Vestas Wind Systems A/S, Aarhus, 8 February 2023
Company announcement no. 02/2023

Vestas Annual Report 2022 - A challenging year with negative profitability

Summary: Vestas' 2022 revenue amounted to EUR 14,486m (outlook: EUR 14.5-15.5bn), with an EBIT margin before special items of (8) percent (outlook: approx. (5) percent), and total investments[1]of EUR 758m (outlook: approx. EUR 850m). The value of the combined order backlog increased to EUR 49.5bn across Power Solutions and Service.

As announced on 27 January 2023, Vestas' outlook for 2023 is as follows: Revenue is expected to range between EUR 14.0bn and 15.5bn, including Service revenue. Vestas expects to achieve an EBIT margin before special items of (2)-3 percent, and total investments[1 ]are expected to amount to approx. EUR 1bn in 2023.

In addition to what has already been communicated, revenue in the Service segment is expected to grow by min. 5 percent in 2023, with a service EBIT margin of approx. 22 percent.

The Board of Directors of Vestas Wind Systems A/S proposes to the Annual General Meeting that no dividend payment will be distributed to the shareholders in 2023.  

Henrik Andersen, Group President & CEO said: "Vestas and the wind industry remained challenged in 2022 as external headwinds and industry immaturity hampered profitability and resulted in unsatisfying financial results for the full year. In a business environment characterised by unforeseen geo-political uncertainty, high inflation, and supply chain constraints, Vestas' more than 28,000 employees helped achieve EUR 14.5bn in revenue, 13.3 GW of deliveries and a firm order intake of 11.2 GW. Through strong commercial discipline, we managed to raise the average selling price with 29 percent to EUR 1.07m/MW and finished the year with an all-time high order intake in terms of value in the fourth quarter. Our Service business progressed well and grew 27 percent year-over-year, continuing to increase its positive contribution to our revenue and earnings. In 2022, we also made strategic progress within Offshore by securing more than 5 GW of preferred supplier agreements for the V236-15.0 MW turbine, while a technological milestone was reached when the V236-15.0 MW prototype produced its first kWh in late December. Our Development business also progressed well by securing 13 GW of new pipeline. Throughout 2022, increasing costs, product impairments and increased warranty provisions heavily impacted our profitability and resulted in an EBIT margin of minus 8 percent. Everyone at Vestas is therefore fully focused on returning to profitability in 2023 to reaffirm that we are on the right strategic path. Building a sustainable, scalable, and profitable wind industry also requires we continue to build industry maturity and commercial discipline, and we want to say a special thanks to our shareholders for their continuous support during these challenging times."

Key highlights
Revenue of EUR 14.5bn
Revenue decline compared with 2021 driven by Russia/Ukraine exit as well as project delays.

EBIT margin of (8) percent
EBIT hampered by supply chain disruptions, inflation, higher warranty provisions and offshore impairments.

Total order intake of 11.2 GW with ASP of EUR 1.07m/MW
Wind turbine order intake in GW down 19 percent but increased 3 percent in value due to strong price increases.

Strong performance in Service
27 percent revenue growth in 2022 at 21.4 percent EBIT margin.

Sustainability progress and recognition
Our circularity solution for wind turbine blades creates industry break-through; #2 Corporate Knights ranking.

Strategy reaffirmed with progress within core areas and business enablers
Restoring profitability in turbine segment remains the focus while building industry discipline and maturity.

1) Excl. acquisitions of subsidiaries, joint ventures, and associates, and financial investments.

Information meeting (audiocast)

On Wednesday 8 February 2023 at 10 am CET (9 am GMT), Vestas will host an information meeting via an audiocast.

• Europe: +44 808-101-1183
• USA: +1 785-424-1738
• Denmark: +45 7877 4197

Conference PIN code:  22677#

The presentation used at the information meeting will be available approximately one hour before the meeting and can be found at www.vestas.com/en/investor, together with the link to the audiocast.
Attached to this release is the Vestas Annual Report 2022 (pdf) as well as the full Company Announcement (pdf), which also includes the condensed key figures for full year and fourth quarter and long-term financial ambitions. A ZIP file comprising an xHTML version of the report made in accordance with the European Single Electronic Format, is also attached hereto.

The Vestas Sustainability Report 2022 can be downloaded here (https://www.vestas.com/content/dam/vestas-com/global/en/sustainability/reports-and-ratings/sustainability-reports/sustainability-report-2022.pdf.coredownload.inline.pdf).

Contact details
Vestas Wind Systems A/S

Investors/analysts: Media:
Mathias Dalsten, Vice President Anders Riis, Vice President
Investor Relations Communications
Tel: +45 2829 5383 Tel: +45 4181 3922