Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Q3 2013 Earnings Presentation
36 slides from Wartsila Oyj Abp's earnings presentation, Oct 24, 2013
Slide 1: Interim Report January-September 2013
INTERIM REPORT JANUARY-SEPTEMBER 2013 BJÖRN ROSENGREN, PRESIDENT & CEO 24 OCTOBER 2013 © Wärtsilä
Slide 2: Highlights Q3/2013
Highlights Q3/2013 • Order intake EUR 1,097 million, -14 % • Net sales EUR 1,209 million, +11% • Book-to-bill 0.91 • EBITA EUR 146 million, 12.1% of net sales • EBIT EUR 138 million, 11.4% of net sales NEW • EPS EUR 0.48 • Cash flow from operating activities PIC EUR 139 million • Net sales growth gu
Slide 3: Order intake impacted by customer decision-making
Order intake impacted by customer decision-making MEUR 5500 5000 4500 4000 Third quarter development MEUR 3500 1400 1,275 3000 1200 -14% 1,097 2500 1000 6% Services 2000 800 -3% Ship Power 1500 600 Power Plants 1000 400 -42% 500 200 0 0 2009 2010 2011 2012 2013 Q3/2012 Q3/2013 Q1-Q3 Q4 3 © Wärtsilä
Slide 4: Net sales developed according to expectations
Net sales in Net sales developed according toline with our expectations expectations MEUR 5500 5000 -13% 4500 12% 4000 Third quarter development -7.6% 3500 MEUR 1400 3000 1,209 1200 1,087 11% 2500 1000 Services 2000 0% 800 Ship Power 1500 600 0% Power Plants 1000 400 500 200 38% 0 0 2009 2010 2011 2
Slide 5: Net sales by business 1-9/2013
Net sales by business 1-3/2012 Net sales by business 1-9/2013 Ship Power 28% (27) Services 41% (43) Power Plants 31% (29) 5 © Wärtsilä
Slide 6: Book-to-bill ratio remains above one
Book-to-bill ratio remains above one MEUR 6000 1,2 1.07 1.05 1.09 5500 5000 1,0 0.88 4500 4000 0,8 3500 0.63 3000 0,6 2500 2000 0,4 1500 1000 0,2 500 0 0,0 2009 2010 2011 2012 1-9/2013 Order intake Net sales Book-to-bill 6 © Wärtsilä
Slide 7: Order book distribution
Order book distribution Order book distribution MEUR 4000 3000 2000 1000 0 30.9.2012 30.9.2013 Delivery current year Delivery next year or later 7 © Wärtsilä
Slide 8: Profitability
Profitability MEUR 250 16% Q3: 14% 12.8% 12.1% 200 11.5% 11.7% EBIT% 11.0% 12% 12.1% target: 11.1% 11.4% 10-14% 10.7% 10.9% 10% 150 8% 100 6% 4% 50 2% 0 0% 2009 2010 2011 2012 2013 Q1 Q2 Q3 Q4 Yearly EBITA% (operating result before non-recurring items and intangible asset amortisation related to acq
Slide 9: Moderate activity in power generation markets
Moderate activity in power generation markets
Slide 10: Power plant quotation activity remained stable
Power plant quotation activity remained stable MW 16000 14000 12000 10000 Others 8000 6000 Natural gas 4000 Heavy fuel oil 2000 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2005 2006 2007 2008 2009 2010 2011 2012 2013 Share of natural gas
Slide 11: Power Plants quarterly order intake
Power Plants quarterly order intake MEUR 600 500 400 300 200 100 0 2006 2007 2008 2009 2010 2011 2012 2013 Q1 Q2 Q3 Q4 11 © Wärtsilä
Slide 12: Power Plants order intake by customer segment
Power Plants order intake by customer segment MEUR Review period development 2000 Total EUR 884 million (1,045) 1800 15% Utilities 1600 43% Industrials 1400 42% IPP’s* 1200 x% 1000 800 Review period order intake by fuel in MW 600 400 Oil Gas 200 20% 80% 0 2009 2010 2011 2012 2013 Q1-Q3 Q4 *IPP = Ind
Slide 13: Contract for the largest peaking gas power plant in Indonesia
Contract for the largest peaking gas power plant in Indonesia • Supply of engineering and equipment for a 184 MW peaking gas power plant in Indonesia • Order placed by PT Wijaya Karya, one of Indonesia’s biggest construction contractors • Power will be generated by a total of 19 Wärtsilä 34SG engine
Slide 14: Power Plants - global order intake
Power Plants - global order intake Europe 300 (79) Asia 738 (851) 94 10 267 181 Americas 324 (612) 25 460 10 47 Africa and Middle East 424 (871) 268 92 Utilities IPP’s 18 Industrials 314 Order intake 1-9/2013: 1,786 MW (2,414) 14 © Wärtsilä
Slide 15: Market for gas and liquid based power plants
Market for gas and liquid based power plants H1 2013 Total market 18.8 GW (28.8) 8.0% Siemens 5.9% GE 5.9% MHI 34.6% 6.4% Alstom Wärtsilä 12.8% Ansaldo 26.1% Other GTs Includes all Wärtsilä power plants and other manufacturers’ gas and liquid fuelled power plants with prime movers above 5MW, as well
Slide 16: Good activity in all major vessel segments
Good activity in all major vessel segments
Slide 17: Good activity in vessel contracting continues
Good activity in vessel contracting continues * * Source: Clarkson Research Services * CGT= gross tonnage compensated with workload 17 © Wärtsilä
Slide 18: Ship Power order intake by segment
Ship Power order intake by segment MEUR 1600 Review period development Total EUR 1,200 million (1,114) Merchant Offshore 1200 29% 44% 800 Other 4% 400 Special vessels 7% Cruise Navy & ferry 6% 0 10% 2009 2010 2011 2012 2013 Q1-Q3 Q4 18 © Wärtsilä
Slide 19: Offshore ordering continued active
Offshore ordering continued active • Order to supply the propulsion solutions for six new offshore pipe laying vessels to be built by IHC Merwede for Subsea 7 and Seabras Sapura • The scope of supply for each ship comprises six 8-cylinder Wärtsilä 32 engines and a series of thrusters • Key in the aw
Slide 20: Joint venture ordering activity
Joint venture ordering activity MEUR 600 • Order intake in Wärtsilä Hyundai 550 Engine Company Ltd in South 500 Korea, and Wärtsilä Qiyao 450 Diesel Company Ltd in China 400 totalled EUR 143 million (175) 350 during the review period January- September 2013 300 • Wärtsilä’s share of ownership in 250
Slide 21: Ship Power Market: market position of Wärtsilä's marine engines
Ship Power Market Market position of Wärtsilä’s marine engines Medium-speed main engines Low-speed main engines Auxiliary engines Mitsubishi Wärtsilä 2%(1) 5%(4) Wärtsilä Others 10%(14) 18%(25) Wärtsilä 49%(47) Caterpillar 12%(10) MAN D&T Others MAN D&T 21%(18) 95%(96) 88%(85) Total market volume la
Slide 22: Stable development in the service markets
Stable development in the service markets
Slide 23: Services net sales development
Services net sales development MEUR 2000 1800 0% 0% 5% Third quarter development 1600 MEUR 1400 600 0% 1200 500 435 435 1000 400 800 300 600 200 400 200 100 0 0 2009 2010 2011 2012 2013 Q3/2012 Q3/2013 Q1-Q3 Q4 23 © Wärtsilä
Slide 24: Services net sales by quarter
Services net sales by quarter MEUR 600 500 400 300 200 100 0 2006 2007 2008 2009 2010 2011 2012 2013 Q1 Q2 Q3 Q4 24 © Wärtsilä
Slide 25: Services net sales distribution 1-9/2013
Services net sales distribution 1-9/2013 Field service 23%(23) Spare parts 53%(53) Contracts 17%(16) Projects 7%(8) Total EUR 1,334 million (1,377) 25 © Wärtsilä
Slide 26: First major service agreement signed in Australia
First major service agreement signed in Australia • 10-year service agreement signed with Energy Developments Ltd of Australia to maintain the McArthur River Mine power plant • The 53 MW power plant supplies power to the McArthur River zinc mine, with electricity generated by six Wärtsilä 34SG engin
Slide 27: 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% 49% 2500 50% 2000 40% 1500 30% 1000 20% 500 10% 0 0% 2009 2010 2011 2012 Q3/2013 12m rolling O&M and maintenance agreements Power Plants deliveries % of delivered MWs 27 © Wärtsilä
Slide 28: Fleet utilisation
Fleet utilisation Fleet utilisation Anchored Vessels & Fleet Development* 35% 22000 Nr of Active Vessels Percent Anchored 30% 21500 25% 21000 20% 20500 15% 20000 09.13 03.11 06.11 09.11 12.11 03.12 06.12 09.12 12.12 03.13 06.13 Anchored Active Fleet Fleet Average Speed, knots** 10,5 10,0 9,5 9,0 8,5
Slide 29: Solid financial position
y, Solid financial position ar jie ml
Slide 30: Cash flow from operating activities
Cash flow from operating activities MEUR 700 600 500 400 300 200 100 0 2009 2010 2011 2012 1-9/2013 30 © Wärtsilä
Slide 31: Working capital
Working capital Good development in advances received MEUR 2000 25% 1800 1600 20% 1400 1200 15% 1000 9.8% 10.2%* 800 9.2% 10% 600 6.8% 5.8% 486 488 465 400 5% 267 3.7% 235 200 118 0 0% 2008 2009 2010 2011 2012 30.9.2013 Net working capital Total inventories Advances received Net working capital / Ne
Slide 32: Committed loans 30 September 2013
Committed loans 30 September 2013 MEUR 1600 1400 1200 599 1000 Total 100 EUR 800 800 132 million 87 drawn 600 400 581 200 0 Drawn long- Current portion of Drawn short- Undrawn long Undrawn term loans long-term loans term loans term loans revolving credits At the end of the reporting period, drawn re
Slide 33: Financial position
Financial position Solvency Gearing 50% 0,50 45% 0,40 40% 35% 0,30 30% 25% 0,20 20% 15% 0,10 10% 0,00 5% 0% 2009 2010 2011 2012 30.9.2013 -0,10 2009 2010 2011 2012 30.9.2013 33 © Wärtsilä
Slide 34: Market outlook
Market outlook • Power Plants: Based on weaker global ordering statistics in the first half-year, the overall market for natural gas and liquid fuel based power NEW generation in 2013 is expected to decline. PIC • Ship Power: The outlook for the shipping and shipbuilding market in 2013 has improved.
Slide 35: Prospects for 2013 revised
Prospects for 2013 revised Wärtsilä expects its net sales for 2013 to grow by 0-5% (previous estimate 0-10%) and its operational profitability (EBIT% before non-recurring items) to be around 11%.
Slide 36: IR Contact
IR Contact: Natalia Valtasaari Director, Investor Relations Tel. +358 (0) 40 187 7809 E-mail: natalia.valtasaari@wartsila.com