Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Q3 2023 Earnings Presentation
34 slides from Wartsila Oyj Abp's earnings presentation, Oct 31, 2023
Slide 1: Wärtsilä Corporation Interim report January–September 2023
Wärtsilä Corporation Interim report January–September 2023 Håkan Agnevall, President & CEO Arjen Berends, CFO 31 October 2023 1 ©
Slide 2: Improved profitability, strong cash flow and good development in services
Improved profitability, strong cash flow and good development in services ▪ Order intake increased by 11% ▪ Good progress in services continued: ▪ Service order intake increased by 15% ▪ Service net sales increased by 15% ▪ The comparable operating result increased by 53% ▪ Supported by good develop
Slide 3: Good development in key figures
Good development in key figures MEUR 7-9/2023 7-9/2022 CHANGE 1-9/2023 1-9/2022 CHANGE Order intake 1,787 1,616 11% 5,214 4,436 18% of which services 842 732 15% 2,644 2,275 16% of which equipment 946 884 7% 2,570 2,161 19% Order book 6,594 6,229 6% of which current year deliveries 1,570 1,651 Net s
Slide 4: Marine market sentiment remained positive for Wärtsilä's key segments
Marine market sentiment remained positive for Wärtsilä’s key segments Low capacity available at shipyards combined with further escalation of newbuild prices have limited investments ▪ The number of vessels ordered in the review period Total and specialised vessel contracting increased to 1 356 (1 0
Slide 5: Solid long-term opportunities in energy market
Solid long-term opportunities in energy market Energy transition outlook improving amid fragile global economy ▪ Market share stayed at 13% (13%), as global orders for Contracting for gas and liquid fuelled power plants natural gas and liquid-fuelled power plants decreased 5-400 MW by 22% to 10.0 GW
Slide 6: Order intake increased by 11%
Order intake increased by 11% Equipment Services Equipment order MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling intake increased by 7% 1,600 4,000 1,600 4,000 Service order intake 1,400 3,500 1,400 3,500 increased by 15% 1,200 3,000 1,200 3,000 Organic order intake 946 1,000 884 2,500 1,000 842 2,500
Slide 7: Strong order book, rolling book-to-bill continues to trend up
Strong order book, rolling book-to-bill continues to trend up Remaining order book for the current year lower than last year Order book by business Order book delivery schedule MEUR MEUR 8,000 1.30 3,500 7,000 1.20 3,000 6,000 1.10 2,500 5,000 1.00 2,000 4,000 0.90 3,000 0.80 1,500 2,000 0.70 1,000
Slide 8: Net sales increased by 1%
Net sales increased by 1% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling Equipment net sales 1,100 3,500 1,100 3,500 decreased by 10% 1,000 1,000 3,000 3,000 900 900 Service net sales 769 800 762 800 690 2,500 664 2,500 increased by 15% 700 700 2,000 589 2,000 600 514 600 Organic n
Slide 9: Profitability continued to improve
Profitability continued to improve Net sales Comparable operating result Net sales increased by MEUR MEUR, 12m rolling MEUR %, 12m rolling 1% 2,000 7,000 180 12.0% Comparable operating 1,800 6,000 160 10.0% result increased by 1,600 1,433 1,452 140 125 53% 1,400 5,000 120 8.0% 1,200 1,103 4,000 100
Slide 10: Technology and partnership highlights
Technology and partnership highlights Enabling industry decarbonisation Wärtsilä solutions chosen for world’s first methanol fuelled hybrid RoRo vessels ▪ Wärtsilä will supply an integrated hybrid propulsion system for two new hybrid RoRo vessels being built for Swedish shipping company Stena RoRo.
Slide 11: Marine Power
Cg WARTSILA im Marine Power
Slide 12: Marine Power: Strong development in order intake and profitability
Marine Power: Strong development in order intake and profitability Good development in service continued Order intake Comparable operating result Comparable operating result +33% 12m rolling MEUR MEUR 2,901 MEUR MEUR 12m rolling 10.5% 90 12.0% 1,000 832 3,000 800 627 80 2,000 + Good service 600 443
Slide 13: Good development in Marine Power service agreements
Good development in Marine Power service agreements Marine Power net sales to agreement installations exceeding pre-Covid level Net sales to agreement installations (12 month rolling) MEUR, 12m rolling Wärtsilä Technical Management Agreement provides maintenance flexibility for China LNG 500 Shippin
Slide 14: Incat Tasmania selects Wärtsilä solutions for world's first zero emissions Ro-Pax ferry
Incat Tasmania selects Wärtsilä solutions for world’s first zero emissions, lightweight Ro-Pax ferry ▪ Wärtsilä to power the biggest battery electric ship ever built. ▪ The vessel is a new ferry, the largest ever vessel of its type and the world’s first zero emissions lightweight catamaran, being bu
Slide 15: Marine Systems
X < J a & < S Marine Systems
Slide 16: Marine Systems: Equipment order intake increased
Marine Systems: Equipment order intake increased Lower equipment net sales Order intake Comparable operating result Comparable operating result 12m rolling +55% MEUR MEUR 12m rolling 4.5% MEUR MEUR 646 400 800 22 11.0% 300 600 191 18 9.0% + Good service 16 200 139 400 performance 14 89 100 200 14 7.
Slide 17: Energy
WARTSILA Energy 7 © WARTSILA,
Slide 18: Energy: Comparable operating result increased
Energy: Comparable operating result increased Good development in service continued Order intake Comparable operating result Comparable operating result -16% 12m rolling MEUR MEUR 2,820 MEUR MEUR 12m 12mrolling rolling4.4% 1,200 4,000 70 7.3% 12.0% 1,000 805 3,000 800 679 60 10.0% 600 486 2,000 51 4
Slide 19: Energy storage: Comparable operating result margin (12m rolling) positive
Energy storage: Comparable operating result margin (12m rolling) positive Profitability improving Quarterly development Rolling 12 months development MEUR MEUR % of net sales 400 1,200 5 350 1022 4 992 321 328 1,000 975 961 983 892 3 300 281 275 807 257 261 785 775 2 245 252 800 250 1 211 617 203 20
Slide 20: Initiating a strategic review of Energy Storage & Optimisation (ES&O) business
Initiating a strategic review of Energy Storage & Optimisation (ES&O) business • Wärtsilä Board of Directors have initiated a strategic review to consider options that would support the growth of the ES&O business in a way that benefits its customers, employees and shareholders • Throughout this pro
Slide 21: Continued good development in Energy service agreements
Continued good development in Energy service agreements MW Guaranteed Asset Performance Agreement 22,000 32% supports US utility’s efforts towards net-zero 20,000 carbon emissions 18,000 30% 16,000 ▪ A ten-year Guaranteed Asset Performance (GAP) agreement 28% was signed with US utility Omaha Public
Slide 22: Comparable operating result improved – biggest improvements in Marine Power and Energy
Comparable operating result improved – biggest improvements in Marine Power and Energy MEUR % of net sales 6.6% Comparable operating (-4.4) 8.6% 8.4% result increased by 53% (4.9) 9.1% 8.5% (7.3) (10.2) 5.7% Comparable Marine Marine Energy Portfolio Comparable operating result Power Systems Business
Slide 23: Other key financials
“ re, WARTSILA Other key financials
Slide 24: Other key financials: Strong cash flow from operating activities
Other key financials: Strong cash flow from operating activities MEUR 7-9/2023 7-9/2022 1-9/2023 1-9/2022 Cash flow from operating activities 213 100 432 -113 Working capital 43 108 Net interest-bearing debt 356 377 Gearing 0.17 0.18 Solvency, % 35.2 34.5 Basic earnings/share, EUR 0.14 0.00 0.28 -0.
Slide 25: 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 800 800 200 10% 700 700 160 8% 600 600 107 108 120 6% 500 500 80 4% 400 400 43 300 300 40 2% 213 200 200 0 0% 100 100 49 100 -40 -2% 0 0 -80 -4% -100 -100 -20
Slide 26: Prospects
Prospects Marine ▪ Wärtsilä expects the demand environment for the next 12 months (Q4/2023-Q3/2024) to be similar to that of the comparison period. Energy ▪ Wärtsilä expects the demand environment for the next 12 months (Q4/2023-Q3/2024) to be better to that of the comparison period. 26 ©
Slide 27: WARTSILA
Oo WARTSILA
Slide 28: Appendix
Appendix 28 ©
Slide 29: Order intake
Order intake Third quarter development 8% (6) Marine Power 47% (39) Marine Systems Services Order intake Order intake 47% 38% by business Energy 53% by business type (45) Equipment (55) (50) Portfolio Business 8% (6) 29 ©
Slide 30: Net sales
Net sales Third quarter development 6% (7) 42% Marine Power (34) Services Net sales Marine Systems 48% Net sales by business (54) by business type 52% Equipment 42% Energy (46) (49) Portfolio Business 9% (11) 30 ©
Slide 31: Third quarter development by business type
Third quarter development by business type Order intake Net sales 24% Spare parts Spare parts 29% (31) (32) Field service Field service 38% Marine Marine Service agreements Service agreements (39) Businesses Businesses 48% EUR 746 million Service projects (40) EUR 971 million Service projects (643)
Slide 32: January–September order intake by customer segment
January–September order intake by customer segment Special Marine Businesses Gas carriers Cruise & ferry Offshore Navy vessels Merchant Other Marine Power Equipment 9% (15) 29% (21) 7% (2) 9% (3) 3% (17) 38% (35) 5% (7) Services 16% (15) 23% (22) 19% (14) 6% (7) 11% (12) 23% (29) 2% (2) Marine Syste
Slide 33: Orders received for Energy equipment globally
Orders received for Energy equipment globally Europe 312 (114) Americas 430 (734) Asia 294 (177) Utilities IPP’s Africa and (Independent Middle East Power Producers) 162 (111) Industrials Others Equipment order intake 1-9/2023: MEUR 1,198 (1,136) 33 ©
Slide 34: WARTSILA
re, WARTSILA