Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — Q2 2018 Earnings Presentation

30 slides from Wartsila Oyj Abp's earnings presentation, Jul 19, 2018

  1. Slide 1: Wärtsilä Corporation Half Year Financial Report 2018

    WÄRTSILÄ CORPORATION HALF YEAR FINANCIAL REPORT 2018 19 July 2018 Jaakko Eskola, President & CEO 1 © Wärtsilä PUBLIC 19 July 2018 Half year financial report 2018

  2. Slide 2: Good development in orders received

    GOOD DEVELOPMENT IN ORDERS RECEIVED 2 © Wärtsilä PUBLIC 19 July 2018 Half year financial report 2018

  3. Slide 3: Highlights Q2/2018

    Highlights Q2/2018 • Order intake EUR 1,553 million, 14% • Net sales EUR 1,246 million, -3% • Book-to-bill 1.25 (1.06) • Comparable operating result EUR 123 million (122), which represents 9.8% of net sales (9.5) • Earnings per share EUR 0.13 (0.12) • Cash flow from operating activities EUR 41 milli

  4. Slide 4: Positive momentum in ordering activity

    Positive momentum in ordering activity MEUR 6 000 5 500 Second quarter development 5 000 MEUR 4 500 1 800 4 000 1,553 1 600 3 500 1,363 1 400 14% 3 000 1 200 Services 2 500 22% 1 000 Marine 2 000 800 Solutions 13% 1 500 600 1 000 Energy 400 Solutions 500 0% 200 0 0 2014 2015 2016 2017 2018 Q2/2017 Q

  5. Slide 5: Net sales stable in the first half

    Net sales stable in the first half MEUR 5 500 5 000 Second quarter development 4 500 MEUR 4 000 1 400 1,290 3 500 1,246 1 200 3 000 -3% 1 000 2 500 Services -2% 800 2 000 Marine 600 4% Solutions 1 500 400 1 000 Energy -11% Solutions 500 200 0 0 2014 2015 2016 2017 2018 Q2/2017 Q2/2018 Q1-Q2 Q3-Q4 Co

  6. Slide 6: Net sales by business 1-6/2018

    Net sales by business 1-6/2018 Marine Solutions 24% (23) Services 48% (49) Energy Solutions 27% (28) Comparison figures for 2017 have been restated due to the internal reorganisation of service activities and the adoption of IFRS 15. 6 © Wärtsilä PUBLIC 19 July 2018 Half year financial report 2018

  7. Slide 7: Book-to-bill

    Book-to-bill MEUR 6 000 1,6 5 500 1.32 1,4 5 000 4 500 1.15 1,2 1.03 1.06 4 000 0.98 1,0 3 500 3 000 0,8 2 500 0,6 2 000 1 500 0,4 1 000 0,2 500 0 0,0 2014 2015 2016 2017 1-6/2018 Order intake Net sales Book-to-bill Comparison figures for 2017 have been restated due to the adoption of IFRS 15. 7 © W

  8. Slide 8: Order book distribution

    Order book distribution MEUR 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 30.6.2017 30.6.2018 Delivery current year Delivery next year or later Comparison figures for 2017 have been restated due to the adoption of IFRS 15. 8 © Wärtsilä PUBLIC 19 July 2018 Half year financial report 2018

  9. Slide 9: Operating result

    Operating result MEUR 700 14% 12.2% 12.1% 11.9% 11.7% Review period development 600 12% MEUR 220 14% 500 10% 200 12% 180 400 8% 160 9.1% 10% 8.9% 140 300 6% 8% 120 100 6% 200 4% 80 60 4% 100 2% 40 2% 20 0 0% 0 0% 2014 2015 2016 2017 1-6/2017 1-6/2018 Comparable operating result % of net sales Compar

  10. Slide 10: Services

    SERVICES 10 © Wärtsilä PUBLIC 19 July 2018 Half year financial report 2018

  11. Slide 11: Services' sales on last year's level

    SERVICES Services’ sales on last year’s level MEUR 2 600 2 400 Second quarter development 2 200 2 000 MEUR 1 800 800 1 600 700 1 400 594 582 600 1 200 -2% 500 1 000 400 800 300 600 400 200 200 100 0 0 2014 2015 2016 2017 2018 Q2/2017 Q2/2018 Q1-Q2 Q3-Q4 Comparison figures for 2017 have been restated

  12. Slide 12: Net sales distribution 1-6/2018

    SERVICES Net sales distribution 1-6/2018 By product area By segment Others Special vessels 2% (2) 8% (6) Field service Oil&Gas 22% (24) 4% (4) Offshore 4% (4) Navy Spare parts 7% (8) Power plants 48% (50) 33% (34) Agreements 22% (17) Merchant 23% (24) Cruise & ferry Projects 20% (18) 8% (10) Total E

  13. Slide 13: Installed base covered by service agreements

    SERVICES Installed base covered by service agreements 20 000 30% 18 000 25% 16 000 14 000 20% MW 12 000 10 000 15% 8 000 10% 6 000 4 000 5% 2 000 0 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 1-6/2018 MW under agreement – Energy Solutions MW under agreement – Marine Solutions % of Energy Solutio

  14. Slide 14: Wärtsilä strengthens cooperation with Transocean

    Wärtsilä strengthens cooperation with Transocean • Agreement to optimise the maintenance of all Wärtsilä thrusters installed within the Transocean fleet. • Benefits include extended service intervals and reduced dry-docking costs. • The performance-based agreement builds on the Wärtsilä Propulsion C

  15. Slide 15: Energy Solutions

    ENERGY SOLUTIONS 15 © Wärtsilä PUBLIC 19 July 2018 Half year financial report 2018

  16. Slide 16: Quotation activity by fuel type

    ENERGY SOLUTIONS Quotation activity by fuel type MW 60 000 50 000 40 000 Multi-fuel 30 000 Gas Liquid fuel 20 000 10 000 0 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 Calculated on a 12 months rolling basis 16 © Wärtsilä PUBLIC 19 J

  17. Slide 17: Energy Solutions' order intake stable

    ENERGY SOLUTIONS Energy Solutions’ order intake stable Review period development MEUR Total EUR 773 million (766) 1 800 1% 1 600 Utilities 1 400 53% 46% Independent power producers 1 200 Industrials 1 000 800 Review period order intake 600 by fuel in MW 400 Oil Gas 200 41% 56% 0 2014 2015 2016 2017

  18. Slide 18: Highest activity in Asia

    ENERGY SOLUTIONS Highest activity in Asia Asia 896 (1,096) Europe 231 (198) 10 10 225 Americas 297 (348) 221 661 51 246 Africa and Middle East 212 (173) Utilities 21 IPP’s 60 (Independent Power Producers) Industrials 132 Order intake 1-6/2018: 1,636 MW (1,815) 18 © Wärtsilä PUBLIC 19 July 2018 Half

  19. Slide 19: Wärtsilä's power plant will alleviate electricity shortage in Myanmar

    Wärtsilä’s power plant will alleviate electricity shortage in Myanmar • The 145 MW power plant will operate on eight Wärtsilä 50SG gas-fuelled engines. • The plant is scheduled to be operational during the first quarter of 2019. • Wärtsilä’s ability to meet the demanding delivery requirements, and t

  20. Slide 20: Market for gas and liquid fuel power plants, <500 MW

    ENERGY SOLUTIONS Market for gas and liquid fuel power plants, <500 MW Other GT’s Ansaldo 1% 9% MHI GE 14% 30% Wärtsilä 21% Siemens 25% <500 MW market volume: 18.1 GW (20.1) Total market volume: 49.8 GW (46.8) Market shares are calculated on a 12 months rolling basis, numbers in brackets are from the

  21. Slide 21: Marine Solutions

    MARINE SOLUTIONS 21 © Wärtsilä PUBLIC 19 July 2018 Half year financial report 2018

  22. Slide 22: Gradual recovery in vessel contracting

    MARINE SOLUTIONS Gradual recovery in vessel contracting Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT * 250 5,0 4,5 200 4,0 3,5 Number of vessels 150 3,0 * Million CGT 2,5 100 2,0 1,5 50 1,0 0,5 0 0,0 1/2009 4/2009 7/2009 1/2010 4/2010 7/2010 1/2011 4/2011 7/2011

  23. Slide 23: Marine Solutions' order intake supported by broad product offering

    MARINE SOLUTIONS Marine Solutions’ order intake supported by broad product offering MEUR 1 800 Review period development Total EUR 766 million (634) 1 500 Offshore Gas carriers 7% (2) Special vessels 1 200 14% (34) 3% (6) 900 Traditional Cruise merchant 25% (31) 600 40% (15) 300 Ferry 4% (2) 0 Navy

  24. Slide 24: Improving the environmental impact of shipping

    Improving the environmental impact Kuva of shipping pitää • The approaching global sulphur cap vaihtaa, is resulting in high demand for scrubber solutions bonny • Activity increasing in both newbuild and retrofit markets kalvon • EUR 170 million order for hybrid exhaust gas cleaning equipment and re

  25. Slide 25: Financials

    FINANCIALS 25 © Wärtsilä PUBLIC 19 July 2018 Half year financial report 2018

  26. Slide 26: Cash flow from operating activities

    FINANCIALS Cash flow from operating activities MEUR 700 600 Review period development MEUR 50 500 40 400 30 300 20 200 10 100 0 0 -10 2014 2015 2016 2017 1-6/2017 1-6/2018 26 © Wärtsilä PUBLIC 19 July 2018 Half year financial report 2018

  27. Slide 27: Working capital

    FINANCIALS Working capital MEUR 1 600 25% 1 400 Review period development 20% MEUR 1 200 1 600 25% 1 000 1 400 15% 20% 1 200 800 11.5% 16.0%* 10.8% 10.2% 1 000 13.3%* 15% 563 10% 790 600 543 800 6.8% 490 658 10% 400 5.2% 600 313 5% 251 400 5% 200 200 0 0% 0 0% 2013 2014 2015 2016 2017 30.6.2017 30.6

  28. Slide 28: Gearing

    FINANCIALS Gearing 0,50 Review period development 0,40 0,50 0,30 0,40 0,30 0,20 0,20 0,10 0,10 0,00 0,00 2014 2015 2016 2017 30.6.2017 30.6.2018 28 © Wärtsilä PUBLIC 19 July 2018 Half year financial report 2018

  29. Slide 29: Prospects for 2018

    Setti 1 Setti 1 Prospects for 2018 The demand for Wärtsilä’s services and solutions in 2018 is expected to improve somewhat from the previous year. Demand by business area is anticipated to be as follows: • Good in Services • Good in Energy Solutions • Good in Marine Solutions (raised from solid) 29

  30. Slide 30: Thank you

    THANK YOU Further information: Natalia Valtasaari Director, Investor & Media Relations Tel. +358 (0) 10 709 5637 E-mail: natalia.valtasaari@wartsila.com 30 © Wärtsilä PUBLIC 19 July 2018 Half year financial report 2018

Wärtsilä — Q2 2018 Earnings Presentation on 6ix