Slide 1: Wärtsilä Corporation – Corporate presentation 2016
Wärtsilä Corporation Corporate presentation 2016 1 © Wärtsilä PUBLIC Corporate presentation 2016
Slide 2: This is Wärtsilä
This is Wärtsilä A global leader in advanced technologies and complete lifecycle solutions for the marine and energy markets 2 © Wärtsilä PUBLIC Corporate presentation 2016
Slide 3: Our vision, mission and values
THIS IS WÄRTSILÄ Our vision, mission and values VISION MISSION We will be our customers’ most We shape the marine and energy valued business partner. Energy markets with advanced techno- Excellence logies and focus on lifecycle Excitement performance, to enhance our customers’ business and benefit t
Slide 4: Our business areas
THIS IS WÄRTSILÄ Our business areas SERVICES ENERGY SOLUTIONS MARINE SOLUTIONS 4 © Wärtsilä PUBLIC Corporate presentation 2016
Slide 5: What we bring to the market
THIS IS WÄRTSILÄ What we bring to the market EFFICIENCY ENVIRONMENTAL SOLUTIONS FUEL FLEXIBILITY 5 © Wärtsilä PUBLIC Corporate presentation 2016
Slide 6: A comprehensive product portfolio
THIS IS WÄRTSILÄ A Comprehensive product portfolio AUTOMATION BALLAST WATER ENGINES & EXHAUST GAS CLEANING GAS SYSTEMS MANAGEMENT GENERATING SETS INERT GAS SYSTEMS NAVIGATION OIL SEPARATION POWER ELECTRIC PROPULSORS & GEARS SYSTEMS PUMPS & VALVES SEALS, BEARINGS & SHIP DESIGN THRUSTERS WASTE, OIL &
Slide 7: Focus on research and development
THIS IS WÄRTSILÄ Focus on research and development ʼʼ • Strong emphasis on product and solution innovation, Our market driven particularly in the areas of efficiency improvement, fuel investments in R&D flexibility, total cost of ownership, and the reduction of and our focus on environmental impact
Slide 8: Production and services globally
THIS IS WÄRTSILÄ Production and services globally Services network Production facilities (fully owned) Production facilities (joint ventures) 8 © Wärtsilä PUBLIC Corporate presentation 2016
Slide 9: Our personnel
THIS IS WÄRTSILÄ Our personnel Approximately 18,800 professionals In over 200 locations In more than 70 countries 9 © Wärtsilä PUBLIC Corporate presentation 2016
Slide 10: Our nationalities
THIS IS WÄRTSILÄ Our nationalities Finland India Italy Germany China Netherlands Norway Great Britain Brazil Pakistan France Singapore Denmark U.S. Philippines Poland Spain South Korea Bangladesh Japan Russia Sweden Indonesia Kenya Canada Ecuador Turkey Myanmar Guyana Malaysia Switzerland Greece Dom
Slide 11: Positioned for growth
THIS IS WÄRTSILÄ Positioned for growth ENERGY EFFICIENT SOLUTIONS GAS BASED TECHNOLOGY INNOVATIVE SOLUTIONS Smart Power Generation combining energy A forerunner in gas and multi-fuel engines, fuel Making use of digital technology in lifecycle efficiency, fuel and operational flexibility systems, tec
Slide 12: Financial highlights
THIS IS WÄRTSILÄ Financial highlights MEUR 2015 2014 20132 20123 2011 Order intake 4 932 5 084 4 821 4 940 4 516 Order book at the end of the period 4 882 4 530 4 311 4 492 4 007 Net sales 5 029 4 779 4 607 4 725 4 209 Operating result 1 612 569 557 517 469 % of net sales 1 12.2 11.9 12.1 10.9 11.1
Slide 13: Solid profitability
THIS IS WÄRTSILÄ Solid profitability MEUR 6000 14% 5000 12% 10% 4000 8% 3000 6% 2000 4% 1000 2% 0 0% 2011 2012 2013 2014 2015 Net sales EBIT % Figures shown before items affecting comparability. Figures for 2013 have been restated due to the two-stroke business being classified as discontinued opera
Slide 14: Energy Solutions
Energy Solutions Our mission is to provide superior value to our customers with distributed, flexible, efficient, and environmentally advanced energy solutions 14 © Wärtsilä PUBLIC Corporate presentation 2016
Slide 15: Offering
ENERGY SOLUTIONS Offering • Flexible baseload power plants • Capacity for grid stability, peaking and load-following generation, and back-up power for integrating wind and solar energy • Utility-scale solar PV power plants and solar-engine hybrid solutions • Multi-fuel solutions enabling use of any
Slide 16: LNG Solutions
ENERGY SOLUTIONS LNG Solutions We provide our full range of project and lifecycle support to LNG receiving terminals. We have the capability to develop the entire LNG fuel supply chain in partnership with our customers. 16 © Wärtsilä PUBLIC Corporate presentation 2016
Slide 17: Our customer segments
ENERGY SOLUTIONS Our customer segments UTILITIES IPPs INDUSTRIAL CUSTOMERS Organisations providing Financial organisations Industrial businesses with electricity and / or heat to power investing in power plants to sell captive power plants markets or end users power to utilities 17 © Wärtsilä PUBLIC
Slide 18: Strategy
ENERGY SOLUTIONS Strategy • Grow strongly in large utility gas power plants market by capturing market share from gas turbines • Maintain our leading position in HFO & dual-fuel power plants • Gain market share in utility-scale solar PV business with EPC capability • Grow in the small to medium scal
Slide 19: Market trends & drivers
ENERGY SOLUTIONS Market trends & drivers • Economic growth, electrification and increased standard of living • Growth in sustainable energy and reducing carbon emissions • Rapid growth of intermittent renewable generation and escalating demand fluctuation • Increasing role of natural gas • Ageing in
Slide 20: Smart Power Generation
ENERGY SOLUTIONS Smart Power Generation Enabling transition to a sustainable power system ENERGY EFFICIENCY AFFORDABLE SMART SMART POWER POWER GENERATION SYSTEM FUEL OPERATIONAL RELIABLE SUSTAINABLE FLEXIBILITY FLEXIBILITY 20 © Wärtsilä PUBLIC Corporate presentation 2016
Slide 21: 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 need to continuously develop and transform ourselves to meet changing customer needs. We have a passion to do right for our customers and
Slide 22: The most complete marine offering on earth
MARINE SOLUTIONS THE MOST COMPLETE MARINE OFFERING ON EARTH 22 © Wärtsilä PUBLIC Corporate presentation 2016
Slide 23: Our offering covers all market segments
MARINE SOLUTIONS Our offering covers all market segments OFFSHORE MERCHANT CRUISE & NAVY SPECIAL FERRY VESSELS OIL & GAS SHIPPING 23 © Wärtsilä PUBLIC Corporate presentation 2016
Slide 24: Strategy
MARINE SOLUTIONS Strategy LEADER IN EFFICIENCY GAS AND DUAL- ENVIRONMENTAL FUEL SOLUTIONS SOLUTIONS THROUGH • Lifecycle solutions for ship owners and operators OFFERING • Integrated solutions for the shipbuilding industry, owners and operators • The best customer value and customer experience in the
Slide 25: Market trends & drivers
MARINE SOLUTIONS Market trends & drivers ʼʼ • Urbanisation, globalisation and increase in population, support The contracting of seaborne trade growth, and drive changing trade patterns ships is highly cyclical, • Technological developments and new breakthroughs and is strongly (digitalisation, disr
Slide 26: Environmental legislation continues
MARINE SOLUTIONS Environmental legislation continues North Europe North America All ECA ECA 1% SOx ECA 1% SOx 0.1% SOx Global cap 0.1% SOx Global cap 3.5% Global 0.5% SOx 0.5% SOx in EU ports SOx limit reviewed 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2025 NOx Tier II NOx Tie
Slide 27: Wärtsilä dual-fuel references
MARINE SOLUTIONS Wärtsilä dual-fuel references >1,500 engines > 16 million running hours MERCHANT OFFSHORE SPECIALS CRUISE & FERRY DUAL-FUEL 2 STROKE DUAL-FUEL CONVERSION DUAL-FUEL POWER PLANTS 881 ENGINES 132 ENGINES 46 ENGINES 66 ENGINES 36 ENGINES 35 ENGINES 376 ENGINES 204 LNG carriers 24 Offsho
Slide 28: Services
Services We create lifecycle services with our customers, enhancing their businesses – whenever, wherever 28 © Wärtsilä PUBLIC Corporate presentation 2016
Slide 29: Benefits of working with Services
SERVICES Benefits of working with Services Optimising customer operations whenever, wherever is our shared passion. Our expertise and wide offering of services are developed to meet the needs of our customers according to their business objectives and match with environmental requirements. 11,000 se
Slide 30: A broad range of expertise and services
SERVICES A broad range of expertise and services LIFECYCLE SOLUTIONS INCL. SERVICE PROJECTS ENGINE SERVICES ENGINE CONTROL & PLANT WÄRTSILÄ GENIUS SERVICES AUTOMATION PROPULSION SERVICES SEALS & BEARING SERVICES HYDRO & INDUSTRIAL SERVICES TRAINING SERVICES 30 © Wärtsilä PUBLIC Corporate presentatio
Slide 31: Strategic focus areas
SERVICES Strategic focus areas ASSET & LIFECYCLE NEW CUSTOMER CUSTOMER FIRST GO DIGITAL MANAGEMENT ACCESS We will grow by • Doing more business with existing customers • Exploring opportunities within new customer segments by leveraging current competences • Acquiring businesses in growing markets 3
Slide 32: Improving lifecycle efficiency
SERVICES Improving lifecycle efficiency Longer term strategies are aimed at improving business efficiency. Optimising performance of installations reduces operational Digital transition expenses and improves uptime. enabled via Reliable, continuous performance transparent and is essential. Planning
Slide 33: Market trends & drivers
SERVICES Market trends & drivers • Development of installed base and installation utilisation • Growing importance of gas as a fuel • Need for real time monitoring and analytics • Need to increase uptime and availability • Focus on efficiency • New and stricter regulations • A dynamic global market,
Slide 34: Appendix: Abbreviations
APPENDIX: ABBREVIATIONS E&A = Electrical & Automation LPG = liquified petroleum gas EBIT = earning before interests and taxes MW = megawatt ECA = emission control area NECA = nitrogen emission control area EPC = engineering, procurement and construction NG = natural gas FPSO = floating production, s