Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Q4 2022 Earnings Presentation
36 slides from Wartsila Oyj Abp's earnings presentation, Jan 31, 2023
Slide 1: Wärtsilä Corporation Result presentation 2022
Wärtsilä Corporation Result presentation 2022 Håkan Agnevall, President & CEO Arjen Berends, CFO 31 January 2023 1 © Wärtsilä
Slide 2: A challenging year with strong annual growth
A challenging year with strong annual growth ▪ Order intake increased by 6% ▪ Net sales increased by 22% ▪ Good progress in services: ▪ Service order intake increased by 17% and exceeded equipment order intake in absolute terms ▪ Service net sales increased by 12% ▪ The comparable operating result d
Slide 3: Key figures
Key figures MEUR 10-12/2022 10-12/2021 CHANGE 1-12/2022 1-12/2021 CHANGE Order intake 1,638 2,150 -24% 6,074 5,735 6% of which services 791 747 6% 3,066 2,615 17% Order book 5,906 5,859 1% of which current year deliveries 3,871 3,763 3% Net sales 1,770 1,597 11% 5,842 4,778 22% of which services 784
Slide 4: Fourth quarter highlights
Fourth quarter highlights Net sales Comparable operating result MEUR %, 12m rolling Net sales EUR 1,770 MEUR MEUR, 12m rolling million 2,000 7,000 180 12.0% 1,800 1,770 160 158 ▪ 4% increase in 1,597 6,000 1,600 140 10.0% service sales 1,400 5,000 1,220 120 8.0% 1,200 103 4,000 100 93 1,000 6.0% Com
Slide 5: Marine market sentiment continued to improve despite growing macroeconomic concerns
Marine market sentiment continued to improve despite growing macroeconomic concerns Newbuild investments moderated due to close to full orderbooks at many yards and higher newbuild prices ▪ The number of vessels ordered in the review period Total vessel contracting decreased to 1,538 (1,855 in the c
Slide 6: Energy transition outlook is very strong
Energy transition outlook is very strong Energy crisis has brought out a clear need and ambition for a structural change in the energy sector ▪ Uncertainty caused by the geopolitical situation continues to Contracting for gas and liquid fuelled power plants <500 MW affect the investment environment
Slide 7: Order intake decreased by 24%
Order intake decreased by 24% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling ▪ Equipment order 1,600 4,000 1,600 4,000 1,404 intake decreased by 1,400 3,500 1,400 3,500 40% from an all-time 1,200 3,000 1,200 3,000 high quarter last year 1,000 2,500 1,000 2,500 800 848 2,000 747 791
Slide 8: Strong order book, rolling book-to-bill still above 1
Strong order book, rolling book-to-bill still above 1 Order book by business Order book delivery schedule MEUR MEUR 8,000 1.30 4,500 7,000 1.20 4,000 3,500 6,000 1.10 3,000 5,000 1.00 2,500 4,000 0.90 2,000 3,000 0.80 1,500 2,000 0.70 1,000 1,000 0.60 500 0 0.50 0 31.12.2020 30.6.2021 31.12.2021 30.
Slide 9: Net sales increased by 11%
Net sales increased by 11% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling 1,100 3,500 1,100 3,500 ▪ Equipment net sales 987 1,000 1,000 increased by 17% 3,000 3,000 900 846 900 800 2,500 800 654 751 784 2,500 ▪ Service net sales 700 700 increased by 4% 600 566 2,000 600 2,000 500 1
Slide 10: Technology and partnership highlights
Technology and partnership highlights Enabling industry decarbonisation Launch of next-generation grid balancing technology ▪ The solution is based on three fully integrated key components: the Wärtsilä 31SG Balancer engine, prefabricated modules for cost-efficient plant construction, and Wärtsilä L
Slide 11: Marine Power
Marine Power 11 © Wärtsilä
Slide 12: Marine Power: good progress in services
Marine Power: good progress in services Service order intake increased by 23% and service net sales increased by 17% Order intake Comparable operating result Comparable operating result +2% 12m rolling MEUR MEUR 2,418 MEUR MEUR 12m rolling 10.9% 90 12.0% 800 671 3,000 659 2,500 75 80 600 80 440 2,00
Slide 13: Good development in Marine Power service agreements
Good development in Marine Power service agreements Net sales from installations under agreement strongly increasing MEUR, 12m rolling 450 Wärtsilä´s hybrid propulsion system with methanol engine to power four future-proof heavy lift vessels 400 350 ▪ Hybrid propulsion systems will be supplied for f
Slide 14: Marine Systems
Marine Systems 14 © Wärtsilä
Slide 15: Marine Systems: stable net sales and comparable operating result
Marine Systems: stable net sales and comparable operating result Service order intake increased by 11% Order intake Comparable operating result Comparable operating result 12m rolling -38% MEUR MEUR 654 MEUR MEUR 12m rolling 7.3% 400 1,200 30 12.0% 308 1,000 300 800 190 200 600 25 10.0% 133 400 100
Slide 16: Voyage
co WARTSILA Voyage 16 owartsila
Slide 17: Voyage: positive and improving comparable operating result
Voyage: positive and improving comparable operating result Service orders stable Order intake -21% Comparable operating result Comparable operating result 12m rolling MEUR MEUR 289 MEUR MEUR 12m rolling -14.3% 100 93 400 10 0.0% 80 74 300 55 60 5 200 40 5 -4.0% 20 100 1 + Higher profitability in 0 0
Slide 18: Voyage cloud solutions footprint with Wärtsilä's Fleet Optimisation Solution
Voyage cloud solutions Increase of 19% in connected vessels +19% Carisbrooke Shipping clearly improves environmental Number of vessels connected to footprint with Wärtsilä’s Fleet Optimisation Solution our cloud solutions ▪ Carisbrooke Shipping has in 2022, with the help of Wärtsilä’s Fleet Optimisa
Slide 19: Energy
Energy 19 © Wärtsilä
Slide 20: Energy: Olkiluoto cost provision burdened the result
Energy: Olkiluoto cost provision burdened the result Challenges with cost inflation remained Order intake Comparable operating result Comparable operating result -37% 12m rolling MEUR MEUR 2,612 MEUR MEUR 3.3% 12m rolling 7.3% 1,200 1,031 3,500 70 9.0% 1,000 3,000 64 800 2,500 646 60 55 8.0% 2,000 6
Slide 21: Energy storage net sales continued to grow
Energy storage net sales continued to grow Profitability has been improving and the full year comparable operating result margin was approximately -4% in 2022 MEUR 600 900 807 785 745 800 500 775 700 628 617 400 600 531 321 328 451 500 300 281 245 400 203 200 170 168 300 146 128 134 117 109 200 100
Slide 22: Wärtsilä will supply engine technology for two new balancing power plants in the USA
Wärtsilä will supply its internal combustion engine technology for two new balancing power plants in the USA ▪ The order was placed by a major American investor-owned utility in the Upper Midwest. ▪ The Wärtsilä engines were selected primarily for their grid- balancing capabilities as the utility ex
Slide 23: Continued good development in Energy service agreements
Continued good development in Energy service agreements MW Wärtsilä´s report ‘Pathways for Africa’s Energy Future’ 18,000 27% provides power system modelling for Nigeria, South 16,000 26% Africa and Mozambique 14,000 25% ▪ The modelling found that renewable energy and flexibility can 12,000 generate
Slide 24: Other key financials
Other key financials 24 © Wärtsilä
Slide 25: Other key financials
Other key financials MEUR 10-12/2022 10-12/2021 1-12/2022 1-12/2021 Cash flow from operating activities 51 370 -62 731 Working capital 179 -100 Net interest-bearing debt 481 4 Gearing 0.23 0.00 Solvency, % 35.3 38.6 Basic earnings/share, EUR 0.05 0.14 -0.11 0.33 25 © Wärtsilä
Slide 26: Cash flow from operating activities decreased
Cash flow from operating activities decreased Cash flow from operating activities Fourth quarter development MEUR MEUR, 12m rolling MEUR 800 800 700 700 600 600 500 500 400 370 400 300 274 300 200 200 100 51 100 0 0 -100 -100 -200 -200 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Cash flow from oper
Slide 27: Earnings and dividend per share
Earnings and dividend per share EUR 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 -0.10 -0.20 2018 2019 2020 2021 2022* EPS DPS *Proposal of the Board 27 © Wärtsilä
Slide 28: Prospects
Prospects Wärtsilä expects the demand environment for the next 12 months in the Marine business (including Marine Power and Marine Systems) to be similar to that of last year. For the Energy business, Wärtsilä expects the demand environment to be better than last year. 28 © Wärtsilä
Slide 29: Q&A
Q&A 29 © Wärtsilä
Slide 30: Appendix
Appendix 30 © Wärtsilä
Slide 31: Order intake
Order intake Fourth quarter development 3% (3) Marine Power 41% (31) Marine Systems Services 39% Order intake Order intake Voyage 48% Equipment (48) by business 52% by business type (35) Energy (65) Portfolio Business 5% 12% (4) (14) 31 © Wärtsilä
Slide 32: Net sales
Net sales Fourth quarter development 2% (2) 32% (37) Marine Power Marine Systems 44% Services Net sales Net sales 48% Voyage by business type (47) Equipment by business 56% (42) Energy (53) Portfolio Business 13% 5% (14) (5) 32 © Wärtsilä
Slide 33: Fourth quarter development by business type
Fourth quarter development by business type Order intake Net sales 28% 27% (20) (24) Spare parts Spare parts Marine Field service Marine 42% 44% Field service Businesses Businesses (50) Service agreements (59) Service agreements EUR 881 million EUR 935 million Service projects (895) (1,060) Service
Slide 34: January–December order intake by customer segment
January–December order intake by customer segment Special Marine Businesses Gas carriers Cruise & ferry Offshore Navy vessels Merchant Other Marine Power Equipment 14% (7) 23% (28) 2% (3) 11% (9) 14% (21) 35% (31) 0% (0) Services 15% (17) 21% (19) 15% (14) 9% (10) 11% (13) 27% (24) 1% (2) Marine Sys
Slide 35: Orders received for Energy equipment globally
Orders received for Energy equipment globally Europe 146 (83) Asia 295 (148) Americas Utilities 979 (1,224) IPP’s Africa and (Independent Middle East Power Producers) 130 (74) Industrials Others Equipment order intake 1-12/2022: MEUR 1,550 (1,529) 35 © Wärtsilä
Slide 36: Wärtsilä
re, WARTSILA