Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Non-Deal Roadshow (February 2025)
110 slides from Wartsila Oyj Abp's roadshow presentation, February 2025
Slide 1: Wärtsilä – Roadshow presentation February 2025
Wärtsilä Shaping the decarbonisation of marine and energy Roadshow presentation February 2025 1 ©
Slide 2: Wärtsilä – Shaping the decarbonisation of marine and energy
Wärtsilä – Shaping the decarbonisation of marine and energy Wärtsilä simplified the Marine Energy Committed to financial targets Group structure from 1st Our offering of engines, propulsion We support the change towards a Net sales January 2024 onwards systems, hybrid technologies and future where e
Slide 3: Market fundamentals
Market fundamentals Accelerated decarbonisation targets are shaping the marine industry POLICIES AND REGULATIONS TECHNOLOGY CONNECTIVITY AND DATA • IMO1 target: to reach net zero greenhouse • Focus on carbon-neutral and zero-carbon • Optimisation solutions based on a holistic gas emissions from inte
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 Good performance since 2021 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 margins − M
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: Wärtsilä is a global technology and service leader in marine decarbonisation
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: Renewables and balancing power support profitable growth in Energy business
The increasing share of renewables and need for balancing power will support profitable growth in Energy business Thermal balancing Energy storage Addressable market1) Addressable market GW; CAGR GWh; CAGR ▪ Thermal balancing market is expected to grow +4X by 2030 driven by accelerating intermittent
Slide 10: Global leader in engine power plants; growth in Energy Storage
Wärtsilä is a global leader in engine power plants. Good track record of growth and profitability improvement in Energy Storage & Optimisation +40% of net sales2) Industry leading engine power plants1) Among top players in energy storage Global services network to ensure maximum uptime & fuel effici
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 2023 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: Service has provided resilient sales and profits over decades
Service has provided resilient sales and profits for Wärtsilä over decades Service Net Sales, EURm1) 4,000 Negative impact >€3.4bn from COVID-19 3,422 3,500 service net sales in 2024 with good future growth potential 3,000 2,500 ~30% of installed base covered 2,000 by service agreement at the 1,500
Slide 14: Executing our 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 ▪ ~30% of installed base2) is under service agreements with further growth potential ▪ Moving up the service value ladder – agreements and performance-base
Slide 15: Book-to-bill shows growth for service
Book-to-bill shows growth for service 12m rolling book-to-bill1) 1.75 1.50 1.25 1.00 0.75 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Service Spare parts Field service Service agreements Retrofits and upgrades 1) 2023 data restated to reflect the r
Slide 16: Rolling 12-month book-to-bill above 1 in Marine and Energy
Rolling 12-month book-to-bill’s above 1 for all service categories in both Marine and Energy Marine, 12m rolling book-to-bill1) Energy, 12m rolling book-to-bill 1.75 1.75 1.50 1.50 1.25 1.25 1.00 1.00 0.75 0.75 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2022 2022 20
Slide 17: Commitment and clear path to reach 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 17 ©
Slide 18: 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 19: 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 20: Actively managing our business portfolio
We continue to actively manage our business portfolio Automation, Navigation & Control Systems to be Portfolio Business divested Plan to divest. Timeline subject to internal separation & turnaround ▪ Wärtsilä has agreed to divest its Automation, Navigation and ▪ Water & Waste Control System (ANCS) b
Slide 21: Profitability drivers
Profitability drivers + Supporting drivers + / - Uncertainties - Negative factors ▪ Continued decarbonisation in both ▪ Geopolitical tensions ▪ Wage inflation the energy and marine markets ▪ Potential trade restrictions / ▪ Negative mix impact from ▪ Good service performance trade wars increasing eq
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) 23% 19% 18% 15% 15% 14% 6% 3% 2% -2% 38% 39% -3%
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 are key levers to improve performance
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
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Slide 26: Regulatory focus has moved to mid-term measures
After IMO net-zero commitment in 2023, the regulatory focus has moved to “mid-term measures” For vessels operating in EU waters, fuel cost may double due to emission fees up to 2030, compared to 2023 IMO GHG Strategy1) EU Fit-for-55 GHG emission reduction % vs 2008 Fuel-related costs for Handymax bu
Slide 27: Decarbonisation pathways require a shift to sustainable fuels
Decarbonisation can be reached through different pathways; net-zero targets will require a fundamental shift towards sustainable fuels Decarbonisation pathways Burn less fuel1) Clean up emissions1) Use alternative energy sources Vessel efficiency Operational efficiency Emission abatement Sustainable
Slide 28: A progressive switch to sustainable fuels is under way
A progressive switch to sustainable fuels is already under way Sustainable fuel uptake scenario for net-zero in 20501) Total energy consumption, EJ 15 Fuel transition is under way: ~50% of tonnage on orderbook is set to use Reduced energy demand alternative fuels; long-term fuel mix is dependent on
Slide 29: Half of the shipbuilding orderbook set to run on alternative fuels
The regulatory changes impact maritime now: half of the total shipbuilding orderbook is set to run on alternative fuels 2024 saw the highest-ever alternative fuel capable vessel ordering, excluding gas carriers Alternative fuels uptake Orderbook by fuel type, mGT1) 250 50% ~50% 200 40% vessel GT ord
Slide 30: Sustainable fuels roadmap to 2050
Sustainable fuels roadmap to 2050 In Wärtsilä, alternative fuel-capable engines account for 70% MW delivered in 2024 30 ©
Slide 31: Cost of emissions will close the fuel price gap
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 32: Alternative fuel ecosystem must continue to develop
The alternative fuel ecosystem must continue to develop further to support the maritime green transition Engine technology Availability of fuels Port infrastructure ▪ Technology is readily available, with ▪ Alternative fuels are not yet available ▪ Bunkering infrastructure is limited but ~50% of the
Slide 33: Engines have built-in upgradability to future fuels
Our engines have built-in upgradability to future fuels, with significant part commonality between different fuel versions and a modular design LNG DF1) engine to run on: Fuel System Engine base Engine top ▪ Bio/Synthetic diesel ▪ No changes ▪ No changes ▪ No changes ▪ Bio/Blue/Green methane ▪ No ch
Slide 34: Market share stronger on alternative fuel capable engines
Our market share is stronger on alternative fuel capable engines compared to diesel engines 4-stroke medium speed main engines market share1) Auxiliary engines market share1) ~45% ~15% ~75% ~25% We are market We are growing in leaders in 4-stroke auxiliary engines, as medium speed main EUR ~2bn engi
Slide 35: Focus on high-value, performance-driven segments
We focus on the most high-value, performance-driven segments Typical Wärtsilä Marine offering per vessel1) Cruise Ferries Offshore Navy Specials Merchant Hy-El merchant Engines / Diesel-Electric Main Engines Hybrid-Electric Aux Engines Main Engines Aux Engines Hybrid-Electric Hybrid1) Aux Engines Ma
Slide 36: Recovery in key segments growing addressable market
Recovery in our key target segments is growing the 4-stroke medium speed main engine addressable market Newbuild ordering of 4-stroke medium speed main engines, MW1) 5% CAGR Cruise 6,000 Ferries We have a 5,000 Offshore strong position Merchant in Cruise, Ferry, 4,000 Others2) and Offshore 3,000 seg
Slide 37: Global cruise capacity forecast to grow
Global cruise capacity is forecast to grow over 10% from 2024 to 2028 Cruise passengers, million passengers Cruise travel reached 107% of 2019 levels in 2023, with 37.1 38.9 39.4 31.7 million passengers 29.7 31.7 35.7 sailing; this compares to 20.4 overall international tourism 5.8 arrivals, which a
Slide 38: Hybrid-Electric to challenge 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 carg
Slide 39: Vessel contracting forecast
Vessel contracting forecast Accelerating fleet No of ships, 2,000+ dwt/GT, renewal and steady Ship-shaped mobile offshore vessels only. demand growth Continuing accelerated fleet renewal supported by gradual supported by the fleet age profile and Higher expectations for contracting increases in yard
Slide 40: Global shipyard capacity at ~70% of previous peak
Global shipyard capacity is currently at ~70% of previous peak, but is expected to increase to >80% by 2030 Capacity increases are expected especially in China Development of global shipyard capacity Regional shipyard capacity as % of 2011-12 peak, CGT1) 110% 100% 90% 80% 70% 60% 50% 40% 2019 2020 2
Slide 41: Services >60% of Marine sales; three service delivery models
Services accounts for >60% of Marine sales; we operate through an integrated service framework with three service delivery models Transactional Agreements Retrofits and upgrades2) % services sales1) ~60% ~30% ~10% ▪ Increasing ship complexity ▪ New regulations Growth drivers ▪ Installed base growth
Slide 42: Moving up the service value ladder in Marine
Moving up the service value ladder in Marine 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 Insig
Slide 43: The widest service network in marine
We have the widest service network in marine ~3,400 ~39,500 ~1,760,000 We continuously professionals in 70+ marine field service jobs marine outbound delivery review our footprint countries1) started annually lines annually2) to better serve our 39,478 1.76m customers and 3,371 1.75m 3,257 38,620 ac
Slide 44: Service agreements enable maximum fleet efficiency and uptime
Service agreements enable maximum fleet efficiency and uptime >90% Reliability and uptime have 11 issues resolved remotely increased while unforeseen Expertise Centres, maintenance events have providing 24/7 remote decreased; with early anomaly technical support to EUR >60m detection, enabled by Exp
Slide 45: Fleet under service agreement keeps expanding
The fleet under Wärtsilä service agreement keeps expanding and shifting towards higher-tier agreements Fleet under agreement as end of Q2 over 2020-2024, # ships1) >90% renewal rate LTM Q2 2024 700 600 29% 500 of our engine installed base is under agreement2) 400 300 24% 200 sales to agreement vesse
Slide 46: Regulations and costs will boost demand for retrofits
Tightening regulations and increasing fuel and emission cost will boost demand for retrofits Total investments in retrofits, including Carbon Capture and Storage solutions (CCS), are estimated to be EUR 15-20bn over the next decade1) Propulsion Alternative fuel Radical power Electrification efficien
Slide 47: Onboard Carbon Capture and Storage
Onboard Carbon Capture and Storage (CCS) allows to capture >70% of the CO2 generated onboard Onboard CCS can unlock EUR ~10bn business in the next 10 years1) Applicable to all carbon-based fuels, vessels types and sizes SOx reduction NOx reduction Captured CO2 is stored onboard for discharge at port
Slide 48: Strong growth opportunities in marine
Strong growth opportunities in marine based on technology leadership, moving up the service value ladder, and favorable vessel contracting mix Equipment Services Addressable Favorable vessel Decarbonisation- market contracting mix driven retrofits Growing installed base Decarbonisation: uptake of Ma
Slide 49: Energy highlights
WARTSILA Energy highlights 49 © WARTSILA
Slide 50: Significant 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 51: 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 52: Renewable transition makes balancing solutions key enablers
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 53: Thermal balancer market expected to grow ~29% per year
Thermal balancer market expected to grow ~29% per year – the baseload market outlook remains stable Engine power plants Wärtsilä operating installed base (GW) Outlook ▪ The transition towards Addressable annual market (GW) renewables is the driving force behind demand for +17% p.a. total thermal bal
Slide 54: Engine power plants strong 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 55: Wärtsilä's sweet spot is in 50-400 MW plants
Wärtsilä’s sweet spot is in 50 - 400 MW plants Engine technologies Gas turbine technologies High-speed engines Aeroderivative gas turbines ▪ Low capex and low efficiency ▪ Lower capex than engines but less fuel-efficient ▪ Best suited for backup and low running hours applications ▪ More flexible tha
Slide 56: Engines are unique, flexible market assets
Engines are unique, flexible market assets Internal combustion engines (ICE) Aeroderivatives and other open-cycle gas turbines (OCGTs) Rapid start-stops, part-loading, and load following Operating in an on-off pattern Battery energy storage systems (BESS) Combined-cycle gas turbines (CCGTs) Focus on
Slide 57: Advantages 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 58: 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 59: Fuel flexibility for the energy transition
Wärtsilä Energy is well positioned to provide the fuel flexibility needed for the energy transition Technology roadmap for engines Energy Power Plants order intake by fuel, 2020-24 (MW) ▪ Plant lifetimes stretching to 2050: fuel flexibility future- proofs engines ▪ There will be no single global gre
Slide 60: 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 +62% +17% p.a. ▪ Strong new build sales growth expected, driven by market demand ▪ >11 GWh energy storage capacity delivered, awarded, c
Slide 61: Good performance in Energy Services
Good performance in Energy Services with a solid foundation for future growth Growing Service Net sales All time high orderbook & strong book-to-bill +24% total Services sales 2021–LTM Q2/2024 EURm +9% p.a. 1,200 1.4 +29% Service agreements sales 2021–LTM Q2/2024 1,200 1.19 1.15 1,110 1.11 1.2 1,000
Slide 62: Increasing agreement coverage is supporting growth
Increasing agreement coverage is supporting growth EURm % 30% 1,200 30% Increasing share of agreement 1,110 customers in our installed base 1,000 30% agreement coverage 28% 782 Our strategic focus to High agreement renewal rate 800 increase lifecycle for existing customers 26% agreement coverage is
Slide 63: Decarbonisation Services provide new growth opportunities
Decarbonisation Services provide new growth opportunities Decarbonisation Services optimises microgrids by integrating Energy Management Systems Engine Power Plants Battery Energy Storage Customer’s renewable power generation into outcome-based agreements Our target customers are captive microgrids
Slide 64: Moving up the service value ladder in Energy
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 Sales EUR/kW relative to transactional Continuous growth in agreement coverage 5x ▪ Securing service agreements for new power pl
Slide 65: Growth opportunities for baseload power in Data Centres
We see growth opportunities for baseload engine power plants in Data Centres Global data centre power demand growth1 25 New data centre power capacity expected to be added 2024-2027 ~ 45 GW 20 Typical grid connection time currently 5 years 15 GW 10 Wärtsilä’s sweet spot Baseload power for off- grid
Slide 66: Data Centre power market shifting
The Data Centre power market is shifting, with new thermal baseload opportunities in specific markets Emerging: off-grid baseload US market developing Historical: backup power rapidly as baseload is 50-300 MW needed while awaiting grid connection 20-100 MW typical power need typical power need Grid
Slide 67: Future performance driven by sales growth and services
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 68: R&D
co WARTSILA R&D © WARTSILA,
Slide 69: Continued investing in innovation
We continue investing in innovation to ensure a broad, industry-leading solution offering 4.6 4.3 3.2 296 258 165 2018 2019 2020 2021* 2022 2023 2024 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 de
Slide 70: Industry's most comprehensive offering for decarbonisation
Industry’s most comprehensive offering for decarbonisation 2023 2024 2025 Diesel FAME/HVO1) LNG Industry’s fastest and broadest future fuel roadmap Bio-methane Market leaders in 4-stroke medium-speed main Synthetic methane engines Engines Industry-leading hybrid solutions LPG Methanol Pioneer with t
Slide 71: Q4 2024 development
Q4 2024 development 5 February 2025 71 ©
Slide 72: Strong growth in order intake, net sales and profitability in Q4
Strong growth in order intake, net sales and profitability in Q4 ▪ All-time high order book (8,366 MEUR) ▪ Order intake increased by 34% ▪ Net sales increased by 13% ▪ Comparable operating result increased by 18% ▪ Good progress in services continued: ▪ Service order intake increased by 15% ▪ Servic
Slide 73: Marine: market sentiment is positive
Marine: market sentiment is positive for Wärtsilä’s key segments Increase in demand for new ships continued 12 months rolling contracting trend ▪ The number of vessels ordered in the review period increased to 2,765 (1,977 in the corresponding period in Number of vessels (total) Number of vessels (s
Slide 74: Energy: solid long-term market opportunities
Energy: solid long-term market opportunities The energy transition continued to advance in 2024 ▪ Wind and solar are expected to post record installations in Development on installed wind and solar capacity 2024 and 2025. Combined capacity additions from wind GW and solar are expected to be between
Slide 75: Organic order intake increased by 35%
Organic order intake increased by 35% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling Order intake increased 1,600 1,484 4,500 1,600 4,500 by 34% 1,400 4,000 1,400 4,000 3,500 3,500 Equipment order intake 1,200 1,200 980 3,000 1,007 3,000 increased by 51% 1,000 1,000 876 848 800 2,5
Slide 76: All-time high order book
All-time high order book, rolling book-to-bill continues above 1 Order book by business Order book delivery schedule MEUR MEUR 9,000 1.6 6,000 8,000 1.4 5,000 7,000 1.2 6,000 4,000 1.0 5,000 0.8 3,000 4,000 0.6 3,000 2,000 0.4 2,000 1,000 1,000 0.2 0 0.0 0 31.12.2022 30.6.2023 31.12.2023 30.6.2024 3
Slide 77: Organic net sales increased by 13%
Organic net sales increased by 13% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling Net sales increased 1,200 3,500 1,200 3,500 by 13% 1,100 1,100 987 3,000 948 3,000 1,000 1,000 905 843 Equipment net sales 900 900 800 800 2,500 800 784 2,500 increased by 13% 700 2,000 700 2,000 600
Slide 78: Profitability continued to improve
Profitability continued to improve Net sales Comparable operating result MEUR MEUR, 12m rolling MEUR %, 12m rolling Net sales increased by 2,400 7,000 250 12.0% 13% 2,100 209 6,000 1,770 1,854 200 10.0% Comparable operating 1,800 1,644 177 5,000 8.0% result increased by 18% 1,500 4,000 150 1,200 6.0
Slide 79: Marine: Good performance continued
Marine: Good performance continued Order intake and net sales increased Order intake +9% Comparable operating result Comparable operating result 12m rolling MEUR MEUR 3,637 MEUR MEUR 12m rolling 11.8% 1,000 918 4,000 120 14.0% 844 800 3,000 600 99 100 12.0% 2,000 100 400 + Higher service 200 1,000 v
Slide 80: Good development in Marine service
Good development in Marine service Book-to-bill above 1 in all service revenue streams Marine service, Net sales Marine service, Book-to-bill MEUR 12m rolling book-to-bill 700 2,500 1.75 +12% CAGR 600 2,000 1.50 500 1,500 400 1.25 300 1,000 200 1.00 500 100 0 0 0.75 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 81: Energy: Comparable operating result increased
Energy: Comparable operating result increased Strong growth in order intake both in Engine Power Plants and Energy Storage & Optimisation Order intake +54% MEUR 12m rolling Comparable operating result Comparable operating result MEUR 3,366 1,335 4,000 MEUR MEUR 12m 12mrolling 11.2% rolling 1,500 120
Slide 82: Energy Storage & Optimization margin continued to improve
Energy Storage & Optimization: Comparable operating result margin (12m rolling) continued to improve Quarterly development Rolling 12 months development MEUR MEUR % of net sales 700 1,600 5.0 608 600 1,400 4.0 1,200 1,128 500 1,056 1,022 1,034 3.0 1,000 975 961 983 992 926 400 784 807 794 328 800 73
Slide 83: Good development in Energy service
Good development in Energy service Book-to-bill above 1 in all service revenue streams Energy service, Net sales Energy service, Book-to-bill MEUR 12m rolling book-to-bill 450 1,600 1.75 400 1,400 +11% CAGR 350 1.50 1,200 300 1,000 250 800 1.25 200 600 150 400 1.00 100 50 200 0 0 0.75 Q1 Q2 Q3 Q4 Q1
Slide 84: Strong cash flow from operating activities
Strong cash flow from operating activities Cash flow from operating activities Working capital to net sales ratio MEUR MEUR, 12m rolling MEUR 500 1,400 400 4% 437 179 2% 389 1,200 200 400 0% 1,000 0 300 -2% 800 -200 -4% -169 200 600 -400 -6% 400 100 -8% 51 -600 200 -10% 0 0 -800 -787 -12% -100 -200
Slide 85: Earnings and dividend per share
Earnings and dividend per share EUR 1.00 0.80 0.60 0.40 0.20 0.00 -0.20 2020 2021 2022 2023 2024* EPS DPS *Proposal of the Board 85 ©
Slide 86: Prospects
Prospects Marine ▪ Wärtsilä expects the demand environment for the next 12 months (Q1/2025–Q4/2025) to be better than that of the comparison period. Energy ▪ Wärtsilä expects the demand environment for the next 12 months (Q1/2025–Q4/2025) to be better than that of the comparison period. However, Wär
Slide 87: Order intake
Order intake Fourth quarter development 10% (8) 37% (46) Marine 40% Services Order intake Order intake (47) by business Energy by business type Equipment 60% Portfolio Business (53) 54% (47) 87 ©
Slide 88: Net sales
Net sales Fourth quarter development 10% (10) 46% Marine Services Net sales (46) 49% Net sales Energy 51% Equipment by business (49) by business type (51) Portfolio Business 44% (44) 88 ©
Slide 89: Fourth quarter development by business type
Fourth quarter development by business type Order intake Net sales 26% Spare parts 28% Spare parts (26) (29) Field service 35% Field service 35% (35) Marine Service agreements (41) Marine Service agreements EUR 847 million EUR 918 million Retrofits and upgrades (759) (844) Retrofits and upgrades Equ
Slide 90: January–December order intake by customer segment
January–December order intake by customer segment Marine Gas carriers Cruise & ferry Offshore Navy Special vessels Merchant Other Equipment 7% (11) 30% (22) 5% (6) 6% (8) 10% (5) 37% (44) 5% (4) Services 12% (14) 24% (22) 16% (17) 11% (8) 11% (11) 25% (26) 1% (1) Total 10% (13) 26% (22) 12% (13) 9%
Slide 91: Orders received for Energy equipment globally
Orders received for Energy equipment globally Europe 291 (339) Americas Asia 919 (843) 815 (413) Utilities IPP’s (Independent Africa and Power Producers) Middle East Industrials 50 (140) Others Equipment order intake 1-12/2024: MEUR 2,076 (1,735) 91 ©
Slide 92: Sustainability
© WARTSILA Sustainability 22 © WARTSILA
Slide 93: 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 94: Strong presence in sustainable development indices
Strong presence in sustainable development indices S&P Europe 350 ESG Index ©
Slide 95: 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 96: Governance
co WARTSILA Governance 96 © WARTSILA,
Slide 97: Board of Management
Board of Management Håkan Agnevall, Arjen Berends, Tamara de Gruyter, Kari Hietanen, Corporate President & CEO Chief Financial President, Wärtsilä Portfolio Relations and Legal Affairs Officer Business Roger Holm, President, Anders Lindberg, President, Teija Sarajärvi, Anu Sirkiä, Marketing and Wärt
Slide 98: Board of Directors
Board of Directors Tom Johnstone CBE, Chair of Mika Vehviläinen, Deputy Chair of the Karen Bomba, President of Smiths Morten H. Engelstoft, CEO & EVP the Board, President and CEO Board, President & CEO of Cargotec Oyj Interconnect 2017–2020 of A.P. Møller - Mærsk A/S, APM of AB SKF 2003–2014 2013-20
Slide 99: Largest shareholders January 2024
Largest shareholders January 2024 (CMi2i quarterly update) # Name Shares Share % 1 Invaw Invest AB 104,711,363 17.70 2 Keskinäinen Työeläkevakuutusyhtiö Varma 25,159,960 4.25 3 BlackRock Fund Advisors 21,293,179 3.60 4 The Vanguard Group, Inc. 18,668,374 3.15 5 Keskinäinen Eläkevakuutusyhtiö Ilmarin
Slide 100: For more information, visit our Investors page
For more information, visit our Investors page Next upcoming IR events ▪ 17.-21.2. Citi's Global Industrial Tech and Mobility Conference in Miami ▪ 19.2. Annual Report 2024 ▪ 20.2. Barclays Industrial Select Conference in Miami ▪ 26.2. CEO strategy call ▪ 6.3. Carnegie Capital Goods Conference in St
Slide 101: Appendix
co WARTSILA Appendix 101 © WARTSILA,
Slide 102: 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 Sungrow Customer base Marine businesses Energy Ship owners Utilities Ship operators Independent Power Producers Ship management (IPPs) compa
Slide 103: 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, 2024 Europe 33% Americas 28% Asia 26% Other 13% 103 ©
Slide 104: 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 105: Wärtsilä Energy Storage competitive advantages
Wärtsilä Energy Storage competitive advantages Our key differentiators ▪ Integration and scalability: Wärtsilä’s GridSolv Quantum is a fully- integrated energy storage solution. Its modular and scalable design enables ease of deployment and optimisation. It integrates storage to other energy assets
Slide 106: Key figures in 2024
Cc WARTSILA Key figures in 2024
Slide 107: Key figures 2024
MEUR KEY FIGURES 2024 10,000 13% 8,000 33% Order intake 6,000 2024 8,072 MEUR 4,000 Net sales, geographical 28% 2,000 Net sales 6,449 MEUR 0 2020 2021 2022 2023 2024 26% Comparable operating result Net sales Order intake Europe Asia Americas Other 694 MEUR Order book 2024 10.8% of net sales MEUR % 5
Slide 108: Wärtsilä Marine – Leading the path towards decarbonisation
Wärtsilä Marine – Leading the path towards decarbonisation by developing state of the art technology and enabling adoption of clean fuels Key figures in 2024 Share of total net sales in 2024 Offering ▪ Multi-fuel 4-stroke engines ▪ Propulsion systems Order intake ▪ Catalyst systems ▪ Fuel gas supply
Slide 109: Wärtsilä Energy – Towards a 100% renewable energy future
Wärtsilä Energy – Towards a 100% renewable energy future Key figures in 2024 Share of total net sales in 2024 Offering • Future-fuel enabled grid balancing power plants Order intake Energy • Hybrid solutions 42% 3,366 MEUR 58% • Energy storage and optimisation Other technology, including the GEMS Di
Slide 110: WARTSILA
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