement was EUR 121m (EUR
113m in the first quarter of 2023), equivalent to 4.5 percent of revenue. The net amount consists of a gross warranty
provision of EUR 118m plus a net adjustment to supplier claims of EUR 3m.
In general, provisions are made for all expected costs associated with wind turbine repairs or replacements, and any
reimbursement from other involved parties is not offset unless a written agreement has been made to that effect.
Provisions are made to cover possible costs of remedy and other costs in accordance with specific agreements. The
provisions are based on estimates, and actual costs may deviate substantially from such estimates.
Vestas Wind Systems A/S Page 22 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
3 Capital structure and financing items
3.1 Share capital
Pursuant to authorisation granted to the Board of Directors at the Annual General Meeting 9 April 2024, the Board of
Directors was authorised to acquire treasury shares on behalf of Vestas at a nominal value not exceeding 10 percent of
the share capital at the time of authorisation.
Treasury shares
Nominal value (DKK)
31 March
2024
31 March
2023
31 December
2023
Treasury shares as at 1 January
678,721
737,940
737,940
Purchases for the period
-
-
79,785
Vested treasury shares for the period
-
-
(139,004)
Treasury shares
678,721
737,940
678,721
Each share has a nominal value of DKK 0.20.
3.2 Cash and cash equivalents
mEUR
31 March
2024
31 March
2023
31 December
2023
Cash and cash equivalents without disposal restrictions
2,290
1,678
3,288
Cash and cash equivalents with disposal restrictions
4
29
30
Cash and cash equivalents
2,294
1,707
3,318
3.3 Financial risks
Management of financial risks, including liquidity, credit and market risks, is core to Vestas. This is governed by policies,
and these are addressed in the notes to the consolidated financial statements in the Annual Report 2023, note 4.1
(Financial risk management), pages 82-85. The risks in 2024 remain similar in nature.
As at 31 March 2024, Vestas had EUR 2,294m of cash and cash equivalents. Additionally, Vestas has a committed credit
facility of EUR 2,000m maturing in 2028 and uncommitted credit facilities of EUR 475m. As at 31 March 2024, EUR 771m
of the committed credit facility was converted into ancillary bank guarantee issuance facilities leaving EUR 1,704m
available for cash drawing and/or issuance of guarantees. Vestas has no upcoming bond maturities in the next 12 months.
1.4 Financial instruments
Financial investments consist of interest-bearing investments which do not meet the definition for cash and cash
equivalents. As at 31 March 2024, the fair value of financial investments comprising marketable securities amounted to
EUR 99m, equal to book value.
Derivative financial instruments were positive with a market value of net EUR 83m, equal to book value, and were
recognised in other receivables and other liabilities with EUR 415m and EUR 332m, respectively.
As at 31 March 2024, the carrying amount of the sustainability-linked bonds issued by Vestas amounted to EUR 1,982m
and the fair value amounted to EUR 1,905m.
Financial instruments measured at fair value have been categorised into level 1, 2, and 3 as addressed in the Annual
Report 2023, note 4.3, page 89.
Financial instrument assets categorised within level 3 comprise other equity investments and renewable energy
certificates. Valuation methods remain unchanged from the description in the Annual Report 2023 and with no significant
changes in fair values.
Vestas Wind Systems A/S Page 23 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
4 Other disclosures
4.1 Related party transactions
Vestas has had the following material transactions with joint ventures and associates:
mEUR
Q1
2024
Q1
2023
Joint ventures
Proceeds from investments in joint ventures
-
5
Capital increase
-
1
Other assets as at 31 March
11
4
Trade receivable as at 31 March
-
11
Associates
Revenue for the period
1
2
Proceeds from investments in associates
3
0
Capital increase
0
4
Trade receivable as at 31 March
11
-
Other assets as at 31 March
3
8
Contract liabilities as at 31 March
0
4
Payable capital contribution as at 31 March
-
8
No other significant changes have occurred with related parties or types and scale of transactions with these parties other
than what is disclosed in the consolidated financial statements in the Annual Report 2023, note 6.3, page 96.
4.2 Subsequent events
Other than the events recognised or disclosed in the Interim Financial Report, no events have occurred subsequent to 31
March 2024, which could have a significant impact on the report.
5 Basis for preparation
5.1 General accounting policies
The interim financial report of Vestas comprises a summary of the consolidated financial statements of Vestas Wind
Systems A/S and its subsidiaries.
The interim financial report has been prepared in accordance with IAS 34, Interim Financial Reporting as adopted by the
EU, accounting policies set out in the Annual Report 2023 of Vestas and additional Danish disclosure requirements for
interim financial reporting of listed companies.
The accounting policies remain unchanged compared to the annual report for 2023, to which reference is made.
This interim financial report includes selected notes. Accordingly, this report should be read in conjunction with the annual
report for 2023 and any public announcements made during the interim reporting period.
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to the expected annual
profit or loss.
Vestas Wind Systems A/S Page 24 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
5.2 Implementation of new and amended standards
The following new and amended accounting standards have been implemented as of 1 January 2024:
• Lease liability in a sale and leaseback – amended IFRS 16 Leases
• Non-current liabilities with covenants – amended IAS 1 Presentation of Financial Statements
Vestas did not have to change its accounting policies or make retrospective adjustments as a result of adopting these new
and amended standards.
Vestas Wind Systems A/S Page 25 of 28
Interim Financial Report – F
irst Quarter 2024
Classification: Public
Statement by the Board of
Directors and the Executive
Management
Vestas Wind Systems A/S Page 26 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Executive Management
Board of Directors
)
)
)
*) Employee representative
Vestas Wind Systems A/S Page 27 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Vestas Wind Systems A/S Page 28 of 28
Interim Financial Report – First Quarter 2024
Classification: Public
Vestas Wind Systems A/S
Hedeager 42, 8200 Aarhus N
Tel: +45 9730 0000
vestas@vestas.com, vestas.com
Disclaimer and cautionary statement
This document contains forward-looking statements
concerning Vestas’ financial condition, results of
operations and business. All statements other than
statements of historical fact are, or may be deemed to
be, forward-looking statements. Forward-looking
statements are statements of future expectations that are
based on management’s current expectations and
assumptions and involve known and unknown risks and
uncertainties that could cause actual results,
performance or events to differ materially from those
expressed or implied in these statements.
Forward-looking statements include, among other
things, statements concerning Vestas’ potential
exposure to market risks and statements expressing
management’s expectations, beliefs, estimates,
forecasts, projections, and assumptions. A number of
factors that affect Vestas’ future operations and could
cause Vestas’ results to differ materially from those
expressed in the forward-looking statements included in
this document, include (without limitation): (a) changes in
demand for Vestas' products; (b) currency and interest
rate fluctuations; (c) loss of market share and industry
competition; (d) environmental and physical risks,
including adverse weather conditions; (e) legislative,
fiscal, and regulatory developments, including changes
in tax or accounting policies; (f) economic and financial
market conditions in various countries and regions; (g)
political risks, including the risks of expropriation and
renegotiation of the terms of contracts with governmental
entities, and delays or advancements in the approval of
projects; (h) ability to enforce patents; (i) product
development risks; (j) cost of commodities; (k) customer
credit risks; (l) supply of components; and (m) customer
created delays affecting product installation, grid
connections and other revenue-recognition factors.
All forward-looking statements contained in this
document are expressly qualified by the cautionary
statements contained or referenced to in this statement.
Undue reliance should not be placed on forward-looking
statements. Additional factors that may affect future
results are contained in Vestas’ Annual Report for the
year ended 31 December 2023 (available at
vestas.com/en/investor) and these factors also should
be considered. Each forward-looking statement speaks
only as of the date of this document. Vestas does not
undertake any obligation to publicly update or revise any
forward-looking statement as a result of new information
or future events other than as required by Danish law. In
light of these risks, results could differ materially from
those stated, implied or inferred from the forward-looking
statements contained in this document.