CONTENTS

Income statement 1 January – 31 December

mEUR Note 2020 2019

Revenue 1.1, 1.2 14,819 12,147

Production costs 1.3, 1.4, 2.2 (13,281) (10,386)
Gross profit 1,538 1,761

IN BRIEF
Research and development costs 1.3, 1.4 (265) (268)
Distribution costs 1.3, 1.4 (281) (222)
Administration costs 1.3, 1.4 (242) (267)
Operating profit (EBIT) before special items 750 1,004

Special items 1.6 (52) -

AND AMBITIONS
STRATEGY
Operating profit (EBIT) 698 1,004

Income/(loss) from investments in joint ventures and associates 3.5 331 3

Financial income 4.1 18 40
Financial costs 4.1 (113) (138)
Profit before tax 934 909

SUSTAINABILITY
Income tax 5.1 (163) (209)
Profit for the year 771 700

Profit is attributable to:

Owners of Vestas Wind Systems A/S 765 704
Non-controlling interests 6 (4)

Earnings per share (EPS) 4.6

PERFORMANCE
Earnings per share (EUR) 3.90 3.57

GROUP
Earnings per share (EUR), diluted 3.89 3.55

VESTAS PEOPLE
GOVERNANCE
Statement of comprehensive income 1 January - 31 December
mEUR Note 2020 2019

Profit for the year 771 700

STATEMENTS
FINANCIAL

Other comprehensive income

Items that may be subsequently reclassified to the income statement:
Exchange rate adjustments relating to foreign entities (133) 27
Exchange rate adjustments relating to foreign entities transferred to the income statement 14 (8)
Fair value adjustments of derivative financial instruments 4.3 114 (23)
Gain/(loss) on derivative financial instruments transferred to the income statement 4.3 (104) (50)
Exchange rate adjustments relating to joint ventures and associates 3.5 1 1
STATEMENTS

Share of fair value adjustments of derivatives financial instruments of joint ventures and associates 3.5 22 (58)
Share of fair value adjustments of derivative financial instruments transferred to the income statement of
joint ventures and associates 3.5 25 1
Tax on fair value adjustments that may be subsequently reclassified to the income statement (6) 18
Other comprehensive income after tax (67) (92)

Total comprehensive income 704 608

INFORMATION
ADDITIONAL
Balance sheet 31 December
Assets

mEUR Note 2020 2019

Intangible assets 3.1, 3.4 2,888 1,208

Property, plant and equipment 3.2, 3.3 2,022 1,671
Investments in joint ventures and associates 3.5 57 169
Other investments 4.4 69 65
Tax receivables 5.1 201 156
Deferred tax 5.2 335 324
Other receivables 2.5, 4.4 241 85
Financial investments 4.4 100 211
Total non-current assets 5,913 3,889

Inventories 2.2 5,289 4,098

Trade receivables 4.2, 4.4 1,538 1,460
Contract assets 2.3, 4.4 775 528
Contract costs 2.4 369 418
Tax receivables 5.1 121 125
Other receivables 2.5, 4.4 981 752
Financial investments 4.4 111 173
Cash and cash equivalents 4.2, 4.4 3,063 2,888
Total current assets 12,247 10,442

Total assets 18,160 14,331

Liabilities

mEUR Note 2020 2019

Share capital 4.5 27 27

Other reserves (146) (67)
Retained earnings 4,773 3,333
Equity attributable to Vestas 4,654 3,293
Non-controlling interests 49 52
Total equity 4,703 3,345

Provisions 3.6 696 459

Deferred tax 5.2 158 147
Financial debts 3.3, 4.2, 4.4 867 661
Tax payables 5.1 331 296
Other liabilities 2.6, 4.4 173 76
Total non-current liabilities 2,225 1,639

Financial debts 3.3, 4.2, 4.4 487 159

Contract liabilities 2.3 5,613 5,020
Trade payables 4.4 3,608 3,119
Provisions 3.6 580 221
Tax payables 5.1 86 128
Other liabilities 2.6, 4.4 858 700
Total current liabilities 11,232 9,347

Total liabilities 13,457 10,986

Total equity and liabilities 18,160 14,331

066  ­Vestas Annual Report 2020

 CONTENTS
Statement of changes in equity 1 January – 31 December
Reserves
Trans- Cash flow Non-­
Share lation hedging Other Total Retained controlling
mEUR capital reserve reserve reserves reserves earnings interest Total

IN BRIEF
Equity as at 1 January 2020 27 (4) (4) (59) (67) 3,333 52 3,345

Profit for the year - - - - - 765 6 771

Other comprehensive income for the year - (110) 4 48 (58) - (9) (67)
Total comprehensive income for the year - (110) 4 48 (58) 765 (3) 704

Transfer of cash flow hedge reserve to the initial

AND AMBITIONS
carrying amount of hedged items, net - - (21) - (21) - - (21)

STRATEGY
Transactions with owners:
Capital increase ¹) 1 - - - - 860 - 861
Reduction of share capital¹) (1) - - - - 1 - -
Dividends distributed - - - - - (213) - (213)
Dividends distributed related to treasury shares - - - - - 4 - 4
Share-based payment - - - - - 16 - 16

SUSTAINABILITY
Tax on equity transactions - - - - - 7 - 7
Total transactions with owners - - - - - 675 - 675

Equity as at 31 December 2020 27 (114) (21) (11) (146) 4,773 49 4,703

1) During 2020, the share capital was reduced by 1,977,848 shares of DKK 1.00, due to cancellation of treasury shares. In December 2020, the share capital was increased by 5,049,337
shares of DKK 1.00 and used as consideration for acquiring MHI Vestas Offshore Wind A/S. Ref. note 4.5 for changes on share capital in the period 2016-2020.

PERFORMANCE
A dividend of DKK 8.45 (EUR 1.14) per share, corresponding to EUR 230m in total, is proposed for the financial year 2020. The proposed dividends are included in

GROUP
retained earnings. For proposed distribution of profit, ref. to note 4.5. Dividends of EUR 209m, net of treasury shares, have been paid in 2020 relating to the financial
year 2019.
Ref. to the parent company’s statement of changes in equity on page 121 for information about which reserves are available for distribution.

Reserves
Trans- Cash flow Non-­

VESTAS PEOPLE
Share lation hedging Other Total Retained controlling
mEUR capital reserve reserve reserves reserves earnings interest Total

Equity as at 1 January 2019 28 (22) 47 (3) 22 3,042 12 3,104

Effect of initially applying IFRIC 23 - - - - - (43) - (43)

Adjusted equity as at 1 January 2019 28 (22) 47 (3) 22 2,999 12 3,061

GOVERNANCE
Profit for the year - - - - - 704 (4) 700
Other comprehensive income for the year - 18 (55) (56) (93) - 1 (92)
Total comprehensive income for the year - 18 (55) (56) (93) 704 (3) 608

Transfer of cash flow hedge reserve to the initial

carrying amount of hedged items - - 4 - 4 - - 4
STATEMENTS

Transactions with owners:

FINANCIAL

Transactions with non-controlling interests - - - - - - - -

Reduction of share capital ¹ )
(1) - - - - 1 - -
Dividends distributed - - - - - (205) - (205)
Dividends distributed related to treasury shares - - - - - 8 - 8
Acquisitions of treasury shares - - - - - (201) - (201)
Acquisition of minorities interest - - - - - - 43 43
Share-based payment - - - - - 25 - 25
STATEMENTS

Tax on equity transactions - - - - - 2 - 2

Total transactions with owners (1) - - - - (370) 43 (328)

Equity as at 31 December 2019 27 (4) (4) (59) (67) 3,333 52 3,345

1) During 2019, the share capital was reduced by 6,794,040 shares of DKK 1.00, due to cancellation of treasury shares.
INFORMATION
ADDITIONAL
Statement of cash flows 1 January – 31 December
mEUR Note 2020 2019

Profit for the year 771 700

Adjustments for non-cash transactions 6.5 803 831
Interest received 16 27
Interest paid (40) (47)
Income tax paid 5.1 (219) (251)
Cash flow from operating activities before change in net working capital 1,331 1,260

Change in net working capital 2.1 (588) (437)

Cash flow from operating activities 743 823

Purchase of intangible assets 3.1 (309) (325)

Purchase of property, plant and equipment 3.2 (379) (451)
Net purchase of other financial assets (1) -
Disposal of property, plant and equipment 1 4
Disposal of other financial assets - 2
Proceeds from investment in joint venture 3.5 - 52
Purchase of shares in joint ventures and associates 3.5 (3) (11)
Disposal of investment in joint ventures and associates 3.5 32 -
Cash flow from investing activities before acquisition of subsidiaries and financial investments (659) (729)
Free cash flow before acquisition of subsidiaries and financial investments 84 94

Acquisition of subsidiaries 6.4 218 (3)

Purchase of financial investments - (303)
Disposal of financial investments 174 544
Cash flow from investing activities (267) (491)
Free cash flow 476 332

Acquisition of treasury shares - (201)

Dividends paid (209) (197)
Payment of lease liabilities 4.4 (82) (61)
Proceeds from borrowings 4.4 94 100
Payment of financial debt 4.4 (37) (8)
Cash flow from financing activities (234) (367)

Net increase in cash and cash equivalents 242 (35)

Cash and cash equivalents as at 1 January 2,888 2,918

Exchange rate adjustments on cash and cash equivalents (67) 5
Cash and cash equivalents as at 31 December 4.2 3,063 2,888

068  ­Vestas Annual Report 2020