Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Q3 2022 Earnings Presentation

35 slides from Wartsila Oyj Abp's earnings presentation, Oct 25, 2022

  1. Slide 1: Interim report January–September 2022

    Wärtsilä Corporation Interim report January–September 2022 Håkan Agnevall, President & CEO Arjen Berends, CFO 25 October 2022 1 © Wärtsilä

  2. Slide 2: Good order intake – cost inflation and business mix burdened profitability

    Good order intake – cost inflation and business mix burdened profitability ▪ Order intake increased by 36% ▪ Net sales increased by 30% ▪ Good progress in services: ▪ Service order intake increased by 27% ▪ Service net sales increased by 13% ▪ Comparable operating result decreased by 6% ▪ Intensifyi

  3. Slide 3: Key figures

    Key figures MEUR 7-9/2022 7-9/2021 CHANGE 1-9/2022 1-9/2021 CHANGE Order intake 1,616 1,186 36% 4,436 3,584 24% of which services 732 578 27% 2,275 1,868 22% Order book 6,229 5,325 17% of which current year deliveries 1,651 1,402 18% Net sales 1,433 1,103 30% 4,072 3,181 28% of which services 664 58

  4. Slide 4: Third quarter highlights

    Third quarter highlights Net sales Comparable operating result MEUR %, 12m rolling Net sales EUR 1,433 MEUR MEUR, 12m rolling million 2,000 6,000 180 12.0% 1,800 160 ▪ 13% increase in 1,600 1,433 5,000 140 10.0% service sales 1,400 4,000 120 8.0% 1,200 1,103 995 100 1,000 3,000 87 82 6.0% Comparable

  5. Slide 5: Marine market sentiment continued to improve despite growing macroeconomic concerns

    Marine market sentiment continued to improve despite growing macroeconomic concerns Demand for new ships has moderated as many shipyards are operating at close to full capacity ▪ The number of vessels ordered in the review period Total vessel contracting decreased to 1,095 (1,402 in the correspondin

  6. Slide 6: Energy market affected by global cost inflation and price volatility

    Energy market affected by global cost inflation and price volatility Good demand for balancing solutions ▪ The investment environment witnessed higher quotation prices, Contracting for gas and liquid fuelled power plants <500 MW slower customer decision-making, and considerable uncertainty. MW, 12m

  7. Slide 7: Order intake increased by 36%

    Order intake increased by 36% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling ▪ Equipment order 1,600 4,000 1,600 4,000 intake increased by 1,400 3,500 1,400 3,500 45% 1,200 3,000 1,200 3,000 1,000 ▪ Service order intake 884 2,500 1,000 2,500 800 2,000 732 2,000 increased by 27% 800

  8. Slide 8: Strong order book

    Strong order book Order book by business Order book delivery schedule MEUR MEUR 8,000 1.25 3,500 7,000 1.20 3,000 6,000 1.15 2,500 5,000 1.10 2,000 4,000 1.05 1,500 3,000 1.00 1,000 2,000 1,000 0.95 500 0 0.90 0 30.9.2020 31.3.2021 30.9.2021 31.3.2022 30.9.2022 Delivery current year Delivery next ye

  9. Slide 9: Net sales increased by 30%

    Net sales increased by 30% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling 1,000 3,500 1,000 3,000 ▪ Equipment net sales 900 900 increased by 49% 3,000 2,500 800 769 800 700 2,500 700 664 ▪ Service net sales 2,000 600 600 589 increased by 13% 496 514 2,000 499 500 500 1,500 1,500 40

  10. Slide 10: Technology and partnership highlights

    Technology and partnership highlights Enabling industry decarbonisation Launch of the Wärtsilä 25 engine – efficiency leader in its range ▪ Modularity offers shipowners and operators maximised flexibility, while efficiency and fuel economy delivers minimised emissions. ▪ Already capable of operating

  11. Slide 11: Marine Power

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  12. Slide 12: Marine Power: all key figures improved

    Marine Power: all key figures improved Service order intake increased by 21% Order intake Comparable operating result Comparable operating result +33% 12m rolling MEUR MEUR 2,406 MEUR MEUR 12m rolling 10.5% 80 12.0% 800 3,000 588 2,500 600 70 410 443 2,000 10.0% 400 1,500 + Strong service sales 1,00

  13. Slide 13: Marine Power service agreements

    Marine Power service agreements Net sales from installations under agreement strongly increasing MEUR, 12m rolling CBO Group and Wärtsilä sign Decarbonisation Service 400 agreement to speed up fleet sustainability 350 ▪ Wärtsilä and Rio de Janeiro based Companhia Brasileira 300 de Offshore (CBO) hav

  14. Slide 14: Marine Systems

    Marine Systems 14 © Wärtsilä

  15. Slide 15: Marine Systems: net sales and comparable operating result increased

    Marine Systems: net sales and comparable operating result increased Order intake decreased Order intake Comparable operating result Comparable operating result 12m rolling -34% MEUR MEUR 772 MEUR MEUR 12m rolling 7.5% 400 1,200 40 12.0% 1,000 300 800 191 200 174 600 10.0% 126 400 100 30 200 17 0 0 +

  16. Slide 16: Voyage

    Pa) WARTSILA Voyage 16 wartsila

  17. Slide 17: Voyage: order intake increased

    Voyage: order intake increased Russia exit impacted sales and profitability negatively Order intake Comparable operating result Comparable operating result 12m rolling +58% MEUR MEUR 308 MEUR MEUR 12m rolling -15.8% 100 400 Q321 Q322 83 5 0.0% 80 300 60 53 44 200 40 0 -4.0% 20 100 - Closure of profi

  18. Slide 18: Voyage cloud solutions

    Voyage cloud solutions Increase of 20% in connected vessels +20% Wärtsilä to digitalise Associated British Ports’ maritime Number of vessels connected to operations our cloud solutions ▪ Voyage has signed a contract for a five-year framework agreement with Associated British Ports (ABP) to digitalis

  19. Slide 19: Energy

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  20. Slide 20: Energy: order intake and net sales increased

    Energy: order intake and net sales increased Comparable operating result declined Order intake Comparable operating result Comparable operating result +66% 12m rolling MEUR MEUR 2,997 MEUR MEUR 6.4% 12m rolling 7.3% 1,200 3,500 70 9.0% 1,000 3,000 805 800 2,500 8.0% 2,000 60 600 486 1,500 400 319 1,

  21. Slide 21: Wärtsilä to support integration of renewables into Japan's power mix

    Wärtsilä to support integration of renewables into Japan’s power mix by providing balancing power gas engines ▪ The new Japanese plant will operate with ten Wärtsilä 34SG gas engines. It will replace a 100 MW combined cycle gas turbine that was formerly located on the project site. ▪ The fast-starti

  22. Slide 22: Energy service agreements

    Energy service agreements Installed base covered by long-term service agreements increasing MW Wärtsilä to provide automation upgrade and long-term 18,000 28% service agreement for a power plant in Cameroon 16,000 27% 14,000 ▪ Wärtsilä will carry out an upgrading project of the 26% electrical and au

  23. Slide 23: Other key financials

    Other key financials 23 © Wärtsilä

  24. Slide 24: Other key financials

    Other key financials MEUR 7-9/2022 7-9/2021 1-9/2022 1-9/2021 Cash flow from operating activities 100 49 -113 360 Working capital 108 107 Net interest-bearing debt 377 309 Gearing 0.18 0.14 Solvency, % 34.5 39.3 Basic earnings/share, EUR 0.00 0.08 -0.16 0.19 24 © Wärtsilä

  25. Slide 25: Cash flow from operating activities increased

    Cash flow from operating activities increased Cash flow from operating activities Third quarter development MEUR MEUR, 12m rolling MEUR 800 800 700 700 600 600 500 500 400 400 300 300 200 200 114 100 100 49 100 0 0 -100 -100 -200 -200 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Cash flow from opera

  26. Slide 26: Prospects

    Prospects Wärtsilä expects the demand environment in the fourth quarter to be weaker than that of the corresponding period in the previous year. Wärtsilä’s order intake in the comparison period, last quarter of 2021, was at an all-time high. For the full year 2022, the demand is expected to be sligh

  27. Slide 27: Q&A

    Q&A 27 © Wärtsilä

  28. Slide 28: Appendix

    Appendix 28 © Wärtsilä

  29. Slide 29: Order intake

    Order intake Third quarter development 1% (1) 36% Marine Power (37) Marine Systems Services Order intake Order intake 45% 50% Voyage by business type Equipment by business 55% (49) (42) Energy (51) Portfolio Business 8% 5% (16) (4) 29 © Wärtsilä

  30. Slide 30: Net sales

    Net sales Third quarter development 2% (2) 32% Marine Power (35) Marine Systems Services Net sales Net sales 46% 49% Voyage 54% by business type (53) Equipment by business (44) Energy (47) Portfolio Business 13% 4% (13) (6) 30 © Wärtsilä

  31. Slide 31: Third quarter development by business type

    Third quarter development by business type Order intake Net sales 29% (26) 30% Spare parts (31) Spare parts Marine Field service Marine Field service 41% Businesses Businesses (40) Service agreements 43% Service agreements EUR 707 million EUR 798 million (45) (591) Service projects (686) Service pro

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

    January–September order intake by customer segment Special Marine Businesses Gas carriers Cruise & ferry Offshore Navy vessels Merchant Other Marine Power Equipment 17% (9) 23% (34) 2% (5) 3% (9) 18% (23) 37% (20) 0% (0) Services 16% (19) 21% (17) 14% (14) 7% (10) 12% (13) 28% (25) 2% (2) Marine Sys

  33. Slide 33: Energy storage order intake and net sales

    Energy storage order intake and net sales MEUR 350 320 300 280 250 240 200 200 170 160 150 150 130 130 115 110 100 70 50 30 10 0 Q1/2021 Q2/2021 Q3/2021 Q4/2021 Q1/2022 Q2/2022 Q3/2022 Order intake Net sales 33 © Wärtsilä

  34. Slide 34: Orders received for Energy equipment globally

    Orders received for Energy equipment globally Europe 114 (49) Asia 177 (146) Americas Utilities 734 (509) IPP’s Africa and (Independent Middle East Power Producers) 111 (51) Industrials Others Equipment order intake 1-9/2022: MEUR 1,136 (755) 34 © Wärtsilä

  35. Slide 35: WARTSILA

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Wartsila Oyj Abp — Q3 2022 Earnings Presentation on 6ix