PRODUCTS SERVICES INVESTOR MEDIA CAREER ABOUT LOGIN Interim financial report Q2 2018 Revenue on par with last year’s second quarter while earnings and free cash flow decreased. Solid order intake and combined order backlog at high level. Guidance for 2018 narrowed. Financial reports SHARE GREEN BOND ANNOUNCEMENTS FINANCIAL REPORTS CORPORATE GOVERNANCE CALENDARS THE IR TEAM FINANCIAL REPORTS OUTLOOK 2018 LONG-TERM FINANCIAL AMBITIONS Financial reports Vestas publishes its financial results four times a year through one annual report and three quarterly reports. The reports are published in English and are available for download via links below. You can see the dates for upcoming reports in the financial calendar. On the day of the disclosure, Vestas will host an earnings call/ live audiocast with a presentation of the results. Quick links Financial calendar Company announcements News service Contact IR 2018 2017 2016 2015 2014 Archive Outlook 2018 Based on the visibility for the remainder of the year, Vestas has narrowed guidance on revenue and EBIT margin as per 15 August 2018. Revenue is expected to range between EUR 10.0bn and EUR 10.5bn (previously EUR 10bn-11bn) including Service revenue, which is expected to grow. Vestas expects to achieve an EBIT margin before special items within a range of 9.5-10.5 percent (previously 9-11 percent), with the Service EBIT margin expected to increase compared to 2017 (previously expected to be stable). Total investments* are expected to amount to approx. EUR 500m, and free cash flow* is expected to be minimum EUR 400m in 2018. It should be emphasised 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 thus cause delays that could affect Vestas’ financial results for 2018. Further, movements in exchange rates from current levels may also impact Vestas’ financial results for 2018. Outlook 2018 Revenue (bnEUR) 10.0-10.5 EBIT margin (%) 9.5-10.5 Total investments*) (mEUR) approx. 500 Free cash flow*) (mEUR) min. 400 1) Adjusted 15 August 2018 from EUR 10.0bn-11.0bn 2) Adjusted 15 August 2018 from 9-11% *) Excl. the acquisition of Utopus Insights, Inc., any investments in marketable securities, and short-term financial investments. Long-term financial ambitions Vestas envisions market conditions which in the long term will reflect wind power having achieved merchant levels in the vast majority of markets. The wind industry is undergoing a transition towards a more mature, unsubsidised renewable energy industry. This transition leads to a highly competitive market, and will likely drive a further consolidation in the industry. Beyond the transition, a matured market for wind energy creates opportunities for Vestas to leverage and strengthen its leadership position. Within this context, Vestas is able to present updated long-term financial ambitions that reflect its projection for market conditions and the presumed result of its strategy – including initiatives that are currently being undertaken. During the transition, revenue in the Service business is expected to grow organically by at least 10 percent annually, with stable EBIT-margins compared to 2017. Long-term financial ambitions Revenue Grow faster than the market and be market leader in revenue EBIT margin At least 10 percent Free cash flow Positive each year ROIC Double-digit each year over the cycle Disclaimer and cautionary statement This site 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 on this site, 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 on this site 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 2017 and these factors also should be considered. Each forward-looking statement speaks only as of the date the last financial report. 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 on this site. 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