Wind. It means the world to us.
TM
Company Reg. No.: 10403782
Company announcement No. 16/ 2024
Interim Financial Report
Third quarter 2024
Vestas Wind Systems A/S Page 2 of 30
Interim Financial Report – Third Quarter 2024
Contents
Summary ........................................................................................................................................ 3
Financial and operational key figures ......................................................................................... 4
Sustainability key figures ............................................................................................................. 5
Group financial performance ....................................................................................................... 6
Power Solutions ............................................................................................................................ 9
Service ......................................................................................................................................... 11
Sustainability ............................................................................................................................... 12
Strategy and financial and capital structure targets ................................................................ 13
Outlook 2024 ................................................................................................................................ 14
Financial calendar 2025 .............................................................................................................. 14
Consolidated financial statements 1 January – 30 September ............................................... 15
Statement by the Board of Directors and the Executive Management ................................... 27
Conference call (audiocast)
On Tuesday 5 November 2024 at 10 am CET (9 am
GMT), 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 30
Interim Financial Report – Third Quarter 2024
Summary
Quarterly revenue of EUR 5.2bn with an EBIT margin
before special items of 4.5 percent. Order intake of 4.4
GW and combined order backlog of EUR 63.4bn.
Revenue and EBIT margin guidance maintained with
adjustments to Service EBIT and total investments. Lower
end of the guidance range now more likely for the Group
EBIT margin.
In the third quarter of 2024, Vestas generated revenue of
EUR 5,177m – an increase of 18.9 percent compared to
the year-earlier period. EBIT before special items
amounted to EUR 235m, resulting in an EBIT margin
before special items of 4.5 percent, compared to 1.6
percent in the third quarter of 2023.
Adjusted free cash flow amounted to EUR (224)m
compared to EUR (284)m in the third quarter of 2023.
The quarterly intake of firm and unconditional wind turbine
orders amounted to 4,432 MW, a 2 percent decrease from
third quarter 2023. The value of the wind turbine order
backlog was EUR 28.3bn as at 30 September 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 35.1bn.
Thus, the value of the combined backlog of wind turbine
orders and service agreements stood at EUR 63.4bn – an
increase of EUR 9.4bn compared to the year-earlier
period.
The full-year guidance on revenue and EBIT margin
before special items is maintained: Revenue is expected
to range between EUR 16.5bn and 17.5bn. We expect to
achieve an EBIT margin before special items for the
Group of 4-5 percent, however now more likely in the
lower end of the range. The outlook for total investments
1
has been adjusted to approx. EUR 1.0bn (previously
approx. EUR 1.2bn). Furthermore, we now expect the
Service EBIT before special items to amount to around
EUR 450m (previously around EUR 500m).
Group President & CEO Henrik Andersen said: “Vestas
achieved revenue of EUR 5.2bn and an EBIT margin of
4.5 percent in the third quarter of 2024, which compared
to the same quarter last year represent a 19 percent
increase in revenue and an improvement of 3 percentage
points in profitability. In the quarter, we received 4.4 GW
of orders with an average selling price of EUR 1.10m/MW
that elevates our turbine order backlog to an all-time-high
of EUR 28bn, underlining our continued strong
commercial discipline. Higher activity and higher pricing
on deliveries continue to drive significant progress in our
underlying business and especially Power Solutions, but
the quarter was negatively impacted by a slightly slower-
than-expected margin improvement in Service and
elevated warranty provisions in the quarter. We maintain
our guidance on revenue and EBIT for the year but adjust
Service EBIT and total investments. We continue to
execute on our strategy and are focused on ending the
year strongly. We operate in an environment impacted by
geopolitical uncertainty and trade volatility, and we want
to thank our partners, customers and more than 33,000
colleagues for their continued support and hard work.”
Key highlights
Revenue of EUR 5.2bn
Revenue increased 19 percent YoY, driven by higher volumes and higher pricing on deliveries.
EBIT margin of 4.5 percent
Higher activity and better underlying performance improved the EBIT margin by almost 3 percentage points YoY.
Service EBIT margin of 16 percent
The Service profitability reflects ongoing scrutiny to improve operational efficiency.
Order intake of 4.4 GW
Flat order intake YoY leads to all-time high turbine backlog of more than EUR 28bn.
Ramping up manufacturing in the USA and Europe
Onboarding colleagues and ramping up is always challenging, but we continue to make progress.
Outlook for 2024
Revenue and EBIT margin guidance maintained with adjustments to Service EBIT and total investments.
1)
1
Net investments in intangible assets and property, plant and equipment
Page 4 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
Financial and operational key figures
mEUR
Q3
2024
Q3
)
2023
9M
2024
9M
2023
FY
)
2023
Financial key figures
Income statement
Revenue
5,177
4,353
11,154
10,611
15,382
Gross profit
544
351
944
760
1,283
Operating profit/(loss) before amortisation, depreciation and
impairment (EBITDA) before special items
444
264
615
632
1,028
Operating profit/(loss) (EBIT) before special items
235
70
(18)
40
231
Operating profit/(loss) before amortisation, depreciation and
impairment (EBITDA)
440
263
612
659
1,089
Operating profit/(loss) (EBIT)
231
69
(21)
67
292
Net operating profit after tax (NOPAT)
159
69
(14)
67
223
Net financial items
(36)
(32)
(124)
(124)
(164)
Profit/(loss) before tax
184
28
(151)
(71)
102
Profit/(loss) for the period
127
28
(104)
(71)
78
Balance sheet
Balance sheet total
22,921
20,857
22,921
20,857
22,514
Equity
2,919
2,981
2,919
2,981
3,042
Investments in property, plant, and equipment
172
124
423
295
457
Net working capital
(1,118)
291
(1,118)
291
(1,507)
Capital employed
6,245
6,399
6,245
6,399
6,429
Interest-bearing position (net), end of the period
(868)
(1,622)
(868)
(1,622)
32
Interest-bearing debt, end of the period
3,326
3,418
3,326
3,418
3,387
Cash flow statement
Cash flow from operating activities
89
(31)
165
(957)
1,027
Cash flow from investing activities
(373)
(208)
(920)
(477)
(782)
Free cash flow
(284)
(239)
(755)
(1,434)
245
Adjusted free cash flow
1)
(224)
(284)
(699)
(1,707)
(51)
Financial ratios
2)
Financial ratios
Gross margin (%)
10.5
8.1
8.5
7.2
8.3
EBITDA margin (%) before special items
8.6
6.1
5.5
6.0
6.7
EBIT margin (%) before special items
4.5
1.6
(0.2)
0.4
1.5
EBITDA margin (%)
8.5
6.0
5.5
6.2
7.1
EBIT margin (%)
4.5
1.6
(0.2)
0.6
1.9
Return on capital employed (ROCE)
3)
(%) before special items
2.1
(7.3)
2.1
(7.3)
2.9
Net interest-bearing debt / EBITDA
3)
before special items
0.9
3.6
0.9
3.6
0.0
Solvency ratio (%)
12.7
14.3
12.7
14.3
13.5
Return on equity
3)
(%)
1.6
(19.7)
1.6
(19.7)
2.6
Share ratios
Earnings per share
4)
(EUR)
0.0
(0.6)
0.0
(0.6)
0.1
Dividend per share (EUR)
-
-
-
-
-
Pay-out ratio (%)
-
-
-
-
-
Share price at the end of the period (DKK)
147.9
151.6
147.9
151.6
214.3
Number of shares at the end of the period (million)
1,010
1,010
1,010
1,010
1,010
Operational key figures
Order intake (bnEUR)
4.9
4.9
11.5
10.3
18.5
Order intake (MW)
4,432
4,502
10,328
10,138
18,386
Order backlog – wind turbines (bnEUR)
28.3
21.6
28.3
21.6
26.0
Order backlog – wind turbines (MW)
27,333
20,966
27,333
20,966
23,315
Order backlog – service (bnEUR)
35.1
32.4
35.1
32.4
34.1
Produced and shipped wind turbines (MW)
3,653
2,719
10,277
9,358
11,666
Produced and shipped wind turbines (number)
774
649
2,046
2,073
2,554
Deliveries (MW)
4,162
3,641
8,299
8,789
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.
Page 5 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
Sustainability key figures
Q3 2024
LTM
Q3 2023
LTM
FY
2023
Environmental
Utilisation of resources
Consumption of energy (GWh)
652
624
658
- of which renewable energy (GWh)
207
195
213
- of which renewable electricity (GWh)
161
151
166
Renewable energy (%)
32
31
32
Renewable electricity for own activities
(%)
100
100
100
Withdrawal of fresh water (1,000 m³)
303
284
279
Waste
Volume of waste from own operations (1,000 t)
42
42
44
- of which collected for recycling (1,000 t)
28
27
30
Recyclability rate of hub and blade
1)
(%)
//
//
90
Material efficiency (tonnes of waste excl. recycled per MW produced and shipped)
1.1
1.2
1.2
Carbon emissions
Direct emissions of CO
2
e
(scope 1) (1,000 t)
108
104
108
Indirect emissions of CO
2
e
(scope 2) (1,000 t)
1
1
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)
454
409
396
Expected annual CO
2
e
avoided by the total aggregated installed fleet at the end of the period
(million t)
243
231
231
Social
Safety
Total Recordable Injuries per million working hours (TRIR)
2.8
3.0
3.0
Lost Time injuries per million working hours (LTIR)
1.1
1.2
1.3
Total Recordable Injuries (number)
225
212
216
- of which Lost Time Injuries (number)
88
83
91
- of which fatal injuries (number)
2
1
1
Employees
Average number of employees (FTEs)
Employees at the end of the period (FTEs)
33,678
29,986
30,586
Diversity and inclusion
Women in the Board and Executive Management at the end of the period (%)
38
21
21
Women in leadership positions at the end of the period (%)
2)
25
24
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 to remove seasonal fluctuations.
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 6 of 30
Interim Financial Report – Third Quarter 2024
Group financial performance
Income statement
Revenue
Revenue in the third quarter of 2024 amounted to EUR
5,177m (Q3 2023: EUR 4,353m), an increase of 18.9
percent year-on-year. Revenue in Power Solutions
increased with EUR 900m, driven by a higher volume of
MW delivered at higher average prices. Revenue from the
Service segment was on par with the same period last
year. Revenue for the third quarter of 2024 was negatively
impacted with approx. EUR 72m from foreign exchange
rates compared to 2023.
For the first nine months of the year, revenue amounted
to EUR 11,154m (9M 2023: EUR 10,611m), an increase
of 5.1 percent. Revenue in Power Solutions increased
with EUR 778m, while revenue in Service decreased with
EUR 123m following adjustments to planned costs of a
larger portfolio of service contracts in the second quarter
of 2024. Revenue for the first nine months of 2024 was
negatively impacted with EUR 112m from foreign
exchange rates compared to 2023.
Revenue and EBIT margin before special items
mEUR and percentage
Gross profit
Gross profit amounted to EUR 544m in the third quarter
of 2024, corresponding to a gross margin of 10.5 percent
(Q3 2023: EUR 351m; 8.1 percent), which is a 2.4
percentage point increase compared to the third quarter
of 2023. The increase was attributable to improved
profitability on projects in the Power Solutions segment,
partially offset by lower profitability in the Service
segment.
Gross profit in the first nine months of 2024 amounted to
EUR 944m, equal to a margin of 8.5 percent of revenue
(9M 2023: EUR 760m; 7.2 percent). Gross profit reflected
improved margins in the Power Solutions segment, offset
by the above-mentioned adjustment to planned costs in
the Service segment in the second quarter of 2024.
Warranty costs
Warranty costs amounted to EUR 313m in the third
quarter of 2024 (Q3 2023: EUR 262m). The warranty
costs are equivalent to a warranty ratio of 6.0 percent of
revenue and on the same level as last year (Q3 2023: 6.0
percent).
For the first nine months of 2024, warranty costs
amounted to EUR 575m (9M 2023: EUR 546m). The
warranty costs are equivalent to a warranty ratio of 5.2
percent of revenue and on the same level as last year (9M
2023: 5.1 percent).
Research and development costs, Distribution
costs and Administration costs
Total research and development, distribution and
administration costs amounted to EUR 310m in the third
quarter of 2024 (Q3 2023: EUR 295m), equivalent to 8.2
percent of revenue calculated over a 12-month period (Q3
2023: 8.5 percent).
Research and development costs amounted to EUR 99m
in the third quarter of 2024 and on the same level as last
year (Q3 2023: EUR 97m).
Distribution costs amounted to EUR 141m in the third
quarter of 2024 (Q3 2023: EUR 117m). The third quarter
of 2024 was affected by IT costs previously allocated to
administration and production cost. Disregarding the re-
allocated IT costs, the distribution costs would have been
on par with last year.
Administration costs amounted to EUR 70m in the third
quarter of 2024 (Q3 2023: EUR 81m). The decrease was
driven by lower IT costs allocated to distribution, partially
offset by higher employee-related costs.
Depreciation, amortisation, and impairment
In the third quarter of 2024, overall depreciation,
amortisation, and impairment before special items
amounted to EUR 209m (Q3 2023: EUR 194m). The
increase was attributable to higher investment levels in
the production area.
Operating profit (EBIT) before special items
EBIT before special items amounted to EUR 235m in the
third quarter of 2024, equivalent to an EBIT margin of 4.5
percent (Q3 2023: EUR 70m; 1.6 percent). The
development was driven by increasing gross margin.
For the first nine months of 2024, EBIT before special
items amounted to negative EUR 18m, equal to an EBIT
margin of negative 0.2 percent (9M 2023: EUR 40m; 0.4
percent). The operating profit in the first nine months of
2023 was impacted by the sale of the converters and
controls business. The underlying EBIT increased by 0.9
percentage points compared to the first nine months of
2023, when disregarding the effects of the sale in the
comparison period. The development was primarily
driven by the increasing gross margin.
Vestas Wind Systems A/S Page 7 of 30
Interim Financial Report – Third Quarter 2024
Operating profit (EBIT) after special items
In the third quarter of 2024, EBIT after special items
amounted to EUR 231m, equivalent to a margin of 4.5
percent (Q3 2023: EUR 69m; 1.6 percent).
EBIT after special items in the first nine months of 2024
amounted to negative EUR 21m, equivalent to an EBIT
margin after special items of negative 0.2 percent (9M
2023: EUR 67m; 0.6 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 11m in the third quarter of
2024 (Q3 2023: loss of EUR 9m), primarily driven by an
impairment of our investment in Blakliden Fäbodberget
Holding AB, partially offset by income from Vestas’
investment in Copenhagen Infrastructure Partners.
Net financial items
Financial items amounted to a net loss of EUR 36m in the
third quarter of 2024 (Q3 2023: loss of EUR 32m). Net
interests and other expenses related to financing
activities were on the same level as last year.
Income tax
Income tax amounted to an expense of EUR 57m in the
third quarter of 2024, equivalent to an effective tax rate of
31 percent (Q3 2023: effective tax rate of 0 percent). The
effective tax rate in the third quarter of 2023 reflected low
expectations to full-year profit before tax.
Net result for the period
The net result amounted to an income of EUR 127m in
the third quarter of 2024 (Q3 2023: income of EUR 28m).
The net result for the first nine months of 2024 amounted
to a loss of EUR 104m (first nine months of 2023: loss of
EUR 71m).
Financial ratios
Earnings per share calculated over a 12-month period
amounted to EUR 0 in the third quarter of 2024 (Q3 2023:
negative EUR 0.6). The increase of EUR 0.6 was driven
by improved earnings in the period.
Return on capital employed (ROCE) before special items
calculated over a 12-month period was 2.1 percent in the
third quarter of 2024 (Q3 2023: negative 7.3 percent), an
increase compared to 2023 driven by improved operating
profit in the period.
Working capital and free cash flow
Net working capital
Net working capital amounted to a net liability of EUR
1,118m as at 30 September 2024 (30 September 2023: a
net asset of EUR 291m). The development was primarily
attributable to a higher level of contract liabilities from
prepayments related to firm order intake and project
milestones achieved.
1)
Net investments in intangible assets and property, plant and equipment.
Cash flow from operating activities
Cash flow from operating activities was positive EUR 89m
in the third quarter of 2024 (Q3 2023: negative 31m) and
positive EUR 165m in the first nine months of 2024 (9M
2023: negative EUR 957m). The positive development in
cash flow compared to last year was primarily attributable
to the development in net working capital and the
improved operating profit.
Cash flow from investing activities
Total net investments
1
amounted to a net outflow of EUR
272m in the third quarter of 2024 (Q3 2023: outflow EUR
227m) and a net outflow of EUR 739m in the first nine
months of 2024 (9M 2023: net outflow of EUR 528m). The
investment level increased due to manufacturing ramp-up
of the V236-15.0 MW™ offshore platform.
Adjusted free cash flow
Adjusted free cash flow amounted to negative EUR 224m
in the third quarter of 2024 (Q3 2023 negative EUR 284m)
and negative EUR 699m in the first nine months of 2024
(9M 2023: negative EUR 1,707m). The positive
development was primarily driven by the improved cash
flow from operating activities.
Adjusted free cash flow
mEUR
Q3
2024
Q3
2023
9M
2024
9M
2023
Cash flow from
operating activities
89
(31)
165
(957)
Cash flow from
investing activities
(373)
(208)
(920)
(477)
Free cash flow
(284)
(239)
(755)
(1,434)
Net acquisitions in
businesses/activities*
)
2
5
(2)
(154)
Payment of lease
liabilities
(43)
(51)
(128)
(127)
Special items
-
-
2
4
Investments in financial
assets
101
1
184
4
Adjusted free cash
flow
(224)
(284)
(699)
(1,707)
*) Includes net investments in joint ventures and associates, outside core business
Vestas Wind Systems A/S Page 8 of 30
Interim Financial Report – Third Quarter 2024
Capital structure and financing items
Equity and solvency ratio
As at 30 September 2024, total equity amounted to EUR
2,919m (30 September 2023: EUR 2,981m) and the
solvency ratio 12.7 percent (30 September 2023: 14.3
percent). The lower solvency was mainly driven by the
development in contract liabilities.
Net interest-bearing position and cash position
As at 30 September 2024, the net interest-bearing debt
amounted to EUR 868m (30 September 2023: EUR
1,622m). The development was a result of a positive free
cash flow during the last 12 months.
Cash and cash equivalents amounted to EUR 2,197m as
at 30 September 2024, compared to EUR 1,696m at the
end of the third quarter of 2023.
The ratio net interest-bearing debt/EBITDA was 0.9 as at
30 September 2024, compared to 3.6 at the end of the
third quarter of 2023. The ratio was impacted by an
improved EBITDA during the last 12 months and lower
net interest-bearing debt.
Vestas Wind Systems A/S Page 9 of 30
Interim Financial Report – Third Quarter 2024
Power Solutions
Result for the period
In the third quarter of 2024, revenue from the Power
Solutions segment amounted to EUR 4,250m (Q3 2023:
EUR 3,415m), which corresponds to a 24.5 percent
increase compared to the third quarter of 2023. The
increase was driven by higher volume of MW delivered
at higher average prices. The third quarter reflected a
negative impact of EUR 65m from foreign exchange
rates compared to 2023.
In the first nine months of 2024, revenue in the Power
Solutions segment amounted to EUR 8,654m, an
increase of 8.7 percent compared to the same period last
year (9M 2023: EUR 7,963m). The increase was driven
by a higher average sales price on MW delivered. The
first nine months of the year reflected a negative impact
of EUR 87m from foreign exchange rates compared to
2023.
EBIT before special items amounted to EUR 177m in the
third quarter of 2024, equal to an EBIT margin of 4.2
percent (Q3 2023: negative EUR 38m; negative 1.1
percent). The positive development in the EBIT margin
was attributable to improved project profitability from
continued commercial discipline, good project execution
and benefits from operating leverage.
In the first nine months of 2024, EBIT before special
items amounted to EUR 27m, equal to an EBIT margin
before special items of 0.3 percent and 3.7 percentage
points above the same period last year (9M 2023:
negative EUR 267m, negative 3.4 percent). The EBIT
margin in the first nine months of 2023 included sale of
technology. Excluding the technology transaction, the
underlying EBIT margin increased by 5.6 percentage
points compared to same period last year, highlighting
improved margins from projects in the Power Solutions
segment.
Power Solutions revenue and EBIT margin before special
items
mEUR and percentage
Wind turbine order intake
In the third quarter of 2024, wind turbine order intake
amounted to 4,432 MW, corresponding to a value of
EUR 4.9bn (Q3 2023: 4,502 MW; EUR 4.9bn).
The average selling price per MW was EUR 1.10m in the
third quarter of 2024, compared to EUR 1.09m in the
third quarter of 2023.
Wind turbine order intake, third quarter 2024
MW
EMEA
Ameri-
cas
Asia
Pacific
Total
Onshore order
intake
1,298
1,068
461
2,827
Offshore order
intake
795
810
-
1,605
Total order
intake
2,093
1,878
461
4,432
Wind turbine deliveries
Deliveries to customers amounted to 4,162 MW in the
third quarter of 2024 (Q3 2023: 3,641 MW), which
corresponds to a 14.3 percent increase compared to the
third quarter of 2023. The increase was driven by higher
Onshore deliveries in Americas and EMEA.
Deliveries
MW
By the end of September 2024, Vestas had installed a
total capacity of 185 GW in 88 countries.
Vestas Wind Systems A/S Page 10 of 30
Interim Financial Report – Third Quarter 2024
Deliveries (onshore and offshore)
MW
Q3
2024
Q3
2023
FY
2023
Germany
600
420
1,486
Finland
387
362
723
France
235
126
735
United Kingdom
127
188
896
South Africa
89
19
37
Ireland
85
34
36
Sweden
64
109
165
Spain
59
22
177
Italy
58
104
265
Austria
35
72
197
Poland
34
32
292
Croatia
21
-
-
Curaçao
18
-
-
Belgium
13
-
65
Greece
9
10
161
Lithuania
5
24
68
Romania
5
-
72
Denmark
1
40
53
Czech Republic
-
-
9
Egypt
-
11
145
Netherlands
-
62
287
Portugal
-
18
107
Turkey
-
9
32
United Arab Emirates
-
12
42
Estonia
-
38
101
EMEA
1,845
1,712
6,151
o/w Offshore
208
27
563
USA
852
750
2,079
Brazil
453
381
1,635
Canada
403
164
275
Argentina
194
132
420
Chile
14
(1)
*)
41
Colombia
-
(2)
*)
332
Dominican Rep.
-
-
18
Puerto Rico
-
-
11
Mexico
-
1
1
Americas
1,916
1,425
4,812
o/w Offshore
-
-
-
Australia
184
183
822
Taiwan
168
245
458
China
42
13
21
India
6
3
193
Japan
1
3
95
New Zealand
-
41
84
South Korea
-
-
21
Sri Lanka
-
-
6
Vietnam
-
3
9
Philippines
-
13
13
Asia Pacific
401
504
1,722
o/w Offshore
170
227
452
Total
4,162
3,641
12,685
o/w Offshore
378
254
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 third quarter of 2024, the wind turbine
order backlog amounted to 27,333 MW, which
corresponds to a value of EUR 28.3bn (30 September
2023: 20,966 MW / EUR 21.6bn), of which EUR 7.0bn
relates to Offshore wind power projects (30 September
2023: EUR 4.6bn). The development reflects a high level
of Onshore order intake in the USA and Germany as well
as significant offshore order intake in the Netherlands.
Order backlog per region
MW
EMEA
Ameri-
cas
Asia
Pacific
Total
Total backlog as at 30
September 2023
9,858
8,012
3,096
20,966
Order intake
8,874
7,863
1,839
18,576
Deliveries
(5,365)
(5,043)
(1,801)
(12,209)
Total backlog as at 30
September 2024
13,367
10,832
3,134
27,333
o/w Offshore
4,379
810
537
5,726
Development business
At the end of third quarter of 2024, Vestas’ pipeline of
development projects amounted to 27.7 GW (30
September 2023: 29.9 GW). The pipeline includes 14.7
GW in APAC, 7.8 GW in Americas and 5.2 GW in EMEA,
with Australia, the USA, and Brazil being the countries
with the largest project pipelines. During the quarter,
Vestas secured 0.1 GW of new pipeline projects, mainly
in Latvia.
Vestas Wind Systems A/S Page 11 of 30
Interim Financial Report – Third Quarter 2024
Service
Result for the period
The Service segment generated revenue of EUR 927m
in the third quarter of 2024 which was on par with the
third quarter of 2023 (Q3 2023: EUR 938m). Contract
activity was slightly lower than last year, while
transactional sales in Americas was above last year. The
third quarter reflected a negative impact of EUR 7m from
foreign exchange rates compared to 2023.
In the first nine months of 2024, revenue from the
Service segment amounted to EUR 2,500m (9M 2023:
EUR 2,648m), a 5.6 percent decrease compared to first
nine months of 2023. The lower revenue was primarily
driven by adjustments to planned costs of a larger
portfolio of service contracts in the second quarter of
2024, reflecting increasing cost levels. Foreign
exchange rates had a negative effect of EUR 25m on
revenue growth.
Service revenue and EBIT margin before special items
mEUR and percentage
EBIT before special items amounted to EUR 148m in
the third quarter of 2024, corresponding to an EBIT
margin of 16.0 percent, lower than the same period last
year (Q3 2023: EUR 197m; 21.0 percent). The lower
margin was primarily driven by higher cost levels in
EMEA and Americas.
In the first nine months of 2024, EBIT before special
items amounted to EUR 233m with an EBIT margin of
9.3 percent, a 12.5 percentage point decrease
compared to the first nine months of 2023 (9M 2023:
EUR 578m; 21.8 percent). The negative development
compared to the first nine months of 2023 was
attributable to the above-mentioned adjustments to
planned costs of a larger portfolio of service contracts
in the second quarter of 2024.
Wind turbines under service
At the end of September 2024, Vestas had around
56,000 wind turbines under service, equivalent to 154
GW.
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 third
quarter 2024.
Service order backlog
At the end of September 2024, Vestas had service
contracts in the order backlog with expected
contractual future revenue of EUR 35.1bn, an increase
of EUR 2.7bn, compared to end of the third quarter last
year (30 September 2023: EUR 32.4bn). The order
backlog increased EUR 0.7bn from indexation
mechanisms in contracts.
Service order backlog
bnEUR
At the end of the quarter, the average duration of
contracts in the service order backlog was 11 years (30
September 2023: 11 years).
.
Page 12 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
Sustainability
The Vestas Sustainability Strategy
Vestas has been leading the transition to a world
powered by sustainable energy for over four decades. 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.
For our key sustainability figures (page 5), we have since
1 January 2024 transitioned to present most figures on a
Last-Twelve Month (LTM) basis. The transition to LTM
covers all four KPIs related to our sustainability strategy.
Presenting our figures in this manner provides us with an
enhanced long-term outlook on progress by removing
seasonal fluctuations.
Carbon footprint
Turbines produced and shipped in the last twelve months
are expected to avoid 454 million tonnes of CO
2
e over
the course of their lifetime. This is an increase of 45
million tonnes, and an 11 percent improvement, from the
comparable last twelve months the year prior. This
improvement is driven partly by a 2 percent rise in
volume produced and shipped, and in part by improved
assumptions in terms of accounting, where the average
lifetime of a turbine has increased from 22.2 years to
23.7 years.
In the last 12 months, our total scope 1 and 2 emissions
increased to 109,000 tonnes from 105,000 tonnes. This
reflects a 4 percent increase compared to the
comparable last 12 months the year prior. The increase
in our total scope 1 and 2 emissions is driven by an
increase in service and production activity in the UK.
Scope 3 emissions are reported annually in the Annual
Report.
Circularity
In the last 12 months, our material efficiency rate,
meaning the volume of non-recycled waste per MW
produced and shipped, decreased to 1.1 tonnes,
compared to 1.2 tonnes in the comparable period a year
ago. The improvement stems from higher recycling rates,
primarily driven by new blade technology.
In total, our recycling rate is 67 percent in the period,
demonstrating that our performance continues to be on
track to meet our 2025 target of 70 percent recycling.
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 year-on-year reduction from
2019.
On 2
September 2024, we suffered a fatality of a Vestas
technician at a wind farm in Texas, USA. With the fatality
of a contractor under Vestas’ supervision in the second
quarter 2024, two fatal injuries have been recorded
within the last twelve months.
Any fatality in Vestas’
operations is one too many, and we are taking the
necessary measures to understand and further learn
from the incidents.
In the last 12 months, our TRIR decreased to 2.8
compared to 3.0 in the comparable 12 months the year
prior. The 7 percent reduction is driven by an
improvement in the accuracy of our accounting of
working hours. We continue to improve our
understanding of Health and Safety controls,
operationally ensuring we proactively assess and
improve their effectiveness as well as rolling out broad
based Safety leadership programs. We will continue to
seek to improve performance by maintaining an
operational safety focus across our entire value chain.
Incidence of total recordable injuries (LTM)
Per million working hours
Page 13 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
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
Page 14 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
Outlook 2024
Vestas maintains the expectations to revenue of EUR
16.5bn-17.5bn and EBIT margin before special items of
4-5 percent. The EBIT margin before special items is
now more likely at the lower end of the range.
The outlook for total investments
1
has been adjusted to
approx. EUR 1.0bn (previously approx. EUR 1.2bn).
The Service segment is now expected to generate EBIT
before special items of around EUR 450m in 2024
(previously around EUR 500m).
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
New
Guidance
Previous
guidance
2
Initial
guidance
Revenue
(bnEUR)
16.5-17.5 16.5-17.5 16-18
EBIT margin (%)
b.s.i.
4-5 4-5 4-6
Total
investments
1
(bnEUR)
approx.1.0 approx.1.2 approx.1.2
1
Net investments in intangible assets and property, plant and equip-
ment.
2
Guidance announced on 12 August 2024.
Financial calendar 2025
05.02.2025
Disclosure of the Annual Report 2024
24.02.2025
Deadline for the company’s shareholders to submit
a written request to the Board of Directors that a
specific matter be included in the agenda for the
Annual General Meeting
07.03.2025
Convening for Annual General Meeting
08.04.2025
Annual General Meeting in Aarhus, Denmark
06.05.2025
Disclosure of the Interim report, Q1 2025
13.08.2025
Disclosure of the Interim report, Q2 2025
05.11.2025
Disclosure of the Interim report, Q3 2025
The financial calendar lists the expected dates of
disclosure of quarterly and annual results, and the
Annual General Meeting in the financial year 2025 for
Vestas Wind Systems A/S.
Page 15 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
Consolidated financial statements 1 January – 30 September
Condensed income statement 1 January – 30 September
mEUR
Note
Q3
2024
Q3
2023
9M
2024
9M
2023
Revenue
1.1, 1.2
Production costs
(4,633 )
(4,002 )
(10,210 )
(9,851 )
Gross profit
Research and development costs
(99 )
(97 )
(273 )
(271 )
Distribution costs
(141 )
(117 )
(396 )
(335 )
Administration costs
(70 )
(81 )
(294 )
(300 )
Sale of technology
1.3
Income from investments in joint ventures and associates
Operating profit/(loss) (EBIT) before special items 1.1 235 70
(18 )
Special items
1.4
(4 )
(1 )
(3 )
Operating profit/(loss) (EBIT) 231 69
(21 )
Income from investments in joint ventures and associates
(11 )
(9 )
(6 )
(14 )
Net financial items
(36 )
(32 )
(124 )
(124 )
Profit/(loss) before tax
(151 )
(71 )
Income tax
(57 )
Profit/(loss) for the period
(104 )
(71 )
Profit/(loss) is attributable to:
Shareholders of Vestas Wind Systems A/S
(99 )
(71 )
Non-controlling interests
(1 )
(5 )
Earnings per share (EPS)
Earnings per share for the period (EUR), basic
(0.10 )
(0.07 )
Earnings per share for the period (EUR), diluted
(0.10 )
(0.07 )
Condensed statement of comprehensive income 1 January – 30 September
mEUR
Q3
2024
Q3
2023
9M
2024
9M
2023
Profit/(loss) for the period
(104 )
(71 )
Items that may be reclassified to the income statement subsequently:
Exchange rate adjustments relating to foreign entities
(40 )
(21 )
(36 )
Fair value adjustments of derivative financial instruments for the period
(116 )
Gain/(loss) on derivative financial instruments transferred to the income statement
(13 )
(19 )
(60 )
(105 )
Share of fair value adjustments of derivative financial instruments of joint ventures and
associates
(2 )
(1 )
Tax on items that may be reclassified to the income statement subsequently
(14 )
(19 )
(10 )
Other comprehensive income after tax for the period
(140 )
(7 )
Total comprehensive income for the period
(13 )
(88 )
(78 )
The above condensed statement of comprehensive income should be read in conjunction with the accompanying notes.
Page 16 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
Condensed balance sheet – Assets
mEUR
Note
30 September
2024
30 September
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.
Page 17 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
Condensed balance sheet – Equity and liabilities
mEUR
Note
30 September
2024
30 September
2023
31 December
)
2023
Share capital
3.1
Other reserves
(98 )
(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.
Page 18 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
Condensed statement of changes in equity – nine 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
(99 )
(5 )
(104 )
Other comprehensive income for the period
(23 )
(1 )
Total comprehensive income for the period
(23 )
(1 )
(99 )
(3 )
(88 )
Transfer of cash flow hedge reserve to the initial
carrying amount of hedged items
(10 )
(10 )
(10 )
Transaction with shareholders:
Acquisition of treasury shares
(40 )
(40 )
Share-based payments
Tax on equity transactions
(5 )
(5 )
Total transactions with shareholders
(25 )
(25 )
Equity as at 30 September 2024
(103 )
(98 )
Condensed statement of changes in equity – nine 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
(72 )
(71 )
Other comprehensive income for the period
(34 )
(5 )
(2 )
(7 )
Total comprehensive income for the period
(34 )
(5 )
(72 )
(1 )
(78 )
Transfer of cash flow hedge reserve to the initial
carrying amount of hedged items
(4 )
(4 )
(4 )
Transaction with shareholders:
Acquisition of treasury shares
(11 )
(11 )
Share-based payments
Tax on equity transactions
(3 )
(3 )
Total transactions with shareholders
Equity as at 30 June 2023
(24 )
The above condensed statement of changes in equity should be read in conjunction with the accompanying notes.
Page 19 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
Condensed cash flow statement 1 January – 30 September
mEUR
Note
Q3
2024
Q3
2023
9M
2024
9M
2023
Profit/(loss) for the period
(104 )
(71 )
Adjustment for non-cash transactions
Interest paid / received, net
(23 )
(7 )
(38 )
(8 )
Income tax paid
(78 )
(34 )
(157 )
(87 )
Cash flow from operating activities before change in net working
capital
Change in net working capital
(482 )
(368 )
(403 )
(1,679 )
Cash flow from operating activities
(31 )
(957 )
Purchase of intangible assets
(100 )
(103 )
(329 )
(291 )
Purchase of property, plant and equipment
(172 )
(124 )
(423 )
(295 )
Proceeds from sale of intangible assets
Proceeds from sale of property, plant and equipment
Dividends from investments in joint ventures and associates
Purchase of shares in joint ventures and associates
(4 )
(1 )
(10 )
Purchase of other non-current financial assets
(102 )
(231 )
(5 )
Proceeds from sale of other non-current financial assets
Proceeds from sale of investments in joint ventures and associates
(1 )
(1 )
Purchase/disposal of financial investments
(4 )
(4 )
Net cash flow from deconsolidation of subsidiary
(8 )
Cash flow from investing activities
(373 )
(208 )
(920 )
(477 )
Free cash flow
(284 )
(239 )
(755 )
(1,434 )
Payment of lease liabilities
(43 )
(50 )
(128 )
(126 )
Proceeds from borrowings
Payment of financial debt
(121 )
(27 )
(227 )
(177 )
Acquisition of treasury shares
(40 )
(11 )
Cash flow from financing activities
(143 )
(330 )
Net change in cash and cash equivalents
(427 )
(1,085 )
(650 )
Cash and cash equivalents at the beginning of period
Exchange rate adjustments of cash and cash equivalents
(12 )
(3 )
(36 )
(32 )
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.
Page 20 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
Notes
1 Result for the period
1.1 Segment information
In the third quarter of 2024, a net loss of EUR 4m was recognised in special items from other expenses related to the
Russian invasion of Ukraine.
mEUR
Power
Solutions
Service
Not
allocated
Total Group
Q3 2024
Revenue
4,250
927
-
5,177
Income from investments in joint ventures and associates
1
-
-
1
Total income
4,251
927
-
5,178
Total costs
(4,074)
(779)
(90)
(4,943)
Operating profit/(loss) (EBIT) before special items
177
148
(90)
235
Special items
(4)
-
-
(4)
Operating profit/(loss) (EBIT)
173
148
(90)
231
Income from investments in joint ventures and associates
-
-
(11)
(11)
Net financial items
-
-
(36)
(36)
Profit/(loss) before tax
184
Amortisation and depreciation included in total costs
(154)
(42)
(13)
(209)
mEUR
Power
Solutions
Service
Not
allocated
Total Group
Q3 2023
Revenue
3,415
938
-
4,353
Income from investments in joint ventures and associates
14
-
-
14
Total income
3,429
938
-
4,367
Total costs
(3,467)
(741)
(89)
(4,297)
Operating profit/(loss) (EBIT) before special items
(38)
197
(89)
70
Special items
(1)
-
-
(1)
Operating profit/(loss) (EBIT)
(39)
197
(89)
69
Income from investments in joint ventures and associates
-
-
(9)
(9)
Net financial items
-
-
(32)
(32)
Profit/(loss) before tax
28
Amortisation and depreciation included in total costs
(147)
(37)
(10)
(194)
Page 21 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
1.1 Segment information (continued)
In the first nine months of 2024, revenue in the Service segment was negatively impacted by EUR 312m from second
quarter adjustments to planned costs of ongoing service contracts. The adjustments relate to an increase in the expected
total cost to complete the service contracts, primarily driven by updated cost forecasts as well as the expected future impact
from cost-out initiatives.
In the first nine months of 2024, a net loss of EUR 3m was recognised in special items primarily from other expenses
related to the Russian invasion of Ukraine which was partially offset by a net income of EUR 1m related to the adjustment
of the manufacturing footprint in India.
In the first nine months 2023, a net income of EUR 27m was recognised in special items relating to the adjustment of the
manufacturing footprint in India as well as the Russian invasion of Ukraine, impacting the Power Solutions segment. For
additional information, refer to note 1.4.
In the first nine months 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
9M 2024
Revenue
8,654
2,500
-
11,154
Income from investments in joint ventures and associates
1
-
-
1
Total income
8,655
2,500
-
11,155
Total costs
(8,628)
(2,267)
(278)
(11,173)
Operating profit/(loss) (EBIT) before special items
27
233
(278)
(18)
Special items
(3)
-
-
(3)
Operating profit/(loss) (EBIT)
24
233
(278)
(21)
Income from investments in joint ventures and associates
-
-
(6)
(6)
Net financial items
-
-
(124)
(124)
Profit/(loss) before tax
(151)
Amortisation and depreciation included in total costs
(474)
(124)
(35)
(633)
mEUR
Power
Solutions
Service
Not allocated
Total
Group
9M 2023
Revenue
7,963
2,648
-
10,611
Sale of technology
147
-
-
147
Income from investments in joint ventures and associates
39
-
-
39
Total income
8,149
2,648
-
10,797
Total costs
(8,416)
(2,070)
(271)
(10,757)
Operating profit/(loss) (EBIT) before special items
(267)
578
(271)
40
Special items
27
-
-
27
Operating profit/(loss) (EBIT)
(240)
578
(271)
67
Income from investments in joint ventures and associates
-
-
(14)
(14)
Net financial items
-
-
(124)
(124)
Profit/(loss) before tax
(71)
Amortisation and depreciation included in total costs
(450)
(110)
(32)
(592)
Page 22 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
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
Q3
2024
Q3
2023
Q3
2024
Q3
2023
Q3
2024
Q3
2023
Timing of revenue recognition
Products and services transferred at a point in time
2,906
2,515
166
121
3,072
2,636
Products and services transferred over time
1,344
900
761
817
2,105
1,717
4,250
3,415
927
938
5,177
4,353
Revenue from contract types
Supply-only (at a point in time)
1,407
780
-
-
1,407
780
Supply-and-installation (at a point in time)
1,499
1,735
-
-
1,499
1,735
Supply-and-installation (over time)
959
694
-
-
959
694
Turnkey (EPC) (over time)
385
206
-
-
385
206
Service (over time, spare parts at a point in time)
-
-
927
938
927
938
4,250
3,415
927
938
5,177
4,353
Primary geographical markets
EMEA
1,925
1,554
488
516
2,413
2,070
Americas
1,816
1,313
354
345
2,170
1,658
Asia Pacific
509
548
85
77
594
625
4,250
3,415
927
938
5,177
4,353
Page 23 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
1.2 Revenue (continued)
mEUR Power Solutions Service Total
9M
2024
9M
2023
9M
2024
9M
2023
9M
2024
9M
2023
Timing of revenue recognition
Products and services transferred at a point in time
5,579
5,304
426
332
6,005
5,636
Products and services transferred over time
3,075
2,659
2,074
2,316
5,149
4,975
8,654
7,963
2,500
2,648
11,154
10,611
Revenue from contract types
Supply-only (at a point in time)
1,834
1,430
-
-
1,834
1,430
Supply-and-installation (at a point in time)
3,745
3,874
-
-
3,745
3,874
Supply-and-installation (over time)
2,145
2,142
-
-
2,145
2,142
Turnkey (EPC) (over time)
930
517
-
-
930
517
Service (over time, spare parts at point in time)
-
-
2,500
2,648
2,500
2,648
8,654
7,963
2,500
2,648
11,154
10,611
Primary geographical markets
EMEA
4,032
4,098
1,292
1,403
5,324
5,501
Americas
3,238
2,751
963
1,023
4,201
3,774
Asia Pacific
1,384
1,114
245
222
1,629
1,336
8,654
7,963
2,500
2,648
11,154
10,611
1.3 Sale of technology
There was no sale of technology during the first nine months of 2024. During the first nine months of 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
Q3
2024
Q3
2023
9M
2024
9M
2023
Write-down of inventory
-
(3)
-
30
Provisions
-
-
-
(1)
Impairment loss on intangible and tangible assets
-
2
-
4
Other costs
(4)
-
(3)
(7)
Staff costs
-
-
-
(1)
Derecognition of net assets in Russia
-
-
-
2
Special items
(4)
(1)
(3)
27
During the first nine months of 2024, a net loss of EUR 3m was recognised in special items primarily from other expenses
related to the Russian invasion of Ukraine which was partially offset by a net income of EUR 1m related to the adjustment
of the manufacturing footprint in India.
During the first nine months of 2023, a net income of EUR 27m was recognised in special items. The adjustment of the
manufacturing footprint in India resulted in net income of EUR 32m. This was offset by net expense of EUR 5m 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 nine months of 2024, Vestas acquired assets with a cost of EUR 423m mainly related to manufacturing blade
moulds, transport equipment, and construction tools, compared to EUR 295m in the first nine months of 2023.
Page 24 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
Lease contracts recognised as right-of-use assets during the first nine months of 2024 amounted to EUR 250m mainly
related to extension of a test rig and new vessel leases, compared to EUR 212m in the first nine months of 2023.
2.2 Warranty provisions (included in provisions)
mEUR
30 September
2024
30 September
2023
31 December
2023
Warranty provisions, 1 January
1,747
1,490
1,490
Provisions for the period
568
564
845
Warranty provisions consumed during the period
(375)
(366)
(588)
Warranty provisions
1,940
1,688
1,747
The provisions are expected to be payable as follows:
Non-current
1,136
996
1,031
Current
804
692
716
1,940
1,688
1,747
During the first nine months of 2024, net warranty provisions charged to the income statement was EUR 575m (EUR
546m in the first nine months of 2023), equivalent to 5.2 percent of revenue. The net amount consists of a gross warranty
provision of EUR 568m plus a net adjustment to supplier claims of EUR 7m.
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.
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)
30 September
2024
30 September
2023
31 December
2023
Treasury shares as at 1 January
678,721
737,940
737,940
Purchases for the period
328,300
79,785
79,785
Vested treasury shares for the period
(186,092)
(139,004)
(139,004)
Treasury shares
820,929
678,721
678,721
Each share has a nominal value of DKK 0.20.
3.2 Cash and cash equivalents
mEUR
30 September
2024
30 September
2023
31 December
2023
Cash and cash equivalents without disposal restrictions
2,165
1,666
3,288
Cash and cash equivalents with disposal restrictions
32
30
30
Cash and cash equivalents
2,197
1,696
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.
Page 25 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
As at 30 September 2024, Vestas had EUR 2,197m 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 30 September 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.
3.4 Financial instruments
Financial investments consist of interest-bearing investments which do not meet the definition for cash and cash
equivalents. As at 30 September 2024, financial investments comprised marketable securities with a fair value of EUR
102m and deposits with fair value of EUR 159m, equal to booked value.
Derivative financial instruments were positive with a market value of net EUR 25m, equal to book value, and were
recognised in other receivables and other liabilities with EUR 371m and EUR 346m, respectively.
As at 30 September 2024, the carrying amount of the sustainability-linked bonds issued by Vestas amounted to EUR
1,984m and the fair value amounted to EUR 1,930m.
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.
4 Other disclosures
4.1 Related party transactions
Vestas has had the following material transactions with joint ventures and associates:
mEUR
Q3
2024
Q3
2023
9M
2024
9M
2023
Joint ventures
Revenue for the period
-
26
-
28
Proceeds from investments in joint ventures
1
7
1
12
Capital increase
0
1
0
5
Trade receivable as at 30 September
-
20
-
20
Other assets as at 30 September
11
11
11
11
Associates
Revenue for the period
1
-
3
2
Proceeds from investments in associates
1
0
4
1
Capital increase
0
-
1
2
Trade receivable as at 30 September
12
-
12
-
Other assets as at 30 September
2
26
2
26
Contract liabilities as at 30 September
1
5
1
5
Payable capital contribution as at 30 September
-
8
-
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
As announced on 10 October 2024, arbitration claims regarding contracts in Russia, which were entered into before the
Russian invasion of Ukraine, were settled. The settlement entails that both companies waive past, present and future
claims related to the dispute at hand. The financial impact of the settlement will be recorded in special items in October
2024.
Page 26 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
Other than the events recognised or disclosed in the Interim Financial Report, no events have occurred subsequent to 30
September 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.
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
• Supplier Finance Arrangements – amended IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments:
Disclosures
Vestas did not have to change its accounting policies or make retrospective adjustments as a result of adopting these new
and amended standards.
Page 27 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
Statement by the Board of
Directors and the Executive
Management
Page 28 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
Executive Management
Board of Directors
)
)
)
*) Employee representative
Page 29 of 30
Vestas Wind Systems A/S
Interim Financial Report – Third Quarter 2024
Vestas Wind Systems A/S Page 30 of 30
Interim Financial Report – Third Quarter 2024
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.