Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (November 2023)
21 slides from Wartsila Oyj Abp's investor day presentation, Nov 9, 2023
Slide 1: Leading the decarbonisation of marine
Leading the decarbonisation of marine Roger Holm President, Wärtsilä Marine Power & Executive Vice President November 9, 2023 1 ©
Slide 2: We lead the decarbonisation journey of marine
We lead the decarbonisation journey of marine Fuel transition has As technology leaders Our services business started. The uptake in decarbonisation, drives growth, stability of sustainable fuels we are evolving from and profitability. is strengthening our being an equipment Decarbonisation of the m
Slide 3: CMD 2021: Well-positioned to lead the decarbonisation transformation
CMD 2021: “Well-positioned to lead the decarbonisation transformation” Targets from CMD in 2021 Status as of 2023 100+ methanol engines contracted Play a central role in decarbonisation Ammonia engine launch in Q4 2023 #1 in hybrids Transform Maintain leading position in 4-stroke Even stronger We en
Slide 4: Transform – We enable our customers' decarbonisation
Transform – We enable our customers’ decarbonisation 4 ©
Slide 5: Accelerated decarbonisation targets are shaping the shipping industry and reinforcing our strategy
Accelerated decarbonisation targets are shaping the shipping industry and reinforcing our strategy Ambitions and checkpoints in the revised IMO GHG strategy2) In 2023, IMO strengthened GHG emission reduction % vs 2008 its GHG reduction targets, and now strives for net- 0% Vessel’s lifetime zero “by
Slide 6: Up to 2030, fuel cost will double due to emission fees
Up to 2030, fuel cost will double due to emission fees Fuel-related costs for Handymax bulker operating in EU waters, EURm1) Multiple business drivers will add further pressure to decarbonise shipping2) 15 The transition will happen 10 under the lifetime of a vessel ~2x Upgradability is critical for
Slide 7: A progressive switch to sustainable fuels is already under way
A progressive switch to sustainable fuels is already under way Sustainable fuel uptake scenario for net-zero in 20501) Fuel transition is under way: 49% of Total energy consumption, EJ tonnage on orderbook is set to use alternative fuels; long-term fuel mix is 15 dependent on supply of different fue
Slide 8: Cost of emissions will close the price gap between fossil and sustainable fuels
Cost of emissions will close the price gap between fossil and sustainable fuels; fuel selection impacts the vessel structure Fuel type Low Sulphur Liquified Methanol Ammonia Liquid Compressed Marine Fuel Oil Natural Gas @ 20°C @ -33°C Hydrogen Hydrogen Battery Rack @ 20°C @ -162°C @ -253°C @ 350bar
Slide 9: We have the industry's most comprehensive offering for decarbonisation
We have the industry’s most comprehensive offering for decarbonisation 2023 2024 2025 Diesel Engines FAME/HVO 1) Market leaders in 4-stroke medium-speed main engines LNG Industry’s fastest and broadest future fuel roadmap Bio-methane 6 methanol engine types available today2), ammonia Synthetic metha
Slide 10: Hybrid-Electric will challenge 2-stroke as prime-mover for LNG carriers
Hybrid-Electric will challenge 2-stroke as prime-mover for LNG carriers, enabling higher efficiency and increased cargo capacity Wärtsilä Hybrid-Electric LNG carrier Launched at Gastech in 2023 with Shell and Hudong-Zhonghua Shipbuilding 185k cbm capacity 3x 4-stroke spark-gas gensets 6% extra cargo
Slide 11: We maintain a leading position in 4-stroke medium speed main engines
We maintain a leading position in 4-stroke medium speed main engines and are increasing our share in auxiliary engines 4-stroke medium speed main engines market share1) Auxiliary engines market share1) ~45% ~15% ~70% ~25% We are market leaders We are growing in in 4-stroke medium auxiliary engines,
Slide 12: Recovery in our key target segments will grow our addressable market
Recovery in our key target segments will grow our addressable market for equipment sales Newbuild ordering of 4-stroke medium speed main engine-powered ships, MW1) Wärtsilä market share, MW3) 11% CAGR Others2) 6 000 Offshore ~55% Merchant 5 000 Offshore 4 000 Passenger 3 000 Cruise ~85% 2 000 1 000
Slide 13: Perform – We grow in services and decarbonisation
Perform – We grow in services and decarbonisation 13 ©
Slide 14: Services is more than 60% of Marine Power sales
Services is more than 60% of Marine Power sales. We have 3 distinct revenue streams covering customer maintenance Transactional Agreements Retrofit Projects % services ~60% ~30% ~10% sales1) Increasing ship complexity New regulations Growth Installed base growth Increasing cost of emissions Increasi
Slide 15: We increase sales and profits by moving up our service value ladder
We increase sales and profits by moving up our service value ladder From 1x1) Up to 2-3x1) Guaranteed asset Optimised performance maintenance agreement Technical management agreement AI-based Expert Insight Enhanced support agreement AI-based Expert Insight Operational support Data-driven dynamic ag
Slide 16: We expand the installed base under agreement while climbing the service value ladder
We expand the installed base under agreement while climbing the service value ladder Key facts Number of vessels under agreement1) Key metrics Customer benefits 700 +17% ~90% ~90% By combining AI and renewal rate2) issues resolved remotely data analytics with 600 product know-how, 500 we can increas
Slide 17: Tightening regulations and increasing fuel and emission cost boost demand for retrofits
Tightening regulations and increasing fuel and emission cost boost demand for retrofits; we are well positioned to grow this business We enable fleet decarbonisation Success stories in 2023 48% with the most comprehensive retrofit portfolio in the industry First 4-stroke methanol of the fleet is not
Slide 18: Performance will be driven by continuous improvement and higher sales volumes
Performance will be driven by continuous improvement and higher sales volumes; we will mitigate inflation with price and cost management Equipment sales Structural changes and Recent examples: continuous improvement Favorable vessel contracting mix Manufacturing footprint Uptake of sustainable fuels
Slide 19: We lead the decarbonisation journey of marine
We lead the decarbonisation journey of marine Fuel transition has As technology leaders Our services business started. The uptake in decarbonisation, drives growth, stability of sustainable fuels we are evolving from and profitability. is strengthening our being an equipment Decarbonisation of the m
Slide 20: Disclaimer
Disclaimer The information and conclusions in this presentation are based upon calculations, observations, assumptions, publicly available competitor information, and other information obtained by Wärtsilä or provided to Wärtsilä by its customers, prospective customers or other third parties (the ”i
Slide 21: WARTSILA
re, WARTSILA