Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — Q1 2015 Earnings Presentation

33 slides from Wartsila Oyj Abp's earnings presentation, Apr 23, 2015

  1. Slide 1: Wärtsilä Corporation Interim Report January-March 2015

    WÄRTSILÄ CORPORATION INTERIM REPORT JANUARY-MARCH 2015 23 APRIL 2015 Björn Rosengren, President & CEO © Wärtsilä

  2. Slide 2: Highlights Q1/2015

    Highlights Q1/2015 • Order intake EUR 1,285 million, +15% • Net sales EUR 988 million, -1% • Book-to-bill 1.30 (1.12) • EBIT EUR 100 million, 10.1% of net sales (EUR 98 million or 9.8%) • EPS EUR 0.43 (0.31) • Cash flow from operating activities EUR 37 million (111) • Order book at the end of the pe

  3. Slide 3: Order intake growth supported by Power Plants and Services

    Order intake growth supported by Power Plants and Services MEUR 5500 5000 First quarter development 4500 MEUR 4000 1600 3500 1,115 1,285 1400 3000 15% 1200 2500 1000 2000 30% Services 800 1500 Ship Power 600 -24% 1000 Power Plants 400 500 74% 200 0 0 2011 2012 2013 2014 2015 Q1/2014 Q1/2015 Q1 Q2-Q4

  4. Slide 4: Net sales stable and in line with our expectations

    Netstable Net sales development sales in line with our expectations MEUR 5000 4500 4000 First quarter development MEUR 3500 1200 3000 997 988 1000 2500 -1% 800 2000 11% Services 600 1500 Ship Power 400 -14% 1000 Power Plants 500 200 -5% 0 0 2011 2012 2013 2014 2015 Q1/2014 Q1/2015 Q1 Q2-Q4 4 © Wärts

  5. Slide 5: Net sales by business 1-3/2015

    Net sales by business 1-3/2012 Net sales by business 1-3/2015 Ship Power Services 32% (37) 49% (44) Power Plants 18% (19) 5 © Wärtsilä

  6. Slide 6: Book-to-bill ratio remains above one

    Book-to-bill ratio remains above one MEUR 5500 1,4 1.30 5000 1,2 4500 1.07 1.05 1.06 1.05 4000 1,0 3500 0,8 3000 2500 0,6 2000 1500 0,4 1000 0,2 500 0 0,0 2011 2012 2013 2014 1-3/2015 Order intake Net sales Book-to-bill 6 © Wärtsilä

  7. Slide 7: Order book distribution

    Order book distribution Order book distribution MEUR 3000 2500 2000 1500 1000 500 0 31.3.2014 31.3.2015 Delivery current year Delivery next year or later 7 © Wärtsilä

  8. Slide 8: Improvement in profitability

    Improvement in profitability MEUR 600 14% 11.9% 12% First quarter development 500 11.2% 11.1% 10.9% MEUR 10% 120 12% 400 10.1% 8.9% 8% 100 10% 300 80 8% 6% 200 60 6% 4% 40 4% 100 2% 20 2% 0 0% 0 0% 2011 2012 2013 2014 Q1/2014 Q1/2015 EBIT EBIT% EBIT is show before non-recurring items. Figures for 20

  9. Slide 9: Sentiment in power generation markets improving

    Sentiment in power generation markets improving 9 © Wärtsilä

  10. Slide 10: Power Plants' quotation activity on a high level

    Power Plants’ quotation activity on a high level MW Quoted MW per Fuel Type 18000 16000 14000 12000 10000 Others 8000 Natural gas 6000 4000 Heavy fuel oil 2000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 2012 2013 2014 2015 10 © Wärtsilä

  11. Slide 11: Growth in Power Plants order intake

    Growth in Power Plants order intake MEUR Review period development 1800 Total EUR 287 million (165) 1600 8% Utilities 1400 30% IPP’s* 1200 Industrials x% 61% 1000 800 Review period order intake by fuel in MW 600 400 200 Oil Gas 64% 36% 0 2011 2012 2013 2014 2015 Q1 Q2-Q4 *IPP = Independent Power Pro

  12. Slide 12: Power Plants orders globally

    Power Plants orders globally Europe 433 (90) 4 18 Asia 20 (37) 410 20 Americas 75 (67) 75 Africa and Middle East 175 (202) 40 Utilities 135 IPP’s Industrials Order intake 1-3/2015: 702 MW (396) 12 © Wärtsilä

  13. Slide 13: Growing interest towards gas fuelled power plants in USA

    Growing interest towards gas fuelled power plants in USA • Contract to supply a 56 MW peaking and wind support power plant to Coffeyville Municipal Light and Power in Kansas, USA • Scope of supply three gas-fired Wärtsilä 50SG engines • Benefits of Smart Power Generation power plants include fast st

  14. Slide 14: Market for gas and liquid fuel based power plants 2014

    Market for gas and liquid fuel based power plants 2014 Total market Market <500 MW 47.8 GW (73) 23.4 GW (32) 1.3% 4.7% 0.3% 3.8% 0.4% 5.2% 10.7% 8.1% 41.9% 13.2% 50.4% 19.0% 20.1% 20.8% GE Siemens MHI Alstom Wärtsilä Ansaldo Other GTs Market data includes all Wärtsilä power plants and other manufact

  15. Slide 15: Slow activity in the marine markets

    Slow activity in the marine markets 15 © Wärtsilä

  16. Slide 16: Subdued vessel contracting

    Subdued vessel contracting Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT * 250 5 200 4 * Million CGT 150 3 # of vessels 100 2 50 1 0 0 01.09 03.09 05.09 07.09 09.09 11.09 01.10 03.10 05.10 07.10 09.10 11.10 01.11 03.11 05.11 07.11 09.11 11.11 01.12 03.12 05.12 07.

  17. Slide 17: Ship Power order intake supported by gas carriers

    Ship Power order intake supported by gas carriers MEUR 1800 Review period development Total EUR 336 million (440) 1500 Offshore 11% 1200 Gas carriers Special 41% vessels 11% 900 Cruise & Ferry 600 11% Navy 300 3% Others Traditional 5% 0 merchant 2011 2012 2013 2014 2015 18% Q1 Q2-Q4 17 © Wärtsilä

  18. Slide 18: Joint venture ordering activity

    Joint venture ordering activity MEUR 700 650 • Joint venture order intake totalled 600 EUR 138 million (25) during 550 January-March 2015 500 450 • During the first quarter, Wärtsilä 400 Hyundai Engine Company Ltd. 350 received an order to supply 30 300 dual-fuel engines for icebreaking 250 200 LNG

  19. Slide 19: Environmentally sustainable dual-fuel engines to a new Baltic Sea ferry

    Environmentally sustainable dual-fuel engines to a new Baltic Sea ferry • Tallink Grupp’s new fast ropax ferry will feature Wärtsilä dual-fuel engines running primarily on LNG • Contract scope: three 12-cylinder Wärtsilä 50DF and two 6-cylinder Wärtsilä 50DF main engines, two Wärtsilä fixed pitch pr

  20. Slide 20: Strong position in marine engine market

    Strong position in marine engine market Medium-speed main engines Auxiliary engines Wärtsilä Others 4% (3) 16% (5) Caterpillar 13% (17) Wärtsilä Others 56% (52) 96% (98) MAN D&T 15% (25) Total market volume last 12 months: Total market volume last 12 months: 5,711 MW (4,484) 4,988 MW (6,682) Wärtsil

  21. Slide 21: Increased maintenance activity boosted Services' order intake and sales

    Increased maintenance activity boosted Services’ order intake and sales 21 © Wärtsilä

  22. Slide 22: Services' net sales increased by 11%

    Services’ net sales increased by 11% MEUR 2000 First quarter development 1800 MEUR 5% -3% 5% 1600 600 11% 1400 485 500 435 1200 400 1000 800 300 600 200 400 100 200 0 0 2011 2012 2013 2014 2015 Q1/2014 Q1/2015 Q1 Q2-Q4 22 © Wärtsilä

  23. Slide 23: Services net sales distribution 1-3/2015

    Services net sales distribution 1-3/2015 Field service 24%(24) Spare parts 53%(53) Contracts 17%(17) Projects 6%(6) Total EUR 485 million (435) 23 © Wärtsilä

  24. Slide 24: Wärtsilä to boost efficiency and reduce emissions of Maltese power plant

    Wärtsilä to boost efficiency and reduce emissions of Maltese power plant • Contract signed with Shanghai Electric Power to convert the Maltese Delimara Power Station to operate on natural gas • Project scope includes converting four of the power plant’s eight engines into Wärtsilä 50SG and four into

  25. Slide 25: Development of service agreements

    Development of service agreements MW 14000 30% 12000 25% 10000 20% 8000 15% 6000 10% 4000 5% 2000 0 0% 2009 2010 2011 2012 2013 2014 Q1 2015 MW under agreement – Power Plants MW under agreement – Ship Power % of Power Plants installed base % of Ship Power installed base 25 © Wärtsilä

  26. Slide 26: Fleet utilisation

    Fleet utilisation Fleet utilisation Anchored Vessels & Fleet Development* 35% 23000 Nr of Active Vessels Percent Anchored 30% 22500 22000 25% 21500 20% 21000 15% 20500 10.12 01.13 04.13 07.13 10.13 01.14 04.14 07.14 10.14 01.15 04.15 Anchored Active Fleet Fleet Average Speed, knots** 10,5 10,0 9,5 9

  27. Slide 27: Solid financial standing

    Solid financial standing 27 © Wärtsilä

  28. Slide 28: Cash flow from operating activities

    Cash flow from operating activities MEUR 700 600 Review period development MEUR 500 120 400 100 300 80 60 200 40 100 20 0 0 2011 2012 2013 2014 1-3/2014 1-3/2015 28 © Wärtsilä

  29. Slide 29: Working capital

    Working capital MEUR 1600 25% 1400 Review period development 20% 1200 MEUR 1600 25% 1000 15% 1400 20% 800 1200 9.8% 1000 10% 15% 600 465 800 6.8% 5.6% 5.2% 600 10% 400 313 5% 6.1%* 6.2%* 235 251 400 292 296 5% 200 200 0 0% 0 0% 2011 2012 2013 2014 31.3.2014 31.3.2015 Working capital Total inventorie

  30. Slide 30: Gearing remains low

    Gearing remains low 0,50 Review period development 0,40 0,50 0,40 0,30 0,30 0,20 0,20 0,10 0,10 0,00 0,00 2011 2012 2013 2014 31.3.2014 31.3.2015 30 © Wärtsilä

  31. Slide 31: Market outlook

    Market outlook • Power Plants: Based on the market situation during 2014 and the GDP forecasts for 2015, the market for liquid and gas fuelled power generation is expected to remain challenging. • Ship Power: The outlook for the shipping and shipbuilding market environment remains cautious due to we

  32. Slide 32: Prospects for 2015 unchanged

    Prospects for 2015 unchanged Wärtsilä expects its net sales for 2015 to grow by 0-10% and its operational profitability (EBIT% before non-recurring items) to be between 12.0-12.5%. 32 © Wärtsilä

  33. Slide 33: IR Contact: Natalia Valtasaari

    IR Contact: Natalia Valtasaari Director, Investor Relations Tel. +358 (0) 40 187 7809 E-mail: natalia.valtasaari@wartsila.com

Wärtsilä — Q1 2015 Earnings Presentation on 6ix