Vestas Wind Systems A/S - Revision history

95.149.161.192 at 16:26, 28 July 2023

2023-07-28T16:26:17Z

← Older revision		Revision as of 17:26, 28 July 2023
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	== ~~Summary~~ ==		{{Infobox company
			\| name = Vestas Wind Systems A/S
			\| logo = Vestas.svg
			\| logo_size = 250px
			\| image = File:Vestas - Hovedbygning i Aarhus.jpg
			\| image_size = 250px
			\| image_alt =
			\| image_caption = Global headquarters in [[Aarhus]], Denmark
			\| type = [[Public company\|Public]] (''[[Aktieselskab]]'')
			\| traded_as = {{OMX\|CSE3258\|VWS}}
			\| foundation = {{start date and age\|1945}}
			\| founder = Peder Hansen
			\| location_city = [[Aarhus]]
			\| location_country = [[Denmark]]
			\| key_people = {{ubl\|Henrik Andersen<br />(Group President & CEO)\|Bert Nordberg<br />(Chairman)}}
			\| industry = [[Electrical equipment]]
			\| products = [[Wind turbine]]s
			\| revenue = {{increase}} {{€\|15.59 billion\|link=yes}} (2021)<ref name="AR2021">{{cite web \|url=https://www.vestas.com/content/dam/vestas-com/global/en/investor/reports-and-presentations/financial/2021/vestas-annual-report-2021.pdf.coredownload.inline.pdf \|title=Annual report 2021 \|website=Vestas Wind Systems A/S \|pages=8–9}}</ref>
			\| operating_income = {{decrease}} €322 million (2021)<ref name="AR2021" />
			\| net_income = {{decrease}} €176 million (2021)<ref name="AR2021" />
			\| assets = {{increase}} €19.71 billion (2021)<ref name="AR2021" />
			\| equity = {{increase}} €4.76 billion (2021)<ref name="AR2021" />
			\| num_employees = {{formatnum:29427}} (end 2021)<ref name="AR2021" />
			\| website = {{URL\|vestas.com}}
			}}

	Vestas Wind Systems A/S designs, manufactures, installs, and services wind turbines worldwide. The company operates in two, Power Solutions and Service. The Power Solutions segment sells wind power plants, wind turbines, development sites, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. The company was founded in 1898 and is headquartered in Aarhus, Denmark.		Vestas Wind Systems A/S designs, manufactures, installs, and services wind turbines worldwide. The company operates in two, Power Solutions and Service. The Power Solutions segment sells wind power plants, wind turbines, development sites, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. The company was founded in 1898 and is headquartered in Aarhus, Denmark.

>Mahsasheikhi: /* Risks */

2023-07-28T12:37:59Z

Risks

← Older revision		Revision as of 13:37, 28 July 2023
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	Vestas achieved a significant milestone by issuing the first sustainability-linked bonds in Denmark, totalling EUR 1 billion. This ground-breaking initiative integrates sustainability with financial targets, reinforcing Vestas' commitment to environmental responsibility. The bonds' fixed rate is directly tied to the company's progress in three crucial areas: reducing carbon footprint in its operations , lowering carbon intensity in the supply chain, and increasing material efficiency. By openly sharing the full sustainability-linked bond framework on their corporate website, Vestas demonstrates transparency and accountability to stakeholders. This move enables investors and shareholders to actively engage with Vestas' efforts to minimise negative environmental impacts and promote sustainability. The innovative financing approach allows Vestas to accelerate the green transition while broadening its investor base and reducing execution risk. This bold step exemplifies Vestas' leadership in integrating sustainability into their business strategy and sets a clear path for other companies to follow suit.		Vestas achieved a significant milestone by issuing the first sustainability-linked bonds in Denmark, totalling EUR 1 billion. This ground-breaking initiative integrates sustainability with financial targets, reinforcing Vestas' commitment to environmental responsibility. The bonds' fixed rate is directly tied to the company's progress in three crucial areas: reducing carbon footprint in its operations , lowering carbon intensity in the supply chain, and increasing material efficiency. By openly sharing the full sustainability-linked bond framework on their corporate website, Vestas demonstrates transparency and accountability to stakeholders. This move enables investors and shareholders to actively engage with Vestas' efforts to minimise negative environmental impacts and promote sustainability. The innovative financing approach allows Vestas to accelerate the green transition while broadening its investor base and reducing execution risk. This bold step exemplifies Vestas' leadership in integrating sustainability into their business strategy and sets a clear path for other companies to follow suit.

	== Risks ==		== '''Risks''' ==

>Mahsasheikhi: /* Summary */

2023-07-28T12:37:05Z

Summary

← Older revision		Revision as of 13:37, 28 July 2023
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	Vestas Wind Systems A/S designs, manufactures, installs, and services wind turbines worldwide. The company operates in two, Power Solutions and Service. The Power Solutions segment sells wind power plants, wind turbines, development sites, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. The company was founded in 1898 and is headquartered in Aarhus, Denmark.		Vestas Wind Systems A/S designs, manufactures, installs, and services wind turbines worldwide. The company operates in two, Power Solutions and Service. The Power Solutions segment sells wind power plants, wind turbines, development sites, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. The company was founded in 1898 and is headquartered in Aarhus, Denmark.
	[[File:Vestas .jpg\|thumb\|991x991px]]		[[File:Vestas .jpg\|thumb\|991x991px]]

>Mahsasheikhi: /* Business Description */

2023-07-28T12:36:46Z

Business Description

← Older revision		Revision as of 13:36, 28 July 2023
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	Vestas Wind Systems A/S designs, manufactures, installs, and services wind turbines worldwide. The company operates in two, Power Solutions and Service. The Power Solutions segment sells wind power plants, wind turbines, development sites, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. The company was founded in 1898 and is headquartered in Aarhus, Denmark.		Vestas Wind Systems A/S designs, manufactures, installs, and services wind turbines worldwide. The company operates in two, Power Solutions and Service. The Power Solutions segment sells wind power plants, wind turbines, development sites, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. The company was founded in 1898 and is headquartered in Aarhus, Denmark.
	[[File:Vestas .jpg\|thumb\|991x991px]]		[[File:Vestas .jpg\|thumb\|991x991px]]

>Mahsasheikhi: /* Summary */

2023-07-28T12:36:23Z

Summary

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 Vestas Wind Systems A/S designs, manufactures, installs, and services wind turbines worldwide. The company operates in two, Power Solutions and Service. The Power Solutions segment sells wind power plants, wind turbines, development sites, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. The company was founded in 1898 and is headquartered in Aarhus, Denmark.
 == '''Business Description''' ==
 Vestas is a pioneering force in transforming the global energy system towards sustainability. With a vision to become the Global Leader in Sustainable Energy Solutions, they are committed to making wind energy central to energy systems worldwide. Collaborating closely with key stakeholders across the energy landscape, Vestas aims to accelerate renewable expansion and ensure long-term energy security for future generations.

>Mahsasheikhi: /* Macro analysis */

2023-07-28T12:17:06Z

Macro analysis

← Older revision		Revision as of 13:17, 28 July 2023
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	'''Issuing the first sustainability-linked bonds in Denmark'''		'''Issuing the first sustainability-linked bonds in Denmark'''

	Vestas achieved a significant milestone by issuing the first sustainability-linked bonds in Denmark, totalling EUR 1 billion. This ground-breaking initiative integrates sustainability with financial targets, reinforcing Vestas' commitment to environmental responsibility. The bonds' fixed rate is directly tied to the company's progress in three crucial areas: reducing carbon footprint in its operations ~~(scope 1 and 2)~~, lowering carbon intensity in the supply chain ~~(scope 3)~~, and increasing material efficiency. By openly sharing the full sustainability-linked bond framework on their corporate website, Vestas demonstrates transparency and accountability to stakeholders. This move enables investors and shareholders to actively engage with Vestas' efforts to minimise negative environmental impacts and promote sustainability. The innovative financing approach allows Vestas to accelerate the green transition while broadening its investor base and reducing execution risk. This bold step exemplifies Vestas' leadership in integrating sustainability into their business strategy and sets a clear path for other companies to follow suit.		Vestas achieved a significant milestone by issuing the first sustainability-linked bonds in Denmark, totalling EUR 1 billion. This ground-breaking initiative integrates sustainability with financial targets, reinforcing Vestas' commitment to environmental responsibility. The bonds' fixed rate is directly tied to the company's progress in three crucial areas: reducing carbon footprint in its operations , lowering carbon intensity in the supply chain, and increasing material efficiency. By openly sharing the full sustainability-linked bond framework on their corporate website, Vestas demonstrates transparency and accountability to stakeholders. This move enables investors and shareholders to actively engage with Vestas' efforts to minimise negative environmental impacts and promote sustainability. The innovative financing approach allows Vestas to accelerate the green transition while broadening its investor base and reducing execution risk. This bold step exemplifies Vestas' leadership in integrating sustainability into their business strategy and sets a clear path for other companies to follow suit.

	== Risks ==		== Risks ==
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	'''Credit risk'''		'''Credit risk'''

	- Vestas manages credit risks in accordance with the Treasury Policy, considering exposures from cash and cash equivalents, marketable securities, derivative financial instruments, and trade receivables. Limits for credit risk exposure are set based on counter-parties' credit ratings or mitigating actions		* Vestas manages credit risks in accordance with the Treasury Policy, considering exposures from cash and cash equivalents, marketable securities, derivative financial instruments, and trade receivables. Limits for credit risk exposure are set based on counter-parties' credit ratings or mitigating actions
			* As of December 31, 2022, Vestas' maximum credit risk related to financial institution counter-parties is EUR 2,473m, and the total credit risk is EUR 5,719m.
	- As of December 31, 2022, Vestas' maximum credit risk related to financial institution counter-parties is EUR 2,473m, and the total credit risk is EUR 5,719m.		* Trade receivables and contract assets are mainly with energy sector counter-parties, and credit risk is assessed based on historical loss rates, current information, and individual assessment. Vestas groups trade receivables based on loss patterns to assess expected credit losses.
			* As of December 31, 2022, 59 percent of trade receivables and contract assets are in EMEA, 30 percent in America, and 11 percent in Asia Pacific. No single customer accounts for more than 10 percent of total trade receivables.
	- Trade receivables and contract assets are mainly with energy sector counter-parties, and credit risk is assessed based on historical loss rates, current information, and individual assessment. Vestas groups trade receivables based on loss patterns to assess expected credit losses.		* Vestas mitigates commercial credit risk through received security, such as third-party guarantees, and historically, the company has not incurred significant losses on trade receivables.
			* 92 percent of Vestas' exposure to financial institutions is with counter-parties with a credit rating in the range of A to AAA. The company has ISDA agreements with financial institution counter-parties for derivative financial instruments, limiting actual credit risk to net assets per counter-party.
	- As of December 31, 2022, 59 percent of trade receivables and contract assets are in EMEA, 30 percent in America, and 11 percent in Asia Pacific. No single customer accounts for more than 10 percent of total trade receivables.

	- Vestas mitigates commercial credit risk through received security, such as third-party guarantees, and historically, the company has not incurred significant losses on trade receivables.

	- 92 percent of Vestas' exposure to financial institutions is with counter-parties with a credit rating in the range of A to AAA. The company has ISDA agreements with financial institution counter-parties for derivative financial instruments, limiting actual credit risk to net assets per counter-party.

	'''Market Risks'''		'''Market Risks'''

	- Vestas is exposed to market risks, including foreign currency risks, commodity price risks, and interest rate risks, which are managed in accordance with the Treasury Policy.		* Vestas is exposed to market risks, including foreign currency risks, commodity price risks, and interest rate risks, which are managed in accordance with the Treasury Policy.
			* Foreign currency risks arise from transactions in currencies other than the functional currency, primarily from material purchases and wind turbine sales. Vestas hedges foreign currency exposures related to firm wind turbine orders and monetary balances.
	- Foreign currency risks arise from transactions in currencies other than the functional currency, primarily from material purchases and wind turbine sales. Vestas hedges foreign currency exposures related to firm wind turbine orders and monetary balances.		* The majority of Vestas' sales are in USD and EUR, and the company reduces foreign currency risk by centralising exposures in Vestas Wind Systems A/S and sourcing materials and components in USD.
			* Commodity price risks mainly relate to fluctuations in raw materials used in wind turbine production. The risk is managed by fixed price agreements with suppliers and commodity swaps.
	- The majority of Vestas' sales are in USD and EUR, and the company reduces foreign currency risk by centralising exposures in Vestas Wind Systems A/S and sourcing materials and components in USD.		* Interest rate risk is related to interest-bearing debt with floating rates and cash and cash equivalents. As of December 31, 2022, a 1%-point increase in relevant interest rates would have increased profit before tax by EUR 19m.

	- Commodity price risks mainly relate to fluctuations in raw materials used in wind turbine production. The risk is managed by fixed price agreements with suppliers and commodity swaps.

	- Interest rate risk is related to interest-bearing debt with floating rates and cash and cash equivalents. As of December 31, 2022, a 1%-point increase in relevant interest rates would have increased profit before tax by EUR 19m.

	== '''Investment Risks''' ==		== '''Investment Risks''' ==
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	Earnings per share in 2022 were negative EUR 1.6, down from EUR 0.1 in 2021, reflecting the net loss. Return on capital employed (ROCE) was negative 18.5 percent in 2022, a significant decrease from 4.5 percent in 2021. Return on equity was negative 43.9 percent, reflecting the lower profit for the year.		Earnings per share in 2022 were negative EUR 1.6, down from EUR 0.1 in 2021, reflecting the net loss. Return on capital employed (ROCE) was negative 18.5 percent in 2022, a significant decrease from 4.5 percent in 2021. Return on equity was negative 43.9 percent, reflecting the lower profit for the year.


	~~$$$reports$$$~~

	== '''Shareholders Return''' ==		== '''Shareholders Return''' ==
	'''1. Equity and Solvency Ratio:'''		'''1. Equity and Solvency Ratio:'''

>Mahsasheikhi: /* Financial performance */

2023-07-28T12:13:26Z

Financial performance

← Older revision		Revision as of 13:13, 28 July 2023
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	==== DCF ====		==== DCF ====
	[[File:Screenshot 2023-07-28 at 12.40.20.png\|thumb\|959x959px]]		[[File:Screenshot 2023-07-28 at 12.40.20.png\|thumb\|959x959px]]

>Mahsasheikhi: /* Summary */

2023-07-28T12:11:41Z

Summary

Show changes

>Mahsasheikhi at 11:33, 28 July 2023

2023-07-28T11:33:57Z

Show changes

>Mahsasheikhi: /* Summary */

2023-07-27T23:23:56Z

Summary

← Older revision		Revision as of 00:23, 28 July 2023
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	Vestas Wind Systems A/S designs, manufactures, installs, and services wind turbines worldwide. The company operates in two segments, Power Solutions and Service. The Power Solutions segment sells wind power plants, wind turbines, development sites, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. The company was founded in 1898 and is headquartered in Aarhus, Denmark.		Vestas Wind Systems A/S designs, manufactures, installs, and services wind turbines worldwide. The company operates in two segments, Power Solutions and Service. The Power Solutions segment sells wind power plants, wind turbines, development sites, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. The company was founded in 1898 and is headquartered in Aarhus, Denmark.





	== '''Business Description''' ==		== '''Business Description''' ==
	Vestas is a pioneering force in transforming the global energy system towards sustainability. With a vision to become the Global Leader in Sustainable Energy Solutions, they are committed to making wind energy central to energy systems worldwide. Collaborating closely with key stakeholders across the energy landscape, Vestas aims to accelerate renewable expansion and ensure long-term energy security for future generations.		Vestas is a pioneering force in transforming the global energy system towards sustainability. With a vision to become the Global Leader in Sustainable Energy Solutions, they are committed to making wind energy central to energy systems worldwide. Collaborating closely with key stakeholders across the energy landscape, Vestas aims to accelerate renewable expansion and ensure long-term energy security for future generations.