Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Non-Deal Roadshow (January 2025)
114 slides from Wartsila Oyj Abp's roadshow presentation, January 2025
Slide 1: Wärtsilä – Shaping the decarbonisation of marine and energy
Wärtsilä Shaping the decarbonisation of marine and energy Roadshow presentation January 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 Marine will move with unprecedented speed towards decarbonisation Policies & regulations Technology Connectivity & data ▪ IMO target/ EU Regulations ▪ Carbon neutral and zero ▪ Vessels as data pools ▪ Access to capital carbon fuels ▪ Optimisation solutions ▪ Cost of carbon ▪ Carb
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) 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 margins − Ma
Slide 6: Transform – attractive growth opportunities
Transform – attractive growth opportunities at the center of the decarbonisation transformation 6 ©
Slide 7: Strong market fundamentals and decarbonisation will support profitable growth in Marine
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 shaping the 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: The increasing share of renewables and need for balancing power will support profitable growth
The increasing share of renewables and need for balancing power will support profitable growth in Energy business Thermal balancing Energy storage Addressable market1) Addressable market2) GW; CAGR GWh; CAGR ▪ Thermal balancing market is expected to grow +4X by 2030 driven by accelerating intermitte
Slide 10: Wärtsilä is a global leader in engine power plants
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 26% >90% 2023 net sales Growth in net sales since 2021 Renewal rate of service agreements Source: CMD 2023 13 ©
Slide 14: Service has provided resilient sales and profits over decades
Service has provided resilient sales and profits for Wärtsilä over decades Service Net Sales, EURm1) 3,500 Negative impact 3,317 >€3.3bn from COVID-19 in LTM service net sales by 3,000 Q3/2024 with good future 2,500 growth potential 2,000 ~30% of installed base covered 1,500 by service agreement by
Slide 15: 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 (~5% increase since 2021) ▪ 26% growth in transactional services since 2021 ▪ ~30% of installed base2) is under service agreements with further growth pote
Slide 16: 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 Service Spare parts Field service Service agreements Retrofits and upgrades 1) 2023 data restated to reflect the redefined
Slide 17: Rolling 12-month book-to-bill above 1 for all service categories
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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2022 2022 2022 202
Slide 18: Benefit from implemented 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 19: Strong commitment and a 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 19 ©
Slide 20: >5% organic growth target drivers
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 21: 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 22: We continue to actively manage our business portfolio
We continue to actively manage our business portfolio Marine Systems 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 limited synergies wi
Slide 23: 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 / ▪ Equipment deliveries in ▪ Good service performance trade wars H2/2024 will g
Slide 24: 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% 14% 4% 6% 23% 3% -1% 41% -2% 38%
Slide 25: The Wärtsilä Way and financial targets
The Wärtsilä Way sets the scene for profitable growth. We reconfirm our financial targets 25 ©
Slide 26: The strategic priorities are the 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 27: Marine highlights
Co WARTSILA “n rs) <= ighlig h Marine © WARTSILA 7
Slide 28: Regulatory focus has moved to mid-term measures
After IMO net-zero commitment last year, 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
Slide 29: Decarbonisation pathways
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 30: 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) Fuel transition is under way: ~50% 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 fu
Slide 31: Half of the shipbuilding orderbook is 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 32: Sustainable fuels roadmap to 2050
Sustainable fuels roadmap to 2050 In Wärtsilä, alternative fuel-capable engines account for >60% MW ordered in 2023 32 ©
Slide 33: Cost of emissions will close the 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 34: The 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 35: 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 36: 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 37: We focus on the most 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 38: Recovery in key target segments is growing the 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) Wärtsilä market share, MW3) 5% CAGR Cruise 6,000 Ferries Cruise ~85% 5,000 Offshore 4,000 Merchant Ferries ~65% Others2) 3,000 2,000 1
Slide 39: Global cruise capacity is 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 40: Hybrid-Electric will 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 41: 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 42: 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 43: Services accounts for >60% of Marine sales
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 44: 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 45: We have 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 46: 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 47: 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 48: Installed base generates revenues over 30 years
Our installed base generates revenues during over 30 years; it grew by 9% over 2019-23 Marine 4-stroke installed base development Marine 4-stroke installed base, GW1) >3,000 +9% customers groups buy from 60 us at least once a year 55 +9% 4-stroke engine installed 50 base growth since 2019 +7% 45 num
Slide 49: Vessel utilisation rates driving service business
Vessel utilisation rates driving Wärtsilä’s service business Cruise and passenger ferries Offshore 100 100 1,800 Using slow steaming to 90 90 1,600 manage active fleet 80 80 1,400 capacity and/or to limit MDU Utilisation, % Cruise Idle capacity, % # Laid-up OSVs 70 70 1,200 60 Passenger ferries 60 1
Slide 50: Tightening regulations 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 51: 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 52: 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 53: Energy highlights
WARTSILA Energy highlights 53 © WARTSILA
Slide 54: 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 55: Actions taken 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 56: Balancing solutions are key enablers of the 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 57: 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 58: Engine power plants in a 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 59: 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 60: 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 61: 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 62: 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 63: 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 64: 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 65: Energy Storage has grown 3X since 2021 and is now 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 66: Good performance in Services with solid foundation for growth
Good performance in 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 1.07 1
Slide 67: 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 68: 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 69: 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 70: 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 71: R&D
co WARTSILA R&D © WARTSILA,
Slide 72: Continued investment in innovation
We continue investing in innovation to ensure a broad, industry-leading solution offering 4.3 3.2 258 165 2018 2019 2020 2021* 2022 2023 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 exp
Slide 73: 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 Market leaders in 4-stroke medium-speed main Bio-methane engines Synthetic methane Market leaders in hybrids with 26% market share2) Engines LPG Pioneer
Slide 74: Q3 2024 development
Q3 2024 development 29 October 2024 74 ©
Slide 75: Improved net sales, profitability and cash flow
Improved net sales, profitability and cash flow ▪ Net sales increased by 18% ▪ Continued strong order book (7,583 MEUR) ▪ Comparable operating result increased by 41% ▪ Good progress in services continued: ▪ Service order intake increased by 4% ▪ Service net sales increased by 6% ▪ Strong cash flow
Slide 76: Marine: market sentiment is positive
Marine: market sentiment is positive for Wärtsilä’s key segments Increase in demand for new ships in the third quarter ▪ The number of vessels ordered in the review period increased to Total and specialised vessel contracting 1,953 (1,356 in the corresponding period in 2023, excluding late Number of
Slide 77: Energy: solid long-term market opportunities
Energy: solid long-term market opportunities Rising protectionism and decreasing inflation impact energy markets in the third quarter ▪ Macroeconomic development continued to be impacted by Development on installed wind and solar capacity * protectionism and elevated risks in the geopolitical enviro
Slide 78: Organic order intake increased by 4%
Organic order intake increased by 4% Equipment Services Order intake MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling increased by 1% 1,600 4,000 1,600 4,000 Equipment order 1,400 3,500 1,400 3,500 intake decreased by 1,200 3,000 1,200 3,000 2%, primarily driven 1,000 884 946 929 2,500 1,000 874 2,500
Slide 79: Strong order book, rolling book-to-bill above 1
Strong order book, rolling book-to-bill continues above 1 Order book by business Order book delivery schedule MEUR MEUR 8,000 1.6 4,000 7,000 1.4 3,500 6,000 1.2 3,000 5,000 1.0 2,500 4,000 0.8 2,000 3,000 0.6 1,500 2,000 0.4 1,000 1,000 0.2 500 0 0.0 0 30.9.2022 31.3.2023 30.9.2023 30.3.2024 30.9.2
Slide 80: Book-to-bill above 1 in both equipment and services
Book-to-bill above 1 in both equipment and services Equipment Services MEUR Book-to-bill, 12m rolling MEUR Book-to-bill, 12m rolling Rolling book-to-bill (12m) stood at 1.19 at 1,200 1.5 1,200 1.5 1,100 1,100 the end of the third 1,000 946 929 1,000 quarter 884 874 900 1.25 900 842 1.25 800 800 732
Slide 81: Organic net sales increased by 21%
Organic net sales increased by 21% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling Net sales increased by 1,200 3,500 1,200 3,500 18% 1,100 1,100 3,000 1,000 3,000 1,000 911 Equipment net sales 900 900 807 800 769 2,500 800 762 2,500 increased by 32% 690 664 700 2,000 700 2,000 600
Slide 82: Profitability continued to improve
Profitability continued to improve Net sales Comparable operating result MEUR MEUR, 12m rolling MEUR %, 12m rolling Net sales increased by 2,200 7,200 200 177 12.0% 18% 2,000 6,400 180 1,800 1,718 5,600 160 10.0% Comparable operating 1,600 1,433 1,452 4,800 140 125 8.0% result increased by 41% 1,400
Slide 83: Marine: Good performance continued
Marine: Good performance continued Net sales and comparable operating result increased Order intake +0% Comparable operating result Comparable operating result 12m rolling MEUR MEUR 3,563 MEUR MEUR 12m rolling 12.1% 1,000 902 902 4,000 120 14.0% 800 3,000 600 12.0% 2,000 100 400 + Higher service 200
Slide 84: Good development in Marine service
Good development in Marine service Marine net sales to agreement installations was stable at over 500 MEUR in Q3 Net sales to agreement installations (12 month rolling)1) MEUR, 12m rolling Wärtsilä and Royal Caribbean Group sign Lifecycle Agreement to accelerate 550 sustainability goals 500 ▪ Wärtsi
Slide 85: Energy: Comparable operating result increased
Energy: Comparable operating result increased Equipment orders and deliveries grew clearly in Engine Power Plants Order intake Comparable operating result Comparable operating result -19% 12m rolling MEUR MEUR 2,899 MEUR MEUR 12m 12mrolling 11.1% rolling 1,000 3,200 7.3% 805 100 12.0% 800 679 3,000
Slide 86: Energy Storage & Optimization margin continued to improve
Energy Storage & Optimization: Comparable operating result margin (12m rolling) continued to improve while the order intake is lumpy Quarterly development Rolling 12 months development MEUR MEUR % of net sales 400 1,400 5.0 350 4.0 321 328 1,200 1056 1034 300 992 1022 275 975 961 983 992 3.0 271 1,0
Slide 87: Agreement coverage in Energy continues to grow
Agreement coverage in Energy continues to grow MW under agreement globally MW Wärtsilä strengthens commitment to 20,000 35% Zambia with O&M agreement renewal for 19,000 Ndola power plant 30% 18,000 17,000 25% ▪ Wärtsilä has signed a renewal of its Operations & 16,000 Maintenance (O&M) agreement cove
Slide 88: 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 1200 300 4% 200 1000 108 2% 400 100 43 296 800 0% 300 0 213 600 -100 -2% 200 400 -200 -4% 100 100 -300 200 -6% -400 0 0 -8% -500 -501 -100 -200 -600 -10%
Slide 89: Prospects
Prospects Marine ▪ Wärtsilä expects the demand environment for the next 12 months (Q4/2024–Q3/2025) to be better than that of the comparison period. Energy ▪ Wärtsilä expects the demand environment for the next 12 months (Q4/2024–Q3/2025) to be better than that of the comparison period. 89 ©
Slide 90: Order intake
Order intake Third quarter development 19% (12) 50% Marine Services Order intake Order intake 48% (50) 52% Equipment by business Energy by business type (47) (53) Portfolio Business 31% (38) 90 ©
Slide 91: Net sales
Net sales Third quarter development 10% (12) 43% Marine Services Net sales (46) Net sales 47% Energy 53% Equipment by business by business type (52) (48) Portfolio Business 47% (42) 91 ©
Slide 92: Third quarter development by business type
Third quarter development by business type Order intake Net sales 28% Spare parts Spare parts 31% (26) (32) Field service Field service 34% 39% (32) Marine Service agreements Marine (45) Service agreements EUR 739 million EUR 902 million Retrofits and upgrades (671) (902) Retrofits and upgrades Equi
Slide 93: January–September order intake by customer segment
January–September order intake by customer segment Marine Gas carriers Cruise & ferry Offshore Navy Special vessels Merchant Other Equipment 6% (9) 23% (26) 5% (6) 6% (10) 11% (3) 44% (42) 4% (4) Services 13% (14) 22% (22) 17% (18) 11% (8) 10% (11) 26% (25) 1% (2) Total 10% (12) 22% (23) 13% (13) 9%
Slide 94: Orders received for Energy equipment globally
Orders received for Energy equipment globally Europe 213 (312) Americas Asia 486 (430) 373 (334) Utilities IPP’s (Independent Africa and Power Producers) Middle East Industrials 29 (122) Others Equipment order intake 1-9/2024: MEUR 1,101 (1,198) 94 ©
Slide 95: Sustainability
© WARTSILA Sustainability 95 © WARTSILA
Slide 96: We are 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 97: Strong presence in sustainable development indices
Strong presence in sustainable development indices S&P Europe 350 ESG Index ©
Slide 98: 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 99: Governance
Oo WARTSILA Governance 99 © WARTSILA,
Slide 100: 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 101: 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 102: Largest shareholders October 2024
Largest shareholders October 2024 (CMi2i quarterly update) # Name Shares Share % 1 Invaw Invest AB 104,711,363 17.70% 2 Keskinäinen Työeläkevakuutusyhtiö Varma 26,543,252 5.37% 3 BlackRock Fund Advisors 19,515,247 3.30% 4 The Vanguard Group, Inc. 18,452,416 3.12% 5 Keskinäinen Eläkevakuutusyhtiö Ilm
Slide 103: For more information, visit our Investors page
For more information, visit our Investors page Next upcoming IR events ▪ 8.1. SEB Nordic Seminar in Copenhagen ▪ 9.1. Pre-silent call with the CFO ▪ 15.1. Silent period begins ▪ 5.2. Financial Statements Bulletin 2024 ▪ 6.2. Investor lunch in Helsinki ▪ 17.-21.2. Citi's Global Industrial Tech and Mo
Slide 104: Appendix
co WARTSILA Appendix 104 © WARTSILA,
Slide 105: 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 106: 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, 2023 Europe 32% Americas 29% Asia 28% Other 10% 106 ©
Slide 107: 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 108: 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 109: Wärtsilä Energy Storage's direction
Wärtsilä Energy Storage’s direction Key drivers towards higher profitability 1. Selective approach in project acceptance 2. Value differentiation 3. Volume growth supporting better cost leverage and better economics of scale in procurement and assembly 4. Continuous R&D to secure latest technology a
Slide 110: Key figures in 2023
Cc WARTSILA Key figures in 2023
Slide 111: Key figures 2023
MEUR KEY FIGURES 2023 8,000 10% 6,000 33% Order intake 2023 4,000 7,070 MEUR Net sales, 29% geographical 2,000 Net sales 6,015 MEUR 0 2019 2020 2021 2022 2023 28% Comparable operating result Net sales Order intake Europe Asia Americas Other 497 MEUR Order book 2023 8.3% of net sales MEUR % 52% Net s
Slide 112: 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 2023 Share of total net sales in 2023 Offering ▪ Multi-fuel 4-stroke engines ▪ Propulsion systems Order intake ▪ Catalyst systems ▪ Fuel gas supply
Slide 113: Wärtsilä Energy – Towards a 100% renewable energy future
Wärtsilä Energy – Towards a 100% renewable energy future Key figures in 2023 Share of total net sales in 2023 Offering • Future-fuel enabled grid balancing power plants Order intake Energy • Hybrid solutions 43% 3,041 MEUR 57% • Energy storage and optimisation Other technology, including the GEMS Di
Slide 114: WARTSILA
re, WARTSILA