Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Q1 2021 Earnings Presentation

29 slides from Wartsila Oyj Abp's earnings presentation, Apr 22, 2021

  1. Slide 1: Q1 2021 Interim Report, Håkan Agnevall, President & CEO

    22 APRIL 2021 HÅKAN AGNEVALL, PRESIDENT & CEO

  2. Slide 2: Order intake stable, but COVID-19 continues to burden net sales and profitability

    ORDER INTAKE STABLE, BUT COVID-19 CONTINUES TO BURDEN NET SALES AND PROFITABILITY ae

  3. Slide 3: Strong operational focus to manage COVID-19 related uncertainty

    STRONG OPERATIONAL FOCUS TO MANAGE COVID-19 RELATED UNCERTAINTY Our People: secure health and safety Our Customers: provide the best possible support and deliver on our commitments Our Performance: focus on cash, cost, and continuous improvement 3 © Wärtsilä 22 April 2021 INTERIM REPORT JANUARY-MARC

  4. Slide 4: Key figures

    KEY FIGURES MEUR 1-3/2021 CHANGE Order intake 1,244 0% of which services 704 11% Order book 5,399 -6% Net sales 946 -19% of which services 550 -7% Book-to-bill 1.32 0.25 Comparable operating result 41 -28% % of net sales 4.3 -0.5 pp Earnings per share, EUR 0.04 -0.01 Cash flow from operating activit

  5. Slide 5: Improvement in vessel orders driven by the merchant segment

    IMPROVEMENT IN VESSEL ORDERS DRIVEN BY THE MERCHANT SEGMENT Total vessel contracting Specialised tonnage Number of vessels Million CGT Number of vessels 250 5.0 100 Merchant Offshore Offshore Special vessels LPG carriers Cruise and ferry Special vessels 4.5 Cruise and ferry LNG carriers 200 3 months

  6. Slide 6: Wärtsilä's share of the energy market remains stable

    WÄRTSILÄ’S SHARE OF THE ENERGY MARKET REMAINS STABLE 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% 9% 0 Q118-Q418 Q218-Q119 Q318-Q219 Q418-Q319 Q119-Q419 Q219-Q120 Q319-Q220 Q419-Q320 Q120-Q420 Wärtsilä Others The to

  7. Slide 7: Order intake

    ORDER INTAKE First quarter development 5% (5) 36% (40) Marine Power MEUR, 12m rolling 40% Marine Systems 7,000 Order intake (38) by business Voyage Energy 6,000 Portfolio Business 5,000 12% (9) 7% (9) 4,000 3,000 2,000 Q1 Services -0% 43% Order intake 1,000 (49) by business type Equipment 1,247 1,24

  8. Slide 8: Order book

    ORDER BOOK Order book by business Order book delivery schedule MEUR MEUR 7,000 1.40 3,500 6,000 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 31.3.2019* 30.9.2019* 31.3.2020 30.9.2020 31.3.2021 Delivery Delivery next Delivery after current yea

  9. Slide 9: Net sales

    NET SALES First quarter development 3% (5) Marine Power MEUR, 12m rolling 30% 45% Marine Systems 6,000 (30) Net sales (39) by business Voyage Energy 5,000 Portfolio Business 6% 4,000 (6) 15% (20) 3,000 2,000 Q1 -19% 42% Services 1,000 Net sales (49) by business type Equipment 1,170 946 58% 0 (51) Q2

  10. Slide 10: Comparable operating result burdened by net provisions from project risk review

    COMPARABLE OPERATING RESULT BURDENED BY NET PROVISIONS ARISING FROM A DETAILED PROJECT RISK REVIEW Review period development MEUR, 12m rolling MEUR 500 10% 100 10% 7.9% 400 7.4% 8% 80 8% 6.8% 6.0% 5.9% 300 6% 60 6% 4.8% 200 4% 40 4.3% 4% 100 2% 20 2% 0 0% 0 0% Q219-Q120 Q319-Q220 Q419-Q320 Q120-Q420

  11. Slide 11: Cash flow from operating activities

    CASH FLOW FROM OPERATING ACTIVITIES Review period development MEUR MEUR 700 80 681 600 70 613 67 60 500 470 50 400 430 40 42 300 30 200 232 20 100 10 0 0 2016 2017 2018 2019 2020 1-3/2020 1-3/2021 11 © Wärtsilä 22 April 2021 INTERIM REPORT JANUARY-MARCH 2021

  12. Slide 12: Technology and partnership highlights

    TECHNOLOGY AND PARTNERSHIP HIGHLIGHTS SUPPORTING INDUSTRY DECARBONISATION Carbon capture and storage (CCS) in the maritime industry • Installation of a 1 MW pilot plant in Moss, Norway to test CCS technologies in a range of scenarios and conditions Power-to-X-to-Power • An agreement signed with Vaas

  13. Slide 13: Wärtsilä businesses

    Cc WARTSILA BUSINESSES

  14. Slide 14: Marine Power

    MARINE POWER MARINE POWER MEUR Order intake 600 500 400 • Order intake decreased by 10% to EUR 446 300 million (496), pressurised by extremely 200 subdued vessel contracting in the cruise and 100 ferry segment 0 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 • Net sales decreased by 7% to EUR 426 million (457) MEUR

  15. Slide 15: Net sales from installations under agreement declined due to COVID-19

    MARINE POWER NET SALES FROM INSTALLATIONS UNDER AGREEMENT DECLINED DUE TO COVID-19 IMPACTS MEUR, 12m rolling 400 Wärtsilä signed a significant guaranteed asset performance agreement for an 350 LNG carrier fleet 300 • The agreement includes normal maintenance 250 management, scheduled and unscheduled

  16. Slide 16: Marine Systems

    MARINE SYSTEMS MARINE SYSTEMS MEUR Order intake 250 200 150 • Order intake increased by 35% to EUR 153 100 million (113), driven by equipment business in the Exhaust Treatment, Gas Solutions, and 50 Marine Electrical Systems business units 0 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 • Net sales decreased by 39%

  17. Slide 17: Voyage

    VOYAGE VOYAGE MEUR Order intake 120 100 80 • Order intake decreased by 20% to EUR 86 60 million (107), pressurised by the COVID-19 40 impact on demand in the cruise segment 20 • Net sales decreased by 15% to EUR 59 million 0 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 (69), mainly due to: • COVID-19 related proje

  18. Slide 18: Number of vessels connected to cloud solutions increased by 86%

    VOYAGE NUMBER OF VESSELS CONNECTED TO OUR CLOUD SOLUTIONS INCREASED BY 86% Number of connected vessels +86% Wärtsilä to deliver the latest technology in radio and integrated navigation systems for icebreaking tankers • The ten LNG-fuelled tankers will be constructed for the Arctic LNG-2 project by S

  19. Slide 19: Energy

    ENERGY ENERGY MEUR Order intake 600 500 • Order intake increased by 4% to EUR 493 400 million (475), supported by: 300 200 • Good activity level in the energy storage 100 markets 0 • Healthy service order intake Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 • Net sales decreased by 18% to EUR 288 MEUR million (351)

  20. Slide 20: Energy installed base covered by long-term service agreements

    ENERGY ENERGY INSTALLED BASE COVERED BY LONG-TERM SERVICE AGREEMENTS MW 16,000 30% Wärtsilä awarded a gas conversion 14,000 project in Senegal 25% 12,000 • Wärtsilä will convert the close to 90 MW Bel- 20% Air power plant in Dakar, Senegal to operate 10,000 on liquefied natural gas (LNG) 8,000 15% •

  21. Slide 21: Outlook

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

  22. Slide 22: Appendix

    Ce WARTSILA 5

  23. Slide 23: January–March order intake by customer segment

    JANUARY–MARCH ORDER INTAKE BY CUSTOMER SEGMENT Marine Businesses Energy Marine Power Equipment 6% 7% 1% 23% 40% 23% Other 18% (14) 16% (1) (11) (36) (2) (14) (16) (19) Industrials Services 21% 21% 14% 8% 12% 23% 1% (15) (20) (15) (11) (13) (23) (3) Marine Systems 30% (33) Independent Equipment 58% 1

  24. Slide 24: Orders received for energy equipment globally

    ORDERS RECEIVED FOR ENERGY EQUIPMENT GLOBALLY Europe 4 (9) Asia 28 (17) Americas Utilities 174 (212) IPP’s Africa and (Independent Middle East Power Producers) 27 (25) Industrials Others ORDER INTAKE 1-3/2021: MEUR 232 (263) 24 © Wärtsilä 22 April 2021 INTERIM REPORT JANUARY-MARCH 2021

  25. Slide 25: Net sales by business type

    NET SALES BY BUSINESS TYPE First quarter development 29% (25) MEUR MEUR, 12m rolling Marine 45% Businesses 1,800 3,000 Spare parts (49) EUR 626 million (759) Field service 1,600 2,500 Service agreements 1,400 14% (15) Service projects 1,200 2,000 6% 6% Equipment (5) (6) 1,000 1,500 800 27% (19) 600

  26. Slide 26: Net sales bridge

    NET SALES BRIDGE MEUR 26 © Wärtsilä 22 April 2021 INTERIM REPORT JANUARY-MARCH 2021

  27. Slide 27: 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% Advances received 1,000 10% 257 Trade payables 563 581 732 0 8% Other non-interest-bearing receivables 243 5.6% Trade receivables -1,000 6% Inventories 5.6% -2,000 4% Working capital Working c

  28. Slide 28: Gearing

    GEARING Review period development 0.50 0.50 0.50 0.40 0.40 0.40 0.30 0.30 0.30 0.20 0.20 0.20 0.10 0.10 0.10 0.00 0.00 0.00 2016 2015 2017 2016 2018 2017 2019 2018 2020 2019 31.3.2020 31.3.2021 28 © Wärtsilä 22 April 2021 INTERIM REPORT JANUARY-MARCH 2021

  29. Slide 29: Thank you

    THANK YOU Further information: EMILIA RANTALA Manager, Investor Relations Tel: +358 (0) 10 709 1114 E-mail: emilia.rantala@wartsila.com

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