Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — FY2013 Earnings Presentation
39 slides from Wartsila Oyj Abp's earnings presentation, Jan 29, 2014
Slide 1: 2013 Result Presentation
2013 RESULT PRESENTATION BJÖRN ROSENGREN, PRESIDENT & CEO 29 JANUARY 2014 © Wärtsilä
Slide 2: Highlights 2013
Highlights 2013 • Order intake EUR 4,872 million, -1% • Net sales EUR 4,654 million, -1% • Book-to-bill 1.05 • EBITA EUR 552 million, 11.9% of net sales • EBIT EUR 520 million, 11.2% of net sales NEW • EPS EUR 1.98 (1.72) • Cash flow from operating activities PIC EUR 578 million (153) • Group-wide e
Slide 3: Order intake development
Order intake development MEUR 5500 5000 4500 4000 Fourth quarter development MEUR 3500 1,357 1,351 1400 3000 0% 1200 2500 -16% 1000 Services 2000 800 36% Ship Power 1500 600 Power Plants 1000 400 -13% 500 200 0 0 2009 2010 2011 2012 2013 Q4/2012 Q4/2013 Q1-Q3 Q4 3 © Wärtsilä
Slide 4: Net sales in line with our expectations
Net sales Net sales decreased due in line withexchange to unfavourable our expectations rates and delayed deliveries MEUR 5500 5000 -13% 4500 12% -1% 4000 Fourth quarter development -7.6% 3500 MEUR 1,533 1600 3000 1,411 1400 -8% 2500 -5% 1200 Services 2000 1000 0% Ship Power 800 1500 600 Power Plant
Slide 5: Net sales by business 2013
Net sales by business 2013 Net sales by business 1-3/2012 Ship Power 28% (28) Services 40% (40) Power Plants 31% (32) 5 © Wärtsilä
Slide 6: Book-to-bill ratio remains above one
Book-to-bill ratio remains above one MEUR 6000 1,2 1.07 1.05 1.05 5500 5000 1,0 0.88 4500 4000 0,8 3500 0.63 3000 0,6 2500 2000 0,4 1500 1000 0,2 500 0 0,0 2009 2010 2011 2012 2013 Order intake Net sales Book-to-bill 6 © Wärtsilä
Slide 7: Order book distribution
Order book distribution Order book distribution MEUR 4000 3000 2000 1000 0 31.12.2012 31.12.2013 Delivery next year Delivery after next year 7 © Wärtsilä
Slide 8: Resilient profitability
Resilient profitability MEUR 250 16% 14% 12.8% 200 11.9% 11.5% 11.7% EBIT% 11.0% 12% 12.1% target: 11.1% 11.2% 10-14% 10.7% 10.9% 10% 150 8% 100 6% 4% 50 2% 0 0% 2009 2010 2011 2012 2013 Q1 Q2 Q3 Q4 Yearly EBITA% (operating result before non-recurring items and intangible asset amortisation related
Slide 9: Moderate activity in power generation markets
Moderate activity in power generation markets
Slide 10: Power Plants – quoted MW per fuel type
Power Plants – quoted MW per fuel type 16000 14000 12000 10000 Others MW 8000 Natural gas 6000 4000 Heavy fuel oil 2000 0 Q2 Q3 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q3 Q4 Q3 Q4 Q1 Q4 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q2 Q1 Q2 2005 2006 2007 2008 2009 2010 2011 2012 2013 The share of natural gas
Slide 11: Power Plants quarterly order intake
Power Plants quarterly order intake MEUR 600 500 400 300 200 100 0 2006 2007 2008 2009 2010 2011 2012 2013 Q1 Q2 Q3 Q4 11 © Wärtsilä
Slide 12: Power Plants order intake by customer segment
Power Plants order intake by customer segment MEUR Review period development 2000 Total EUR 1,292 million (1,515) 1800 23% Utilities 1600 Industrials 46% 1400 31% IPP’s* 1200 x% 1000 800 Review period order intake by fuel in MW 600 400 Oil Gas 200 18% 82% 0 2009 2010 2011 2012 2013 Q1-Q3 Q4 *IPP = I
Slide 13: Wärtsilä to supply Indonesia's largest ever engine based power plant
Wärtsilä to supply Indonesia’s largest ever engine based power plant • Turnkey order for 200 MW dual-fuel power plant awarded by PT Indonesia Power • The plant will be constructed by a consortium with Wärtsilä as the lead partner • The new power plant will ensure greater NEW reliability in the suppl
Slide 14: Power Plants global order intake
Power Plants global order intake Good demand in Asia Europe 320 (89) Asia 1,083 (869) 113 114 303 181 Americas 418 (919) 26 666 18 131 Africa and Middle East 581 (1,269) 268 122 Utilities IPP’s 314 Industrials 145 Order intake 2013: 2,401 MW (3,146) 14 © Wärtsilä
Slide 15: Market for gas and liquid based power plants
Market for gas and liquid based power plants H1 2013 Total market 18.8 GW (28.8) 8.0% Siemens 5.9% GE 5.9% MHI 34.6% 6.4% Alstom Wärtsilä 12.8% Ansaldo 26.1% Other GTs Includes all Wärtsilä power plants and other manufacturers’ gas and liquid fuelled power plants with prime movers above 5 MW, as wel
Slide 16: Improvement in marine market activity
Improvement in marine market activity
Slide 17: Vessel contracting continues strong
Vessel contracting continues strong * * Source: Clarkson Research Services * CGT= gross tonnage compensated with workload 17 © Wärtsilä
Slide 18: Ship Power order intake by segment
Ship Power order intake by segment MEUR 1800 Review period development Total EUR 1,662 million (1,453) 1500 Merchant 34% 1200 Offshore 42% 900 Other 3% 600 Special vessels 7% 300 Cruise & ferry Navy 8% 6% 0 2009 2010 2011 2012 2013 Q1-Q3 Q4 18 © Wärtsilä
Slide 19: Wärtsilä power modules for North Sea FPSO
Wärtsilä power modules for North Sea FPSO • Order for EPC delivery of 62 MW power module solution for an FPSO vessel placed by Bumi Armada • Vessel to be deployed in the Kraken oil field in the U.K. sector of the North Sea • Scope of supply: – 2 power generation modules, consisting of 16- cylinder W
Slide 20: Joint venture ordering activity
Joint venture ordering activity MEUR 600 • Order intake in Wärtsilä Hyundai 550 Engine Company Ltd in South 500 Korea, and Wärtsilä Qiyao 450 Diesel Company Ltd in China 400 totalled EUR 222 million (242) 350 during the review period January- December 2013 300 • Wärtsilä’s share of ownership in 250
Slide 21: Ship Power order book
Ship Power orderShip bookPower order book 31 December 31 December 2012 2013 RoRo LNG* 1% 5% Bulkers 3% Containers 4% Merchant Offshore 32% Tankers 45% 15% Cargo 3% Others 1% Navy 7% Special Cruise & Ferry vessels 7% 6% * Excluding order book from South Korean joint venture 21 © Wärtsilä
Slide 22: Ship Power market
Ship Power market Market position of Wärtsilä’s marine engines Medium-speed main engines Low-speed main engines Auxiliary engines Mitsubishi Wärtsilä 2%(2) 4%(5) Wärtsilä Others 10%(10) 19%(18) Caterpillar Wärtsilä 4%(12) 52%(49) MAN D&T Others 25%(21) MAN D&T 88%(88) 96%(95) Total market volume las
Slide 23: Stable development in the service markets
Stable development in the service markets
Slide 24: Services net sales development
Services net sales development MEUR 2000 1800 0% 0% 5% -3% Fourth quarter development 1600 MEUR 1400 600 531 -5% 507 1200 500 1000 400 800 300 600 400 200 200 100 0 0 2009 2010 2011 2012 2013 Q4/2012 Q4/2013 Q1-Q3 Q4 24 © Wärtsilä
Slide 25: Services net sales by quarter
Services net sales by quarter MEUR 600 500 400 300 200 100 0 2006 2007 2008 2009 2010 2011 2012 2013 Q1 Q2 Q3 Q4 25 © Wärtsilä
Slide 26: Services net sales distribution 2013
Services net sales distribution 2013 Field service 23%(23) Spare parts 52%(53) Contracts 17%(15) Projects 8%(9) Total EUR 1,842 million (1,908) 26 © Wärtsilä
Slide 27: Services distribution per business 2013
Services distribution per business 2013 Net sales Installed base Total EUR 1,842 million Total 182,000 MW Ship Power Ship Power Power Plants Power Plants 27 © Wärtsilä
Slide 28: Strategic focus on long-term service agreements continues
Strategic focus on long-term service agreements continues • Serveral services agreements signed with marine and power plant customers in 2013: – 10-year agreement with Portland General Electric Company in the USA – 10-year maintenance agreement with Energy Developments Ltd of Australia – 10-year Ope
Slide 29: Development of Power Plants service agreements
Development of Power Plants service agreements MW 4500 90% 4000 80% 3500 70% 57% 58% 57% 3000 60% 53% 51% 2500 50% 2000 40% 1500 30% 1000 20% 500 10% 0 0% 2009 2010 2011 2012 2013 O&M and maintenance agreements Power Plants deliveries % of delivered MWs 29 © Wärtsilä
Slide 30: Fleet utilisation
Fleet utilisation Fleet utilisation Anchored Vessels & Fleet Development* 35% 22500 Nr of Active Vessels Percent Anchored 30% 22000 21500 25% 21000 20% 20500 15% 20000 06.11 09.11 12.11 03.12 06.12 09.12 12.12 03.13 06.13 09.13 12.13 Anchored Active Fleet Fleet Average Speed, knots** 10,5 10,0 9,5 9
Slide 31: Solid financial standing
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Slide 32: Strong development in cash flow from operating activities
Strong development in cash flow from operating activities MEUR 700 600 500 400 300 200 100 0 2009 2010 2011 2012 2013 32 © Wärtsilä
Slide 33: Working capital
Working capital Good development in advances received MEUR 2000 25% 1800 1600 20% 1400 1200 15% 1000 9.8% 800 9.2% 10% 600 6.7% 5.8% 486 6.8% 465 400 313 5% 267 3.7% 235 200 118 0 0% 2008 2009 2010 2011 2012 2013 Working capital Total inventories Advances received Working capital / Net sales 33 © Wä
Slide 34: Financial position
Financial position Solvency Gearing 50% 0,50 45% 0,40 40% 35% 0,30 30% 25% 0,20 20% 15% 0,10 10% 0,00 5% 0% 2009 2010 2011 2012 2013 -0,10 2009 2010 2011 2012 2013 34 © Wärtsilä
Slide 35: EPS and dividend per share
EPS and dividend per share EPS and EUR 2,50 1.98 2,00 1,50 1.05 1,00 0,50 0,00 2009 2010 2011 2012 2013* EPS Dividend Extra dividend *Dividend 2013 - Proposal of the Board 35 © Wärtsilä
Slide 36: Market outlook
Market outlook • Power Plants: Based on the forecasted GDP growth in 2014, the overall market for liquid and gas fuelled power generation is expected improve NEW slightly. Ordering activity remains focused on emerging markets, which continue to invest in PIC new power generation capacity. • Ship Pow
Slide 37: Group-wide efficiency programme initiated
Group-wide efficiency programme initiated • Process started to realign organisation to secure future profitability and competitiveness in a challenging business environment • Planned reductions of approx. 1,000 jobs globally, impacting all businesses and support functions • Expected annual savings o
Slide 38: Prospects for 2014
Prospects for 2014 Wärtsilä expects its net sales for 2014 to grow by 0-10% and its operational profitability (EBIT% before non-recurring items) to be around 11%.
Slide 39: IR Contact: Natalia Valtasaari
IR Contact: Natalia Valtasaari Director, Investor Relations Tel. +358 (0) 40 187 7809 E-mail: natalia.valtasaari@wartsila.com