Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Q4 2021 Earnings Presentation

34 slides from Wartsila Oyj Abp's earnings presentation, Jan 28, 2022

  1. Slide 1: Wärtsilä Corporation Result Presentation 2021

    WARTSILA CORPORATION RESULT PRESENTATION 2021 28 JANUARY 2022 HAKAN AGNEVALL, PRESIDENT & CEO ARJEN BERENDS, CFO

  2. Slide 2: Moving in the right direction in 2021

    MOVING IN THE RIGHT DIRECTION IN 2021: ORDERS, NET SALES, OPERATING RESULT, AND CASH FLOW ALL IMPROVED • Order intake increased by 32%, growth in all businesses • Good progress in services: ̶ Order intake increased by 17% ̶ Net sales increased by 11% • Profitability improved • Strong cash flow • Cov

  3. Slide 3: Positive development in all key figures

    POSITIVE DEVELOPMENT IN ALL KEY FIGURES MEUR 10-12/2021 10-12/2020 CHANGE 1-12/2021 1-12/2020 CHANGE Order intake 2,150 1,118 92% 5,735 4,359 32% of which services 753 626 20% 2,656 2,267 17% Order book 5,859 5,057 16% of which current year deliveries 3,763 3,298 14% Net sales 1,597 1,220 31% 4,778

  4. Slide 4: Fourth quarter highlights

    FOURTH QUARTER HIGHLIGHTS Net sales Comparable operating result MEUR MEUR, 12m rolling MEUR %, 12m rolling Net sales EUR 1,597 million 2,000 6,000 250 14.0% • 16% increase in 1,800 1,684 1,597 5,000 202 12.0% 1,600 200 service sales 1,400 10.0% 1,220 4,000 158 1,200 150 8.0% Comparable operating 1,0

  5. Slide 5: Marine market development

    MARINE MARKET DEVELOPMENT MIXED ACTIVITY LEVELS ACROSS SEGMENTS IN 2021 • The number of vessels ordered in the review Total vessel contracting period increased to 1,855 (815 in the Number of vessels corresponding period in 2020, excluding late 1,400 reporting of contracts). 1,200 1,000 800 600 • In

  6. Slide 6: Energy market situation improving

    ENERGY MARKET SITUATION IMPROVING GOOD ACTIVITY IN THE ENERGY STORAGE MARKET Market for gas and liquid fuel power plants <500 MW • The energy markets were recovering MW, 12m rolling throughout the year 2021, despite the Covid-19 pandemic and the resulting weakening of the 20,000 investment environme

  7. Slide 7: Order intake increased by 92%

    ORDER INTAKE INCREASED BY 92% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling 1,600 3,500 1,600 3,500 • Order intake 1,398 1,400 increased across 1,400 3,000 3,000 all businesses 1,200 2,500 1,200 2,500 1,000 1,000 • Equipment order 829 2,000 726 753 2,000 800 800 intake increased 1

  8. Slide 8: Increase in order book

    INCREASE IN ORDER BOOK BOOK-TO-BILL CONTINUED TO IMPROVE Order book by business Order book delivery schedule MEUR MEUR 7,000 1.40 4,500 4,000 6,000 1.20 3,500 5,000 1.00 3,000 4,000 0.80 2,500 3,000 0.60 2,000 1,500 2,000 0.40 1,000 1,000 0.20 500 0 0.00 0 31.12.2019* 30.6.2020 31.12.2020 30.6.2021

  9. Slide 9: Net sales increased by 31%

    NET SALES INCREASED BY Equipment Services 31% MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling 1,000 943 3,000 1,000 3,000 • Equipment net 900 900 836 sales increased by 800 2,500 761 2,500 800 741 48% 654 700 700 2,000 2,000 • Service net sales 600 566 600 increased by 16% 500 1,500 500 1,500 400 400

  10. Slide 10: Technology and partnership highlights

    TECHNOLOGY AND PARTNERSHIP HIGHLIGHTS ENABLING INDUSTRY DECARBONISATION 2-stroke future fuels conversion platform • The retrofit conversion will initially enable operation with currently available LNG fuel, which can then be further developed in order to allow for the adoption of alternative green f

  11. Slide 11: © Wärtsilä 28 January 2022 RESULT PRESENTATION 2021

    11 © Wärtsilä 28 January 2022 RESULT PRESENTATION 2021

  12. Slide 12: Marine Power: increase in all key figures

    MARINE POWER: INCREASE IN ALL KEY FIGURES COMPARABLE OPERATING RESULT INCREASED BY 67% Order intake Comparable operating result Comparable operating result +50% 12m rolling MEUR MEUR 2,011 MEUR MEUR 12m rolling 10.5% 120 16.0% 800 2,500 656 659 2,000 110 107 600 14.0% 440 1,500 100 400 1,000 90 12.0

  13. Slide 13: Marine Power service agreements

    MARINE POWER SERVICE AGREEMENTS NET SALES FROM INSTALLATIONS UNDER AGREEMENT INCREASING AFTER A COVID-19 RELATED DECLINE MEUR, 12m rolling Wärtsilä has signed a long-term Optimised 400 Maintenance Agreement with Singapore 350 based NYK Shipmanagement 300 • The 13-year contract is designed to ensure

  14. Slide 14: © Wärtsilä 28 January 2022 RESULT PRESENTATION 2021

    14 © Wärtsilä 28 January 2022 RESULT PRESENTATION 2021

  15. Slide 15: Marine Systems: net sales and order intake increased

    MARINE SYSTEMS: NET SALES AND ORDER INTAKE INCREASED SERVICE ORDER INTAKE INCREASED BY 21% Order intake Comparable operating result Comparable operating result 12m rolling +131% MEUR MEUR 835 MEUR MEUR 12m rolling 7.9% 400 1,200 60 12.0% 308 1,000 300 800 200 147 600 50 10.0% 133 400 100 200 0 0 40

  16. Slide 16: © Wärtsilä 28 January 2022 RESULT PRESENTATION 2021

    16 © Wärtsilä 28 January 2022 RESULT PRESENTATION 2021

  17. Slide 17: Voyage: increase in all key figures

    VOYAGE: INCREASE IN ALL KEY FIGURES CLEAR IMPROVEMENT IN PROFITABILITY Order intake Comparable operating result Comparable operating result 12m rolling +68% MEUR MEUR 292 MEUR MEUR 12m rolling -9.9% 120 400 Q420 Q421 93 93 5 0.0% 100 300 80 55 1 1 60 200 -5.0% 40 0 100 20 0 0 -10.0% Q419 Q220 Q420 Q

  18. Slide 18: Voyage cloud solutions

    VOYAGE CLOUD SOLUTIONS INCREASE OF 48% IN CONNECTED VESSELS +48% Number of vessels connected to our cloud solutions Wärtsilä to deliver the first-ever Cloud Simulation service in Africa at the Technical University of Mombasa • The modern training technology will help the African seafarers to be trai

  19. Slide 19: © Wärtsilä 28 January 2022 RESULT PRESENTATION 2021

    19 © Wärtsilä 28 January 2022 RESULT PRESENTATION 2021

  20. Slide 20: Energy: order intake, net sales and comparable operating result increased

    ENERGY: ORDER INTAKE, NET SALES AND COMPARABLE OPERATING RESULT INCREASED LARGE SINGLE DEALS SUPPORTED ORDER INTAKE Order intake Comparable operating result Comparable operating result +120% 12m rolling MEUR MEUR 2,444 MEUR MEUR 12m rolling 7.3% 1,200 1,031 3,000 120 10.0% 1,000 2,500 800 2,000 110

  21. Slide 21: Wärtsilä awarded two major contracts for power plants in Mexico

    Wärtsilä awarded two major contracts with a combined value of approximately 480 MEUR for power plant deliveries to Mexico • Wärtsilä will supply Mexico’s state-owned electricity utility, Comisión Federal de Electricidad (CFE), with two large multi-fuel power plants having a combined output of 600 MW

  22. Slide 22: Energy service agreements

    ENERGY SERVICE AGREEMENTS INSTALLED BASE COVERED BY LONG-TERM SERVICE AGREEMENTS INCREASING MW 16,000 30% The demand for remote support for power plants is constantly growing. Yet, we solve 14,000 25% most cases during the same day: 12,000 20% • 96% of support cases were solved remotely in 10,000 20

  23. Slide 23: © Wärtsilä 28 January 2022 RESULT PRESENTATION 2021

    23 © Wärtsilä 28 January 2022 RESULT PRESENTATION 2021

  24. Slide 24: Other key financials

    OTHER KEY FINANCIALS MEUR 10-12/2021 10-12/2020 1-12/2021 1-12/2020 Cash flow from operating activities 370 274 731 681 Working capital -100 257 Net interest-bearing debt 4 394 Gearing 0.00 0.18 Solvency, % 38.6 38.1 Basic earnings/share, EUR 0.14 0.10 0.33 0.23 24 © Wärtsilä 28 January 2022 RESULT

  25. Slide 25: Cash flow from operating activities increased

    CASH FLOW FROM OPERATING ACTIVITIES INCREASED Cash flow from operating activities Fourth quarter development MEUR MEUR, 12m rolling MEUR 450 800 400 370 700 350 600 295 300 274 500 250 400 200 300 150 200 100 50 100 0 0 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Cash flow from operating activities

  26. Slide 26: Earnings and dividend per share

    EARNINGS AND DIVIDEND PER SHARE EUR 1.00 0.90 0.80 0.70 0.65 0.63 0.60 0.50 0.46 0.48 0.48 0.40 0.37 0.33 0.30 0.24 0.23 0.20 0.20 0.10 0.00 2017 2018 2019 2020 2021* EPS Dividend * Proposal of the Board 26 © Wärtsilä 28 January 2022 RESULT PRESENTATION 2021

  27. Slide 27: Outlook for first quarter demand environment

    Wärtsilä expects the demand environment in the first quarter to be better than that of the corresponding period in the previous year. However, the prevailing market conditions make the outlook uncertain. 27 © Wärtsilä 28 January 2022 RESULT PRESENTATION 2021

  28. Slide 28: © Wärtsilä 28 January 2022 RESULT PRESENTATION 2021

    28 © Wärtsilä 28 January 2022 RESULT PRESENTATION 2021

  29. Slide 29: Order intake: fourth quarter development

    ORDER INTAKE FOURTH QUARTER DEVELOPMENT 3% (2) 31% (39) Marine Power 35 % (56) Marine Systems Services 48% Order intake Order intake (42) by business Voyage by business type Equipment Energy 65 % Portfolio Business (44) 14% (12) 4% (5) 29 © Wärtsilä 28 January 2022 RESULT PRESENTATION 2021

  30. Slide 30: Net sales: fourth quarter development

    NET SALES FOURTH QUARTER DEVELOPMENT 2 % (2) 37 %(40) Marine Power Marine Systems Services 42 % Net sales Net sales 48 % by business Voyage by business type Equipment (38) 52 % (54) Energy (46) Portfolio Business 5 %(6) 14 %(14) 30 © Wärtsilä 28 January 2022 RESULT PRESENTATION 2021

  31. Slide 31: Fourth quarter development by business type

    FOURTH QUARTER DEVELOPMENT BY BUSINESS TYPE Order intake Net sales 20% (29) 24% (25) Spare parts Spare parts Marine Field service Marine Field service Businesses Businesses Service agreements 11% (16) Service agreements 48% EUR 1,060 million EUR 895 million (47) Service projects 58% (628) Service pr

  32. Slide 32: January–December order intake by customer segment

    JANUARY–DECEMBER ORDER INTAKE BY CUSTOMER SEGMENT Special Marine Businesses Gas carriers Cruise & ferry Offshore Navy vessels Merchant Other Marine Power Equipment 5% (22) 27% (31) 3% (4) 16% (8) 21% (22) 28% (13) 0% (0) Services 18% (16) 21% (14) 13% (15) 7% (11) 14% (16) 25% (26) 2% (2) Marine Sys

  33. Slide 33: Orders received for energy equipment globally

    ORDERS RECEIVED FOR ENERGY EQUIPMENT GLOBALLY Europe 83 (179) Asia 148 (196) Americas Utilities 1,224 (268) IPP’s Africa and (Independent Middle East Power Producers) 74 (171) Industrials Others EQUIPMENT ORDER INTAKE 1-12/2021: MEUR 1,529 (813) 33 © Wärtsilä 28 January 2022 RESULT PRESENTATION 2021

  34. Slide 34: Wärtsilä

    re, WARTSILA

Wartsila Oyj Abp — Q4 2021 Earnings Presentation on 6ix