Slide 1: Wärtsilä Corporation Corporate Presentation 2018
WÄRTSILÄ CORPORATION CORPORATE PRESENTATION 2018
Slide 2: This is Wärtsilä
THIS IS WÄRTSILÄ A global leader in smart technologies and complete lifecycle solutions for the marine and energy markets
Slide 3: Wärtsilä's Purpose
CLEAN ENVIRONMENT ENERGY INTELLIGENCE A future without emissions An optimised way of producing or pollution and using energy MARKET SHAPING & INNOVATION A union of new technology and business models WÄRTSILÄ’S PURPOSE is to enable sustainable societies with smart technology.
Slide 4: Smart technology company
Smart technology company Wärtsilä takes a leadership role in the Smart Marine and Smart Energy ecosystems throughout their entire lifecycle. We aim at increasing efficiency while enabling a zero emission society. • Unique market position • Deep customer understanding • Predictive analytics and asset
Slide 5: Smart Marine Vision
Smart Marine Vision Wärtsilä’s aim is to lead the industry’s transformation towards a Smart Marine Ecosystem by new ways of collaboration and smart technology. By applying smart technology and performance optimisation services, Wärtsilä aims to deliver greater efficiencies, minimise climate impact a
Slide 6: Smart Energy Vision
Smart Energy Vision The energy landscape is in transition towards more flexible and sustaintable energy systems. We envision a 100% renewable energy future. Wärtsilä is leading the transition as the Energy System Integrator – we understand, design, build and serve optimal power systems for future ge
Slide 7: Production and services globally
PRODUCTION AND SERVICES GLOBALLY Services network Production facilities with sizeable manufacturing (fully owned) Production facilities (joint ventures)
Slide 8: Focus on research and development
Focus on research and development Strong emphasis on digitalisation, smart technologies, new products, and solutions, particularly in the areas of efficiency improvement, fuel flexibility, total cost of ownership, and the reduction of environmental impact. Long-term co-operation with research instit
Slide 9: Our personnel
OUR PERSONNEL Approximately 19,000 professionals In over 200 locations In more than 80 countries © Wärtsilä PUBLIC
Slide 10: Our nationalities
OUR NATIONALITIES Finland Italy India Germany Netherlands China Norway United Kingdom U.S. Pakistan France Brazil Poland Singapore Philippines Spain Indonesia Denmark South Korea Bangladesh Canada Japan Sweden Russia Kenya Greece Ecuador Turkey Argentina Malaysia Switzerland Colombia Myanmar Nigeria
Slide 11: We provide smart solutions for marine and energy industries
WE PROVIDE SMART SOLUTIONS FOR MARINE AND ENERGY INDUSTRIES ENERGY EFFICIENCY LIFECYCLE OPTIMISATION INNOVATIVE SOLUTIONS › Optimised performance › Optimised asset performance › Provide growth opportunities through fuel flexibility over the lifecycle with clear via new era of collaboration and lates
Slide 12: Solid profitability
Solid profitability MEUR 6 000 14% 5 000 12% 10% 4 000 8% 3 000 6% 2 000 4% 1 000 2% 0 0% 2013 2014 2015 2016 2017 Net sales Comparable operating result, % of net sales Figures shown before items affecting comparability. Figures for 2013 include both discontinued and continuing operations. Figures f
Slide 13: Financial highlights
Financial highlights MEUR 20171 2016 2015 2014 20133 Order intake 5 644 4 927 4 932 5 084 4 872 Order book at the end of the period 5 100 4 696 4 882 4 530 4 426 Net sales 4 911 4 801 5 029 4 779 4 654 Comparable operating result 576 583 612 569 520 % of net sales 11.7 12.1 12.2 11.9 11.2 Earnings/s
Slide 14: Our business areas
OUR BUSINESS AREAS SERVICES MARINE SOLUTIONS ENERGY SOLUTIONS © Wärtsilä PUBLIC
Slide 15: Services
SERVICES We create lifecycle services with our customers, enhancing their businesses – whenever, wherever
Slide 16: Services: customer base, reach and expertise
SERVICES CUSTOMER BASE • Installed base of 182,000 MW • More than 800 installations covered by Wärtsilä lifecycle solution agreements • Close to 2,600 customers manage their 22,500 installations through Wärtsilä Online Services REACH AND EXPERTISE • Approximately 11,000 service professionals with le
Slide 17: Our expertise areas
OUR EXPERTISE AREAS Meeting the needs of our customers according to their business objectives OPTIMISED MAINTENANCE OPTIMISING CUSTOMERS’ DELIVERY EXCELLENCE AND OPERATIONS BUSINESSES • QuantiParts • Lifecycle solutions • Lifecycle solutions • QuantiServ • Analytics and monitoring services, • Analyt
Slide 18: Services: our strategic focus areas
SERVICES OUR STRATEGIC FOCUS AREAS CUSTOMER GO ASSET & NEW FIRST DIGITAL LIFECYCLE CUSTOMER MANAGEMENT ACCESS Growth in Growth through Growth through Growth beyond existing business optimising value-adding the traditional by improving customer lifecycle services Wärtsilä installed customer loyalty p
Slide 19: The market segments that we serve
SERVICES The market segments that we serve OIL & GAS MARINE HYDRO & ENERGY OFFSHORE MERCHANT CRUISE AND FERRY SPECIAL VESSELS AND ONSHORE AND NAVY INDUSTRIAL 19 © Wärtsilä PUBLIC 16 July 2018 Corporate presentation 2018
Slide 20: Energy Solutions
ENERGY SOLUTIONS We are a leading global energy system integrator offering a broad range of environmentally sound solutions. We deliver value to our customers by integrating all the essential technologies, services and solutions for sustainable and reliable energy systems. Our flexible and efficient
Slide 21: Energy Solutions market trends & drivers
ENERGY SOLUTIONS MARKET TRENDS & DRIVERS ECONOMIC GROWTH, DECLINING EMERGING RAPIDLY THE ROLE ELECTRIFICATION INFLEXIBLE DISRUPTIVE INCREASING OF GAS IS AND IMPROVING BASE LOAD STORAGE RENEWABLES INCREASING STANDARD GENERATION TECHNOLOGY OF LIVING © Wärtsilä PUBLIC
Slide 22: Energy Solutions strengths
ENERGY SOLUTIONS Strengths • Competitive capital cost and EPC capability • Unique operational and fuel flexibility • The most proven software platform for FIRST COMPANY IN THE WORLD integrating renewable energy sources TO OFFER UTILITY-SCALE HYBRID POWER PLANTS THAT UNITE • System integration offeri
Slide 23: Our customer segments
ENERGY SOLUTIONS Our customer segments UTILITIES IPPS INDUSTRIAL CUSTOMERS Organisations providing Financial organisations Industrial businesses electricity and/or heat to investing in power plants with captive power plants power markets or end users to sell power to utilities 23 © Wärtsilä PUBLIC 1
Slide 24: The leading energy system integrator
ENERGY SOLUTIONS THE LEADING ENERGY SYSTEM INTEGRATOR ENGINE POWER ENERGY STORAGE RENEWABLES LNG PLANTS AND INTEGRATION INFRASTRUCTURE Ultra-flexible internal Utility-scale energy storage Utility-scale solar power Small and medium scale combustion engine solutions and advanced plants, solar-engine,
Slide 25: Marine Solutions
MARINE SOLUTIONS We are the leading provider of innovative products and integrated solutions in the marine and oil & gas industries. As a leader in our fields, we must continuously develop and transform ourselves to meet changing customer needs. We have a passion to do right for our customers and th
Slide 26: Marine Solutions market trends & drivers
MARINE SOLUTIONS MARKET TRENDS & DRIVERS TECHNOLOGICAL STRICTER URBANISATION, DEVELOPMENTS AND INCREASING ENVIRONMENTAL GLOBALISATION AND NEW BREAKTHROUGHS CONSUMPTION AND REGULATIONS ARE POPULATION GROWTH (DIGITALISATION, GROWING MIDDLE CLASS DRIVING INTEREST IN SUPPORT SEABORNE DISRUPTIVE POPULATI
Slide 27: Marine Solutions strengths
MARINE SOLUTIONS Strengths • Strong presence in all major marine and offshore oil & gas segments • Broadest portfolio of reliable and high performing products, systems, and solutions in the industry • Fuel efficient solutions that are compliant with the strictest environmental requirements • Extensi
Slide 28: Our offering covers all market segments
MARINE SOLUTIONS Our offering covers all market segments OIL & GAS MERCHANT CRUISE & FERRY NAVY SPECIAL VESSELS LEADER IN: EFFICIENCY GAS AND DUAL-FUEL SOLUTIONS ENVIRONMENTAL SOLUTIONS THROUGH • Lifecycle solutions for ship owners and operators OFFERING: • Integrated solutions for the shipbuild
Slide 29: Marine Solutions
MARINE SOLUTIONS © Wärtsilä PUBLIC
Slide 30: Appendix: abbreviations
APPENDIX: ABBREVIATIONS EPC = engineering, procurement and construction IFRS 15 = international financial reporting standard 15 IPPs = independent power producers LNG = liquified natural gas OEM = original equipment manufacturer PV = photovoltaic R&D = research & development 30 © Wärtsilä PUBLIC 16