Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wartsila Corp B Shs — Q4 2024 Earnings Presentation

32 slides from Wartsila Oyj Abp's earnings presentation, Feb 5, 2025

  1. Slide 1: Wärtsilä Corporation Result presentation Q4 2024

    Wärtsilä Corporation Result presentation Q4 2024 Håkan Agnevall, President & CEO Arjen Berends, CFO 5 February 2025 1 ©

  2. Slide 2: Strong growth in order intake, net sales and profitability in Q4

    Strong growth in order intake, net sales and profitability in Q4 ▪ All-time high order book (8,366 MEUR) ▪ Order intake increased by 34% ▪ Net sales increased by 13% ▪ Comparable operating result increased by 18% ▪ Good progress in services continued: ▪ Service order intake increased by 15% ▪ Servic

  3. Slide 3: A year of all-time highs: order intake, absolute operating result and cash flow

    A year of all-time highs: order intake, absolute operating result and cash flow MEUR 10-12/2024 10-12/2023 CHANGE 1-12/2024 1-12/2023 CHANGE Order intake 2,491 1,856 34% 8,072 7,070 14% of which services 1,007 876 15% 3,812 3,519 8% of which equipment 1,484 980 51% 4,260 3,550 20% Order book 8,366 6

  4. Slide 4: Marine: market sentiment is positive for Wärtsilä's key segments

    Marine: market sentiment is positive for Wärtsilä’s key segments Increase in demand for new ships continued 12 months rolling contracting trend ▪ The number of vessels ordered in the review period increased to 2,765 (1,977 in the corresponding period in Number of vessels (total) Number of vessels (s

  5. Slide 5: Energy: solid long-term market opportunities

    Energy: solid long-term market opportunities The energy transition continued to advance in 2024 ▪ Wind and solar are expected to post record installations in Development on installed wind and solar capacity 2024 and 2025. Combined capacity additions from wind GW and solar are expected to be between

  6. Slide 6: Organic order intake increased by 35%

    Organic order intake increased by 35% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling Order intake increased 1,600 1,484 4,500 1,600 4,500 by 34% 1,400 4,000 1,400 4,000 3,500 3,500 Equipment order intake 1,200 1,200 980 3,000 1,007 3,000 increased by 51% 1,000 1,000 876 848 800 2,5

  7. Slide 7: All-time high order book, rolling book-to-bill continues above 1

    All-time high order book, rolling book-to-bill continues above 1 Order book by business Order book delivery schedule MEUR MEUR 9,000 1.6 6,000 8,000 1.4 5,000 7,000 1.2 6,000 4,000 1.0 5,000 0.8 3,000 4,000 0.6 3,000 2,000 0.4 2,000 1,000 1,000 0.2 0 0.0 0 31.12.2022 30.6.2023 31.12.2023 30.6.2024 3

  8. Slide 8: Organic net sales increased by 13%

    Organic net sales increased by 13% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling Net sales increased 1,200 3,500 1,200 3,500 by 13% 1,100 1,100 987 3,000 948 3,000 1,000 1,000 905 843 Equipment net sales 900 900 800 800 2,500 800 784 2,500 increased by 13% 700 2,000 700 2,000 600

  9. Slide 9: Profitability continued to improve

    Profitability continued to improve Net sales Comparable operating result MEUR MEUR, 12m rolling MEUR %, 12m rolling Net sales increased by 2,400 7,000 250 12.0% 13% 2,100 209 6,000 1,770 1,854 200 10.0% Comparable operating 1,800 1,644 177 5,000 8.0% result increased by 18% 1,500 4,000 150 1,200 6.0

  10. Slide 10: Technology and partnership highlights

    Technology and partnership highlights Enabling industry decarbonisation Wärtsilä engines to power 120 MW plant in Kazakhstan ▪ Wärtsilä will supply the engineered equipment for a new 120 MW power plant under construction in Kazakhstan. ▪ The order scope includes six Wärtsilä 46TS-SG gas-fuelled larg

  11. Slide 11: Marine

    Ce WARTSILA Marine " © WARTSILA,

  12. Slide 12: Marine: Good performance continued

    Marine: Good performance continued Order intake and net sales increased Order intake +9% Comparable operating result Comparable operating result 12m rolling MEUR MEUR 3,637 MEUR MEUR 12m rolling 11.8% 1,000 918 4,000 120 14.0% 844 800 3,000 600 99 100 12.0% 2,000 100 400 + Higher service 200 1,000 v

  13. Slide 13: Good development in Marine service

    Good development in Marine service Book-to-bill above 1 in all service revenue streams Marine service, Net sales Marine service, Book-to-bill MEUR 12m rolling book-to-bill 700 2,500 1.75 +12% CAGR 600 2,000 1.50 500 1,500 400 1.25 300 1,000 200 1.00 500 100 0 0 0.75 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

  14. Slide 14: Energy

    Pa) WARTSILA Energy 14 © WARTSILA

  15. Slide 15: Energy: Comparable operating result increased

    Energy: Comparable operating result increased Strong growth in order intake both in Engine Power Plants and Energy Storage & Optimisation Order intake +54% MEUR 12m rolling Comparable operating result Comparable operating result MEUR 3,366 1,335 4,000 MEUR MEUR 12m 12mrolling 11.2% rolling 1,500 120

  16. Slide 16: Energy Storage & Optimization: Comparable operating result margin continued to improve

    Energy Storage & Optimization: Comparable operating result margin (12m rolling) continued to improve Quarterly development Rolling 12 months development MEUR MEUR % of net sales 700 1,600 5.0 608 600 1,400 4.0 1,200 1,128 500 1,056 1,022 1,034 3.0 1,000 975 961 983 992 926 400 784 807 794 328 800 73

  17. Slide 17: Good development in Energy service

    Good development in Energy service Book-to-bill above 1 in all service revenue streams Energy service, Net sales Energy service, Book-to-bill MEUR 12m rolling book-to-bill 450 1,600 1.75 400 1,400 +11% CAGR 350 1.50 1,200 300 1,000 250 800 1.25 200 600 150 400 1.00 100 50 200 0 0 0.75 Q1 Q2 Q3 Q4 Q1

  18. Slide 18: Becoming a more focused company

    Becoming a more focused company Wärtsilä to divest its Automation, Navigation and Control System business to Solix ▪ Wärtsilä has agreed to divest its Automation, Navigation and Control System (ANCS) business to the Swedish investment company Solix Group AB. ▪ ANCS is a global leader in innovative h

  19. Slide 19: Comparable operating result improved – increase in Energy and Portfolio Business

    Comparable operating result improved – increase in Energy and Portfolio Business MEUR % of net sales 250 3.7% (-7.3%) Comparable operating 11.3% 11.8% 12.5% (12.4%) result increased by 18% 200 (13.1%) 19 10.8% 13 0 150 100 209 177 50 0 Comparable Marine Energy Portfolio Comparable operating result B

  20. Slide 20: Other key financials

    Cc WARTSILA Other key financials , © WARTSILA,

  21. Slide 21: Other key financials: Strong cash flow from operating activities

    Other key financials: Strong cash flow from operating activities MEUR 10-12/2024 10-12/2023 1-12/2024 1-12/2023 Cash flow from operating activities 437 389 1,208 822 Working capital -787 -169 Net interest-bearing debt -777 35 Gearing -0.31 0.02 Solvency, % 37.4 37.0 Earnings per share (EPS), basic a

  22. Slide 22: 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 500 1,400 400 4% 437 179 2% 389 1,200 200 400 0% 1,000 0 300 -2% 800 -200 -4% -169 200 600 -400 -6% 400 100 -8% 51 -600 200 -10% 0 0 -800 -787 -12% -100 -200

  23. Slide 23: Earnings and dividend per share

    Earnings and dividend per share EUR 1.00 0.80 0.60 0.40 0.20 0.00 -0.20 2020 2021 2022 2023 2024* EPS DPS *Proposal of the Board 23 ©

  24. Slide 24: Prospects

    Prospects Marine ▪ Wärtsilä expects the demand environment for the next 12 months (Q1/2025–Q4/2025) to be better than that of the comparison period. Energy ▪ Wärtsilä expects the demand environment for the next 12 months (Q1/2025–Q4/2025) to be better than that of the comparison period. However, Wär

  25. Slide 25: Q&A

    Q&A Cc WARTSILA

  26. Slide 26: Appendix

    ™ oO WARTSILA Appendix © WARTSILA

  27. Slide 27: Order intake

    Order intake Fourth quarter development 10% (8) 37% (46) Marine 40% Services Order intake Order intake (47) by business Energy by business type Equipment 60% Portfolio Business (53) 54% (47) 27 ©

  28. Slide 28: Net sales

    Net sales Fourth quarter development 10% (10) 46% Marine Services Net sales (46) 49% Net sales Energy 51% Equipment by business (49) by business type (51) Portfolio Business 44% (44) 28 ©

  29. Slide 29: Fourth quarter development by business type

    Fourth quarter development by business type Order intake Net sales 26% Spare parts 28% Spare parts (26) (29) Field service 35% Field service 35% (35) Marine Service agreements (41) Marine Service agreements EUR 847 million EUR 918 million Retrofits and upgrades (759) (844) Retrofits and upgrades Equ

  30. Slide 30: January–December order intake by customer segment

    January–December order intake by customer segment Marine Gas carriers Cruise & ferry Offshore Navy Special vessels Merchant Other Equipment 7% (11) 30% (22) 5% (6) 6% (8) 10% (5) 37% (44) 5% (4) Services 12% (14) 24% (22) 16% (17) 11% (8) 11% (11) 25% (26) 1% (1) Total 10% (13) 26% (22) 12% (13) 9%

  31. Slide 31: Orders received for Energy equipment globally

    Orders received for Energy equipment globally Europe 291 (339) Americas Asia 919 (843) 815 (413) Utilities IPP’s (Independent Africa and Power Producers) Middle East Industrials 50 (140) Others Equipment order intake 1-12/2024: MEUR 2,076 (1,735) 31 ©

  32. Slide 32: WARTSILA

    re, WARTSILA

Wartsila Corp B Shs — Q4 2024 Earnings Presentation on 6ix