Changes
/* SWOT Analysis */
{|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===
{|border="2" cellspacing="0" cellpadding="4" width="50%" align="center"
|align = "center" bgcolor = "#99CCFF538ED5"|'''Geography'''|align = "center" bgcolor = "#99CCFF538ED5"|'''Revenue (m Eur€M)'''|align = "center" bgcolor = "#99CCFF538ED5"|'''% of Total Revenue'''
|-
|Europe & Africa
|align = "center"|4,162
|align = "center"|60%
|-
|Americas
|align = "center"|1,626
<br>
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>
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:
* 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 In order to improve the company’s competitive strength in the years ahead, Vestas has a Board of directors that holds meetings at least four times a year. Vestas’ Executive Management is a member of aligned the Group’s business units’ Boardsunits to ensure consistency of structure, thus ensuring close dialogue with departments, job descriptions and work procedures across the individual unitsGroup.* The Government coordinates production changes increase transparency, ensure a clear distribution of responsibilities, reduce Vestas’ response time and sales – and prioritises development efforts so that lower the Group can implement the strategy defined by the Board of Directors in collaboration with the Executive Managementcost level. The Vestas Government holds weekly government meetings. A schematic representation of the company structure is given below:
<br>
[[Image:Vestas2Vestas21.jpgpng|center|thumb|500 1000 px]]
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To view the details of an individual business unit, please click on the business unit name:
===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 geographiesand divisions:
<br><br>
{|border="2" cellspacing="0" cellpadding="4" width="75%" align="center"
|align = "center"|'''Region/Department'''
|align = "center" bgcolor = "#99CCFF538ED5"|'''Production'''|align = "center" bgcolor = "#99CCFF538ED5"|'''Sales'''|align = "center" bgcolor = "#99CCFF538ED5"|'''R&D'''|align = "center" bgcolor = "#99CCFF538ED5"|'''Others'''|align = "center" bgcolor = "#99CCFF538ED5"|'''Total'''
|-
|bgcolor = "#99CCFF538ED5"|'''Europe & Africa'''
|align = "center"|7,579
|align = "center"|4,509
|align = "center"|'''15,125'''
|-
|bgcolor = "#99CCFF538ED5"|'''Americas'''
|align = "center"|1,479
|align = "center"|1,278
|align = "center"|'''2,946'''
|-
|bgcolor = "#99CCFF538ED5"|'''Asia-Pacific'''
|align = "center"|2,475
|align = "center"|2,004
|align = "center"|'''5,181'''
|-
|bgcolor = "#99CCFF538ED5"|'''Total'''
|align = "center"|'''11,533'''
|align = "center"|'''7,791'''
===Mergers & Acquisitions===
{|border="2" cellspacing="0" cellpadding="4" width="7675%" align="center"
|align = "center" bgcolor = "#538ED5"|'''Acquisitions'''
|align = "center" bgcolor = "#538ED5"|'''Stakes'''
|}
<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:Vestas4Market Position1.jpg|600px|center|thumb|500 px]]
<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.
* 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'''
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<br>
<br>
[[Image:Vestas6.jpg|center|700*400 px]]
<br>
'''Sources: BTM Consulting, Analyst Reports, Factiva News Articles'''
<br>
* 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==
<br>
<br>
==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
<br>
* ; 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.
<br>
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.
<br>
{|border="2" cellspacing="0" cellpadding="4" width="8370%" align="center"|align = "center" bgcolor = "#538ED5"|'''ExecutiveName'''
|align = "center" bgcolor = "#538ED5"|'''Designation'''
|-
