Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Handelsbanken Nordic Large Cap Seminar 2015
24 slides from Wartsila Oyj Abp's conference presentation, Sep 16, 2015
Slide 1: Wärtsilä Corporation – Handelsbanken Nordic Large Cap Seminar
WÄRTSILÄ CORPORATION HANDELSBANKEN NORDIC LARGE CAP SEMINAR 16 SEPTEMBER 2015 Björn Rosengren, President & CEO 1 © Wärtsilä 16 September 2015 Björn Rosengren
Slide 2: This is Wärtsilä
This is Wärtsilä Energy Solutions, 23% Marine Solutions, 30% Services, 47% 2 © Wärtsilä 16 September 2015 Björn Rosengren
Slide 3: Net sales and profitability
Net sales and profitability MEUR 6000 14% Review period development 11.9% 11.1% 11.2% 12% 5000 10.9% MEUR 2500 14% 10% 4000 10.9% 12% 2000 10.7% 8% 10% 3000 6% 1500 8% 2000 6% 4% 1000 4% 1000 2% 500 2% 0 0% 0 0% 2011 2012 2013 2014 1-6/2014 1-6/2015 Net sales EBIT % Figures shown before nonrecurring
Slide 4: We aim for faster than market growth
We aim for faster than market growth Megatrends drive demand Strong presence in for our solutions growth markets Opportunities in Strengthening market position strategic focus areas through acquisitions 4 © Wärtsilä 16 September 2015 Björn Rosengren
Slide 5: Actions for reaching our long-term profitability target
Actions for reaching our long-term profitability target 11.9% 14.0% Streamlining Increasing Pricing Productivity Ensuring accountability competitiveness Group efficiency Setup of business Securing value Optimising lead Investing into program line driven based and market times and focusing technologi
Slide 6: 58 GW of installed power plant capacity in 175 countries
58 GW of installed power plant capacity in 175 countries Utilities Industry Europe Africa & Middle East IPP’s Others Asia Americas * December 2014 6 © Wärtsilä 16 September 2015 Björn Rosengren
Slide 7: Energy Solutions – market trends & drivers
Energy Solutions – market trends & drivers • Economic growth, electrification and increased standard of living • Demand for sustainability and reducing carbon emissions • Rapid growth of intermittent renewable generation and escalating demand fluctuation • Increasing role of natural gas • Ageing ins
Slide 8: Energy Solutions' order intake
Energy Solutions’ order intake MEUR Review period development 1800 Total EUR 475 million (409) 1600 10% Utilities 1400 41% 49% IPP’s* 1200 Industrials x% 1000 800 Review period order intake by fuel in MW 600 400 200 Oil Gas 56% 44% 0 2011 2012 2013 2014 2015 Q1-Q2 Q3-Q4 *IPP = Independent Power Prod
Slide 9: Energy Solutions – strategic goals
Energy Solutions – strategic goals Maintain leading position Grow strongly in large utility in flexible baseload power plants gas power plants Grow in LNG infrastructure projects Grow in industrial applications 9 © Wärtsilä 16 September 2015 Björn Rosengren
Slide 10: The most complete marine offering on earth
The most complete marine offering on earth 10 © Wärtsilä 16 September 2015 Björn Rosengren
Slide 11: Marine Solutions – market trends & drivers
Marine Solutions – market trends & drivers • Marine trade and transportation growth • Demand for environmental solutions and gas as a marine fuel • Energy efficiency, operating performance and security • Investments in exploration and production of offshore oil & gas impacted by oil price developmen
Slide 12: Vessel contracting activity
Vessel contracting activity Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT * 250 5 200 4 * # of vessels 150 3 Million CGT 100 2 50 1 0 0 06.15 01.09 03.09 05.09 07.09 09.09 11.09 01.10 03.10 05.10 07.10 09.10 11.10 01.11 03.11 05.11 07.11 09.11 11.11 01.12 03.12 05
Slide 13: Marine Solutions' order intake
Marine Solutions’ order intake MEUR 1800 Review period development Total EUR 728 million (823) 1500 Offshore 1200 15% Gas carriers 34% 900 Special vessels 10% 600 300 Cruise & Ferry Traditional 18% merchant Others Navy 0 16% 4% 3% 2011 2012 2013 2014 2015 Q1-Q2 Q3-Q4 13 © Wärtsilä 16 September 2015
Slide 14: Acquisition of MSI strengthens our position in automation and electrical systems
Acquisition of MSI strengthens our position in automation and electrical systems Automation Radar Navigation and DPsystems communication AV system Electric propulsion Safety Power systems Transformers and drives Switchboards Sonar 14 © Wärtsilä
Slide 15: A brand new medium-speed Wärtsilä 31 engine launched in June
A brand new medium-speed Wärtsilä 31 engine launched in June • The Wärtsilä 31 engine is the industry’s most advanced, powerful, fuel efficient, fuel flexible, and environmentally sound engine • The engine achieved a Guinness World Records title for the most efficient 4-stroke diesel engine • Remark
Slide 16: Growth opportunities in marine markets
Growth opportunities in marine markets Gas and dual-fuel solutions Broader scope of supply Efficiency Environmental solutions 16 © Wärtsilä 16 September 2015 Björn Rosengren
Slide 17: Wärtsilä Services' global network
Wärtsilä Services’ global network 11,000 service professionals in 70 countries, 160 locations… Marine installed base by operating country Power installed base by operating country Service locations 17 © Wärtsilä 16 September 2015 Björn Rosengren
Slide 18: Services – 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 data • Downtime avoidance • Focus on efficiency • New and stricter regulations 18 © Wärtsilä 16 September 2015 Björn Rosengren
Slide 19: Services' net sales
Services’ net sales MEUR Review period development 2000 Total EUR 1,034 million (903) 1800 1600 Field service 24% 1400 Spare parts 51% 1200 1000 800 600 Contracts 400 17% 200 Projects 0 7% 2011 2012 2013 2014 2015 Q1-Q2 Q3-Q4 19 © Wärtsilä 16 September 2015 Björn Rosengren
Slide 20: Development of service agreements
Development of service agreements MW 14000 30% 12000 25% 10000 20% 8000 15% 6000 10% 4000 5% 2000 0 0% 2009 2010 2011 2012 2013 2014 30.6.2015 MW under agreement – Energy Solutions MW under agreement – Marine Solutions % of Energy Solutions’ installed base % of Marine Solutions’ installed base 20 ©
Slide 21: Services' strategic focus areas
Services’ strategic focus areas CUSTOMER FIRST GO-DIGITAL ASSET & LIFECYCLE MANAGEMENT We will nourish our We will digitalise We will continue to develop partnership with our our customer and commercialise our existing customer base engagement portfolio of value-adding services 21 © Wärtsilä 16 Sept
Slide 22: Prospects for 2015
Prospects for 2015 Wärtsilä expects its net sales for 2015 to grow by 5-10% and its operational profitability (EBIT% before non-recurring items) to be between 12.0-12.5%. The guidance includes the impact of the L-3 Marine Systems International acquisition. 22 © Wärtsilä 16 September 2015 Björn Rosen
Slide 23: We are dedicated to reaching our long-term financial targets
We are dedicated to reaching our long-term financial targets Dividend of at Grow faster than Reach 14% Maintain gearing least 50% of EPS global GDP profitability below 50% over the cycle 23 © Wärtsilä 16 September 2015 Björn Rosengren
Slide 24: WARTSILA.COM
WARTSILA.COM IR Contact: Natalia Valtasaari Director, Investor Relations Tel. +358 (0) 40 187 7809 E-mail: natalia.valtasaari@wartsila.com 24 © Wärtsilä 16 September 2015 Björn Rosengren
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