Investment Report

Alternative Energy: Wind Market-Investment Decision

Table of Contents

Intro/Executive Summary…………………………………………………………………pg 3

Background Information…………………………………………………………….........pg 4

Market Analysis + Forecast……..……………………………………………………….pg 4-5

Vestas’ Financial State ………………………………………………………………….pg 5-6

Investment Verdict.....................................................................................................…...pg 6-7

Appendix…………………………………………………………………………………pg 8-9

Bibliography…………………………………………………………………………….pg 10

Intro/Executive Summary:

With western societies’ growing concern with issues including global warming, resource depletion, the rising prices of fossil fuels and pollution, global investment in alternative energy has grown rapidly over the last decade. From the various sectors of the “green” energy market, the wind energy sector is one to have grown rapidly in recent years (refer to figure 1 in appendix).

Vestas is a Danish manufacturer, seller, installer, and servicer of wind turbines and hold the largest market share in the global wind turbine market at 14.6% (refer to figure 2 in appendix). Vestas was able to edge its main competitor General Electric (G.E) by 0.9%. However, for most of Vestas’ history, their main competitor was a Chinese based company known a Goldwind. Goldwind placed third in 2012 at a modest 10.8% (refer to figure 2). Now despite remaining at the top in terms of market share, Vestas was substantially affected by the recent recessionary periods. Their performance was below par in 2011 when their revenues and sales both took a plunge and more importantly, their return on investment (ROI) also took a fall. The wind energy sector however is expected to recover which will be discussed in the forecast portion of this report. The annual report from 2012 will also be analyzed in the financial state portion.

Acting as an investment analyst, this investment report will lead to the conclusion that the...