Slide 1: Wärtsilä Corporation Result Presentation 2019
WÄRTSILÄ CORPORATION RESULT PRESENTATION 2019 30 January 2020 Jaakko Eskola, President & CEO 1 © Wärtsilä PUBLIC 30 January 2020 RESULT PRESENTATION 2019
Slide 2: A year burdened by project related challenges
Third–quarter 2019 A year burdened marked byby project related challenges difficult and low and market conditions equipment project – services demandrelated activity remains sound challenges © Wärtsilä PUBLIC
Slide 3: Key figures 2019
KEY FIGURES 2019 Order intake EUR 5,327 million, -16% Order book at the end of the period EUR 5,878 million, -5% Net sales EUR 5,170 million, -0% Book-to-bill 1.03 (1.22) Comparable operating result EUR 457 million (577), or 8.8% of net sales (11.2) Earnings per share EUR 0.37 (0.65) Cash flow from
Slide 4: Order intake declined despite sequential improvement in Q4
Order intake declined despite sequential improvement in Q4 Fourth quarter development Rolling 12m, MEUR 7,000 39% 6,000 (45) Order intake Wärtsilä Marine 5,000 by business area Wärtsilä Energy 61% (55) 4,000 3,000 2,000 Q4 -17% 1,000 1,874 54% Services 1,555 Order intake (63) by business type 46% Eq
Slide 5: Net sales growth in marine equipment and services offset the decline in energy equipment
Net sales growth in marine equipment and services offset the decline in energy equipment Rolling 12m, MEUR Fourth quarter development 6,000 39% 5,000 (46) Net sales Wärtsilä Marine by business area Wärtsilä Energy 4,000 61% (54) 3,000 2,000 Q4 +10% 1,000 1,532 1,684 Services 56% Net sales 44% (52) b
Slide 6: Book-to-bill
Book-to-bill Rolling 12m, MEUR 7,000 1.40 1.20 1.22 1.15 1.15 1.17 1.18 1.15 6,000 1.13 1.20 1.03 5,000 1.00 4,000 0.80 3,000 0.60 2,000 0.40 1,000 0.20 0 0.00 Q117-Q417 Q217-Q118 Q317-Q218 Q417-Q318 Q118-Q418 Q218-Q119 Q318-Q219 Q418-Q319 Q119-Q419 Order intake Net sales Book-to-bill 6 © Wärtsilä P
Slide 7: Order book distribution
Order book distribution MEUR 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 31.12.2018 31.12.2019 Delivery next year Delivery after next year 7 © Wärtsilä PUBLIC 30 January 2020 RESULT PRESENTATION 2019
Slide 8: Comparable operating result still burdened by project cost overruns
Comparable operating result still burdened by project cost overruns Rolling 12m, MEUR Review period development 700 11.2% 11.3% 12% MEUR 11.1% 700 14% 600 9.6% 8.8% 10% 600 11.2% 12% 500 8% 500 10% 8.8% 400 6% 400 8% 300 300 6% 4% 200 200 4% 2% 100 100 2% 0 0% 0 0% Q118-Q418 Q218-Q119 Q318-Q219 Q418
Slide 9: Cash flow from operating activities
Cash flow from operating activities MEUR 700 600 500 400 300 200 100 0 2015 2016 2017 2018 2019 9 © Wärtsilä PUBLIC 30 January 2020 RESULT PRESENTATION 2019
Slide 10: Working capital
Working capital MEUR 1,500 20% 1,250 14.2% 15% 1,000 11.2% 11.5% 10.8% 10.2% 732 750 10% 563 581 543 490 500 5% 250 0 0% 2015 2016 2017 2018 2019 Working capital Total inventories Advances received Working capital / net sales 10 © Wärtsilä PUBLIC 30 January 2020 RESULT PRESENTATION 2019
Slide 11: Gearing
Gearing 0.50 0.40 0.30 0.20 0.10 0.00 2015 2016 2017 2018 2019* * Excluding the impact of lease liabilities, gearing amounted to 0.22. 11 © Wärtsilä PUBLIC 30 January 2020 RESULT PRESENTATION 2019
Slide 12: Earnings and dividend per share
Earnings and dividend per share EUR 1.00 0.90 0.80 0.75 0.70 0.65 0.63 0.60 0.60 0.50 0.46 0.48 0.48 0.43 0.40 0.40 0.37 0.30 0.20 0.10 0.00 2015 2016 2017 2018 2019* EPS Dividend *Proposal of the Board Figures for 2015-2017 have been restated to reflect the increased number of shares. 12 © Wärtsilä
Slide 13: Wärtsilä Marine Business
Wärtsilä Marine Business © Wärtsilä PUBLIC
Slide 14: Market sentiment still cautious – improvement in specialised vessels
WÄRTSILÄ MARINE BUSINESS Market sentiment still cautious – improvement in specialised vessels Total vessel contracting Specialised tonnage Merchant Offshore Offshore Cruise and Ferry Special vessels LNG carriers LPG carriers 250 Cruise and Ferry Special vessels 5.0 80 3 months moving average in CGT
Slide 15: Marine order intake development
WÄRTSILÄ MARINE BUSINESS Order intake development QTD, MEUR Rolling 12m, MEUR Fourth quarter development 5% 3% 1,200 4,500 13% 4,000 1,000 1% Equipment 3,500 order intake 53% 800 3,000 by segment 21% ◼ Cruise & Ferry 2,500 ◼ Offshore 600 2,000 4% ◼ Navy ◼ Special Vessels 400 1,500 2% ◼ Merchant 11%
Slide 16: Marine installed base covered by long-term service agreements
WÄRTSILÄ MARINE BUSINESS Marine installed base covered by long-term service agreements MW 25,000 18% 16% 20,000 14% 12% 15,000 10% 8% 10,000 6% 5,000 4% 2% 0 0% 2014 2015 2016 2017 2018 2019 MW under agreement % of Marine installed base 16 © Wärtsilä PUBLIC 30 January 2020 RESULT PRESENTATION 2019
Slide 17: Marine net sales development
WÄRTSILÄ MARINE BUSINESS Net sales development QTD, MEUR Rolling 12m, MEUR 1,200 4,500 23% (26) 4,000 1,000 3,500 800 3,000 2,500 Fourth quarter 600 development 2,000 53% EUR 1,020 million (831) 13% (17) (45) 400 1,500 1,000 200 500 5% (6) 0 0 6% (6) 10-12/2018 1-3/2019 4-6/2019 7-9/2019 10-12/2019
Slide 18: Anglo-Eastern partners with Wärtsilä to digitalise its fleet operations
ANGLO-EASTERN PARTNERS WITH WÄRTSILÄ TO DIGITALISE ITS FLEET OPERATIONS • Wärtsilä Fleet Operations Solution (FOS) will be rolled out to Anglo-Eastern’s global fleet of more than 600 vessels • The solution integrates individual processes to optimise voyage planning, weather routing, fuel consumption
Slide 19: Wärtsilä Energy Business
Wärtsilä Energy Business © Wärtsilä PUBLIC
Slide 20: Market for gas and liquid fuel power plants, <500 MW
WÄRTSILÄ ENERGY BUSINESS Market for gas and liquid fuel power plants, <500 MW Rolling 12m, MW 25,000 20,000 15,000 10,000 5,000 19% 21% 17% 13% 14% 15% 14% 17% 0 Q117-Q417 Q217-Q118 Q317-Q218 Q417-Q318 Q118-Q418 Q218-Q119 Q318-Q219 Q418-Q319 Wärtsilä Others The total market, including also power pla
Slide 21: Energy order intake development
WÄRTSILÄ ENERGY BUSINESS Order intake development QTD, MEUR Rolling 12m, MEUR Fourth quarter development 11% 1,000 2,500 25% 900 800 2,000 Equipment order intake 700 by segment 600 1,500 41% 23% 500 ◼ Utilities ◼ Independent Power Producers 400 1,000 ◼ Industrials 300 16% ◼ Others 32% 200 500 100 Se
Slide 22: Orders received for energy equipment globally
WÄRTSILÄ ENERGY BUSINESS Orders received for energy equipment globally Europe 240 (332) Asia 986 (1,426) Americas 410 (824) Utilities IPP’s (Independent Africa and Power Producers) Middle East Industrials 344 (329) Others Order intake 1-12/2019: 1,980 MW (2,911) 22 © Wärtsilä PUBLIC 30 January 2020
Slide 23: Energy installed base covered by long-term service agreements
WÄRTSILÄ ENERGY BUSINESS Energy installed base covered by long-term service agreements MW 14,000 30% Wärtsilä signed a spare parts supply agreement in the 12,000 25% Dominican Republic 10,000 20% • The service agreement covers 8,000 all three Wärtsilä power plants 15% owned and/or operated by EGE 6,
Slide 24: Energy net sales development
WÄRTSILÄ ENERGY BUSINESS Net sales development QTD, MEUR Rolling 12m, MEUR 1,000 2,500 15% (17) 800 2,000 5% (4) 600 1,500 Fourth quarter development 400 1,000 12% (12) EUR 664 million (701) 61% (61) 200 500 7% (5) 0 0 10-12/2018 1-3/2019 4-6/2019 7-9/2019 10-12/2019 Wärtsilä Energy, equipment Spare
Slide 25: Collaborating to modernise power generation in Mali; modular block for lifecycle innovation
COLLABORATING MODULAR BLOCK FOR TO MODERNISE LIFECYCLE INNOVATION POWER GENERATION IN MALI • Wärtsilä Wärtsilä’s hybrid,the secured dual-fuel first order solution of the innovative establishesModular the newBlock Wasaline solution, RoPaxto be ferry delivered as a benchmark to an off-grid in efficien
Slide 26: Prospects
PROSPECTS The demand for Wärtsilä’s services and solutions in 2020 is expected to be somewhat below that of 2019. Demand by business area is anticipated to be as follows: • Soft in Wärtsilä Marine Business • Soft in Wärtsilä Energy Business © Wärtsilä PUBLIC
Slide 27: Thank you
THANK YOU Further information: Natalia Valtasaari Vice President, Investor Relations Tel. +358 (0) 10 709 5637 E-mail: natalia.valtasaari@wartsila.com