Slide 1: 2012 Result Presentation
2012 RESULT PRESENTATION BJÖRN ROSENGREN, PRESIDENT & CEO 25 JANUARY 2013 © Wärtsilä
Slide 2: Net sales back to growth with stable profitability
Net sales back to growth with stable profitability 2012 development • Order intake EUR 4,940 million, +9% • Net sales EUR 4,725 million, +12% • Book-to-bill 1.05 (1.07) • EBITA EUR 550 million, 11.6% of net sales • EBIT EUR 515 million, 10.9% of net sales • EPS EUR 1.72 (1.44), +19% • Cash flow from
Slide 3: Growth in order intake
Growth in order intake MEUR 6000 5500 5000 4500 Fourth quarter development 4000 MEUR 1 357 1400 3500 1 250 9% 3000 1200 2500 1000 18% Services 2000 800 Ship Power 5% 1500 600 Power Plants 1000 400 1% 500 200 0 0 2008 2009 2010 2011 2012 Q4/2011 Q4/2012 3 © Wärtsilä
Slide 4: Good development in net sales
Good development in net sales MEUR 5500 5000 14% -13% 4500 -7.6% 12% 4000 Fourth quarter development 3500 MEUR 1 533 1600 24% 3000 1400 1 238 2500 1200 Services 2000 1000 4% Ship Power 800 1500 600 Power Plants 38% 1000 400 500 38% 200 0 0 2008 2009 2010 2011 2012 Q4/2011 Q4/2012 4 © Wärtsilä
Slide 5: Net sales by business 2012
Net sales by business 2012 Ship Power 28% (24) Services 40% (43) Power Plants 32% (32) 5 © Wärtsilä
Slide 6: Net sales by market area - Asia's share over 40%
Net sales by market area - Asia’s share over 40% MEUR 6000 5000 4000 3000 2000 1000 0 2008 2009 2010 2011 2012 Asia Europe Americas Other 6 © Wärtsilä
Slide 7: Top 10 countries
Top 10 countries Norway 5% United Kingdom 3% China South Korea USA 3% Dominican 5% Republic 7% The Netherlands 8% 5% 3% 3% 4% Singapore Indonesia Brazil % of 2012 net sales 7 © Wärtsilä
Slide 8: Book-to-bill ratio remains above one
Book-to-bill ratio remains above one MEUR 6000 1,4 5500 1.21 1,2 5000 1.07 4500 1.05 1,0 4000 3500 0.88 0,8 0.63 3000 2500 0,6 2000 0,4 1500 1000 0,2 500 0 0,0 2008 2009 2010 2011 2012 Order intake Net sales Book-to-bill 8 © Wärtsilä
Slide 9: Growth in order book
Growth in order book MEUR 7000 6000 12% 5000 4 492 4 007 4000 2% 3000 Services 26% 2000 Ship Power Power Plants 1000 2% 0 2008 2009 2010 31.12.2011 31.12.2012 9 © Wärtsilä
Slide 10: Order book provides good base for 2013
Order book provides good base for 2013 MEUR 4000 3000 2000 1000 0 31.12.2011 31.12.2012 Delivery next year Delivery next year or later 10 © Wärtsilä
Slide 11: EBITA development stable
EBITA development stable EBIT, MEUR 250 16% 14% 12.8% 200 11.9% 11.5% 11.6% EBIT% 11.0% 12% 12.1% target: 11.4% 11.1% 10-14% 10.7% 10.9% 10% 150 8% 100 6% 4% 50 2% 0 0% 2008 2009 2010 2011 2012 Q1 Q2 Q3 Q4 EBITA% before non-recurring items and intangible asset amortisation related to acquisitions EB
Slide 12: Good activity in gas based power generation markets
Good activity in gas based power generation markets © Wärtsilä
Slide 13: Good level of quotes
Good level of quotes Quoted MW per Fuel Type 16000 14000 12000 Others MW 10000 8000 Natural gas 6000 Heavy fuel oil 4000 2000 0 Q2 Q3 Q4 Q2 Q3 Q1 Q2 Q1 Q2 Q4 Q1 Q3 Q4 Q3 Q4 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q4 Q1 Q1 Q4 Q3 Q4 Q3 Q2 Q1 Q2 Q1 Q4 Q4 Q3 2004 2005 2006 2007 2008 2009 2010 2011 2012 Share of natural ga
Slide 14: Quarterly order intake
Quarterly order intake MEUR 600 500 400 300 200 100 0 2005 2006 2007 2008 2009 2010 2011 2012 Q1 Q2 Q3 Q4 14 © Wärtsilä
Slide 15: Order intake by application
Order intake by application MEUR Review period development 2000 Total EUR 1,515 million (1,602) 4% Industrial 1800 14% 6% self-generation 1600 Flexible baseload 1400 Oil & gas Grid stability & 1200 77% peaking 1000 800 Review period order intake by fuel in MW 600 400 Oil 25% Gas 200 74% Renewables 0
Slide 16: Major power plant order from Mozambique
Major power plant order from Mozambique • Contract to engineer, supply and install a gas fuelled power plant to Mozambique, the biggest gas power plant ever installed in the country • Contract value EUR 138 million • Contract signed with a joint venture owned by Sasol New Energy from South Africa an
Slide 17: Global order intake
Global order intake Europe 89 (788) Asia 869 (1,055) 20 110 97 69 Americas 919 (713) 662 67 38 189 Africa and Middle East 1,269 (784) 624 175 Flexible baseload Industrial self-generation Grid stability & peaking Oil & gas 1,094 Order intake 2012: 3,146 MW (3,340) 17 © Wärtsilä
Slide 18: Market for gas and liquid based power plants
Market for gas and liquid based power plants H1 2012 Total market 28.8 GW 1.9%3.1% 3.5% 4.9% GE Siemens 32.2% MHI Wärtsilä 26.3% Ansaldo Alstom 28.1% Other gas turbines Market data includes all prime mover units over 5 MW and estimated output of steam turbines for combined cycles. The data is gather
Slide 19: An active year in offshore and specialised vessels
An active year in offshore and specialised vessels © Wärtsilä
Slide 20: Vessel order development
# of vessels 0 100 120 140 20 40 60 80 20 © Wärtsilä 01.09 02.09 03.09 04.09 05.09 Merchant 06.09 07.09 08.09 09.09 Source: Clarkson Research Services 10.09 11.09 Offshore 12.09 01.10 02.10 *CGT= gross tonnage compensated with workload 03.10 04.10 05.10 06.10 07.10 08.10 09.10 Cruise and Ferry 10.10
Slide 21: Order intake increased by 45%
Order intake increased by 45% MEUR 2000 Review period development Total EUR 1,453 million (1,000) 1600 Merchant Offshore 28% 46% 1200 800 Other 1% Special 400 vessels 12% Cruise Navy & ferry 7% 6% 0 2008 2009 2010 2011 2012 21 © Wärtsilä
Slide 22: High activity in offshore markets
High activity in offshore markets • Offshore markets continued to be active in Q4/2012 and Wärtsilä received several major orders: – An order to supply complete mechanical packages for three new drillships to be built as a part of the ongoing Brazilian DRU program – An integrated solution for a LNG
Slide 23: Ballast water management systems
Ballast water management systems • Wärtsilä offers ballast water management systems based on the two most common technologies: ultra-violet (UV) treatment and electro-chlorination (EC) • The AQUARIUS EC based system was granted basic approval in October 2012, type approval expected in Q2/2013 • All
Slide 24: Joint venture ordering activity
Joint venture ordering activity MEUR 600 550 500 • Order intake in the South Korean 450 joint venture producing dual-fuel 400 engines and the Chinese joint venture producing auxiliary engines 350 totalled EUR 242 million (394) during 300 the review period 250 January-December 2012 200 • Wärtsilä’s s
Slide 25: Ship Power order book 31 December 2012
Ship Power order book 31 December 2012 LNG* 7% Bulkers 5% Containers 2% Merchant Offshore 30% Tankers 45% 11% Cargo 5% Others 1% Navy 8% Special Cruise & Ferry vessels 7% 8% * Excluding order book from South Korean joint venture 25 © Wärtsilä
Slide 26: Market position of Wärtsilä's marine engines
Market position of Wärtsilä’s marine engines Medium-speed main engines Low-speed main engines Auxiliary engines Mitsubishi Wärtsilä 2%(2) 4%(5) Wärtsilä Others 18%(18) 25%(23) Wärtsilä 47%(48) MAN Diesel 23%(23) Others MAN Diesel 96%(95) 80%(80) Caterpillar (MAK) 5%(6) Total market volume last 12 mo
Slide 27: Services net sales reached an all time high level
Services net sales reached an all time high level © Wärtsilä
Slide 28: Services net sales back to growth
Services net sales back to growth MEUR 2000 1800 0% 0% 0% 5% Fourth quarter development 1600 MEUR 1400 600 4% 531 513 1200 500 1000 400 800 300 600 200 400 200 100 0 0 2008 2009 2010 2011 2012 Q4/2011 Q4/2012 28 © Wärtsilä
Slide 29: Net sales by quarter
Net sales by quarter MEUR 600 500 400 300 200 100 0 2005 2006 2007 2008 2009 2010 2011 2012 Q1 Q2 Q3 Q4 29 © Wärtsilä
Slide 30: Net sales distribution 2012
Net sales distribution 2012 Field service 23%(24) Spare parts 53%(51) Contracts 15%(15) Projects 9%(10) Total EUR 1,908 million (1,816) 30 © Wärtsilä
Slide 31: Services distribution per business 2012
Services distribution per business 2012 Net sales distribution Installed base distribution Total EUR 1,908 million Total 181,200 MW Ship Power Ship Power Power Plants Power Plants In addition to Engine Services, Wärtsilä’s Services portfolio includes: Electrical & Automation Services, Propulsion Ser
Slide 32: Good demand for power plant services
Good demand for power plant services • Several service agreements signed and renewed with power plants customers in Q4/2012: – A 15-year parts supply agreement and a 5-year technical service agreement with KEPCO Plant Service & Engineering Co. in Jordan – A maintenance agreement with South Texas Ele
Slide 33: Development of Power Plants service agreements
Development of Power Plants service agreements MW 4500 90% 4000 80% 3500 70% 57% 58% 57% 3000 60% 53% 2500 50% 2000 40% 31% 1500 30% 1000 20% 500 10% 0 0% 2008 2009 2010 2011 2012 O&M and maintenance agreements Power Plants deliveries % of delivered MWs 33 © Wärtsilä
Slide 34: Fleet utilisation
Fleet utilisation Anchored* & Idle Vessels**, % of fleet 26% 22% 18% 14% 10% 6% 2% Jun.11 Aug.12 Sep.12 Dec.12 Oct.11 Dec.11 Nov.12 Aug.11 Sep.11 May.12 Jul.12 Apr.12 Jan.12 Jun.12 Feb.12 Nov.11 May.11 Jul.11 Oct.12 Mar.12 Anchored Idle Fleet Average Speed***, knots 10,5 10,0 9,5 9,0 Aug.11 Sep.11 D
Slide 35: Cash flow from operating activities
Cash flow from operating activities MEUR 700 600 500 400 300 200 100 0 2008 2009 2010 2011 2012 35 © Wärtsilä
Slide 36: Net working capital development
Net working capital development MEUR 2000 25% 1800 1600 20% 1400 1200 15% 1000 10.9% 800 9.2% 10% 600 6.8% 5.8% 486 509 400 5% 267 3.7% 235 200 118 0 0% 2008 2009 2010 2011 2012 Net Working Capital Total Inventories Advances Received Net Working Capital / Net sales 36 © Wärtsilä
Slide 37: Committed loans 31 December 2012
Committed loans 31 December 2012 MEUR 1600 1400 1200 554 1000 Total EUR 794 million 800 drawn 157 600 92 400 545 200 0 Drawn long- Current portion Drawn short- Undrawn term loans of long-term term loans revolving credits loans At the end of the reporting period, drawn revolving credits amounted to 0
Slide 38: Financial position
Financial position Solvency Gearing 50% 0,70 45% 0,60 40% 0,50 35% 30% 0,40 25% 0,30 20% 0,20 15% 10% 0,10 5% 0,00 0% 2008 2009 2010 2011 2012 -0,10 2008 2009 2010 2011 2012 38 © Wärtsilä
Slide 39: EPS and dividend per share
EPS and dividend per share EUR 2,50 2,00 1.72 1,50 1.00 1,00 0,50 0,00 2008 2009 2010 2011 2012* EPS Dividend Extra dividend *Dividend 2012 - Proposal of the Board 39 © Wärtsilä
Slide 40: Market outlook
Market outlook • Power Plants: The overall market for natural gas and liquid fuel based power generation in 2013 is expected to be similar to that of 2012. • Ship Power: Our outlook for the shipping and shipbuilding market in 2013 is cautious, although slightly better than in 2012. Overall, the cont
Slide 41: Prospects for 2013
Prospects for 2013 Wärtsilä expects its net sales for 2013 to grow by 0-10% and its operational profitability (EBIT% before non-recurring items) to be around 11%. © Wärtsilä
Slide 42: IR Contact
IR Contact: Pauliina Tennilä Director, Investor Relations Tel. +358 (0) 40 570 5530 E-mail: pauliina.tennila@wartsila.com