Slide 1: Wärtsilä Corporation Half Year Report January-June 2019
WÄRTSILÄ CORPORATION HALF YEAR REPORT JANUARY-JUNE 2019 18 July 2019 Jaakko Eskola, President & CEO 1 © Wärtsilä PUBLIC 18 July 2019 HALF YEAR REPORT JANUARY-JUNE 2019
Slide 2: Stable development in net sales, equipment profitability challenging
Stable development in net sales, equipment profitability challenging © Wärtsilä PUBLIC
Slide 3: Key Figures Q2/2019
KEY FIGURES Q2/2019 Order intake EUR 1,377 million, -11% Order book at the end of the period EUR 6,470 million, +10% Net sales EUR 1,217 million, -2% Book-to-bill 1.13 (1.25) Comparable operating result EUR 113 million (123), or 9.3% of net sales (9.8) Earnings per share EUR 0.11 (0.13) Cash flow fr
Slide 4: Order intake affected by delayed decision-making in energy markets
Order intake affected by delayed decision-making in energy markets Rolling 12m, MEUR 7,000 6,000 ◼ Wärtsilä ◼ Wärtsilä 5,000 Energy Marine 4,000 Second quarter 3,000 development by business area 2,000 Q2 -11% 1,000 1,553 1,377 0 Q317-Q218 Q417-Q318 Q118-Q418 Q218-Q119 Q318-Q219 ◼ Total services orde
Slide 5: Slight decline in Q2 net sales – positive development in services
Slight decline in Q2 net sales – positive development in services Rolling 12m, MEUR 6,000 5,000 ◼ Wärtsilä ◼ Wärtsilä 4,000 Energy Marine 3,000 Second quarter development 2,000 by business area Q2 -2% 1,000 1,246 1,217 0 Q317-Q218 Q417-Q318 Q118-Q418 Q218-Q119 Q318-Q219 ◼ Total services net sales Se
Slide 6: Book-to-bill
Book-to-bill Rolling 12m, MEUR 7,000 1.40 1.20 1.22 1.15 1.17 1.18 1.15 6,000 1.15 1.20 1.06 1.08 5,000 1.00 4,000 0.80 3,000 0.60 2,000 0.40 1,000 0.20 0 0.00 Q316-Q217 Q416-Q317 Q117-Q417 Q217-Q118 Q317-Q218 Q417-Q318 Q118-Q418 Q218-Q119 Q318-Q219 Order intake Net sales Book-to-bill 6 © Wärtsilä P
Slide 7: Order book distribution
Order book distribution MEUR 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 30.6.2018 30.6.2019 Delivery current year Delivery next year or later 7 © Wärtsilä PUBLIC 18 July 2019 HALF YEAR REPORT JANUARY-JUNE 2019
Slide 8: Comparable operating result
Comparable operating result Rolling 12m, MEUR Review period development 700 14% MEUR 11.8% 11.7% 250 14% 600 11.2% 11.3% 11.1% 12% 12% 500 10% 200 9.1% 9.1% 10% 400 8% 150 8% 300 6% 6% 100 200 4% 4% 50 100 2% 2% 0 0% 0 0% Q317-Q218 Q417-Q318 Q118-Q418 Q218-Q119 Q318-Q219 1-6/2018 1-6/2019 Comparable
Slide 9: Cash flow from operating activities
Cash flow from operating activities MEUR Review period development 700 MEUR 50 600 500 25 400 300 200 0 100 0 -25 2015 2016 2017 2018 1-6/2018 1-6/2019 9 © Wärtsilä PUBLIC 18 July 2019 HALF YEAR REPORT JANUARY-JUNE 2019
Slide 10: Working capital
Working capital Review period development MEUR MEUR 1,500 20% 1,500 20% 1,250 1,250 16.0% 15.0% 15% 15% 1,000 1,000 11.5% 11.2% 10.8% 10.2% 790 784 750 10% 750 10% 563 581 543 490 500 5.2% 500 5% 5% 251 250 250 0 0% 0 0% 2014 2015 2016 2017 2018 30.6.2018 30.6.2019 Working capital Total inventories
Slide 11: Gearing
Gearing Review period development 0.50 0.50 0.40 0.40 0.30 0.30 0.20 0.20 0.10 0.10 0.00 0.00 2015 2016 2017 2018 30.6.2018 30.6.2019 11 © Wärtsilä PUBLIC 18 July 2019 HALF YEAR REPORT JANUARY-JUNE 2019
Slide 12: Wärtsilä Marine Business
Wärtsilä Marine Business © Wärtsilä PUBLIC
Slide 13: Vessel contracting declining – mix favouring specialised tonnage
WÄRTSILÄ MARINE BUSINESS Vessel contracting declining – mix favouring specialised tonnage Total vessel contracting Specialised tonnage Number of Number of Offshore Cruise and Ferry Special vessels Merchant Offshore Million CGT vessels vessels 250 Cruise and Ferry Special vessels 5.0 LNG carriers LPG
Slide 14: Order intake development
WÄRTSILÄ MARINE BUSINESS Order intake development QTD, MEUR Rolling 12m, MEUR 3% 1,200 4,500 21% 4,000 34% 1,000 3,500 Equipment order intake 800 3,000 by segment 2% ◼ Cruise & Ferry 2,500 19% ◼ Offshore 600 6% 14% ◼ Navy 2,000 ◼ Special Vessels 400 1,500 5% ◼ Merchant 13% 25% ◼ Gas carriers 1,000 2
Slide 15: 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% Optimised maintenance for 16% Sapura’s six pipe-laying 20,000 14% support vessels in Brazil 12% • The five-year agreement 15,000 includes asset diagnostics to 10% optimise the time between major 8% 1
Slide 16: Net sales development
WÄRTSILÄ MARINE BUSINESS Net sales development QTD, MEUR Rolling 12m, MEUR 1,000 3,200 24% (28) 2,800 800 2,400 2,000 600 Second quarter 1,600 49% development 400 1,200 (43) EUR 801 million (685) 16% (16) 800 200 400 0 0 7% (8) 4-6/2018 7-9/2018 10-12/2018 1-3/2019 4-6/2019 4% (6) Wärtsilä Marine, e
Slide 17: Smart voyage planning
IMPROVING COLLABORATING PERFORMANCE FOR LIFECYCLE WITH SMART INNOVATION VOYAGE PLANNING • Smart voyage planning improves safety, lowers CO2 emissions, and enables significant savings • Wärtsilä’s new Navi-Planner solution utilises connectivity and AI to shorten voyage planning and auto-create a rout
Slide 18: Wärtsilä Energy Business
Wärtsilä Energy Business © Wärtsilä PUBLIC
Slide 19: Energy investments favouring renewables and flexibility
WÄRTSILÄ ENERGY BUSINESS Energy investments favouring renewables and flexibility Gross capacity additions Flexible capacity additions GW GW 500 80 450 70 400 60 350 50 300 250 40 200 30 150 20 100 50 10 0 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016 2017 2018 2019 2020 2021 2022 2023 202
Slide 20: Order intake development
WÄRTSILÄ ENERGY BUSINESS Order intake development QTD, MEUR Rolling 12m, MEUR 1,000 2,500 21% 900 800 2,000 Equipment order intake 700 12% by segment 600 1,500 67% 500 ◼ Utilities ◼ Independent Power Producers 400 1,000 ◼ Industrials 300 11% ◼ Others 200 500 38% 100 Services order intake 0 0 30% by
Slide 21: Energy installed base covered by long-term service agreements
WÄRTSILÄ ENERGY BUSINESS Energy installed base covered by long-term service agreements MW 14,000 25% Bangladesh’s biggest ever service agreement signed 12,000 20% • Two 7-year service agreements 10,000 signed for Summit’s 464 MW 8,000 15% power plants in Bangladesh • Contracts designed to ensure 6,0
Slide 22: Orders received for power plants globally
WÄRTSILÄ ENERGY BUSINESS Orders received for power plants globally Europe 24 (231) Asia 425 (896) Americas 240 (297) Utilities IPP’s Africa and (Independent Middle East Power Producers) 262 (212) Industrials Order intake 1-6/2019: 950 MW (1,636) 22 © Wärtsilä PUBLIC 18 July 2019 HALF YEAR REPORT JAN
Slide 23: Net sales development
WÄRTSILÄ ENERGY BUSINESS Net sales development QTD, MEUR Rolling 12m, MEUR 800 18% (16) 2,400 600 2,000 1,600 4% (4) Second quarter 400 1,200 51% development (66) EUR 416 million (561) 800 200 18% (11) 400 9% (4) 0 0 4-6/2018 7-9/2018 10-12/2018 1-3/2019 4-6/2019 Wärtsilä Energy, equipment Spare par
Slide 24: 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 30,000 25,000 20,000 15,000 10,000 5,000 14% 15% 19% 21% 17% 13% 14% 15% 0 Q316-Q217 Q416-Q317 Q117-Q417 Q217-Q118 Q317-Q218 Q417-Q318 Q118-Q418 Q218-Q119 Wärtsilä Others Market shares are calculated on a 1
Slide 25: Supporting rapidly growing electricity demand
SUPPORTING COLLABORATING RAPIDLY FOR GROWING LIFECYCLEELECTRICITY INNOVATION DEMAND • Wärtsilä Wärtsilä’s hybrid, will supplydual-fuel a 200 MW solution flexible, dual-fuel establishes baseload the newpower Wasaline plantRoPax to ferry Cambodia as a benchmark on a fast-track in efficiency basis and
Slide 26: Prospects
PROSPECTS The demand for Wärtsilä’s services and solutions in the coming twelve months is expected to be somewhat below that of the previous twelve months (prev. in-line). Demand by business area is anticipated to be as follows: • Soft in Wärtsilä Marine Business (prev. solid) • Soft in Wärtsilä Ene
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