Slide 1: Wärtsilä Corporation Interim Report January-March 2017
WÄRTSILÄ CORPORATION INTERIM REPORT JANUARY-MARCH 2017 26 April 2017 Jaakko Eskola, President & CEO 1 © Wärtsilä PUBLIC 26 April 2017 Q1 Result presentation
Slide 2: Highlights Q1/2017
Highlights Q1/2017 • Order intake EUR 1,413 million, +11% • Net sales EUR 1,007 million, +4% • Book-to-bill 1.40 (1.31) • Comparable operating result EUR 86 million (84), which represents 8.5% of net sales (8.7) • Earnings per share EUR 0.28 (0.30) • Cash flow from operating activities EUR 2 million
Slide 3: Positive development in order intake
Positive development in order intake MEUR 5 500 5 000 First quarter development 4 500 MEUR 4 000 1 600 1,413 3 500 1 400 1,271 11% 3 000 1 200 18% Services 2 500 1 000 2 000 800 Marine -15% Solutions 1 500 600 1 000 400 Energy 30% Solutions 500 200 0 0 2013 2014 2015 2016 2017 Q1/2016 Q1/2017 Q1 Q2-
Slide 4: Net sales supported by higher power plant deliveries
Net sales supported by higher power plant deliveries MEUR 5 500 5 000 First quarter development 4 500 MEUR 4 000 1 200 3 500 967 1,007 1 000 4% 3 000 800 -2% Services 2 500 2 000 600 Marine -17% Solutions 1 500 400 1 000 Energy 200 80% Solutions 500 0 0 2013 2014 2015 2016 2017 Q1/2016 Q1/2017 Q1 Q2
Slide 5: Net sales by business 1-3/2017
Net sales by business 1-3/2017 Services Marine Solutions 49% (52) 28% (35) Energy Solutions 24% (14) 5 © Wärtsilä PUBLIC 26 April 2017 Q1 Result presentation
Slide 6: Book-to-bill
Book-to-bill MEUR 5 500 1,6 5 000 1.40 1,4 4 500 1,2 4 000 1.03 1.05 1.06 3 500 0.98 1,0 3 000 0,8 2 500 2 000 0,6 1 500 0,4 1 000 0,2 500 0 0,0 2013 2014 2015 2016 1-3/2017 Order intake Net sales Book-to-bill 6 © Wärtsilä PUBLIC 26 April 2017 Q1 Result presentation
Slide 7: Order book distribution
Order book distribution MEUR 3 500 3 000 2 500 2 000 1 500 1 000 500 0 31.3.2016 31.3.2017 Delivery current year Delivery next year or later 7 © Wärtsilä PUBLIC 26 April 2017 Q1 Result presentation
Slide 8: Operating result
Operating result MEUR 700 14% 12.2% 12.1% 11.9% First quarter development 600 12% 11.2% MEUR 140 14% 500 10% 120 12% 400 8% 100 10% 8.7% 8.5% 300 6% 80 8% 60 6% 200 4% 40 4% 100 2% 20 2% 0 0% 0 0% 2013 2014 2015 2016 Q1/2016 Q1/2017 Comparable operating result % of net sales Items affecting comparab
Slide 9: Services
SERVICES 9 © Wärtsilä PUBLIC 26 April 2017 Q1 Result presentation
Slide 10: Services' net sales development
SERVICES Services’ net sales development MEUR 2 400 2 200 First quarter development 2 000 MEUR 1 800 600 1 600 500 490 1 400 500 1 200 -2% 400 1 000 800 300 600 200 400 100 200 0 0 2013 2014 2015 2016 2017 Q1/2016 Q1/2017 Q1 Q2-Q4 10 © Wärtsilä PUBLIC 26 April 2017 Q1 Result presentation
Slide 11: Net sales distribution 1-3/2017
SERVICES Net sales distribution 1-3/2017 By product area By segment Special vessels 7% (7) Offshore Field service 7% (9) 21% (24) Navy 9% (9) Spare parts Power plants 55% (51) 37% (35) Agreements 16% (17) Merchant Projects 24% (26) Cruise & ferry 8% (8) 16% (14) Total EUR 490 million (500) 11 © Wärt
Slide 12: Installed base covered by service agreements
SERVICES Installed base covered by service agreements 20 000 30% 18 000 25% 16 000 14 000 20% 12 000 MW 10 000 15% 8 000 10% 6 000 4 000 5% 2 000 0 0% 2009 2010 2011 2012 2013 2014 2015 2016 Q1/2017 MW under agreement – Energy Solutions MW under agreement – Marine Solutions % of Energy Solutions’ in
Slide 13: Optimising the maintenance and performance of Tallink's M/S Megastar
Optimising the maintenance and performance of Tallink’s M/S Megastar • The 5-year maintenance agreement ensures safety and efficiency • 24/7 online support enhances the vessel’s availability and reliability • Improved financial predictability helps to optimise Tallink’s operations • The ferry is pow
Slide 14: Energy Solutions
ENERGY SOLUTIONS 14 © Wärtsilä PUBLIC 26 April 2017 Q1 Result presentation
Slide 15: Quotation activity per fuel type
ENERGY SOLUTIONS Quotation activity per fuel type MW 60 000 50 000 40 000 Liquid fuel 30 000 Gas Multi-fuel 20 000 10 000 0 Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017 Calculated on a 12 months rolling basis 15 © Wärtsilä PUBLIC 26 April 2017 Q1 Result presentatio
Slide 16: Strong ordering activity in Energy Solutions
ENERGY SOLUTIONS Strong ordering activity in Energy Solutions First quarter development MEUR Total EUR 405 million (312) 1 800 8% Utilities 1 600 19% Independent 1 400 73% power producers 1 200 Industrials 1 000 800 First quarter order intake 600 by fuel in MW 400 Oil Gas 24% 76% 200 0 2013 2014 201
Slide 17: Order intake globally
ENERGY SOLUTIONS Order intake globally Europe 198 (564) 13 Asia 304 (30) 8 75 110 Americas 125 (74) 145 150 125 Africa and Middle East 195 (199) Utilities IPP’s 51 144 (Independent Power Producers) Industrials Order intake 1-3/2017: 822 MW (868) 17 © Wärtsilä PUBLIC 26 April 2017 Q1 Result presentat
Slide 18: Wärtsilä to supply Africa's largest solar PV hybrid solution
Wärtsilä to supply Africa’s largest solar PV hybrid solution • The 15 MWp solar PV plant will be built next to an existing Wärtsilä engine plant, forming an integrated hybrid solution • The solution will enable climate-friendly operations of a gold mine in Burkina Faso: • 6 million litres annual fue
Slide 19: Market for gas and liquid fuel power plants, <500 MW
ENERGY SOLUTIONS Market for gas and liquid fuel power plants, <500 MW 2015 2016 Wärtsilä Other GT’s 8% Ansaldo 4% Other GT’s 10% 10% GE Wärtsilä GE Ansaldo 38% 13% 31% 10% MHI MHI 15% 20% Siemens Siemens 19% 22% <500 MW market volume: 26.1 GW (26.2) Total market volume: 65.0 GW (73.5) Market data in
Slide 20: Marine Solutions
MARINE SOLUTIONS 20 © Wärtsilä PUBLIC 26 April 2017 Q1 Result presentation
Slide 21: Marine market environment continues to be soft
MARINE SOLUTIONS Marine market environment continues to be soft 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 01.09 03.09 05.09 07.09 09.09 11.09 01.10 03.10 05.10 0
Slide 22: Marine Solutions' order intake satisfactory
MARINE SOLUTIONS Marine Solutions’ order intake satisfactory MEUR 1 800 First quarter development Total EUR 322 million (379) 1 500 Offshore 3% Special vessels 1 200 6% 900 Gas carriers Cruise 33% 23% 600 300 Ferry 4% 0 Navy 2013 2014 2015 2016 2017 Traditional Others 8% merchant Q1 Q2-Q4 19% 4% 22
Slide 23: Good activity in FSRU market
Good activity in FSRU market Kuva pitää • Cost efficiency, flexibility and mobility is vaihtaa, creating demand for floating regasification units bonny • Höegh LNG’s two new FSRUs will kalvon feature Wärtsilä’s latest regasification technology and Wärtsilä’s dual-fuel kuva voisi main engines • Wärts
Slide 24: Market position of Wärtsilä's marine engines
MARINE SOLUTIONS Market position of Wärtsilä’s marine engines Focus on auxiliary engines supporting market share development Medium-speed main engines Auxiliary engines Others Wärtsilä 11% (10) 20% (18) Caterpillar Wärtsilä 17% (15) 45% (51) Others 80% (82) MAN D&T 27% (24) Total market volume last
Slide 25: Financials
FINANCIALS 25 © Wärtsilä PUBLIC 26 April 2017 Q1 Result presentation
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 10 200 0 100 -10 0 -20 2013 2014 2015 2016 Q1/2016 Q1/2017 26 © Wärtsilä PUBLIC 26 April 2017 Q1 Result presentation
Slide 27: Working capital development
FINANCIALS Working capital development 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 10.8% 14.2%* 10.2% 1 000 15% 600 543 10% 12.0%* 800 709 6.8% 490 580 10% 400 5.2% 600 313 5% 251 400 5% 200 200 0 0% 0 0% 2013 2014 2015 2016 31.3.2016 31.3.20
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 2013 2014 2015 2016 31.3.2016 31.3.2017 28 © Wärtsilä PUBLIC 26 April 2017 Q1 Result presentation
Slide 29: Prospects for 2017
Setti 1 Setti 1 Prospects for 2017 The overall demand for Wärtsilä’s services and solutions in 2017 is expected to be relatively unchanged from the previous year. Demand by business area is anticipated to develop as follows: • Solid in Services with growth opportunities • Good in Energy Solutions (p
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 26 April 2017 Q1 Result presentation