Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Non-Deal Roadshow (December 2023)
100 slides from Wartsila Oyj Abp's roadshow presentation, December 2023
Slide 1: Shaping the decarbonisation of marine and energy
Wärtsilä Shaping the decarbonisation of marine and energy Roadshow presentation December 2023 1 ©
Slide 2: Wärtsilä – Shaping the decarbonisation of marine and energy
Wärtsilä – Shaping the decarbonisation of marine and energy Wärtsilä is planning to Marine Energy Committed to financial targets simplify the Group Our offering of engines, propulsion We support the change towards a Net sales structure from 1st systems, hybrid technologies and future where electrici
Slide 3: Market fundamentals
Market fundamentals Marine will move with unprecedented speed towards decarbonisation Policies & regulations Technology Connectivity & data ▪ IMO target ▪ Carbon neutral and zero ▪ Vessels as data pools ▪ Access to capital carbon fuels ▪ Optimisation solutions ▪ Cost of carbon ▪ Carbon fuels for man
Slide 4: Our value creation potential is based on two strategic themes
Our value creation Transform – Perform – potential is based attractive growth clear path for opportunities at operational on two strategic the center of the improvements themes decarbonisation transformation and increased profitability 4 ©
Slide 5: Significant milestones reached in strategy execution
Significant milestones reached in strategy execution 1) LTM Q3/2023 vs. 2021 net sales Transform Perform ▪ Market leader in: ▪ Good growth in service agreements by leveraging digital solutions − 4-stroke medium speed main engines − Engine power plants ▪ Improved quality of new build order book margi
Slide 6: Transform – attractive growth opportunities
Transform – attractive growth opportunities at the center of the decarbonisation transformation 6 ©
Slide 7: Strong market fundamentals support profitable growth in Marine business
Strong market fundamentals and the decarbonisation transformation will support profitable growth in Marine business Key target segments Decarbonisation drivers Annual newbuild contracting of 4-stroke medium speed main engine- powered units (GW)1); CAGR ▪ IMO MEPC 80 has adopted a revised strategy to
Slide 8: Global technology and service leader in decarbonisation of marine
Wärtsilä is a global technology and service leader in shaping the decarbonisation of marine #1 #1 Pioneer +60% of net sales3) Industry leading medium Industry leading hybrid Pioneer in carbon capture & Global services network to speed engine offering solutions storage ensure maximum uptime & fuel ef
Slide 9: Increasing renewables and balancing power support growth in Energy
The increasing share of renewables and need for balancing power will support profitable growth in Energy business Thermal balancing Energy storage Market drivers Addressable market Addressable market GW; CAGR GWh; CAGR ▪ Thermal balancing market is expected to grow +4X by 2030 driven by accelerating
Slide 10: Global leader in engine power plants; Energy Storage profitable
Wärtsilä is a global leader in engine power plants. Energy Storage & Optimisation has grown ~3X since 2021 and is now profitable #1 #1-5 ~40% of net sales2) Industry leading engine power plants1) Top 5 in energy storage Global services network to ensure maximum uptime & fuel efficiency ▪ Superior op
Slide 11: Strategic review of Energy Storage & Optimisation
To support accelerated profitable growth of Energy Storage & Optimisation, we have launched a strategic review of the business ▪ Energy storage market is expected to grow rapidly, addressable market to grow +3X from 2022 to 2030 ▪ Wärtsilä Energy Storage & Optimisation has grown +30X1) since the acq
Slide 12: Perform – clear path for operational improvements
Perform – clear path for operational improvements and increased profitability 12 ©
Slide 13: Services is 50% of our net sales
Services is 50% of our net sales with good future growth potential EUR ~3bn ~25% >90% LTM Q3/2023 net sales Growth in net sales since 20211) Renewal rate of service agreements 1) LTM Q3/2023 vs. 2021 13 ©
Slide 14: Executing services strategy on the service value ladder
We continue to execute our services strategy on all steps of the service value ladder ▪ Our installed base of medium speed engines is increasing (~5% increase since 2021) ▪ ~25% growth2) in transactional services since 2021 ▪ ~30% of installed base3) is under service agreements with further growth p
Slide 15: Benefiting from operational improvements and structural changes
Going forward we will benefit from the implemented operational improvements and structural changes Quality of revenues ▪ Improved quality of new build margins in current order book ▪ Energy order book has higher share of equipment and lower share of EPC deliveries ▪ Energy Storage & Optimisation is
Slide 16: Clear path to reach our financial targets
Strong commitment and a clear path to reach our financial targets 12% 5% <0.5 ≥50% Operating margin Annual organic Gearing Dividend of growth earnings 16 ©
Slide 17: Drivers of >5% organic growth target
Energy transition and decarbonisation driving our >5% organic growth target LTM Q3/2023 net sales EUR 6.1bn Drivers of net sales growth1) Share of absolute growth ▪ Energy Storage & Optimisation − Fast growing demand for energy storage and power system optimisation solutions ▪ Marine newbuild driven
Slide 18: Drivers towards 12% operating margin
Services and decarbonisation key drivers towards 12% operating margin LTM Q3/2023 operating margin 6.0%1) Drivers of improved profitability2) Share of absolute improvements ▪ Moving up the service value ladder in Marine and Energy ▪ Marine new build driven by decarbonisation ▪ Energy Engine Power Pl
Slide 19: Actively managing our business portfolio
We continue to actively manage our business portfolio Marine Systems planned to be discontinued Portfolio Business Effective 1st of January 2024 Plan to divest. Timeline subject to internal separation & turnaround ▪ Further simplification of Group structure ▪ Water & Waste ▪ Gas Solutions has limite
Slide 20: Marine & Energy Engine Power Plants have double digit profitability
Marine & Energy Engine Power Plants combined have double digit profitability. Energy Storage & Optimisation is now profitable Group simulation (LTM Q3/2023), net sales EURbn Comparable operating margin 10.5% 0.3% 8.7% 7.7% LTM Q3/2023 Operating margin 10.0% 0.1% 8.2% 6.0% LTM Q3/2023 Net sales CAGR
Slide 21: Profitability drivers for 2023
Profitability drivers for 2023 + Supporting drivers + / - Uncertainties - Negative factors ▪ Growth of service business ▪ Geopolitical tensions ▪ Wage inflation ▪ Continued decarbonisation push in ▪ Potential trade restrictions / ▪ Lower engine production both the energy and marine trade wars volume
Slide 22: Strong balance sheet and financial position
Strong balance sheet and financial position to support strategy execution Cash flow from operating Working capital (EURm) Gearing Solvency ratio activities (EURm) % of sales Net interest-bearing debt Net interest bearing debt % of sales (EURm) (EURm) 30% 15% 15% 14% 8% 23% 4% 6% 3% -1% 1% 41% -2% 38
Slide 23: The Wärtsilä Way sets the scene for profitable growth
The Wärtsilä Way sets the scene for profitable growth. We reconfirm our financial targets 23 ©
Slide 24: Strategic priorities to reach our target position
The strategic priorities are the key levers to improve our performance and reach our target position 1 Excel in creating customer value We continuously evolve our understanding of, and responsiveness to, our customers to make them successful Develop high performing teams that make a difference 2 We
Slide 25: Marine highlights
—_— O . WARTSILA Marine highlights 25 © WARTSILA
Slide 26: Accelerated decarbonisation targets shaping shipping
Accelerated decarbonisation targets are shaping the shipping industry and reinforcing our strategy Ambitions and checkpoints in the revised IMO GHG strategy2) In 2023, IMO strengthened GHG emission reduction % vs 2008 its GHG reduction targets, and now strives for net- 0% Vessel’s lifetime zero “by
Slide 27: Progressive switch to sustainable fuels
A progressive switch to sustainable fuels is already under way Sustainable fuel uptake scenario for net-zero in 20501) Fuel transition is under way: 49% of Total energy consumption, EJ tonnage on orderbook is set to use alternative fuels; long-term fuel mix is 15 dependent on supply of different fue
Slide 28: Fuel cost to double due to emission fees
Up to 2030, fuel cost will double due to emission fees Fuel-related costs for Handymax bulker operating in EU waters, EURm1) Multiple business drivers will add further pressure to decarbonise shipping2) 15 The transition will happen 10 under the lifetime of a vessel ~2x Upgradability is critical for
Slide 29: Cost of emissions closes price gap between fuels
Cost of emissions will close the price gap between fossil and sustainable fuels; fuel selection impacts the vessel structure Fuel type Low Sulphur Liquified Methanol Ammonia Liquid Compressed Marine Fuel Oil Natural Gas @ 20°C @ -33°C Hydrogen Hydrogen Battery Rack @ 20°C @ -162°C @ -253°C @ 350bar
Slide 30: Leading position in 4-stroke medium speed main engines
We maintain a leading position in 4-stroke medium speed main engines and are increasing our share in auxiliary engines 4-stroke medium speed main engines market share1) Auxiliary engines market share1) ~45% ~15% ~70% ~25% We are market leaders We are growing in in 4-stroke medium auxiliary engines,
Slide 31: Recovery in key target segments grows addressable market
Recovery in our key target segments will grow our addressable market for equipment sales Newbuild ordering of 4-stroke medium speed main engine-powered ships, MW1) Wärtsilä market share, MW3) 11% CAGR Others2) 6,000 Offshore ~55% Merchant 5,000 Offshore 4,000 Passenger 3,000 Cruise ~85% 2,000 1,000
Slide 32: Hybrid-Electric challenges 2-stroke for LNG carriers
Hybrid-Electric will challenge 2-stroke as prime-mover for LNG carriers, enabling higher efficiency and increased cargo capacity Wärtsilä Hybrid-Electric LNG carrier Launched at Gastech in 2023 with Shell and Hudong-Zhonghua Shipbuilding 185k cbm capacity 3x 4-stroke spark-gas gensets 6% extra cargo
Slide 33: Vessel contracting forecast
Vessel contracting forecast No of ships, 2,000+ dwt/GT, Accelerating fleet Ship-shaped mobile offshore vessels only. Continuing accelerated fleet renewal renewal and steady supported by the fleet age profile and demand growth Stronger order activity than expected driven by potential increased consen
Slide 34: Services is more than 60% of Marine Power sales
Services is more than 60% of Marine Power sales. Services is more than 60% of Marine Power sales. We have 3 distinct revenue streams covering customer maintenance We have 3 distinct revenue streams covering customer maintenance Transactional Agreements Retrofit Projects % services ~60% ~30% ~10% sal
Slide 35: Moving up our service value ladder
We increase sales and profits by moving up our service value ladder From 1x1) Up to 2-3x1) Guaranteed asset Optimised performance maintenance agreement Technical management agreement AI-based Expert Insight Enhanced support agreement AI-based Expert Insight Operational support Data-driven dynamic ag
Slide 36: Expanding installed base under agreement
We expand the installed base under agreement while climbing the service value ladder Key facts Number of vessels under agreement1) Key metrics Customer benefits 700 +17% ~90% ~90% By combining AI and renewal rate2) issues resolved remotely data analytics with 600 product know-how, 500 we can increas
Slide 37: Vessel utilisation rates driving service business
Vessel utilisation rates driving Wärtsilä’s service business Typically, there is some delay between changes in utilisation rate and Wärtsilä service net sales Cruise and passenger ferries Offshore Using slow steaming to 100 100 1,800 manage active fleet 90 90 1,600 capacity and/or to limit 80 80 1,4
Slide 38: Regulations and costs boost demand for retrofits
Tightening regulations and increasing fuel and emission cost boost demand for retrofits; we are well positioned to grow this business We enable fleet decarbonisation Success stories in 2023 48% with the most comprehensive retrofit portfolio in the industry First 4-stroke methanol of the fleet is not
Slide 39: Wärtsilä Expert Insights
Wärtsilä Expert Insights: combining data analytics capabilities with product know-how and OEM expertise Decreased customer’s costs of unscheduled Advanced analytics combined with OEM Continuous measurement enables maintenance with Wärtsilä Expert Insight1) expertise enhance customer value prediction
Slide 40: Performance driven by continuous improvement and higher volumes
Performance will be driven by continuous improvement and higher sales volumes; we will mitigate inflation with price and cost management Equipment sales Structural changes and Recent examples: continuous improvement Favorable vessel contracting mix Manufacturing footprint Uptake of sustainable fuels
Slide 41: Energy highlights
WARTSILA Energy highlights © WARTSILA
Slide 42: Value creation opportunity in Energy
Significant value creation opportunity – improving performance and capturing growth Perform – on track to deliver our Transform – growth opportunity Transform – growth opportunity targets in Engine Power Plants in Energy Storage & Optimisation ▪ Driving performance in new build ▪ Thermal balancing a
Slide 43: Actions to improve new build profitability
Actions taken to improve new build profitability and achieve better risk / reward Organisation, team & governance ▪ New organisation structure with three global Business Units with P&L responsibility ▪ Significant changes in Energy management & leadership ▪ Energy has implemented new governance: - U
Slide 44: Balancing solutions key enablers of renewable transition
As the renewable energy transition accelerates, balancing solutions are key enablers for the transition Share of renewables in global energy generation Technology disruption in the energy sector Renewables Other Renewable generation 1) Renewables becoming main source of power 8X Gradual replacement
Slide 45: Thermal balancer market expected to grow ~20% per year
Thermal balancer market expected to grow ~20% per year – the baseload market outlook remains stable Engine power plant - baseload Engine power plant - balancers Outlook Addressable annual market (GW) Addressable annual market (GW) 1) ▪ The transition towards renewables is the driving +19% p.a. force
Slide 46: Engine power plants in strong position as balancing market grows
Engine power plants are in a strong position as the balancing market grows. Power system knowledge makes Wärtsilä the go-to partner for capacity planning Engines superior to Gas Turbines for Wärtsilä is clear market leader in engine Wärtsilä in strong position as balancing power plants thermal balan
Slide 47: Case Texas shows future trends
Case Texas shows future trends. Increasing renewables creates need for balancing with engines outperforming competing technologies 30 million population with 133 GW of 1.6X higher¹ real time market revenue Texas as a proofpoint for installed power (system size equal to France) potential for engines
Slide 48: Energy storage growth outlook remains strong
Energy storage growth outlook remains strong Order intake Market outlook Outlook Order intake (GWh) Addressable annual market (GWh) 1) ▪ Focus on profitable growth. Maintain top 5 market position +17% p.a. +35% ▪ Strong new build sales growth expected, driven by market demand ▪ >11 GWh energy storag
Slide 49: Energy Storage has grown 3X and is profitable
Energy Storage has grown 3X1) since 2021 and is now profitable – key focus on commercial approach and differentiated offering Selective commercial approach ▪ Focusing on growth of utility scale storage in selected geographies ▪ Systematic project selection to drive profitability Differentiated offer
Slide 50: Good profitability in services
Continued good profitability in services with a solid foundation for future growth Service order intake, MEUR Energy services – growth drivers +14% p.a. MEUR 1,198 ▪ Growing installed base 1,200 over time 1,062 915 ▪ Stable total operating 1,000 Service projects hours Service agreements ▪ Increasing
Slide 51: Moving up the service value ladder in Energy
We increase sales, profitability and customer satisfaction by moving up the service value ladder Wärtsilä service value ladder Continuous growth in agreement coverage Sales EUR/kW relative to transactional ▪ Securing service agreements for new power plants 5x ▪ Maintaining high renewal rate for exis
Slide 52: Future performance drivers
Future performance will be driven by strong sales growth and service volumes, continuous improvement, and a future-proof solution portfolio New build margins New build sales Recent actions: New organisation & governance Strong thermal balancing growth New organisational Stronger risk management Stro
Slide 53: Operating installed base is growing
Operating installed base is growing and operating hours are anticipated to remain stable driven by growth in certain customer segments Current running profile of installed base 60 Industrial 50 IPP’s (Independent 40 Power Producers) Utilities 30 Others 20 60 GW 10 0 Baseload 2019 2020 2021 2022 Bala
Slide 54: Advantages of Wärtsilä power plants over combined cycle gas turbines
Advantages of Wärtsilä power plants over combined cycle gas turbines Faster startup time Higher ramp rate ▪ Combined cycle gas turbines can take over 30 minutes to ▪ Ramp rate = the rate at which a power plant can increase or start, whereas combustion engine power plants can start and decrease outpu
Slide 55: R&D
co WARTSILA a R& © WARTSILA,
Slide 56: Continued investment in innovation
We continue investing in innovation to ensure a broad, industry-leading solution offering 4.1 3.2 241 165 2018 2019 2020 2021* 2022 R&D expenditure, MEUR % of net sales * Figure in the comparison period 2021 has been restated to reflect a change in the definition of research and development expendit
Slide 57: Most comprehensive offering for decarbonisation
Industry’s most comprehensive offering for decarbonisation 2023 2024 2025 Diesel FAME/HVO1) Industry’s fastest and broadest future fuel roadmap LNG Market leaders in 4-stroke medium-speed main engines Bio-methane Market leaders in hybrids with 26% market share2) Synthetic methane Engines Pioneer wit
Slide 58: Q3 development
WARTSILA Q3 development 58 © WARTSILA
Slide 59: Improved profitability, strong cash flow and good development in services
Improved profitability, strong cash flow and good development in services ▪ Order intake increased by 11% ▪ Good progress in services continued: ▪ Service order intake increased by 15% ▪ Service net sales increased by 15% ▪ The comparable operating result increased by 53% ▪ Supported by good develop
Slide 60: Good development in key figures
Good development in key figures MEUR 7-9/2023 7-9/2022 CHANGE 1-9/2023 1-9/2022 CHANGE Order intake 1,787 1,616 11% 5,214 4,436 18% of which services 842 732 15% 2,644 2,275 16% of which equipment 946 884 7% 2,570 2,161 19% Order book 6,594 6,229 6% of which current year deliveries 1,570 1,651 Net s
Slide 61: Marine market sentiment remained positive
Marine market sentiment remained positive for Wärtsilä’s key segments Low capacity available at shipyards combined with further escalation of newbuild prices have limited investments ▪ The number of vessels ordered in the review period Total and specialised vessel contracting increased to 1 356 (1 0
Slide 62: Solid long-term opportunities in energy market
Solid long-term opportunities in energy market Energy transition outlook improving amid fragile global economy ▪ Market share stayed at 13% (13%), as global orders for Contracting for gas and liquid fuelled power plants natural gas and liquid-fuelled power plants decreased 5-400 MW by 22% to 10.0 GW
Slide 63: Order intake increased by 11%
Order intake increased by 11% Equipment Services Equipment order MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling intake increased by 7% 1,600 4,000 1,600 4,000 Service order intake 1,400 3,500 1,400 3,500 increased by 15% 1,200 3,000 1,200 3,000 Organic order intake 946 1,000 884 2,500 1,000 842 2,500
Slide 64: Strong order book, rolling book-to-bill trends up
Strong order book, rolling book-to-bill continues to trend up Remaining order book for the current year lower than last year Order book by business Order book delivery schedule MEUR MEUR 8,000 1.30 3,500 7,000 1.20 3,000 6,000 1.10 2,500 5,000 1.00 2,000 4,000 0.90 3,000 0.80 1,500 2,000 0.70 1,000
Slide 65: Net sales increased by 1%
Net sales increased by 1% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling 1,100 3,500 Equipment net sales 1,100 3,500 1,000 1,000 decreased by 10% 3,000 3,000 900 900 800 769 800 762 2,500 Service net sales 2,500 700 690 700 664 increased by 15% 2,000 589 2,000 600 514 600 500 1,500
Slide 66: Profitability continued to improve
Profitability continued to improve Net sales Comparable operating result MEUR MEUR, 12m rolling MEUR %, 12m rolling 2,000 7,000 180 12.0% 1,800 160 Net sales increased by 6,000 1,600 1,433 1,452 140 10.0% 1% 125 1,400 5,000 120 8.0% 1,200 1,103 Comparable operating 4,000 1,000 100 87 82 6.0% result
Slide 67: Marine Power: Strong development in order intake and profitability
Marine Power: Strong development in order intake and profitability Good development in service continued Order intake Comparable operating result Comparable operating result +33% 12m rolling MEUR MEUR 2,901 MEUR MEUR 12m rolling 10.5% 90 12.0% 1,000 832 3,000 800 627 80 2,000 + Good service 600 443
Slide 68: Marine Systems: Equipment order intake increased
Marine Systems: Equipment order intake increased Lower equipment net sales Order intake Comparable operating result Comparable operating result 12m rolling +55% MEUR MEUR 12m rolling 4.5% MEUR MEUR 646 400 800 22 11.0% 300 600 191 18 9.0% + Good service 16 200 139 400 performance 14 89 100 200 14 7.
Slide 69: Energy: Comparable operating result increased
Energy: Comparable operating result increased Good development in service continued Order intake Comparable operating result Comparable operating result -16% 12m rolling MEUR MEUR 2,820 MEUR MEUR 12m 12mrolling rolling4.4% 1,200 4,000 70 7.3% 12.0% 1,000 805 3,000 800 679 60 10.0% 600 486 2,000 51 4
Slide 70: Energy storage: Comparable operating result margin positive
Energy storage: Comparable operating result margin (12m rolling) positive Profitability improving Quarterly development Rolling 12 months development MEUR MEUR % of net sales 400 1,200 5 350 1022 4 992 321 328 1,000 975 961 983 892 3 300 281 275 807 257 261 785 775 2 245 252 800 250 1 211 617 203 20
Slide 71: Service agreements
Service agreements Continuous growth in Energy agreement coverage Marine Power net sales to agreement installations MEUR, 12m rolling 22,000 32% 500 20,000 30% 450 18,000 16,000 400 28% 14,000 350 12,000 300 26% 10,000 250 8,000 24% 200 6,000 4,000 150 22% 2,000 100 0 20% 50 2017 2018 2019 2020 2021
Slide 72: Prospects
Prospects Marine ▪ Wärtsilä expects the demand environment for the next 12 months (Q4/2023-Q3/2024) to be similar to that of the comparison period. Energy ▪ Wärtsilä expects the demand environment for the next 12 months (Q4/2023-Q3/2024) to be better to that of the comparison period. 72 ©
Slide 73: Order intake
Order intake Third quarter development 8% (6) Marine Power 47% (39) Marine Systems Services Order intake Order intake 47% 38% by business Energy 53% by business type (45) Equipment (55) (50) Portfolio Business 8% (6) 73 ©
Slide 74: Net sales
Net sales Third quarter development 6% (7) 42% Marine Power (34) Services Net sales Marine Systems 48% Net sales by business (54) by business type 52% Equipment 42% Energy (46) (49) Portfolio Business 9% (11) 74 ©
Slide 75: Third quarter development by business type
Third quarter development by business type Order intake Net sales 24% Spare parts Spare parts 29% (31) (32) Field service Field service 38% Marine Marine Service agreements Service agreements (39) Businesses Businesses 48% EUR 746 million Service projects (40) EUR 971 million Service projects (643)
Slide 76: January–September order intake by customer segment
January–September order intake by customer segment Special Marine Businesses Gas carriers Cruise & ferry Offshore Navy vessels Merchant Other Marine Power Equipment 9% (15) 29% (21) 7% (2) 9% (3) 3% (17) 38% (35) 5% (7) Services 16% (15) 23% (22) 19% (14) 6% (7) 11% (12) 23% (29) 2% (2) Marine Syste
Slide 77: Orders received for Energy equipment globally
Orders received for Energy equipment globally Europe 312 (114) Americas 430 (734) Asia 294 (177) Utilities IPP’s Africa and (Independent Middle East Power Producers) 162 (111) Industrials Others Equipment order intake 1-9/2023: MEUR 1,198 (1,136) 77 ©
Slide 78: Sustainability
Cg WARTSILA Sustainability 8 © WARTSILA
Slide 79: Delivering towards our sustainability targets
We are delivering towards our sustainability targets On track for our 2030 Improving safety, wellbeing and Strengthening thought leadership decarbonisation targets employee engagement and being a responsible company ✓ To become carbon neutral in ✓ Positive trend in safety indicators ✓ Developing ind
Slide 80: Presence in sustainable development indices
Strong presence in sustainable development indices S&P Europe 350 ESG Index ©
Slide 81: Decarbonising our own operations: Set for 30
Decarbonising our own operations requires a wide range of actions ”SET FOR 30” OUR MAIN DECARBONISATION INITIATIVES 2021 2030 Energy efficiency measures +/€ Low emission company vehicles +/€ Heat pumps in heating +/€€ R&D and factory engine testings – reduced time +/€ Self-generation and green elect
Slide 82: Set for 30 is progressing well
Wärtsilä “Set for 30” is progressing well Variety of concrete actions have been taken – some examples Environmental Green electricity Solar panel standards for purchasing fully in investment in selecting new use in Finland Bermeo Spain facilities in use Electric Vehicle Heat pumps Intelligent energy
Slide 83: Wärtsilä's ESG Agenda in brief
Wärtsilä’s ESG Agenda in brief E Ambitious decarbonisation S Good Corporate Citizen and G Effective Governance targets for 2030 Responsible model ▪ Portfolio ready for Employer ▪ Sustainability zero carbon fuels matters embedded ▪ High ethical ▪ Carbon neutrality in standards own operations ▪ Divers
Slide 84: Sustainability is integrated into our strategy and purpose
Cust om Sustainability is integrated into er & our strategy and purpose Environment Co Being a forerunner in Innovative solutions m ▪ m sustainable innovation and for a low carbon economy un High environmental ity furthermore reduce ▪ valu emissions in our customers’ performance and efficiency opera
Slide 85: Focus on social responsibility
Wärtsilä’s focus on social responsibility Strong ethical culture Fair competition ▪ Clear policies and instructions Trade compliance ▪ Ethical training programmes and transparent Anti-corruption communication ▪ Effective compliance programmes Human and Labour Rights A responsible employer Equal oppo
Slide 86: Governance
Pa) WARTSILA Governance © WARTSILA,
Slide 87: Board of Management
Board of Management Håkan Agnevall, Arjen Berends, Tamara de Gruyter, President, Kari Hietanen, Corporate President & CEO Chief Financial Officer Wärtsilä Marine Systems Relations and Legal Affairs Roger Holm, President, Anders Lindberg, President, Teija Sarajärvi, Saara Tahvanainen, Wärtsilä Marine
Slide 88: Board of Directors
Board of Directors Tom Johnstone CBE, Chair of Mika Vehviläinen, Deputy Chair of Karen Bomba, President of Morten H. Engelstoft, CEO & EVP the Board, President and CEO the Board, President & CEO of Smiths Interconnect 2017– of A.P. Møller - Mærsk A/S, APM of AB SKF 2003–2014 Cargotec Oyj 2013-2023 T
Slide 89: Largest shareholders October 2023
Largest shareholders October 2023 (CMi2i quarterly update) # Name Shares Share % 1 Invaw Invest AB 104,711,363 17.70% 2 Varma Mutual Pension Insurance Company 31,768,252 5.37% 3 BlackRock Fund Advisors 18,364,207 3.10% 4 The Vanguard Group, Inc. 17,436,479 2.95% 5 Ilmarinen Mutual Pension Insurance
Slide 90: For more information, visit our Investors page
For more information, visit our Investors page Next upcoming IR events ▪ 5 December, GS Industrials Conference ▪ 5 – 7 December, US Roadshow ▪ 7 December, Oslo Roadshow Wärtsilä Investor Relations Hanna-Maria Heikkinen, Vice President, Investor Relations tel. +358 10 709 1461, email: hanna-maria.hei
Slide 91: Appendix
co WARTSILA Appendix n © WARTSILA,
Slide 92: Main competitors and customer base
Main competitors Engines Other marine solutions Other energy solutions MAN Kongsberg GE Himsen Alfa Laval Siemens Rolls-Royce GE Tesla Siemens Fluence Schottel Customer base Marine businesses Energy Ship owners Utilities Ship operators Independent Power Producers Ship management (IPPs) companies Ind
Slide 93: Geographical breakdown of net sales
Wärtsilä’s position as a global company is reflected in the geographical breakdown of our net sales Geographical net sales, 2022 Europe 29% Americas 35% Asia 25% Other 10% 93 ©
Slide 94: Wärtsilä Energy Storage offering
Wärtsilä Energy Storage offering GridSolv Quantum Wärtsilä-designed and assembly subcontracted Our role in the value chain ▪ Our core offering consists of 1) battery energy storage hardware, 2) GEMS Digital Energy Platform, and 3) lifecycle services, ▪ We are an energy storage system integrator, add
Slide 95: Key figures in 2022
Cg WARTSILA Key figures in 2022
Slide 96: Key figures 2022
MEUR KEY FIGURES 2022 8,000 10% 6,000 30% Order intake 2022 4,000 6,074 MEUR Net sales, geographical 2,000 35% Net sales 5,842 MEUR 0 25% 2018 2019 2020 2021 2022 Comparable operating result Net sales Order intake Europe Asia Americas Other 325 MEUR Order book 2022 5.6% of net sales % 48% Net sales
Slide 97: Wärtsilä Marine Power
Wärtsilä Marine Power – Leading the path towards decarbonisation by developing state of the art technology and enabling adoption of clean fuels Key figures in 2022 Share of total net sales in 2022 Offering ▪ Multi-fuel 4-stroke engines ▪ Propulsion systems Order intake ▪ Catalyst systems 2,707 MEUR
Slide 98: Wärtsilä Marine Systems
Wärtsilä Marine Systems – Solutions for our customers decarbonisation and optimisation journey Key figures in 2022 Share of total net sales in 2022 Offering ▪ Gas solutions 13% ▪ Cargo handling systems for gas Order intake Marine Systems carriers 654 MEUR ▪ Liquefaction and gasification systems 87%
Slide 99: Wärtsilä Energy – Towards a 100% renewable energy future
Wärtsilä Energy – Towards a 100% renewable energy future Key figures in 2022 Share of total net sales in 2022 Offering • Future-fuel enabled grid balancing power plants Order intake Energy • Hybrid solutions 53% 47% 2,612 MEUR • Energy storage and optimisation Other technology, including the GEMS Di
Slide 100: WARTSILA
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