Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wartsila Corp B Shs — Q1 2024 Earnings Presentation
31 slides from Wartsila Oyj Abp's earnings presentation, Apr 26, 2024
Slide 1: Result presentation Q1 2024
Wärtsilä Corporation Result presentation Q1 2024 Håkan Agnevall, President & CEO Arjen Berends, CFO 26 April 2024 1 ©
Slide 2: Double-digit comparable operating margin and continued strong order intake
Double-digit comparable operating margin and continued strong order intake ▪ Order intake increased by 11% ▪ Supported by good development in Marine order intake (+23%) ▪ Order book all-time high (7,294 MEUR) ▪ Comparable operating result increased by 50% ▪ Double-digit comparable operating margin ▪
Slide 3: Good development in key figures
Good development in key figures MEUR 1-3/2024 1-3/2023 CHANGE Order intake 1,924 1,739 11% of which services 949 889 7% of which equipment 975 850 15% Order book 7,294 6,153 19% of which current year deliveries 3,864 3,325 Net sales 1,321 1,465 -10% of which services 833 736 13% of which equipment 4
Slide 4: Marine: market sentiment turns more positive for Wärtsilä's key segments
Marine: market sentiment turns more positive for Wärtsilä’s key segments In the first quarter, appetite for new ships increased ▪ The number of vessels ordered in the review period increased to Total and specialised vessel contracting 411 (255 in the corresponding period in 2023, excluding late Numb
Slide 5: Energy: solid mid to long-term market opportunities
Energy: solid mid to long-term market opportunities In the first quarter, uncertain market environment continued despite some relief ▪ The increasing share of renewables is the primary driver Development on installed wind and solar capacity behind Wärtsilä’s balancing and energy storage solutions' d
Slide 6: Organic order intake increased by 17%
Organic order intake increased by 17% Equipment Services Order intake growth MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling 11% 1,600 4,000 1,600 4,000 Equipment order 1,400 3,500 1,400 3,500 intake increased by 1,200 3,000 1,200 3,000 15% 975 949 1,000 850 2,500 1,000 889 2,500 Service order intake
Slide 7: All-time high order book, 2024 deliveries tilted towards H2
All-time high order book, 2024 deliveries are tilted towards H2 especially in Energy Rolling book-to-bill continues to trend up Order book by business Order book delivery schedule MEUR MEUR 8,000 1.6 4,500 7,000 1.4 4,000 6,000 1.2 3,500 3,000 5,000 1.0 2,500 4,000 0.8 2,000 3,000 0.6 1,500 2,000 0.
Slide 8: Organic net sales decreased by 6%
Organic net sales decreased by 6% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling Net sales decreased 1,100 3,500 1,100 3,500 by 10% 1,000 1,000 3,000 3,000 900 900 833 Equipment net sales 800 800 729 2,500 736 2,500 decreased by 33% 700 700 631 600 2,000 2,000 600 489 600 Service n
Slide 9: Profitability continued to improve
Profitability continued to improve Net sales Comparable operating result MEUR MEUR, 12m rolling MEUR %, 12m rolling Net sales decreased 2,000 7,000 200 12.0% by 10% 1,800 180 6,000 1,600 1,465 160 10.0% Comparable operating 1,400 1,231 1,321 5,000 140 132 8.0% result increased by 1,200 4,000 120 50%
Slide 10: Technology and partnership highlights
Technology and partnership highlights Enabling industry decarbonisation Wärtsilä-led EUR 200 million collaboration ecosystem to develop autonomous zero-emission balancing solutions for the energy transition ▪ A 5-year collaboration of more than 200 Finnish companies, industrial organisations, resear
Slide 11: Marine
Marine © WARTSILA
Slide 12: Marine: Good performance continued
Marine: Good performance continued Order intake, net sales and comparable operating result increased Order intake +23% Comparable operating result Comparable operating result 12m rolling MEUR MEUR 3,433 MEUR MEUR 12m rolling 11.6% 1,000 916 4,000 120 14.0% 744 800 3,000 600 + Good 12.0% 2,000 100 40
Slide 13: Good development in Marine service agreements
Good development in Marine service agreements Marine net sales to agreement installations increased Net sales to agreement installations (12 month rolling)1) MEUR, 12m rolling Wärtsilä Lifecycle Agreement to support optimised low-emission operations for two P&O Ferries vessels 600 ▪ Wärtsilä has sig
Slide 14: Energy
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Slide 15: Energy: Comparable operating result increased
Energy: Comparable operating result increased Equipment net sales decreased due to the periodisation of deliveries between quarters Order intake Comparable operating result Comparable operating result 4% 12m rolling MEUR MEUR 3,071 MEUR MEUR 12m 12mrolling rolling9.8% 1,000 4,000 7.3% 774 100 12.0%
Slide 16: Wärtsilä engines again the choice for major Texas utility power plant project
Wärtsilä engines again the choice for major Texas utility power plant project ▪ Wärtsilä awarded a major contract by the Lower Colorado River Authority (LCRA), providing wholesale power to the Texas power grid. ▪ Following an earlier order by LCRA for 10 engines generating an output of ~190 MW in 20
Slide 17: Energy Storage & Optimization: Comparable operating result margin positive
Energy Storage & Optimization: Comparable operating result margin (12m rolling) positive Low net sales due to the periodisation of project deliveries Quarterly development Rolling 12 months development MEUR MEUR % of net sales 400 1,400 4 350 321 328 1,200 3 1056 1034 300 992 1022 275 271 1,000 975
Slide 18: Energy service agreements at a good level
Energy service agreements at a good level MW under agreement globally MW 20,000 30% Good agreement coverage 18,000 27% ▪ 29% of installed base under agreement 16,000 24% 14,000 21% ▪ Reduction in MWs under agreement in Q1 12,000 18% 2024 affected by periodisation of agreement renewal negotiations 10
Slide 19: Comparable operating result improved – growth in all segments
Comparable operating result improved – growth in all segments MEUR % of net sales Comparable operating 0.6% (-6.9%) 10.0% result increased by 50% 11.1% (5.1%) 11.4% (9.8%) 6.0% Comparable Marine Energy Portfolio Comparable operating result Business operating result Q123 Q124 19 ©
Slide 20: Other key financials
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Slide 21: Other key financials: Strong cash flow from operating activities
Other key financials: Strong cash flow from operating activities MEUR 1-3/2024 1-3/2023 Cash flow from operating activities 258 145 Working capital -329 105 Net interest-bearing debt -79 477 Gearing -0.04 0.24 Solvency, % 34.8 33.4 Basic earnings/share, EUR 0.14 0.09 21 ©
Slide 22: 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 1000 300 6% 700 200 4% 800 600 105 500 100 2% 600 400 0 0% 300 258 400 -18 -100 -2% 200 145 200 100 -200 -4% 0 0 -300 -6% -100 -122 -329 -200 -200 -400 -8
Slide 23: Prospects
Prospects Marine ▪ Wärtsilä expects the demand environment for the next 12 months (Q2/2024-Q1/2025) to be better than that of the comparison period. Energy ▪ Wärtsilä expects the demand environment for the next 12 months (Q2/2024-Q1/2025) to be better than that of the comparison period. 23 ©
Slide 24: < a a & < S © WARTSILA
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Slide 25: Appendix
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Slide 26: Order intake
Order intake First quarter development 12% (14) 48% Marine Services Order intake (43) Order intake 51% 49% by business Energy by business type (51) Equipment (49) 40% Portfolio Business (43) 26 ©
Slide 27: Net sales
Net sales First quarter development 12% (10) Marine 37% (50) Services Net sales 54% Net sales Energy Equipment by business (46) by business type 34% Portfolio Business 63% (44) (50) 27 ©
Slide 28: First quarter development by business type
First quarter development by business type Order intake Net sales 27% Spare parts Spare parts (30) 35% Field service 30% (33) Field service 38% (35) Marine Marine Service agreements Service agreements (34) EUR 708 million EUR 916 million Service projects Service projects (669) (744) Equipment Equipm
Slide 29: January–March order intake by customer segment
January–March order intake by customer segment Marine Gas carriers Cruise & ferry Offshore Navy Special vessels Merchant Other Equipment 4% (12) 17% (26) 1% (2) 5% (18) 23% (4) 40% (35) 10% (3) Services 15% (19) 23% (19) 14% (17) 10% (8) 12% (11) 24% (25) 1% (2) Total 11% (17) 21% (21) 9% (12) 8% (1
Slide 30: Orders received for Energy equipment globally
Orders received for Energy equipment globally Europe 157 (212) Americas 279 (144) Asia 19 (8) Utilities IPP’s (Independent Africa and Power Producers) Middle East 0 (48) Industrials Others Equipment order intake 1-3/2024: MEUR 455 (411) 30 ©
Slide 31: WARTSILA
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