Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Q1 2023 Earnings Presentation

33 slides from Wartsila Oyj Abp's earnings presentation, Apr 25, 2023

  1. Slide 1: Wärtsilä Corporation Interim report January–March 2023

    Wärtsilä Corporation Interim report January–March 2023 Håkan Agnevall, President & CEO Arjen Berends, CFO 25 April 2023 1 ©

  2. Slide 2: Profitability improved, good development in services

    Profitability improved, good development in services ▪ Order intake increased by 26% ▪ Net sales increased by 19% ▪ Good progress in services: ▪ Service order intake increased by 21% ▪ Service net sales increased by 17% ▪ The comparable operating result increased by 34% ▪ Supported by good developme

  3. Slide 3: Key figures

    Key figures MEUR 1-3/2023 1-3/2022 CHANGE Order intake 1,739 1,380 26% of which services 889 732 21% of which equipment 850 648 31% Order book 6,153 6,107 1% of which current year deliveries 3,325 3,334 Net sales 1,465 1,231 19% of which services 736 631 17% of which equipment 729 600 22% Book-to-bi

  4. Slide 4: Economic headwinds moderate growth in marine markets

    Economic headwinds moderate growth in marine markets Utilisation rates in Wärtsilä’s key segments improving ▪ The number of vessels ordered in the review period Total vessel contracting decreased to 255 (274 in Q1/2022, excluding late Number of vessels reporting of contracts). 1,400 1,200 ▪ Continue

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

    Energy market outlook – solid long-term opportunities Fuel price pressure easing but not over ▪ The last quarter has brought some relief in fuel and Contracting for gas and liquid fuelled power raw material prices whereas rising interest rates plants <500 MW have come to cause further uncertainty. M

  6. Slide 6: Order intake increased by 26%

    Order intake increased by 26% Equipment Services Equipment order MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling intake increased by 31% 1,600 4,000 1,600 4,000 1,400 3,500 1,400 3,500 Service order intake 1,200 3,000 1,200 3,000 increased by 21% 1,000 2,500 1,000 889 2,500 850 800 2,000 800 691 732 2

  7. Slide 7: Strong order book, rolling book-to-bill continues above 1

    Strong order book, rolling book-to-bill continues above 1 Order book by business Order book delivery schedule MEUR MEUR 8,000 1.30 4,000 7,000 1.20 3,500 6,000 1.10 3,000 5,000 1.00 2,500 4,000 0.90 2,000 3,000 0.80 1,500 2,000 0.70 1,000 1,000 0.60 500 0 0.50 0 31.3.2021 30.9.2021 31.3.2022 30.9.20

  8. Slide 8: First quarter highlights

    First quarter highlights Net sales Comparable operating result Net sales increased by MEUR MEUR, 12m rolling MEUR %, 12m rolling 19% 2,000 7,000 180 12.0% Comparable operating 1,800 6,000 160 10.0% result increased by 1,600 1,465 5,000 140 34% 1,400 1,231 120 8.0% 1,200 4,000 100 946 88 1,000 6.0% 3

  9. Slide 9: Net sales increased by 19%

    Net sales increased by 19% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling Equipment net sales 1,100 3,500 1,100 3,500 increased by 22% 1,000 1,000 3,000 3,000 900 900 Service net sales 800 729 2,500 800 736 2,500 increased by 17% 700 700 631 600 600 2,000 600 540 2,000 500 1,500 50

  10. Slide 10: Technology and partnership highlights

    Technology and partnership highlights Enabling industry decarbonisation A new radical derating retrofit solution – Wärtsilä Fit4Power ▪ Extends the emissions-compliant lifetime of merchant vessels by significantly improving combustion efficiency (by up to 15%). ▪ Reduces both fuel consumption and gr

  11. Slide 11: Marine Power

    waar é i Wl + J J ( Marine Power " © WARTSILA

  12. Slide 12: Marine Power: good development in services

    Marine Power: good development in services Service order intake increased by 15% and service net sales increased by 18% Order intake Comparable operating result Comparable operating result +11% 12m rolling MEUR MEUR 2,779 MEUR MEUR 12m rolling 8.3% 90 12.0% 1,000 3,000 800 738 666 80 2,000 600 446 1

  13. Slide 13: Good development in Marine Power service agreements

    Good development in Marine Power service agreements Net sales from installations under agreement strongly increasing MEUR, 12m rolling Celebrity Cruises’ new ship leads the cruise 500 industry into a new era of alternative fuel use 450 ▪ Wärtsilä’s scope includes two 8-cylinder W46F engines capable

  14. Slide 14: Marine Systems

    Marine Systems © WARTSILA

  15. Slide 15: Marine Systems: order intake increased

    Marine Systems: order intake increased Net sales and comparable operating result declined Order intake Comparable operating result Comparable operating result 12m rolling +21% MEUR MEUR 696 MEUR MEUR 12m rolling 6.5% 400 1,000 30 12.0% 300 800 239 198 600 200 153 25 10.0% 400 100 200 + Good developm

  16. Slide 16: Energy

    X < 2 a i 4 S Energy © WARTSILA 16

  17. Slide 17: Energy: all key figures improved

    Energy: all key figures improved Service order intake increased by 38%, service net sales increased by 17% Order intake Comparable operating result Comparable operating result +47% 12m rolling MEUR MEUR 2,849 MEUR MEUR 12m 12mrolling rolling3.5% 1,200 4,000 70 7.3% 9.0% 1,000 744 3,000 800 60 8.0% 6

  18. Slide 18: Continued growth in energy storage

    Continued growth in energy storage Profitability improving, rolling 12 months comparable operating result margin is now -3% Quarterly development Rolling 12 months development MEUR MEUR % of net sales 400 1,200 5 350 4 328 992 321 1,000 892 3 300 281 785 807 2 257252 800 745 775 245 250 1 203 628 61

  19. Slide 19: Wärtsilä to deliver a first-of-a-kind energy storage project in the United Kingdom

    Wärtsilä to deliver a first-of-a-kind energy storage project in the United Kingdom ▪ The 200-megawatt (MW) / 400-megawatt hour (MWh) energy storage system will be delivered to Zenobē, an electric vehicle fleet and battery storage specialist. ▪ The first project in the world to deliver stability serv

  20. Slide 20: Continued good development in Energy service agreements

    Continued good development in Energy service agreements MW 20,000 29% Agreement renewal with Brazilian utility Rio Amazonas Energia (RAESA) 18,000 28% 16,000 27% ▪ The Operations & Maintenance agreement provides support 14,000 for the Cristiano Rocha power plant in Manaus, Brazil 26% 12,000 25% ▪ Th

  21. Slide 21: Comparable operating result improved – biggest improvement in Marine Power

    Comparable operating result improved – biggest improvement in Marine Power MEUR % of net sales Comparable operating 6.0% result increased by 1.2% 34% (-4.4) 3.7% 5.1% 5.3% (7.6) (4.5) 7.6% (5.8) Comparable Marine Marine Energy Portfolio Comparable operating result Power Systems Business operating re

  22. Slide 22: Other key financials

    Co WARTSILA Other key financials 2 © WARTSILA

  23. Slide 23: Other key financials

    Other key financials MEUR 1-3/2023 1-3/2022 Cash flow from operating activities 145 -122 Working capital 105 -18 Net interest-bearing debt 477 276 Gearing 0.24 0.14 Solvency, % 33.4 35.3 Basic earnings/share, EUR 0.09 -0.24 23 ©

  24. Slide 24: Cash flow from operating activities increased

    Cash flow from operating activities increased Cash flow from operating activities Working capital to net sales ratio MEUR MEUR, 12m rolling MEUR 800 800 300 10% 243 700 700 250 8% 600 600 200 6% 500 500 150 105 400 400 4% 100 300 300 50 2% 200 145 200 0 100 67 100 0% -50 -18 0 0 -2% -100 -100 -100 -

  25. Slide 25: Prospects

    Prospects Marine ▪ Wärtsilä expects the demand environment for the next 12 months (Q2/2023-Q1/2024) to be similar to that of the comparison period. Energy ▪ Wärtsilä expects the demand environment for the next 12 months (Q2/2023-Q1/2024) to be similar to that of the comparison period. 25 ©

  26. Slide 26: Q&A

    Q&A 26 ©

  27. Slide 27: Appendix

    Appendix 27 ©

  28. Slide 28: Order intake

    Order intake First quarter development 1% (1) 42% Marine Power 43% (48) Marine Systems Order intake Services Order intake 49% (37) by business by business type 51% Equipment Energy (47) (53) Portfolio Business 14% (14) 28 ©

  29. Slide 29: Net sales

    Net sales First quarter development 1% (1) Marine Power 44% Services Net sales (42) Marine Systems Net sales 44% 50% 50% by business by business type Equipment (43) Energy (49) (51) Portfolio Business 11% (13) 29 ©

  30. Slide 30: First quarter development by business type

    First quarter development by business type Order intake Net sales 24% Spare parts Spare parts 29% (29) (31) Field service Field service Marine Marine 42% Service agreements 44% Service agreements Businesses Businesses (41) (44) EUR 799 million Service projects EUR 977 million Service projects (678)

  31. Slide 31: January–March order intake by customer segment

    January–March order intake by customer segment Special Marine Businesses Gas carriers Cruise & ferry Offshore Navy vessels Merchant Other Marine Power Equipment 11% (9) 29% (22) 4% (6) 18% (4) 3% (22) 31% (32) 4% (4) Services 19% (14) 21% (26) 18% (12) 7% (7) 10% (10) 22% (27) 3% (4) Marine Systems

  32. Slide 32: Orders received for Energy equipment globally

    Orders received for Energy equipment globally Europe 212 (49) Asia 8 (21) Americas Utilities 144 (124) IPP’s Africa and (Independent Middle East Power Producers) 48 (71) Industrials Others Equipment order intake 1-3/2023: MEUR 411 (265) 32 ©

  33. Slide 33: Wärtsilä

    re, WARTSILA

Wartsila Oyj Abp — Q1 2023 Earnings Presentation on 6ix