Vestas delivered 5,842 megawatts worth of wind turbines in 2010, compared to 4,764 megawatts delivered in 2009, the company said.
The Global Wind Energy Council, based in Brussels, Belgium, said new wind turbine installations dropped to 35.8 gigawatts in 2010, from 38.6 gigawatts in 2009. Based on Vestas’ reported deliveries, the company’s world-wide marketshare rose to 16 percent in 2010, from 12 percent the previous year.
===Key Financials===
[[Image:Vestas1.jpg|thumb|center|600*400 px]]
===Key Facts===
{|border="2" cellspacing="0" cellpadding="4" width="55%" align="center"
|align = "center" bgcolor = "#99CCFF538ED5"|'''Headquarter'''
|Vestas Wind Systems A/S<br>Alsvej 21<br>8940 Randers SV<br>Denmark
|-|align = "center" bgcolor = "#99CCFF538ED5"|'''Phone'''
|(<nowiki>+</nowiki>45) 97 30 00 00
|-
|align = "center" bgcolor = "#99CCFF538ED5"|'''Fax'''
|(<nowiki>+</nowiki>45) 97 30 00 01
|-
|align = "center" bgcolor = "#99CCFF538ED5"|'''E-mail'''
|<font color="#0000FF"><u>[mailto:vestas@vestas.com vestas@vestas.com]</u></font>
|-
|align = "center" bgcolor = "#99CCFF538ED5"|'''Website'''
|<font color="#0000FF"><u>[http://www.vestas.com/ http://www.vestas.com/]</u></font>
|-
|align = "center" bgcolor = "#99CCFF538ED5"|'''Turnover (in million €)'''
|6,920
|-
|align = "center" bgcolor = "#99CCFF538ED5"|'''Financial Year End'''
|December
|-
|align = "center" bgcolor = "#99CCFF538ED5"|'''Number of employees'''
|23,252
|-
|}
<br>
===Key Financials===
[[Image:Vestas1.jpg|thumb|center|600*400 px]]
===Revenue Distribution===
The following table gives the geopraphical break-up of revenue distribution for the year 2010:
<br>
{|border="2" cellspacing="0" cellpadding="4" width="50%" align="center"
|align = "center" bgcolor = "#538ED5"|'''Geography'''
|align = "center" bgcolor = "#538ED5"|'''Revenue (€M)'''
|align = "center" bgcolor = "#538ED5"|'''% of Total Revenue'''
|-
|Europe & Africa
|align = "center"|4,162
|align = "center"|60%
|-
|Americas
|align = "center"|1,626
|align = "center"|23%
|-
|Asia Pacific
|align = "center"|1,132
|align = "center"|16%
|-
|'''Total'''
|align = "center"|'''6,920'''
|align = "center"|'''100%'''
|-
|}
<br>
====Turbine '''Product Portfolio===='''
Vestas has an extensive portfolio of turbines which are each suited to specific conditions and requirements. Vestas wind turbines are checked and tested at their own test centres, after which the results are verified and certified by independent organisations.
<br>
===='''Services Portfolio===='''
Vestas provides '''Active Output Management''' service programme, or '''AOM''' for short, to ensure the highest possible output at all times. A number of different AOM packages available based on the needs of the specific project, are listed below:
* '''AOM 4000:''' A complete package to maximise uptime and performance. A complete package including everything necessary (main components and material) to maximise uptime and performance. The service contract covers periods up to 10 years, suitable for customers who want the traditional time-based availability guarantee – of up to 97%. These high expectations are formalised through liquidated damages and bonus clauses in the contract.
* '''AOM 5000:''' A complete package to ensure minimised lost production. A complete package including everything necessary to maximise output but with further aligned incentives. An energy based availability guarantee is offered that aligns service and maintenance execution with low wind periods. The service contract covers periods up to 10 years, and energy based guarantees up to 97% (subject to site evaluation). These high expectations are formalised through liquidated damages and bonus clauses in the contract.
<br>
===Company Structure===
* Vestas has '''14 business units''', all reporting directly to the Executive Management.
* The presidents of the individual business units are responsible for the general day-to-day management of their respective areas of responsibility.
* Each unit has a Board of directors that holds meetings at least four times a year. Vestas’ Executive Management is a member of the business units’ Boards, thus ensuring close dialogue with the individual units.
* The Government coordinates production and sales – and prioritises development efforts so that the Group can implement the strategy defined by the Board of Directors in collaboration with the Executive Management. The Vestas Government holds weekly government meetings.
A schematic representation of the company structure is given below:
<br>
[[Image:Vestas2.jpg|center|thumb|500 px]]
<br>
To view the details of an individual business unit, please click on the business unit name:
<br>
{|border="2" cellspacing="0" cellpadding="4" width="65%" align="center"
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-americas Vestas Americas]'''</u></font>
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-people---culture Vestas People & Culture]'''</u></font>
|-
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-asia-pacific Vestas Asia Pacific]'''</u></font>
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-technology-r-d Vestas Technology R&D]'''</u></font>
|-
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-central-europe Vestas Central Europe]'''</u></font>
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-spare-parts---repair Vestas Spare Parts & Repair]'''</u></font>
|-
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-china Vestas China]'''</u></font>
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-blades Vestas Blades]'''</u></font>
|-
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-mediterranean Vestas Mediterranean]'''</u></font>
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-control-systems Vestas Control Systems]'''</u></font>
|-
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-northern-europe Vestas Northern Europe]'''</u></font>
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-nacelles Vestas Nacelles]'''</u></font>
|-
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-offshore Vestas Offshore]'''</u></font>
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-towers Vestas Towers]'''</u></font>
|-
|}
<br>
==Company Overview==
===Brief History===
The following table provides a brief history of the developments of Vestas Wind Systems, starting from its inception in 1898.
{|border="2" cellspacing="0" cellpadding="4" width="90%" align="center"
|align = "center" bgcolor = "#4BACC6"|'''Timeline'''
|align = "center" bgcolor = "#4BACC6"|'''Development'''
|-
|align = "center" bgcolor = "#DBEEF3"|'''1898'''
|bgcolor = "#DBEEF3"|Vestas founded by H.S. Hansen, a blacksmith, in the small town of Lem in Denmark. He and his son, Peder Hansen, manufactured steel windows for industrial buildings.
|-
|align = "center"|'''1945'''
|Peder Hansen established the company VEstjyskSTålteknik A/S, whose name was shortened to Vestas. The new company, which initially made household appliances, started to produce agricultural equipment.
|-
|align = "center" bgcolor = "#DBEEF3"|'''1970s'''
|bgcolor = "#DBEEF3"|During the second oil crisis, Vestas began to examine the potential of the wind turbine as an alternative source of clean energy.
|-
|align = "center"|'''1979'''
|Vestas delivered the first wind turbines. The industry experienced a genuine boom at the start of the 1980s, but in 1986 Vestas was forced to suspend payments because the market in the United States was destroyed due to the expiration of a special tax legislation that provided advantageous conditions for the establishment of wind turbines.
|-
|align = "center" bgcolor = "#DBEEF3"|'''1986'''
|bgcolor = "#DBEEF3"|Large sections of Vestas were sold off and a new company called Vestas Wind Systems A/S was founded at the end of the year to concentrate exclusively on wind energy.
|-
|align = "center"|'''1987 onwards'''
|Vestas develops from a pioneer in the industry with a staff of around 60 people to become a global hi-tech and market-leading company employing more than 20,000 people.
|-
|align = "center" bgcolor = "#DBEEF3"|'''2004'''
|bgcolor = "#DBEEF3"|Vestas merged with another Danish wind turbine manufacturer, NEG Micon A/S.
|-
|align = "center"|'''2005'''
|Ditlev Engel becomes President and CEO of the company. Less than a month after taking up his new position, he published his strategy for Vestas for 2005-2008: The Will to Win. This includes, among other things, a new vision for Vestas. This vision is Wind, Oil and Gas, stating that wind power is to be a source of energy on par with oil and gas.
|-
|align = "center" bgcolor = "#DBEEF3"|'''2007'''
|bgcolor = "#DBEEF3"|To strengthen our market leading position and to stress the fact that wind is an energy source on par with oil and gas, Vestas launched the new strategy: No. 1 in Modern Energy. At that time, Vestas had installed more than 33,500 wind turbines in 63 countries and on 5 continents.
|-
|align = "center"|'''2010'''
|Vestas emphasized their intention with their new slogan - WIND, IT MEANS THE WORLD TO US. With more than 41,000 turbines installed and 30 years of pure-play experience, the company predicted 10% of electricity by wind by 2020. Vestas takes pride in the unmatched diversity of capability and skills residing in more than 20,000 people worldwide, on one pure goal: generating the greatest and most sustainable return on wind for the customers.
|-
|}
<br>
===Company Structure===
* Vestas has '''14 business units''', all reporting directly to the Executive Management.
* The presidents of the individual business units are responsible for the general day-to-day management of their respective areas of responsibility.
* Each unit has a Board of directors that holds meetings at least four times a year. Vestas’ Executive Management is a member of the business units’ Boards, thus ensuring close dialogue with the individual units.
* The Government coordinates production and sales – and prioritises development efforts so that the Group can implement the strategy defined by the Board of Directors in collaboration with the Executive Management. The Vestas Government holds weekly government meetings.
A schematic representation of the company structure is given below:
<br>
[[Image:Vestas2.jpg|center|thumb|500 px]]
<br>
To view the details of an individual business unit, please click on the business unit name:
<br>
{|border="2" cellspacing="0" cellpadding="4" width="65%" align="center"
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-americas Vestas Americas]'''</u></font>
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-people---culture Vestas People & Culture]'''</u></font>
|-
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-asia-pacific Vestas Asia Pacific]'''</u></font>
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-technology-r-d Vestas Technology R&D]'''</u></font>
|-
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-central-europe Vestas Central Europe]'''</u></font>
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-spare-parts---repair Vestas Spare Parts & Repair]'''</u></font>
|-
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-china Vestas China]'''</u></font>
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-blades Vestas Blades]'''</u></font>
|-
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-mediterranean Vestas Mediterranean]'''</u></font>
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-control-systems Vestas Control Systems]'''</u></font>
|-
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-northern-europe Vestas Northern Europe]'''</u></font>
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-nacelles Vestas Nacelles]'''</u></font>
|-
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-offshore Vestas Offshore]'''</u></font>
|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-towers Vestas Towers]'''</u></font>
|-
|}
<br>
===Employee Distribution===
* Vestas recruit employees under the '''“People before megawatt”''' principle, because the costs of well-educated excess capacity are lower than the costs of remedying faults due to a rushed staff inflow caused by strong MW growth.
* The 23,252 employees have an average seniority of 3 years and 11 months.
* Key priority areas identified are training and, in particular, retention of new and existing employees as around 22% of the employees are having less than one year's seniority.
* Due to enhanced efficiency, improved turbine performance and economies of scale, going forward, Vestas expects its headcount to rise at a lower rate than its business volume.
* A prerequisite for sustaining progress is for Vestas to become a more international business with a much higher number of non-Danish employees in management positions. Furthermore, Vestas aims to have more women executives.
* In addition, Vestas also aims to have many nationalities at all locations in order to create a truly global business, which also has extensive local insight and understanding.
<br>
The following table provides the employee distribution of Vestas across geographies:
<br><br>
{|border="2" cellspacing="0" cellpadding="4" width="75%" align="center"
|align = "center"|'''Region/Department'''
|align = "center" bgcolor = "#99CCFF"|'''Production'''
|align = "center" bgcolor = "#99CCFF"|'''Sales'''
|align = "center" bgcolor = "#99CCFF"|'''R&D'''
|align = "center" bgcolor = "#99CCFF"|'''Others'''
|align = "center" bgcolor = "#99CCFF"|'''Total'''
|-
|bgcolor = "#99CCFF"|'''Europe & Africa'''
|align = "center"|7,579
|align = "center"|4,509
|align = "center"|1,515
|align = "center"|1,522
|align = "center"|'''15,125'''
|-
|bgcolor = "#99CCFF"|'''Americas'''
|align = "center"|1,479
|align = "center"|1,278
|align = "center"|189
|align = "center"|0
|align = "center"|'''2,946'''
|-
|bgcolor = "#99CCFF"|'''Asia-Pacific'''
|align = "center"|2,475
|align = "center"|2,004
|align = "center"|573
|align = "center"|129
|align = "center"|'''5,181'''
|-
|bgcolor = "#99CCFF"|'''Total'''
|align = "center"|'''11,533'''
|align = "center"|'''7,791'''
|align = "center"|'''2,277'''
|align = "center"|'''1,651'''
|align = "center"|'''23,252'''
|-
|}
<br>
A comparative graph of emplyee distribution by function for 2006 and 2010 is given below:
<br>
[[Image:Vestas3.jpg|center|thumb|700*300 px]]
<br>
===Revenue Distribution===
The following table gives the geopraphical break-up of revenue distribution for the year 2010:
<br>
{|border="2" cellspacing="0" cellpadding="4" width="50%" align="center"
|align = "center" bgcolor = "#99CCFF"|'''Geography'''
|align = "center" bgcolor = "#99CCFF"|'''Revenue (m Eur)'''
|align = "center" bgcolor = "#99CCFF"|'''% of Total Revenue'''
|-
|Europe & Africa
|align = "center"|4,162
|align = "center"|60%
|-
|Americas
|align = "center"|1,626
|align = "center"|23%
|-
|Asia Pacific
|align = "center"|1,132
|align = "center"|16%
|-
|'''Total'''
|align = "center"|'''6,920'''
|align = "center"|'''100%'''
|-
|}
<br>
==Market Overview==
===Market Share===
The following graph shows the market share of Vestas from 2004 to 2010
<br>
[[Image:Vestas4.jpg|center|thumb|500 px]]
<br>
Reasons for decrease in market share:
* Emerging competitors in the wind energy space.
* Stiff competition for Vestas in China – Sinovel (21,9%), Goldwind (17,7%), and Dongfang (16,4%) - which are all of Chinese origin. China‘s main three suppliers hold about 60% stake in the home market.
* GE is providing a stiff competition in the american market.
* The German market, being one of the core countries in Vestas strategy, is showing signs of saturation.
<br>
===Track record by Turbine Type===
{|border="2" cellspacing="0" cellpadding="4" width="80%" align="center"
|align = "center" bgcolor = "#538ED5" rowspan = "2"|'''Turbine Type'''
|align = "center" bgcolor = "#538ED5" colspan = "2"|'''Installed in 2010'''
|align = "center" bgcolor = "#538ED5" colspan = "2"|'''Accumulated Installed'''
|-
|align = "center" bgcolor = "#C5D9F1"|'''Number'''
|align = "center" bgcolor = "#C5D9F1"|'''MW'''
|align = "center" bgcolor = "#C5D9F1"|'''Number'''
|align = "center" bgcolor = "#C5D9F1"|'''MW'''
|-
|align = "center"|V52-850 kW
|align = "center"|340
|align = "center"|289
|align = "center"|3,764
|align = "center"|3,199
|-
|align = "center"|V60-850 kW
|align = "center"|15
|align = "center"|13
|align = "center"|15
|align = "center"|13
|-
|align = "center"|V80-1.8 MW
|align = "center"|0
|align = "center"|0
|align = "center"|1,016
|align = "center"|1,829
|-
|align = "center"|V80-2.0 MW
|align = "center"|267
|align = "center"|534
|align = "center"|2,981
|align = "center"|5,962
|-
|align = "center"|V82-1.5 MW
|align = "center"|0
|align = "center"|0
|align = "center"|213
|align = "center"|320
|-
|align = "center"|V82-1.65 MW
|align = "center"|273
|align = "center"|450
|align = "center"|2,883
|align = "center"|4,757
|-
|align = "center"|V90-1.8 MW
|align = "center"|269
|align = "center"|484
|align = "center"|572
|align = "center"|1,029
|-
|align = "center"|V90-2.0 MW
|align = "center"|763
|align = "center"|1,527
|align = "center"|3,286
|align = "center"|6,544
|-
|align = "center"|V90-3.0 MW
|align = "center"|834
|align = "center"|2,502
|align = "center"|2,170
|align = "center"|6,510
|-
|align = "center"|V100-1.8 MW
|align = "center"|20
|align = "center"|36
|align = "center"|20
|align = "center"|36
|-
|align = "center"|V112-3.0 MW
|align = "center"|2
|align = "center"|6
|align = "center"|2
|align = "center"|6
|-
|align = "center"|Other
|align = "center"|1
|align = "center"|1
|align = "center"|26,511
|align = "center"|13,909
|-
|align = "center"|'''Total'''
|align = "center"|'''2,784'''
|align = "center"|'''5,842'''
|align = "center"|'''43,433'''
|align = "center"|'''44,114'''
|-
|}
<br>
===Performance Details===
The following table shows the Vestas performance from 2006 to 2010:
<br>
{|border="2" cellspacing="0" cellpadding="4" width="80%" align="center"
|align = "center" bgcolor = "#538ED5"|'''Particulars'''
|align = "center" bgcolor = "#538ED5"|'''2010'''
|align = "center" bgcolor = "#538ED5"|'''2009'''
|align = "center" bgcolor = "#538ED5"|'''2008'''
|align = "center" bgcolor = "#538ED5"|'''2007'''
|align = "center" bgcolor = "#538ED5"|'''2006'''
|-
|align = "center"|Order intake (bnEUR)
|align = "center"|8.6
|align = "center"|3.2
|align = "center"|6.4
|align = "center"|5.5
|align = "center"|4.9
|-
|align = "center"|Order intake (MW)
|align = "center"|8,673
|align = "center"|3,072
|align = "center"|6,019
|align = "center"|5,613
|align = "center"|5,559
|-
|align = "center"|Produced and shipped (MW)
|align = "center"|4,057
|align = "center"|6,131
|align = "center"|6,160
|align = "center"|4,974
|align = "center"|4,313
|-
|align = "center"|Deliveries (MW)
|align = "center"|5,842
|align = "center"|4,764
|align = "center"|5,580
|align = "center"|4,502
|align = "center"|4,239
|-
|align = "center"|Revenue (m EUR)
|align = "center"|6,920
|align = "center"|5,079
|align = "center"|5,904
|align = "center"|3,828
|align = "center"|4,179
|-
|align = "center"|Gross Margin (%)
|align = "center"|17
|align = "center"|16.5
|align = "center"|19.1
|align = "center"|15.3
|align = "center"|11.1
|-
|}
<br>
===M&A Activities===
{|border="2" cellspacing="0" cellpadding="4" width="76%" align="center"
|align = "center" bgcolor = "#538ED5"|'''Acquisitions'''
|align = "center" bgcolor = "#538ED5"|'''Stakes'''
|align = "center" bgcolor = "#538ED5"|'''Divestitures'''
|-
|<br>
* WEIER Electric-Certain Assets (Oct 2005)<br>
* NEG Micon A/S (Mar 2004)<br>
* Windcast Group A/S (Oct 2002)<br><br>
|
* C&C Energy Srl (Jan 2011)<br>
* Gamesa Eolica SA (GE) (July 2001)<br>
* Cotas Computer Technology A/S (April 1999)
|
* Volund Staalskorstene (Sep 1995)<br>
* Volund Varmeteknik (Aug 1995)
|-
|}
<br>
<br>
===Organizational Structure=== * Vestas has '''14 business units''', all reporting directly to the Executive Management. * The presidents of the individual business units are responsible for the general day-to-day management of their respective areas of responsibility.* In order to improve the company’s competitive strength in the years ahead, Vestas has aligned the Group’s business units to ensure consistency of structure, departments, job descriptions and work procedures across the Group. * The changes increase transparency, ensure a clear distribution of responsibilities, reduce Vestas’ response time and lower the cost level.<br>[[Image:Vestas21.png|center|thumb|1000 px]]<br>To view the details of an individual business unit, please click on the business unit name:<br> {|border="2" cellspacing="0" cellpadding="4" width="65%" align="center"|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-americas Vestas Americas]'''</u></font>|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-people---culture Vestas People & Culture]'''</u></font>|-|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-asia-pacific Vestas Asia Pacific]'''</u></font>|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-technology-r-d Vestas Technology R&D]'''</u></font>|-|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-central-europe Vestas Central Europe]'''</u></font>|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-spare-parts---repair Vestas Spare Parts & Repair]'''</u></font>|-|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-china Vestas China]'''</u></font>|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-blades Vestas Blades]'''</u></font>|-|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-mediterranean Vestas Mediterranean]'''</u></font>|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-control-systems Vestas Control Systems]'''</u></font>|-|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-northern-europe Vestas Northern Europe]'''</u></font>|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-nacelles Vestas Nacelles]'''</u></font>|-|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-offshore Vestas Offshore]'''</u></font>|align = "center"|<font color="#0000FF"><u>'''[http://www.vestas.com/en/about-vestas/company-structure/vestas-towers Vestas Towers]'''</u></font>|-|} <br> ===Employee Distribution=== * The 23,252 employees have an average seniority of 3 years and 11 months.* Key priority areas identified are training and, in particular, retention of new and existing employees as around 22% of the employees are having less than one year's seniority.* Due to enhanced efficiency, improved turbine performance and economies of scale, going forward, Vestas expects its headcount to rise at a lower rate than its business volume. <br> The following table provides the employee distribution of Vestas across geographies and divisions:<br><br> {|border="2" cellspacing="0" cellpadding="4" width="75%" align="center"|align = "center"|'''Region/Department'''|align = "center" bgcolor = "#538ED5"|'''Production'''|align = "center" bgcolor = "#538ED5"|'''Sales'''|align = "center" bgcolor = "#538ED5"|'''R&D'''|align = "center" bgcolor = "#538ED5"|'''Others'''|align = "center" bgcolor = "#538ED5"|'''Total'''|-|bgcolor = "#538ED5"|'''Europe & Africa'''|align = "center"|7,579|align = "center"|4,509|align = "center"|1,515|align = "center"|1,522|align = "center"|'''15,125'''|-|bgcolor = "#538ED5"|'''Americas'''|align = "center"|1,479|align = "center"|1,278|align = "center"|189|align = "center"|0|align = "center"|'''2,946'''|-|bgcolor = "#538ED5"|'''Asia-Pacific'''|align = "center"|2,475|align = "center"|2,004|align = "center"|573|align = "center"|129|align = "center"|'''5,181'''|-|bgcolor = "#538ED5"|'''Total'''|align = "center"|'''11,533'''|align = "center"|'''7,791'''|align = "center"|'''2,277'''|align = "center"|'''1,651'''|align = "center"|'''23,252'''|-|} <br> A comparative graph of emplyee distribution by function for 2006 and 2010 is given below:<br>[[Image:Vestas3.jpg|center|thumb|700*300 px]]<br> ===Mergers & Acquisitions=== {|border="2" cellspacing="0" cellpadding="4" width="75%" align="center"|align = "center" bgcolor = "#538ED5"|'''Acquisitions'''|align = "center" bgcolor = "#538ED5"|'''Stakes'''|align = "center" bgcolor = "#538ED5"|'''Divestitures'''|-|<br>* WEIER Electric-Certain Assets (Oct 2005)<br>* NEG Micon A/S (Mar 2004)<br>* Windcast Group A/S (Oct 2002)<br><br>|* C&C Energy Srl (Jan 2011)<br>* Gamesa Eolica SA (GE) (July 2001)<br>* Cotas Computer Technology A/S (April 1999)|* Volund Staalskorstene (Sep 1995)<br>* Volund Varmeteknik (Aug 1995)|-|} <br>'''Sources: Analyst Reports'''<br> ===Order Book=== [[Image:Vestas5.jpg|center|thumb|600*150 px]]<br> The following table provides the Order Book summary for Vestas from 2007 to 2010:<br> {|border="2" cellspacing="0" cellpadding="4" width="80%" align="center"|align = "center" bgcolor = "#538ED5"|'''Particulars'''|align = "center" bgcolor = "#538ED5"|'''2010'''|align = "center" bgcolor = "#538ED5"|'''2009'''|align = "center" bgcolor = "#538ED5"|'''2008'''|align = "center" bgcolor = "#538ED5"|'''2007'''|-|align = "center"|Order Value (bnEUR)|align = "center"|8.6|align = "center"|3.2|align = "center"|6.4|align = "center"|5.5|-|align = "center"|Order intake (MW)|align = "center"|8,673|align = "center"|3,072|align = "center"|6,019|align = "center"|5,613|-|align = "center"|Produced and shipped (MW)|align = "center"|4,057|align = "center"|6,131|align = "center"|6,160|align = "center"|4,974|-|align = "center"|Deliveries (MW)|align = "center"|5,842|align = "center"|4,764|align = "center"|5,580|align = "center"|4,502|-|} <br>'''Sources: Analyst Reports, Factiva News Articles'''<br> ==Market Overview== ===Market Share===<br>[[Image:Market Position1.jpg|600px|center]]<br> * Market Share of Vestas Wind Systems for 3 years from different sources<br>{|border="2" cellspacing="0" cellpadding="4" width="40%" align="center"|align = "center" bgcolor = "#C5D9F1"|'''Source'''|align = "center" bgcolor = "#C5D9F1"|'''2010'''|align = "center" bgcolor = "#C5D9F1"|'''2009'''|align = "center" bgcolor = "#C5D9F1"|'''2008'''|-|'''BTM Consult'''|align = "center"|14.8%|align = "center"|12.5%|align = "center"|19%|-|'''Make Consulting'''|align = "center"|12%|align = "center"|14.5%|align = "center"|19%|-|}<br><br> '''Reasons for decrease in market share:'''* Emerging competitors in the wind energy space.* Stiff competition for Vestas in China – Sinovel (21,9%), Goldwind (17,7%), and Dongfang (16,4%) - which are all of Chinese origin. China‘s main three suppliers hold about 60% stake in the home market.* GE is providing a stiff competition in the american market.* The German market, being one of the core countries in Vestas strategy, is showing signs of saturation. <br>'''Source: BTM Consult, Make Consulting, Analyst Reports'''<br> ===Track record by Turbine Type=== {|border="2" cellspacing="0" cellpadding="4" width="80%" align="center"|align = "center" bgcolor = "#538ED5" rowspan = "2"|'''Turbine Type'''|align = "center" bgcolor = "#538ED5" colspan = "2"|'''Installed in 2010'''|align = "center" bgcolor = "#538ED5" colspan = "2"|'''Accumulated Installed'''|-|align = "center" bgcolor = "#C5D9F1"|'''Number'''|align = "center" bgcolor = "#C5D9F1"|'''MW'''|align = "center" bgcolor = "#C5D9F1"|'''Number'''|align = "center" bgcolor = "#C5D9F1"|'''MW'''|-|align = "center"|V52-850 kW|align = "center"|340|align = "center"|289|align = "center"|3,764|align = "center"|3,199|-|align = "center"|V60-850 kW|align = "center"|15|align = "center"|13|align = "center"|15|align = "center"|13|-|align = "center"|V80-1.8 MW|align = "center"|0|align = "center"|0|align = "center"|1,016|align = "center"|1,829|-|align = "center"|V80-2.0 MW|align = "center"|267|align = "center"|534|align = "center"|2,981|align = "center"|5,962|-|align = "center"|V82-1.5 MW|align = "center"|0|align = "center"|0|align = "center"|213|align = "center"|320|-|align = "center"|V82-1.65 MW|align = "center"|273|align = "center"|450|align = "center"|2,883|align = "center"|4,757|-|align = "center"|V90-1.8 MW|align = "center"|269|align = "center"|484|align = "center"|572|align = "center"|1,029|-|align = "center"|V90-2.0 MW|align = "center"|763|align = "center"|1,527|align = "center"|3,286|align = "center"|6,544|-|align = "center"|V90-3.0 MW|align = "center"|834|align = "center"|2,502|align = "center"|2,170|align = "center"|6,510|-|align = "center"|V100-1.8 MW|align = "center"|20|align = "center"|36|align = "center"|20|align = "center"|36|-|align = "center"|V112-3.0 MW|align = "center"|2|align = "center"|6|align = "center"|2|align = "center"|6|-|align = "center"|Other|align = "center"|1|align = "center"|1|align = "center"|26,511|align = "center"|13,909|-|align = "center"|'''Total'''|align = "center"|'''2,784'''|align = "center"|'''5,842'''|align = "center"|'''43,433'''|align = "center"|'''44,114'''|-|} <br> ===Competitive Advantage=== [[Image:Vestas7.jpg|center|700*400 px]]<br>'''Sources: Analyst Reports'''<br> ===Strategic Position=== [[Image:Vestas6.jpg|center|700*400 px]]<br>'''Sources: BTM Consulting, Analyst Reports'''<br> ===SWOT Analysis===
{|border="2" cellspacing="0" cellpadding="4" width="65%" align="center"
* High quality product and service offering<br><br>
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* Relies too much on European market<br>
* Long delivery time of turbines<br>
* Communication process with customers
==Recent Developments==
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* {|border="2" cellspacing="0" cellpadding="4" width="90%" align="center"|align = "center" bgcolor = "#538ED5"|'''Vestas Wind Systems A/S Receives 102 MW Order in California, USA.No''': |align = "center" bgcolor = "#538ED5"|'''Date'''|align = "center" bgcolor = "#538ED5"|'''Details'''|align = "center" bgcolor = "#538ED5"|'''Source'''|-|align = "center"|1|align = "center"|6th May<nowiki>’</nowiki>11|Danish wind-turbine maker '''Vestas Wind Systems A/S has received a Supply-only firm and unconditional ''' said today it won an order for 34 units of its V90-3.0 MW wind turbines turbine for a project in California, USA, from owned by Canadian Brookfield Renewable Power Inc and US Coram California Development Management, LLC. Delivery is scheduled Vestas will be responsible for the delivery and commissioning of the turbines and will provide service and maintenance for two years. It will as well provide a VestasOnline Business SCADA system.The wind turbines are due for delivery in the second half of 2011 and commissioning . Commissioning is expected scheduled to happen by late 2011.|align = "center"|ProQuest|-|align = "center"|2|align = "center"|4th May<nowiki>’</nowiki>11|'''Vestas''' has been handed a 250MW supply agreement by the Guibang Shengtai Investment (GSI). GSI has also signed the deal is for 24 V80 2MW turbines for a project in Huitengxile, in the Inner Mongolia Autonomous Region. This is the second 100MW<nowiki>+</nowiki> deal Vestas has signed in China this week. Yesterday, it announced an unnamed customer had ordered 100MW (50 V90 2MW machines) for Shandong Province, China.|align = "center"|Windpower Monthly|-|align = "center"|3|align = "center"|19th April<nowiki>’</nowiki>11|'''Vestas,''' the world<nowiki>’</nowiki>s largest wind turbine manufacturer, has recently won a large contract from China Datang Corporation Renewable Power, said '''Vestas China''' Tuesday in Beijing. The contract includes an order for 25 two-megawatt wind turbines, which will be installed near the city of Hulunbuir in North China<nowiki>’</nowiki>s Inner Mongolia autonomous region. The turbines are scheduled to be delivered in the second quarter of 2011.|align = "center"|Factiva|-|align = "center"|4|align = "center"|11th April<nowiki>’</nowiki>11|Hull and Immingham (UK) are already the country<nowiki>’</nowiki>s busiest ports by freight volumes. Land at the docks could now become the hub for Britain<nowiki>’</nowiki>s wind revolution with Siemens, '''Vestas''' and Gamesa — giants of the global turbine manufacturing industry — all talking about locating factories there.|align = "center"|Factiva|-|align = "center"|5|align = "center"|31st March<nowiki>’</nowiki>11|'''Vestas '''said it was Britain<nowiki>’</nowiki>s commitment to the so-called Round 3 developments of huge offshore wind farms to create up to 32,000 megawatts of capacity — or up to a third of the nation<nowiki>’</nowiki>s potential power output — that had prompted it to develop the new V164 turbine. However, the company refused to commit itself to building a manufacturing plant in the UK to construct the turbines. Vestas sailed into controversy in 2009 when it closed Britain<nowiki>’</nowiki>s only wind turbine manufacturing plant — producing smaller onshore turbine on the Isle of Wight with the loss of 425 jobs.|align = "center"|Times|-|}
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==Key Insights== * '''; Amendment in Chinese Renewable Energy Law results in tremendous Growth opprtunities for Vestas Announces 49-MW Order:* In 2010, 250the Chinese government revised the Wind-MW Frame Deal in ChinaPower Sector targets to 150 GW by 2020 and also ''': Vestas Wind Systems A/S announced that it signed a 49-MW contract abolished the 70% local content requirement'''; while continuing their policy for delivery R&D support, Reduced Tax Rates and Tax Rebate on import of V80 turbines components. New requirements for manufacturers to be eligible for tax breaks, land use and a frame agreement government loans are suited for another 250 MW with Chinese Inner Mongolia Guibang Shengtai Investment Co Ltdlarge turbine manufacturers. (GSI). The turbines will be installed :* '''972 MW order intake in 2010''' - Vestas’ order intake in China has quadrupled to a project new record in Huitengxile in the Chinese Inner Mongolia autonomous region2010. They are due for delivery It also had a record-high Chinese exposure in the third quarter 2010 (19% of 2011volume):* In 2010, Vestas announced '''$50 million investment''' over 5-years period to develop its R&D facility in China. :* Vestas will deliver the turbines has also formed '''strategic relationships''' with leading Chinese players like Longyuan, Datang and supervise their installation and commissioning. It will as well provide a VestasOnline Business SCADA solution and service and maintenance.Huaneng
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* ; Vestas favors US over emerging markets in Asia (excluding China):* Vestas favors the Americas, especially the U.S., in its growth strategy given the '''growing legislative support'''Vestas Wind Systems A/S Reports Earnings Results for renewable energy sources in the First Quarter area. Though only 6% of 2011; Provides Earnings Guidance for the First Half Year U.S. has strong wind resources, these resources could supply 150% of 2011'''the current U.S. energy consumption - but only if they were fully developed with turbines.: Vestas Wind Systems A/S reported earnings results for * Since the first quarter passing of 2011. For the quarterAmerican Recovery and Reinvestment Act, the company reported revenue by May of EUR 1,060 2009 '''$118 million''' has been announced to support the wind industry. Notably, an increase in April of 25% relative to 2009, through the first quarter Department of 2010Energy (DOE), and as announced realized a loss. The EBIT margin fell from 4.6% $93 million was allocated to 6support further development of wind energy in the U.5%S. The development confirms that revenue <br> *; Move production closer to where the action is:* Vestas has expanded production facilities heavily in US (Portland and earnings may show major quarterColorado) and China as these markets are growing the fastest and it intends to supply all its markets from domestic factories to offer cost-effective product and save ontransportation. <br> *; Restructuring workforce -quarter fluctuations depending on the capacity utilization Extensive local insight and understanding:* In order to develop a global business, Vestas has started restructuring its workforce by increasing non-Danish nationals at management positions and increasing the type number of projects handed overwomen employees. The free cash flow was improved compared to At present, 49% of the first quarter of 2010 management positions are held by EUR 116 million to EUR 431 millionnon-Danish nationals, and among the top-3,000 positions, 19% are women. The first half year of 2011 is expected :* Vestas also aims to break even against an EBIT loss of EUR 219 million during the first half year of 2010have many nationalities at all locations in order to create a truly global business, which also has extensive local insight and understanding.<br>
*; Strategic Partnership to enter new market
:* Al Kharafi Cham for Utilities Development Co. (MARAFEQ), Cham Holding’s arm for the development of power generation, water and wastewater treatment projects; and VESTAS Wind Systems Co. signed early May a strategic partnership to develop first wind energy in Syria including the submittal of a joint pre-qualification to the Public Establishment for Electricity Generation and Transmission (PEEGT) for the development of the first wind energy project in Syria. This project includes the construction and operation of a wind farm with a generation capacity of 50-100 MW at two sites; Al Sukhna and Al Hijana.
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Vestas has 14 business units, all reporting directly to the Executive Management. The presidents of the individual business units are responsible for the general day-to-day management of their respective areas of responsibility.
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{|border="2" cellspacing="0" cellpadding="4" width="8370%" align="center"|align = "center" bgcolor = "#538ED5"|'''ExecutiveName'''
|align = "center" bgcolor = "#538ED5"|'''Designation'''
|-
