Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Bank of America Merrill Lynch conference, London 2016
25 slides from Wartsila Oyj Abp's conference presentation, Mar 18, 2016
Slide 1: Wärtsilä Corporation – Bank of America Merrill Lynch
WÄRTSILÄ CORPORATION BANK OF AMERICA MERRILL LYNCH 18 MARCH 2016 Jaakko Eskola, President & CEO 1 © Wärtsilä 18 March 2016 Wärtsilä Corporation
Slide 2: This is Wärtsilä
THIS IS WÄRTSILÄ ENERGY SOLUTIONS 22% MARINE SOLUTIONS 34% SERVICES 43% 2 © Wärtsilä 18 March 2016 Wärtsilä Corporation
Slide 3: Net sales and profitability
THIS IS WÄRTSILÄ Net sales and profitability MEUR 5500 14% 12.2% 5000 10.9% 11.2% 11.9% 12% 4500 11.1% 4000 10% 3500 8% 3000 2500 6% 2000 1500 4% 1000 2% 500 0 0% 2011 2012 2013 2014 2015 Net sales EBIT% EBIT is shown before non-recurring items. Figures for 2011-2013 include both discontinued and co
Slide 4: Order intake
THIS IS WÄRTSILÄ Order intake MEUR 5500 5000 4500 14% 4000 3500 3000 Services 2500 Marine Solutions -8% 2000 Energy Solutions 1500 1000 -22% 500 0 2011 2012 2013 2014 2015 4 © Wärtsilä 18 March 2016 Wärtsilä Corporation
Slide 5: We aim for faster than market growth
THIS IS WÄRTSILÄ We aim for faster than market growth Megatrends drive demand Strong presence in for our solutions growth markets Opportunities in Strengthening market position strategic focus areas through acquisitions 5 © Wärtsilä 18 March 2016 Wärtsilä Corporation
Slide 6: 58 GW of installed power plant capacity in 175 countries
ENERGY SOLUTIONS 58 GW of installed power plant capacity in 175 countries Utilities Industry Europe Africa & Middle East IPP’s Others Asia Americas * December 2015 6 © Wärtsilä 18 March 2016 Wärtsilä Corporation
Slide 7: Market trends & drivers
ENERGY SOLUTIONS Market trends & drivers • Economic growth, electrification and increased standard of living • Demand for sustainability and reducing carbon emissions • Rapid growth of intermittent renewable generation and escalating demand fluctuation • Increasing role of natural gas • Ageing insta
Slide 8: Order intake
ENERGY SOLUTIONS Order intake MEUR 1 800 Development 2015 Total EUR 1,009 million (1,293) 1 600 Utilities 1 400 IPP’s (Independent 1 200 Power Producers) Industrials 1 000 800 Order intake by fuel in MW 600 400 Oil Gas 200 54% 46% 0 2011 2012 2013 2014 2015 Q1-Q3 Q4 8 © Wärtsilä 18 March 2016 Wärtsi
Slide 9: Market for gas and liquid fuel power plants, <500 MW
ENERGY SOLUTIONS Market for gas and liquid fuel power plants, <500 MW 1-9/2014 1-9/2015 Alstom Other GT’s Ansaldo Other GT’s Ansaldo 1.8% 1.8% 5.5% 0.8% Wärtsilä 3.6% 9.9% Wärtsilä 10.5% GE GE Siemens 55.1% MHI 38.8% 12.7% 19.8% MHI 14.6% Siemens 25.2% <500 MW market volume: 17.0 GW (16.5), +3% Tota
Slide 10: Strategic goals
ENERGY SOLUTIONS Strategic goals Grow strongly in Maintain leading Grow in small to large utility gas position medium scale LNG power plants in flexible baseload infrastructure power plants projects 10 © Wärtsilä 18 March 2016 Wärtsilä Corporation
Slide 11: The most complete marine offering on earth
THE MOST COMPLETE MARINE OFFERING ON EARTH 11 © Wärtsilä 18 March 2016 Wärtsilä Corporation
Slide 12: Market trends & drivers
MARINE SOLUTIONS Market trends & drivers • Marine trade and transportation growth • Demand for environmental solutions and gas as a marine fuel • Energy efficiency, operating performance and security • Investments in exploration and production of offshore oil & gas impacted by oil price development
Slide 13: Number of vessels
MARINE SOLUTIONS Vessel contracting activity remains low Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT 250 5,0 4,5 200 4,0 3,5 Number of vessels Million CGT* 150 3,0 2,5 100 2,0 1,5 50 1,0 0,5 0 0,0 12.15 01.09 03.09 05.09 07.09 09.09 11.09 01.10 03.10 05.10 07.10
Slide 14: Order intake
MARINE SOLUTIONS Order intake MEUR 1 800 Development 2015 1 500 Total EUR 1,599 million (1,746) Offshore 1 200 8% Gas carriers Special vessels 38% 10% 900 Cruise & Ferry 600 15% Navy 4% 300 Others Traditional merchant 6% 0 18% 2011 2012 2013 2014 2015 Q1-Q3 Q4 14 © Wärtsilä 18 March 2016 Wärtsilä Co
Slide 15: Strong position in marine engine market
MARINE SOLUTIONS Strong position in marine engine market Medium-speed main engines Auxiliary engines Others Wärtsilä 18% (16) 12% (9) Caterpillar 7% (13) Wärtsilä Others 59% (63) 88% (91) MAN D&T 16% (8) Total market volume last 12 months: Total market volume last 12 months: 3,246 MW (4,519) 4,668 M
Slide 16: Growth opportunities in marine markets
MARINE SOLUTIONS Growth opportunities in marine markets Gas and dual-fuel solutions Broader scope of supply Efficiency Environmental solutions 16 © Wärtsilä 18 March 2016 Wärtsilä Corporation
Slide 17: Wärtsilä's acquisition of L-3 MSI strengthens position in automation and electrical systems
ACQUISITION OF L-3 MSI STRENGTHENS WÄRTSILÄ’S POSITION IN AUTOMATION AND ELECTRICAL SYSTEMS 17 © Wärtsilä 18 March 2016 Wärtsilä Corporation
Slide 18: Global network
SERVICES Global network 11,000 service professionals in 70 countries, 160 locations… Marine installed base by operating country Power installed base by operating country Service locations 18 © Wärtsilä 18 March 2016 Wärtsilä Corporation
Slide 19: Market trends & drivers
SERVICES Market trends & drivers • Development of installed base and installation utilisation • Growing importance of gas as a fuel • Need for real-time data • Downtime avoidance • Focus on efficiency • New and stricter regulations 19 © Wärtsilä 18 March 2016 Wärtsilä Corporation
Slide 20: All time high net sales
SERVICES All time high net sales MEUR 2 400 2 200 Review period development 2 000 5% -3% 5% 13% Total EUR 2,184 million (1,939) 1 800 1 600 Spare parts Field service 1 400 51% (51) 23% (25) 1 200 1 000 800 Agreements 600 16% (16) 400 200 Projects 10% (9) 0 2011 2012 2013 2014 2015 Q1-Q3 Q4 20 © Wärt
Slide 21: Development of service agreements
SERVICES Development of service agreements 14 000 30% 12 000 25% 10 000 20% 8 000 MW 15% 6 000 10% 4 000 5% 2 000 0 0% 2009 2010 2011 2012 2013 2014 2015 MW under agreement – Energy Solutions MW under agreement – Marine Solutions % of Energy Solutions’ installed base % of Marine Solutions’ installed
Slide 22: Strategic focus areas
SERVICES Strategic focus areas Customer first Go-digital Asset & lifecycle We will nourish our We will digitalise We will continue to develop partnership with our existing our customer engagement and commercialise our customer base portfolio of value-adding services 22 © Wärtsilä 18 March 2016 Wärts
Slide 23: Prospects for 2016
Prospects for 2016 Wärtsilä expects its net sales for 2016 to grow by 0-5% and its operational profitability (EBIT% before non-recurring items) to be 12.5-13.0%. 23 © Wärtsilä 18 March 2016 Wärtsilä Corporation
Slide 24: We are dedicated to reaching our long-term financial targets
WE ARE DEDICATED TO REACHING OUR LONG-TERM FINANCIAL TARGETS Dividend of at Grow faster than Reach 14% Maintain gearing least 50% of EPS global GDP profitability below 50% over the cycle 24 © Wärtsilä 18 March 2016 Wärtsilä Corporation
Slide 25: Thank you
THANK YOU IR Contact: Natalia Valtasaari Director, Investor & Media Relations Tel. +358 (0) 40 187 7809 E-mail: natalia.valtasaari@wartsila.com 25 © Wärtsilä 18 March 2016 Wärtsilä Corporation
Wärtsilä — Bank of America Merrill Lynch conference, London 2016 on 6ix