Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Q3 2021 Earnings Presentation

35 slides from Wartsila Oyj Abp's earnings presentation, Oct 26, 2021

  1. Slide 1: Interim Report January-September 2021

    1 © Wärtsilä 26 October 2021 INTERIM REPORT JANUARY -SEPTEMBER 2021

  2. Slide 2: Order intake, net sales and profitability increased

    ORDER INTAKE, NET SALES, AND PROFITABILITY INCREASED • Order intake increased by 21%, growth in all businesses • Good progress in services: ̶ Order intake increased by 14% ̶ Net sales increased by 20% • Profitability improved • Covid-19 continued to have a negative impact on Wärtsilä’s business 2 ©

  3. Slide 3: Broad-based positive development in key figures

    BROAD-BASED POSITIVE DEVELOPMENT IN KEY FIGURES MEUR 7-9/2021 7-9/2020 CHANGE 1-9/2021 1-9/2020 CHANGE Order intake 1,186 981 21% 3,584 3,240 11% of which services 595 521 14% 1,903 1,641 16% Order book 5,325 5,265 1% of which current year deliveries 1,402 1,196 17% Net sales 1,103 995 11% 3,181 3,3

  4. Slide 4: Third quarter highlights

    THIRD QUARTER HIGHLIGHTS Net sales Comparable operating result MEUR MEUR, 12m rolling MEUR %, 12m rolling Net sales EUR 1,103 million 1,800 6,000 250 14.0% • 20% increase in 1,600 5,000 12.0% 200 service sales 1,400 10.0% 1,200 1,118 1,103 4,000 995 150 1,000 8.0% Comparable operating 3,000 800 resu

  5. Slide 5: Mixed activity levels in marine market

    MIXED ACTIVITY LEVELS IN MARINE MARKET SIGNIFICANT INCREASE IN VESSEL CONTRACTING MAINLY DRIVEN BY CONTAINERSHIPS Total vessel contracting • The number of vessels ordered in the review period increased to 1,402 (505 in the Number of vessels corresponding period in 2020, excluding late 1,400 1,200 re

  6. Slide 6: Pandemic still impacts energy market negatively

    PANDEMIC STILL IMPACTS ENERGY MARKET NEGATIVELY STRONG DEMAND IN THE ENERGY STORAGE MARKET Market for gas and liquid fuel power plants <500 MW • The covid-19 pandemic continued to impact MW, 12m rolling negatively the energy market. 20,000 18,000 • Recovery will most likely take time in a large part

  7. Slide 7: Order intake increased by 21%

    ORDER INTAKE INCREASED BY 21% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling 1,000 3,500 1,000 3,500 • Order intake 900 900 increased across 800 3,000 800 3,000 all businesses 700 2,500 700 681 2,500 591 595 • Equipment order 600 2,000 600 521 2,000 500 460 500 intake increased 1,5

  8. Slide 8: Slight increase in order book despite divestments

    SLIGHT INCREASE IN ORDER BOOK DESPITE DIVESTMENTS BOOK-TO-BILL CONTINUED TO IMPROVE Order book by business Order book delivery schedule MEUR MEUR 7,000 1.20 3,000 6,000 1.00 2,500 5,000 0.80 2,000 4,000 0.60 1,500 3,000 0.40 1,000 2,000 1,000 0.20 500 0 0.00 0 30.9.2019* 31.3.2020 30.9.2020 31.3.202

  9. Slide 9: Net sales increased by 11%

    NET SALES INCREASED BY Equipment Services 11% MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling 1,000 3,000 1,000 3,000 • Equipment net 900 900 sales increased by 2,500 2,500 800 800 2% 700 700 2,000 598 2,000 579 • Service net sales 600 540 496 506 600 499 increased by 20% 500 1,500 500 1,500 400 400 1

  10. Slide 10: Technology and partnership highlights

    TECHNOLOGY AND PARTNERSHIP HIGHLIGHTS ENABLING INDUSTRY DECARBONISATION Upgraded version of Wärtsilä 20DF dual-fuel engine • Increased power output, reduced environmental impact, lower fuel consumption, and a wider gas quality span Developing ammonia-fuelled vessels • A joint development programme a

  11. Slide 11: Our decarbonisation goals by 2030

    OUR DECARBONISATION GOALS BY 2030 ARE: To become carbon neutral in our own operations To provide a product portfolio which will be ready for zero carbon fuels 11 © Wärtsilä 26 October 2021 INTERIM REPORT JANUARY -SEPTEMBER 2021

  12. Slide 12: Interim Report January-September 2021

    12 © Wärtsilä 26 October 2021 INTERIM REPORT JANUARY -SEPTEMBER 2021

  13. Slide 13: Marine Power: order intake and comparable operating result increased

    MARINE POWER: ORDER INTAKE AND COMPARABLE OPERATING RESULT INCREASED SERVICE ORDER INTAKE INCREASED BY 29% Order intake Comparable operating result Comparable operating result 12m rolling +8% MEUR MEUR 1,792 MEUR MEUR 12m rolling 9.4% 700 2,500 120 16.0% 600 500 449 443 2,000 110 410 400 1,500 14.0%

  14. Slide 14: Marine Power service agreements

    MARINE POWER SERVICE AGREEMENTS NET SALES FROM INSTALLATIONS UNDER AGREEMENT STABILISED AFTER A COVID-19 RELATED DECLINE MEUR, 12m rolling Wärtsilä ensures optimal performance and 400 minimal carbon footprint for the world’s most 350 environmentally friendly ferry 300 • Wärtsilä and Wasaline signed

  15. Slide 15: Interim Report January-September 2021

    15 © Wärtsilä 26 October 2021 INTERIM REPORT JANUARY -SEPTEMBER 2021

  16. Slide 16: Marine Systems: order intake increased

    MARINE SYSTEMS: ORDER INTAKE INCREASED NET SALES AND COMPARABLE OPERATING RESULT DECREASED Order intake Comparable operating result Comparable operating result 12m rolling +10% MEUR MEUR 660 MEUR MEUR 12m rolling 8.5% 300 1,200 60 12.0% 250 1,000 174 191 200 800 150 150 600 50 10.0% 100 400 50 200 0

  17. Slide 17: Interim Report January-September 2021

    17 © Wärtsilä 26 October 2021 INTERIM REPORT JANUARY -SEPTEMBER 2021

  18. Slide 18: Voyage: order intake and net sales increased

    VOYAGE: ORDER INTAKE AND NET SALES INCREASED SERVICE ORDER INTAKE INCREASED BY 75% Order intake Comparable operating result Comparable operating result 12m rolling +20% MEUR MEUR 254 MEUR MEUR 12m rolling -15.0% 120 400 Q320 Q321 0 0.0% 100 300 80 69 60 53 200 -5 44 -6 -5 -6 -5.0% 40 -10 100 20 -12

  19. Slide 19: Voyage cloud solution volumes increasing

    VOYAGE CLOUD SOLUTION VOLUMES INCREASING INCREASE OF 61% IN CONNECTED VESSELS Number of vessels connected to our cloud solutions +61% Wärtsilä’s Cloud Simulation Solution now available on Ocean Technologies Group’s Ocean Learning Platform • The learning platform aims to provide the broadest and most

  20. Slide 20: Interim Report January-September 2021

    20 © Wärtsilä 26 October 2021 INTERIM REPORT JANUARY -SEPTEMBER 2021

  21. Slide 21: Energy: order intake, net sales and comparable operating result increased

    ENERGY: ORDER INTAKE, NET SALES AND COMPARABLE OPERATING RESULT INCREASED SERVICE ORDER INTAKE DECREASED BY 4% Order intake Comparable operating result Comparable operating result 12m rolling +52% MEUR MEUR 1,882 MEUR MEUR 12m rolling 7.7% 700 2,000 120 10.0% 600 486 1,500 500 110 400 319 9.0% 1,000

  22. Slide 22: Battery energy storage system for AGL Energy

    Wärtsilä will supply a battery energy storage system to one of Australia’s leading integrated energy companies, AGL Energy Limited • The order of more than 100 MEUR is the first placed under a framework agreement signed between Wärtsilä and AGL in 2020 for the supply of energy storage projects • The

  23. Slide 23: Energy service agreements

    ENERGY SERVICE AGREEMENTS INSTALLED BASE COVERED BY LONG-TERM SERVICE AGREEMENTS INCREASING MW 16,000 30% Renewal of long-term O&M agreement provides reliable power supply to leading 14,000 25% Nigerian cement producer Lafarge Africa Plc 12,000 20% • The agreement covers the 100 MW Lafarge 10,000 Ew

  24. Slide 24: Interim Report January-September 2021

    24 © Wärtsilä 26 October 2021 INTERIM REPORT JANUARY -SEPTEMBER 2021

  25. Slide 25: Other key financials

    OTHER KEY FINANCIALS MEUR 7-9/2021 7-9/2020 1-9/2021 1-9/2020 Cash flow from operating activities 49 114 360 407 Working capital 107 431 Net interest-bearing debt 309 678 Gearing 0.14 0.33 Solvency, % 39.3 36.0 Basic earnings/share, EUR 0.08 0.04 0.19 0.13 25 © Wärtsilä 26 October 2021 INTERIM REPOR

  26. Slide 26: Cash flow from operating activities decreased

    CASH FLOW FROM OPERATING ACTIVITIES DECREASED HIGHER WORKING CAPITAL TO SUPPORT NEAR-TERM DELIVERIES Cash flow from operating activities Third quarter development MEUR MEUR, 12m rolling MEUR 350 800 300 700 250 600 200 500 150 114 400 100 49 300 50 200 0 -50 100 -61 -100 0 Q319 Q419 Q120 Q220 Q320 Q

  27. Slide 27: Outlook: fourth quarter demand expected considerably better

    While market conditions remain uncertain, we expect the demand environment for our offering in the fourth quarter to be considerably better than that of the corresponding period in the previous year. © Wärtsilä

  28. Slide 28: Save the date: Wärtsilä Capital Markets Day

    SAVE THE DATE: WÄRTSILÄ CAPITAL MARKETS DAY 18 NOVEMBER 2021 28 © Wärtsilä 26 October 2021 INTERIM REPORT JANUARY -SEPTEMBER 2021

  29. Slide 29: Appendix

    29 © Wärtsilä 26 October 2021 INTERIM REPORT JANUARY -SEPTEMBER 2021

  30. Slide 30: Order intake: third quarter development

    ORDER INTAKE THIRD QUARTER DEVELOPMENT 1% (3) 37% (42) Marine Power 42% (33) Marine Systems Services Order intake Order intake Voyage 50% by business type 50% Equipment by business Energy (47) (53) Portfolio Business 4% 16% (4) (18) 30 © Wärtsilä 26 October 2021 INTERIM REPORT JANUARY -SEPTEMBER 202

  31. Slide 31: Net sales: third quarter development

    NET SALES THIRD QUARTER DEVELOPMENT 2% (4) 35% (38) Marine Power Marine Systems Services 44% Net sales Net sales (35) Voyage 46% 54% by business by business type Equipment (50) (50) Energy Portfolio Business 13% 6% (17) (5) 31 © Wärtsilä 26 October 2021 INTERIM REPORT JANUARY -SEPTEMBER 2021

  32. Slide 32: Third quarter development by business type

    THIRD QUARTER DEVELOPMENT BY BUSINESS TYPE Order intake Net sales 26% (25) 30% (27) Spare parts Spare parts Marine Field service 39% Marine Field service 42% Businesses (47) Businesses Service agreements (52) Service agreements EUR 591 million EUR 686 million Service projects (628) Service projects

  33. Slide 33: 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 7% (5) 33% (39) 5% (5) 17% (10) 23% (26) 15% (14) 0% (1) Services 19% (17) 19% (12) 13% (15) 7% (12) 14% (16) 26% (26) 2% (2) Marine Sy

  34. Slide 34: Orders received for energy equipment globally

    ORDERS RECEIVED FOR ENERGY EQUIPMENT GLOBALLY Europe 49 (28) Asia 146 (158) Americas Utilities 509 (386) IPP’s Africa and (Independent Middle East Power Producers) 51 (34) Industrials Others ORDER INTAKE 1-9/2021: MEUR 755 (605) 34 © Wärtsilä 26 October 2021 INTERIM REPORT JANUARY -SEPTEMBER 2021

  35. Slide 35: Wärtsilä

    eo WARTSILA

Wartsila Oyj Abp — Q3 2021 Earnings Presentation on 6ix