Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Q4 2020 Earnings Presentation

28 slides from Wartsila Oyj Abp's earnings presentation, Jan 28, 2021

  1. Slide 1: 28 January 2021 – Jaakko Eskola, President & CEO

    28 JANUARY 2021 JAAKKO ESKOLA, PRESIDENT & CEO

  2. Slide 2: 2020 – A year characterised by COVID-19 related uncertainty

    re, WARTSILA 2020 — A YEAR CHARACTERISED BY COVID-19 RELATED UNCERTAINTY

  3. Slide 3: Key figures

    KEY FIGURES MEUR 10-12/2020 CHANGE 1-12/2020 CHANGE Order intake 1,118 -28% 4,359 -18% of which services 626 -14% 2,267 -16% Order book 5,057 -14% Net sales 1,220 -28% 4,604 -11% of which services 654 -12% 2,255 -10% Book-to-bill 0.92 -0.01 0.95 -0.08 Comparable operating result 103 -49% 275 -40% %

  4. Slide 4: Vessel orders at a low level throughout 2020

    VESSEL ORDERS AT A LOW LEVEL THROUGHOUT 2020 Total vessel contracting Specialised tonnage Number of vessels Million CGT Number of vessels 250 5.0 90 Merchant Offshore Offshore Special vessels LPG carriers Cruise and ferry Special vessels 4.5 80 Cruise and ferry LNG carriers 3 months moving average i

  5. Slide 5: Energy market situation stabilised during 2020

    ENERGY MARKET SITUATION STABILISED DURING 2020 Market for gas and liquid fuel power plants <500 MW MW, 12m rolling 25,000 20,000 15,000 10,000 5,000 14% 15% 14% 17% 9% 8% 9% 9% 0 Q118-Q418 Q218-Q119 Q318-Q219 Q418-Q319 Q119-Q419 Q219-Q120 Q319-Q220 Q419-Q320 Wärtsilä Others The total market, includi

  6. Slide 6: Order intake

    ORDER INTAKE Fourth quarter development 2% (5) Marine Power MEUR, 12m rolling 42% 39% (42) Marine Systems 7,000 (38) Order intake by business Voyage Energy 6,000 Portfolio Business 5,000 5% 12% (9) (6) 4,000 3,000 2,000 Q4 Services -28% 44% Order intake 1,000 (53) by business type Equipment 1,555 1,

  7. Slide 7: Order book

    ORDER BOOK Order book by business Order book delivery schedule MEUR MEUR 7,000 1.60 4,000 6,000 1.40 3,500 1.20 3,000 5,000 1.00 2,500 4,000 0.80 2,000 3,000 0.60 1,500 2,000 0.40 1,000 1,000 0.20 500 0 0.00 0 31.3.2018* 30.9.2018* 31.3.2019** 30.9.2019** 31.3.2020 30.9.2020 Delivery next year Deliv

  8. Slide 8: Net sales

    NET SALES Fourth quarter development 2% (4) 40% Marine Power MEUR, 12m rolling (36) Marine Systems 6,000 38% Net sales (38) by business Voyage Energy 5,000 Portfolio Business 4,000 6% 14% (17) (5) 3,000 2,000 Q4 -28% Services 1,000 46% Net sales 1,684 by business type Equipment 1,220 (56) 54% (44) 0

  9. Slide 9: Comparable operating result

    COMPARABLE OPERATING RESULT Review period development MEUR, 12m rolling MEUR 500 10% 500 10% 8.8% 7.9% 8.8% 400 7.4% 8% 400 8% 6.8% 6.0% 300 6% 300 6.0% 6% 200 4% 200 4% 100 2% 100 2% 0 0% 0 0% Q119-Q419 Q219-Q120 Q319-Q220 Q419-Q320 Q120-Q420 Comparable operating result Comparable operating result,

  10. Slide 10: Cash flow from operating activities record high

    CASH FLOW FROM OPERATING ACTIVITIES RECORD HIGH MEUR 700 600 500 400 300 200 100 0 2016 2017 2018 2019 2020 10 © Wärtsilä 28 January 2021 RESULT PRESENTATION 2020

  11. Slide 11: Earnings and dividend per share

    EARNINGS AND DIVIDEND PER SHARE EUR 1.00 0.90 0.80 0.70 0.65 0.63 0.60 0.60 0.50 0.46 0.48 0.48 0.43 0.40 0.37 0.30 0.23 0.20 0.20 0.10 0.00 2016 2017 2018 2019 2020* EPS Dividend *Proposal of the Board Figures for 2016-2017 have been restated to reflect the increased number of shares. 11 © Wärtsilä

  12. Slide 12: Business results

    re Cc WARTSILA q WARTSILA

  13. Slide 13: Marine Power

    MARINE POWER MARINE POWER MEUR Order intake 700 600 500 400 • In 2020, order intake decreased by 23% to 300 EUR 1,737 million (2,247), pressurised by: 200 • Fleet idling 100 • Customers adjusting capital and operating 0 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 expenditures • Net sales decreas

  14. Slide 14: Net sales from installations under agreement declined due to COVID-19 impacts

    MARINE POWER NET SALES FROM INSTALLATIONS UNDER AGREEMENT DECLINED DUE TO COVID-19 IMPACTS MEUR, 12m rolling 400 Wärtsilä to provide xxx to xxxx • Xxxxxxx 350 • Xxxxxxx 300 250 200 150 100 50 0 31.12.2018 31.3.2019 30.6.2019 30.9.2019 31.12.2019 31.3.2020 30.6.2020 30.9.2020 31.12.2020 14 © Wärtsilä

  15. Slide 15: Marine Systems

    MARINE SYSTEMS MARINE SYSTEMS MEUR Order intake 300 250 200 • In 2020, order intake decreased by 28% to 150 EUR 539 million (754), affected by: 100 • Postponed customer decision-making 50 • Reduced fuel spreads lowering demand for 0 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 scrubber investment

  16. Slide 16: Voyage

    VOYAGE VOYAGE MEUR Order intake 120 100 80 • In 2020, order intake decreased by 16% to 60 EUR 262 million (310) 40 • Low demand in the cruise industry 20 • Growth in fleet optimisation solutions 0 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 • Net sales decreased by 12% to EUR 248 million (280),

  17. Slide 17: Number of connected vessels doubled in 2020

    VOYAGE NUMBER OF CONNECTED VESSELS DOUBLED IN 2020 – ORDER BOOK SUPPORTED BY CONTINUOUSLY HIGH ORDER INTAKE Number of connected vessels +100% Wärtsilä Fleet Operations Solution to optimise the performance of UltraShip’s entire fleet of 18 LPG tankers • The solution saves costs while increasing safet

  18. Slide 18: Energy

    ENERGY ENERGY MEUR Order intake 700 600 500 • In 2020, order intake decreased by 7% to EUR 400 1,653 million (1,769) 300 • Slowdown of economic activity burdened 200 orders – improvement towards year-end 100 0 • Resilient activity in the storage market Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20

  19. Slide 19: Energy installed base covered by long-term service agreements

    ENERGY ENERGY INSTALLED BASE COVERED BY LONG-TERM SERVICE AGREEMENTS MW 14,000 30% A 10-year service agreement signed for a 170 MW power plant serving a mine in 12,000 25% Papua New Guinea 10,000 20% • The tailored guaranteed asset performance 8,000 agreement worth over EUR 150 million was 15% signe

  20. Slide 20: Outlook: near-term demand similar to prior year

    Wärtsilä expects the near-term demand environment to be similar to that of the corresponding period in the previous year. However, visibility remains limited, and the prevailing market conditions make the outlook uncertain. © Wärtsilä

  21. Slide 21: Appendix

    © Wärtsilä

  22. Slide 22: January–December order intake by customer segment

    JANUARY–DECEMBER ORDER INTAKE BY CUSTOMER SEGMENT Marine Businesses Energy 0% (7) Marine Power Equipment 22% 31% 4% 8% 22% 13% (16) Other 9% 18% (18) (13) (48) (3) (9) (7) (21) Industrials Services 16% 14% 15% 11% 16% 26% 2% 30% (26) (14) (25) (15) (9) (12) (22) (2) Marine Systems 2% Independent Equ

  23. Slide 23: Orders received for energy equipment globally

    ORDERS RECEIVED FOR ENERGY EQUIPMENT GLOBALLY Europe 404 (240) Asia Americas 362 (986) 493 (410) Utilities IPP’s Africa and (Independent Middle East Power Producers) 298 (344) Industrials Others ORDER INTAKE 1-12/2020: 1,557 MW (1,980) 23 © Wärtsilä 28 January 2021 RESULT PRESENTATION 2020

  24. Slide 24: Net sales by business type

    NET SALES BY BUSINESS TYPE Fourth quarter development 25% (23) MEUR MEUR, 12m rolling Marine 47% Businesses 1,800 3,000 Spare parts EUR 724 million (51) (965) Field service 1,600 2,500 15% (14) Service agreements 1,400 Service projects 6% (5) Equipment 1,200 2,000 7% (7) 1,000 1,500 800 22% (15) 600

  25. Slide 25: Net sales bridge

    NET SALES BRIDGE MEUR 25 © Wärtsilä 28 January 2021 RESULT PRESENTATION 2020

  26. Slide 26: Working capital

    WORKING CAPITAL MEUR 4,000 16% 3,000 14% 14.2% 11.5% 11.2% Other non-interest-bearing liabilities 2,000 12% 10.2% Advances received 1,000 10% 257 Trade payables 563 581 732 0 490 8% Other non-interest-bearing receivables Trade receivables -1,000 6% Inventories 5.6% -2,000 4% Working capital Working

  27. Slide 27: Gearing

    GEARING 0.50 0.40 0.30 0.20 0.10 0.00 2016 2017 2018 2019 2020 27 © Wärtsilä 28 January 2021 RESULT PRESENTATION 2020

  28. Slide 28: Thank you

    THANK YOU Further information: NATALIA VALTASAARI Vice President, Investor Relations Tel: +358 (0) 10 709 5637 E-mail: natalia.valtasaari@wartsila.com

Wartsila Oyj Abp — Q4 2020 Earnings Presentation on 6ix