Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — Q1 2019 Earnings Presentation

27 slides from Wartsila Oyj Abp's earnings presentation, Apr 25, 2019

  1. Slide 1: Wärtsilä Corporation Interim Report January-March 2019

    WÄRTSILÄ CORPORATION INTERIM REPORT JANUARY-MARCH 2019 25 April 2019 Jaakko Eskola, President & CEO 1 © Wärtsilä PUBLIC 25 April 2019 INTERIM REPORT JANUARY-MARCH 2019

  2. Slide 2: Growth in net sales, good development in profitability

    Growth in net sales, good development in profitability © Wärtsilä PUBLIC

  3. Slide 3: Key Figures Q1/2019

    KEY FIGURES Q1/2019 Order intake EUR 1,416 million, -6% Order book at the end of the period EUR 6,330 million, +15% Net sales EUR 1,151 million, +8% Book-to-bill 1.23 (1.41) Comparable operating result EUR 102 million (88), or 8.9% of net sales (8.3) Earnings per share EUR 0.10 (0.10) Cash flow from

  4. Slide 4: Order intake affected by slow decision-making in energy markets

    Order intake affected by slow decision-making in energy markets MEUR 7,000 6,000 ◼ Wärtsilä ◼ Wärtsilä 5,000 Energy Marine 4,000 First quarter 3,000 development by business area 2,000 Q1 -6% 1,000 1,507 1,416 0 Q217-Q118 Q317-Q218 Q417-Q318 Q118-Q418 Q218-Q119 ◼ Total services order intake First qua

  5. Slide 5: Growth in net sales thanks to higher services volumes and increased marine deliveries

    Growth in net sales thanks to higher services volumes and increased marine deliveries MEUR 6,000 5,000 ◼ Wärtsilä ◼ Wärtsilä 4,000 Energy Marine 3,000 First quarter development 2,000 by business area Q1 +8% 1,000 1,066 1,151 0 Q217-Q118 Q317-Q218 Q417-Q318 Q118-Q418 Q218-Q119 ◼ Total services net sa

  6. Slide 6: Book-to-bill

    Book-to-bill Rolling 12m, MEUR 7,000 1.40 1.20 1.22 1.18 1.15 1.15 1.17 6,000 1.20 1.06 1.08 1.05 5,000 1.00 4,000 0.80 3,000 0.60 2,000 0.40 1,000 0.20 0 0.00 Q216-Q117 Q316-Q217 Q416-Q317 Q117-Q417 Q217-Q118 Q317-Q218 Q417-Q318 Q118-Q418 Q218-Q119 Order intake Net sales Book-to-bill 6 © Wärtsilä P

  7. Slide 7: Order book distribution

    Order book distribution MEUR 3,500 3,000 2,500 2,000 1,500 1,000 500 0 31.3.2018 31.3.2019 Delivery current year Delivery next year or later 7 © Wärtsilä PUBLIC 25 April 2019 INTERIM REPORT JANUARY-MARCH 2019

  8. Slide 8: Comparable operating result

    Comparable operating result Rolling 12m, MEUR First quarter development 700 14% MEUR 11.7% 11.8% 11.7% 120 14% 11.3% 600 11.2% 12% 100 12% 500 10% 8.9% 10% 80 8.3% 400 8% 8% 60 300 6% 6% 200 4% 40 4% 100 2% 20 2% 0 0% 0 0% Q217-Q118 Q317-Q218 Q417-Q318 Q118-Q418 Q218-Q119 Q1/18 Q1/19 Comparable oper

  9. Slide 9: Cash flow from operating activities

    Cash flow from operating activities MEUR Review period development 700 MEUR 50 600 500 25 400 0 300 200 -25 100 0 -50 2015 2016 2017 2018 1-3/2018 1-3/2019 9 © Wärtsilä PUBLIC 25 April 2019 INTERIM REPORT JANUARY-MARCH 2019

  10. Slide 10: Working capital

    Working capital Review period development MEUR MEUR 1,500 20% 1,500 20% 1,250 1,250 14.6% 15% 15% 1,000 1,000 12.5% 11.5% 11.2% 10.8% 10.2% 726 750 10% 750 656 10% 563 581 543 490 500 5.2% 500 5% 5% 251 250 250 0 0% 0 0% 2014 2015 2016 2017 2018 31.3.2018 31.3.2019 Working capital Total inventories

  11. Slide 11: Gearing

    Gearing Review period development 0.50 0.50 0.40 0.40 0.30 0.30 0.20 0.20 0.10 0.10 0.00 0.00 2015 2016 2017 2018 31.3.2018 31.3.2019 11 © Wärtsilä PUBLIC 25 April 2019 INTERIM REPORT JANUARY-MARCH 2019

  12. Slide 12: Wärtsilä Marine Business

    Wärtsilä Marine Business © Wärtsilä PUBLIC

  13. Slide 13: Slow recovery in the marine markets

    WÄRTSILÄ MARINE BUSINESS Slow recovery in the marine markets Total vessel contracting Specialised tonnage Number of vessel Million CGT Number of vessel 250 ◼ Merchant ◼ Offshore ◼ 3 months moving 5.0 80 ◼ Offshore ◼ Cruise and Ferry ◼ Special vessels ◼ Cruise and Ferry ◼ Special vessels average in C

  14. Slide 14: Marine Business: Order intake development

    WÄRTSILÄ MARINE BUSINESS Order intake development QTD, MEUR Rolling 12m, MEUR 1,200 4,500 5% 4,000 29% 29% 1,000 3,500 Equipment order intake 800 3,000 by segment 4% ◼ Cruise & Ferry 2,500 4% ◼ Offshore 600 6% 2,000 23% ◼ Navy ◼ Special Vessels 400 1,500 6% ◼ Merchant 13% 26% ◼ Gas carriers 1,000 20

  15. Slide 15: Marine installed base covered by long-term service agreements

    WÄRTSILÄ MARINE BUSINESS Marine installed base covered by long-term service agreements MW 25,000 18% Lifecycle solution to 16% provide reliable support to 20,000 14% Tokyo LNG Tanker Co. 12% • The agreement covers 15,000 scheduled maintenance, 10% dynamic maintenance planning, 8% 10,000 and spare pa

  16. Slide 16: Marine Business: Net sales development

    WÄRTSILÄ MARINE BUSINESS Net sales development QTD, MEUR Rolling 12m, MEUR 1,000 2,800 26% 800 2,400 2,000 600 1,600 First quarter 50% development 400 1,200 EUR 733 million (619) 800 15% 200 400 0 0 6% 1-3/2018 4-6/2018 7-9/2018 10-12/2018 1-3/2019 3% Spare parts Field service Wärtsilä Marine, equip

  17. Slide 17: Collaborating for lifecycle innovation

    COLLABORATING COLLABORATING FOR FOR LIFECYCLE LIFECYCLE INNOVATION INNOVATION • Wärtsilä’s hybrid, dual-fuel solution enables 50% less CO2 • Predictive maintenance lowers operating costs and improves reliability • Unique R&D cooperation agreement connects the Wasaline ferry to Wärtsilä’s Smart Techn

  18. Slide 18: Wärtsilä Energy Business

    Wärtsilä Energy Business © Wärtsilä PUBLIC

  19. Slide 19: Energy investments favouring renewables and flexibility

    WÄRTSILÄ ENERGY BUSINESS Energy investments favouring renewables and flexibility GW 400 350 300 250 200 150 100 50 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Coal Gas Nuclear Hydro Wind Solar Other renewables Other Peaker gas Other flexible capacity Gross capacity additions. Source: Bloomberg Ne

  20. Slide 20: Energy Business: Order intake development

    WÄRTSILÄ ENERGY BUSINESS Order intake development QTD, MEUR Rolling 12m, MEUR 1,000 2,500 23% 900 800 2,000 Equipment order intake 700 8% by segment 600 1,500 69% 500 ◼ Utilities ◼ Independent Power Producers 400 1,000 ◼ Industrials 300 7% ◼ Others 28% 200 500 100 Services order intake 0 0 by segmen

  21. Slide 21: Energy installed base covered by long-term service agreements

    WÄRTSILÄ ENERGY BUSINESS Energy installed base covered by long-term service agreements MW 14,000 25% Alleviating the shortage of electricity in Myanmar 12,000 20% • 5-year O&M agreement signed 10,000 for newly installed 145 MW 8,000 15% Kyaukse plant in Myanmar • Wärtsilä supports the plant in 6,000

  22. Slide 22: Orders received for power plants globally

    WÄRTSILÄ ENERGY BUSINESS Orders received for power plants globally Europe 24 (70) Asia 220 (441) Americas 163 (186) Utilities IPP’s Africa and (Independent Middle East Power Producers) 188 (132) Industrials Order intake 1-3/2019: 595 MW (833) 22 © Wärtsilä PUBLIC 25 April 2019 INTERIM REPORT JANUARY

  23. Slide 23: Energy Business: Net sales development

    WÄRTSILÄ ENERGY BUSINESS Net sales development QTD, MEUR Rolling 12m, MEUR 800 2,400 21% 600 2,000 1,600 First quarter 5% 400 1,200 51% development EUR 418 million (447) 800 200 17% 400 0 0 6% 1-3/2018 4-6/2018 7-9/2018 10-12/2018 1-3/2019 Wärtsilä Energy, equipment Spare parts Field service Wärtsil

  24. Slide 24: Market for gas and liquid fuel power plants, <500 MW

    WÄRTSILÄ ENERGY BUSINESS Market for gas and liquid fuel power plants, <500 MW Rolling 12m, MW 30,000 25,000 20,000 15,000 10,000 5,000 12% 14% 15% 19% 21% 17% 13% 14% 0 Q216-Q117 Q316-Q217 Q416-Q317 Q117-Q417 Q217-Q118 Q317-Q218 Q417-Q318 Q118-Q418 Wärtsilä Others Market shares are calculated on a 1

  25. Slide 25: Supporting the development of renewables

    SUPPORTING COLLABORATING THE FOR DEVELOPMENT LIFECYCLEOF INNOVATION RENEWABLES • Wärtsilä Wärtsilä’s hybrid, funding provides dual-fueltosolution Soletair Power establishes Oy, athe start-up new Wasaline operatingRoPax in the field ferry of asPower-to-X a benchmark in efficiency and sustainability •

  26. Slide 26: Prospects unchanged

    PROSPECTS UNCHANGED The demand for Wärtsilä’s services and solutions in the coming 12 months is expected to be in line with the comparative period of the previous year. Demand by business area is anticipated to be as follows: • Solid in Wärtsilä Marine Business • Solid in Wärtsilä Energy Business ©

  27. Slide 27: Thank you

    THANK YOU Further information: Natalia Valtasaari Vice President, Investor Relations Tel. +358 (0) 10 709 5637 E-mail: natalia.valtasaari@wartsila.com

Wärtsilä — Q1 2019 Earnings Presentation on 6ix