Leadership in renewable energy

Transcription

1 Leadership in renewable energy Bert Nordberg, Chairman of the Board, Vestas IDA Leadership conference 2018 November, 2018

2 A bit of background Agenda Managing our journey Looking ahead Leadership in the green transition 2

3 My background Chairman of the Board, Vestas Wind Systems A/S and TDC A/S Member of the Boards of AB Electrolux, Saab Group, Svenska Cellulosa Aktiebolaget SCA, Member of the Board, Essity Aktiebolag. Leadership roles in Ericsson and Sony Ericsson in America and Europe, including Chief Executive Officer and President of Sony Ericsson Mobile Communications. Engineering background and management courses from INSEAD Business School. 3

4 Vestas pioneered renewable energy and leads the industry today +24, , ,000 2,811m More than 24,400 people worldwide and have 35+ years of experience with wind energy A total of 41,693 turbines under service, or more than 82 GW Installed a total of 66,093 turbines or more than 97 GW in 79 countries worldwide spanning six continents Revenue for Q was EUR 2,811m 4

5 5 Managing our journey

6 2012: profit warnings and losses led to lost trust Confidence in Vestas was at an all-time low January

7 2012: cornerstones in turnaround program Significant changes to leadership, organisational setup and strategy pivotal to turnaround New Chairman, Board and management Building trust externally and internally Complete review/redesign of business processes Profitability 7

8 Importance of having the right people on board Specialised skills across board members ensures knowledge of entire value chain Key competences Managing international businesses Infrastructure business Research and development Strategic management Manufacturing Innovation Sustainability International policy development Vestas value chaing and processes Communications and PR Vestas Board of Directors Members of the Board Bert Nordberg (chairman) Lars Josefsson (deputy chairman) Carsten Bjerg Eija Pitkänen Henrik Andersen Jens H. Lund Henry Sténson Kim Hvid Thomsen Kim Bredo Rahbek Michael A. Lisbjerg Sussie Dvinge Agerbo Torben B. Sørensen Roundtable principle everyone is expected to ask questions Close and policy-governed dialogue between board and management Mentor programme Board includes a diverse set of competences, genders and cultures 8

9 The last ten years 20th straight quarter with net profit from third quarter of 2013 to mid-november Global leader in renewable energy Vestas turnaround 2012 to 2013 Financial crisis stalls wind energy industry Expanding our wind energy core Profitable growth and leading the market

10 Where we are today 20th straight quarter with net profit from third quarter of 2013 to mid-november Vestas share price performance, (mid November) DKK %

11 Looking ahead

12 Action more urgent than ever proven technologies can lead the way IPCC, October 2018 Limiting global warming to 1.5ºC would require rapid, far-reaching and unprecedented changes in all aspects of society. Boston Consulting Group, October 2018 The Paris targets can be reached, using the technology we are already providing today. 12 Sources: IPCC, Global Warming of 1.5 C, 10/2018, BCH Henderson Institute, Thec economic case for combating climate change, 10/2018,

13 Global electricity demand to increase by 44 percent up to 2035 Electricity demand forecast (TWh) Structural effects Electrification Digitalisation Efficiency 2035 Population growth Urbanisation Emerging markets (industrialisation, rising middle class) Electrification of transport, heat and cooling (sector coupling) Internet of Things Data centers COMMs networks Smart buildings and appliances Insulation Energy intensity of appliances, motor systems, lightening 13 Source: Based on data from BNEF, New Energy Outlook 2018, 06/2018

14 1300 GW of coal, oil and gas plants will be retired by Source: Based on IEA data from OECD/IEA World Energy Outlook 2017, IEA Publishing, licence: aggregated by Vestas Wind Systems A/S Picture: Shutterstock

15 The future is renewable with wind at its core 21% 19% Fossil fuels Offshore wind 20% $11,5 trillion 8% Onshore wind Utility-scale solar PV Other renewable energy 32% 15 Source: Based on data from BNEF, New Energy Outlook 2018 Data Viewer, 06/2018

16 Vestas leading the change PAST PRESENT FUTURE Market situation Vestas position Making the case for wind Global leader in wind Global leader in renewable energy solutions 16

17 Innovation driven by constant need to reduce cost of energy V10-30 kw Swept area: 78.5m 2 Hub height: 18 metre Rated power: 30 kw V10-30 kw (1979) V kw V MW V MW Swept area: 17,671m 2 Hub height: 166 metre Rated power: 4.2 MW V MW V MW V MW (2018) 17

18 Pioneering solutions to expand leadership Northvolt partnership Technology collaboration: Lithium-ion battery platform for Vestas power plants Kennedy Energy Park The world s first on-grid utility-scale hybrid integrating wind, solar and storage Utopus Insights Acquisition of data analytics firm to expand energy system management offering 18

19 Leadership in the green transition 19

20 In an ever-changing market the need for extraordinary leadership is constant

21 Four key characteristics define future leaders Global Mindset Agility Intelligent Courage Human Factor 21

22 Bright outlook Major digitalisation Make the planet a better place

23 Q&A 23

24 Thank you Copyright Notice The documents are created by Vestas Wind Systems A/S and contain copyrighted material, trademarks, and other proprietary information. All rights reserved. No part of the documents may be reproduced or copied in any form or by any means - such as graphic, electronic, or mechanical, including photocopying, taping, or information storage and retrieval systems without the prior written permission of Vestas Wind Systems A/S. The use of these documents by you, or anyone else authorized by you, is prohibited unless specifically permitted by Vestas Wind Systems A/S. You may not alter or remove any trademark, copyright or other notice from the documents. The documents are provided as is" and Vestas Wind Systems A/S shall not have any responsibility or liability whatsoever for the results of use of the documents by you.