Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Q4 2023 Earnings Presentation

34 slides from Wartsila Oyj Abp's earnings presentation, Jan 31, 2024

  1. Slide 1: Financial Statements Bulletin January–December 2023

    Wärtsilä Corporation Financial Statements Bulletin January–December 2023 Håkan Agnevall, President & CEO Arjen Berends, CFO 31 January 2024 1 ©

  2. Slide 2: All-time highs in order intake, net sales and cash flow in 2023

    All-time highs in order intake, net sales and cash flow in 2023 ▪ Order intake all-time high (7,070 MEUR) ▪ Net sales all-time high (6,015 MEUR) ▪ Good progress in services continued: ▪ Service order intake increased by 15% ▪ Service net sales increased by 13% ▪ The comparable operating result incre

  3. Slide 3: Good development in key figures

    Good development in key figures MEUR 10-12/2023 10-12/2022 CHANGE 1-12/2023 1-12/2022 CHANGE Order intake 1,856 1,638 13% 7,070 6,074 16% of which services 876 791 11% 3,519 3,066 15% of which equipment 980 848 16% 3,550 3,008 18% Order book 6,694 5,906 13% of which current year deliveries 4,208 3,8

  4. Slide 4: Marine market sentiment remained positive for Wärtsilä's key segments

    Marine market sentiment remained positive for Wärtsilä’s key segments Appetite for new ships increased ▪ The number of vessels ordered in the review period increased to 1977 Total and specialised vessel contracting (1538 in the corresponding period in 2022, excluding late reporting of contracts). Nu

  5. Slide 5: Solid long-term opportunities in energy market

    Solid long-term opportunities in energy market Energy transition outlook improving amid fragile global economy ▪ Market share remained at 13% (13%), as global orders for natural Contracting for gas and liquid fuelled power plants gas and liquid-fuelled power plants decreased by 22% to 10.0 5-400 MW

  6. Slide 6: Organic order intake increased by 21%

    Organic order intake increased by 21% Equipment Services Order intake growth MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling 13% 1,600 4,000 1,600 4,000 Equipment order 1404 1,400 3,500 1,400 3,500 intake increased by 1,200 3,000 1,200 3,000 16% 980 1,000 848 2,500 1,000 876 2,500 Service order intake

  7. Slide 7: Strong order book, rolling book-to-bill continues to trend up

    Strong order book, rolling book-to-bill continues to trend up Order book for the year 2024 higher than 2023 Order book by business Order book delivery schedule MEUR MEUR 8,000 1.30 4,500 7,000 1.20 4,000 6,000 1.10 3,500 5,000 1.00 3,000 4,000 0.90 2,500 2,000 3,000 0.80 1,500 2,000 0.70 1,000 1,000

  8. Slide 8: Organic net sales decreased by 3%

    Organic net sales decreased by 3% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling Net sales decreased by 1,100 987 3500 1,100 3,500 7% 1,000 1,000 3000 3,000 900 846 800 900 784 843 Equipment net sales 800 751 800 2500 2,500 decreased by 19% 700 700 2000 2,000 600 600 Service net sa

  9. Slide 9: Profitability continued to improve

    Profitability continued to improve Net sales Comparable operating result Net sales decreased by MEUR MEUR, 12m rolling MEUR %, 12m rolling 7% 2,000 1,770 7,000 200 177 12.0% Comparable operating 1,800 180 1,597 1,644 6,000 158 10.0% result increased by 1,600 160 90% 1,400 5,000 140 8.0% 1,200 120 4,

  10. Slide 10: Technology and partnership highlights

    Technology and partnership highlights Enabling industry decarbonisation Wärtsilä enables acceleration of marine’s transition to sustainable fuels with introduction of four methanol engines ▪ Wärtsilä will introduce four new methanol engines to its portfolio, setting a new industry benchmark with the

  11. Slide 11: Marine Power

    Cg WARTSILA Marine Power © WARTSILA

  12. Slide 12: Marine Power: Good development in order intake and net sales

    Marine Power: Good development in order intake and net sales Both equipment and service net sales increased. Comparable operating margin declined due to less favourable mix between equipment and services. Order intake Comparable operating result Comparable operating result +13% 12m rolling MEUR MEUR

  13. Slide 13: Good development in Marine Power service agreements

    Good development in Marine Power service agreements Marine Power net sales to agreement installations all-time high Net sales to agreement installations (12 month rolling)1) Expanding installed base under agreement MEUR, 12m rolling while climbing the service value ladder 500 ▪ Marine Power service

  14. Slide 14: Launch of world-first 4-stroke engine-based ammonia solution

    Wärtsilä continues to set the pace for marine decarbonisation with launch of world-first 4-stroke engine-based ammonia solution ▪ Wärtsilä introduced the marine sector’s first commercially available 4-stroke engine-based solution for ammonia fuel. ▪ The ammonia solution is now available as part of t

  15. Slide 15: Marine Systems

    md s 177) Z < = © WARTSILA, Marine Systems

  16. Slide 16: Marine Systems: Equipment order intake increased

    Marine Systems: Equipment order intake increased Equipment net sales decreased Order intake Comparable operating result Comparable operating result 12m rolling +5% MEUR MEUR 12m rolling 1.2% MEUR MEUR 652 400 800 22 11.0% 308 300 600 18 9.0% 16 200 132 400 15 126 100 200 14 7.0% 15 0 0 - Lower net s

  17. Slide 17: Energy

    © WARTSILA Energy 7 © WARTSILA,

  18. Slide 18: Energy: Comparable operating result record high

    Energy: Comparable operating result record high Good development in service continued Order intake Comparable operating result Comparable operating result 34% 12m rolling MEUR MEUR 3,041 MEUR MEUR 12m 12mrolling rolling8.4% 1,200 1,031 4,000 100 7.3% 10.0% 1,000 868 89 3,000 800 646 600 2,000 + Good

  19. Slide 19: Energy storage: Comparable operating result margin (12m rolling) positive

    Energy storage: Comparable operating result margin (12m rolling) positive Profitability improving and strategic review continues Quarterly development Rolling 12 months development MEUR MEUR % of net sales 400 1,200 5 1056 350 1022 4 992 321 328 1,000 975 961 983 926 3 892 300 275 271 807 257 261 26

  20. Slide 20: Continued good development in Energy service agreements

    Continued good development in Energy service agreements MW under agreement globally Wärtsilä secures 12-year agreement extension with MW efficient power plant operation and maintenance 22,000 35% 20,000 ▪ Wärtsilä’s Operation & Maintenance (O&M) agreement with 18,000 30% Sindh Nooriabad Power Compan

  21. Slide 21: Comparable operating result improved – biggest improvement in Energy

    Comparable operating result improved – biggest improvement in Energy MEUR % of net sales 12.4% 8.6% Comparable operating (5.4) 10.8% (-0.9) result increased by 90% 11.9% -5.0% (13.5) (7.2) 5.3% Comparable Marine Marine Energy Portfolio Comparable operating result Power Systems Business operating res

  22. Slide 22: Other key financials

    Other key financials 2 © WARTSILA

  23. Slide 23: Other key financials: Strong cash flow from operating activities

    Other key financials: Strong cash flow from operating activities MEUR 10-12/2023 10-12/2022 1-12/2023 1-12/2022 Cash flow from operating activities 389 51 822 -62 Working capital -169 179 Net interest-bearing debt 35 481 Gearing 0.02 0.23 Solvency, % 37.0 35.3 Basic earnings/share, EUR 0.16 0.05 0.4

  24. Slide 24: Strong cash flow from operating activities

    Strong cash flow from operating activities Cash flow from operating activities Working capital to net sales ratio MEUR MEUR, 12m rolling MEUR 800 900 300 10% 700 800 250 8% 600 700 200 179 6% 600 150 500 389 500 100 4% 400 370 400 300 50 2% 300 200 0 0% 200 100 51 -50 100 -2% 0 -100 0 -100 -150 -4%

  25. Slide 25: Earnings and dividend per share

    Earnings and dividend per share EUR 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 -0.10 -0.20 2019 2020 2021 2022 2023* EPS DPS *Proposal of the Board 25 ©

  26. Slide 26: Prospects

    Prospects Marine ▪ Wärtsilä expects the demand environment for the next 12 months (Q1/2024-Q4/2024) to be better to that of the comparison period. Energy ▪ Wärtsilä expects the demand environment for the next 12 months (Q1/2024-Q4/2024) to be better to that of the comparison period. 26 ©

  27. Slide 27: WARTSILA © WARTSILA,

    © WARTSILA 27 © WARTSILA,

  28. Slide 28: Appendix

    © WARTSILA 28 © WARTSILA

  29. Slide 29: Order intake

    Order intake Fourth quarter development 4% (11) 42% Marine Power (42) Marine Systems Services Order intake Order intake 47% 47% by business Energy 53% by business type (48) Equipment (52) (39) Portfolio Business 7% (8) 29 ©

  30. Slide 30: Net sales

    Net sales Fourth quarter development 8% (7) 42% Marine Power (33) Services Net sales Marine Systems 49% Net sales 51% Equipment by business (56) by business type Energy (44) 44% (48) Portfolio Business 7% (12) 30 ©

  31. Slide 31: Fourth quarter development by business type

    Fourth quarter development by business type Order intake Net sales 24% 28% Spare parts (31) Spare parts (29) Field service Field service 38% Marine Marine Service agreements 45% Service agreements (40) Businesses Businesses (40) EUR 800 million Service projects EUR 914 million Service projects (796)

  32. Slide 32: January–December order intake by customer segment

    January–December order intake by customer segment Special Marine Businesses Gas carriers Cruise & ferry Offshore Navy vessels Merchant Other Marine Power Equipment 11% (13) 24% (22) 6% (2) 8% (11) 6% (13) 40% (33) 5% (5) Services 16% (15) 23% (21) 18% (15) 7% (8) 11% (11) 24% (28) 1% (2) Marine Syst

  33. Slide 33: Orders received for Energy equipment globally

    Orders received for Energy equipment globally Europe 339 (146) Americas 843 (979) Asia 372 (295) Utilities IPP’s Africa and (Independent Middle East Power Producers) 181 (130) Industrials Others Equipment order intake 1-12/2023: MEUR 1,735 (1,550) 33 ©

  34. Slide 34: WARTSILA

    re, WARTSILA

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