Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — Q1 2014 Earnings Presentation

32 slides from Wartsila Oyj Abp's earnings presentation, Apr 24, 2014

  1. Slide 1: Wärtsilä Corporation Interim Report January-March 2014

    WÄRTSILÄ CORPORATION INTERIM REPORT JANUARY-MARCH 2014 24 APRIL 2014 Björn Rosengren, President & CEO © Wärtsilä

  2. Slide 2: Highlights Q1/2014

    Highlights Q1/2014 • Order intake EUR 1,142 million, -16% • Net sales EUR 1,012 million, +15% • Book-to-bill 1.13 • EBIT EUR 90 million, 8.9% of net sales (EUR 70 million or 8.0%) • EPS EUR 0.31 (0.37) NEW • Cash flow from operating activities PIC EUR 111 million (84) • Efficiency program proceeding

  3. Slide 3: Order intake affected by challenging power plant markets

    Order intake affected by challenging power plant markets MEUR 5500 5000 4500 4000 First quarter development MEUR 3500 1,352 1,142 1400 3000 -16% 1200 2500 1% 1000 Services 2000 800 Ship Power 1500 600 5% Power Plants 1000 400 500 -59% 200 0 0 2010 2011 2012 2013 1-3/2014 Q1/2013 Q1/2014 Q1 Q2-Q4 3 ©

  4. Slide 4: Net sales in line with our expectations

    Net Net sales increased by sales in line with our expectations 15% MEUR 5000 4500 4000 -7.6% 12% -1% 3500 First quarter development MEUR 3000 1200 1,012 2500 1000 882 15% 2000 800 Services 0% 1500 Ship Power 600 Power Plants 1000 400 54% 500 200 -6% 0 0 2010 2011 2012 2013 1-3/2014 Q1/2013 Q1/2014 Q

  5. Slide 5: Net sales by business 1-3/2014

    Net sales by business 1-3/2012 Net sales by business 1-3/2014 Ship Power 38% (28) Services 43% (49) Power Plants 19% (23) 5 © Wärtsilä

  6. Slide 6: Book-to-bill ratio remains above one

    Book-to-bill ratio remains above one MEUR 5500 1,2 1.13 1.07 1.05 1.05 5000 4500 1,0 0.88 4000 0,8 3500 3000 0,6 2500 2000 0,4 1500 1000 0,2 500 0 0,0 2010 2011 2012 2013 1-3/2014 Order intake Net sales Book-to-bill 6 © Wärtsilä

  7. Slide 7: Order book distribution

    Order book distribution Order book distribution MEUR 3500 3000 2500 2000 1500 1000 500 0 31.03.2013 31.03.2014 Delivery current year Delivery next year or later 7 © Wärtsilä

  8. Slide 8: Profitability in line with expectations

    Profitability in line with expectations MEUR 600 14% 12% 500 11.1% 11.2% 10.7% 10.9% 10% First quarter development 400 MEUR 8% 100 10% 8.9% 300 8.0% 80 8% 6% 200 60 6% 4% 40 4% 100 2% 20 2% 0 0% 0 0% 2010 2011 2012 2013 Q1/2013 Q1/2014 EBIT before non-recurring items EBIT% before non-recurring items

  9. Slide 9: Continued uncertainty in the power generation markets

    Continued uncertainty in the power generation markets 9 © Wärtsilä

  10. Slide 10: Power Plants quotation activity remains on a good level

    Power Plants quotation activity remains on a good level Quoted MW per Fuel Type 16000 14000 12000 10000 Others MW 8000 Natural gas 6000 4000 Heavy fuel oil 2000 0 Q1 Q2 Q4 Q1 Q3 Q4 Q1 Q3 Q4 Q2 Q3 Q1 Q2 Q4 Q1 Q4 Q1 Q3 Q4 Q2 Q3 Q1 Q2 Q1 Q3 Q2 Q2 Q1 Q4 Q3 Q2 Q3 Q2 Q1 Q4 Q3 Q4 2005 2006 2007 2008 2009 2

  11. Slide 11: Power Plants order intake by customer segment

    Power Plants order intake by customer segment MEUR Review period development 2000 Total EUR 165 million (406) 1800 25% Utilities 1600 Industrials 51% 1400 IPP’s* 24% 1200 x% 1000 800 Review period order intake by fuel in MW 600 400 Oil 200 41% Gas 59% 0 2010 2011 2012 2013 1-3/2014 Q1 Q2-Q4 *IPP = I

  12. Slide 12: Power Plants global order intake

    Power Plants global order intake Africa and Middle East the most active region Europe Americas 91 (72) 67 (324) Asia 37 (50) Africa and Middle East 202 (314) Order intake 1-3/2014: 396 MW (760) 12 © Wärtsilä

  13. Slide 13: Market for gas and liquid based power plants

    Market for gas and liquid based power plants 2013 Total market 73.2 GW (75.4) 2.6% 1.1% 3.3% 2.9% GE Siemens 19.8% MHI 48.2% Wärtsilä Alstom Ansaldo 22.1% Other GTs Includes all Wärtsilä power plants and other manufacturers’ gas and liquid fuelled power plants with prime movers above 5 MW, as well a

  14. Slide 14: Marine market activity on a healthy level

    Marine market activity on a healthy level 14 © Wärtsilä

  15. Slide 15: Good activity in vessel contracting

    Good activity in vessel contracting Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT * 250 5 200 4 * 150 3 # of vessels Million CGT 100 2 50 1 0 0 11.11 09.12 01.09 03.09 05.09 07.09 09.09 01.10 03.10 05.10 07.10 09.10 01.12 03.12 05.12 07.12 01.13 03.13 05.13 07.13

  16. Slide 16: Ship Power order intake by segment

    Ship Power order intake by segment MEUR 1800 Review period development Total EUR 467 million (443) 1500 1200 Offshore 33% Merchant 62% 900 600 Special vessels 4% 300 Others 2% 0 2010 2011 2012 2013 1-3/2014 Q1 Q2-Q4 16 © Wärtsilä

  17. Slide 17: Wärtsilä's 2-stroke, dual-fuel engine chosen to power a new LNG carrier

    Wärtsilä’s 2-stroke, dual-fuel engine chosen to power a new LNG carrier • Order received for Wärtsilä’s 2-stroke, dual-fuel engine and gas valve unit • The vessel will be built in China for the Chinese ship owner and operator Zhejiang Huaxiang Shipping Co. Ltd. NEW • Benefits of low-pressure, dual-f

  18. Slide 18: Joint venture ordering activity

    Joint venture ordering activity MEUR 600 • Joint venture order intake totalled 550 EUR 25 million (25) during 500 January-March 2014 450 • Wärtsilä’s share of ownership in 400 these companies is 50%, and the 350 results are reported as a share of 300 result of associates and joint ventures 250 200 1

  19. Slide 19: 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 1%(2) 3%(4) Wärtsilä Others 9%(10) 20%(19) Wärtsilä Caterpillar 51%(52) 6%(4) MAN D&T Others 23%(25) MAN D&T 90%(88) 97%(96) Total market volume last

  20. Slide 20: Steady demand in marine and power plant service markets

    Steady demand in marine and power plant service markets 20 © Wärtsilä

  21. Slide 21: Services net sales development stable

    Services net sales development stable MEUR 2000 1800 0% 5% -3% First quarter development 1600 MEUR 1400 600 1200 0% 500 434 435 1000 400 800 300 600 400 200 200 100 0 0 2010 2011 2012 2013 1-3/2014 Q1/2013 Q1/2014 Q1 Q2-Q4 21 © Wärtsilä

  22. Slide 22: Services net sales distribution 1-3/2014

    Services net sales distribution 1-3/2014 Field service 24%(27) Spare parts 53%(50) Contracts 17%(16) Projects 6%(6) Total EUR 435 million (434) 22 © Wärtsilä

  23. Slide 23: Australian FPSO optimises propeller design

    Australian FPSO optimises propeller design • Order for the technical design and installation of a new fixed pitch propeller for an FPSO conversion project • The vessel is operated by Woodside Energy Ltd, an independent Australian oil and gas company • Fast-track project execution a key customer NEW

  24. Slide 24: Development of Power Plants service agreements

    Development of Power Plants service agreements MW 4000 90% 3500 80% 70% 3000 57% 58% 57% 60% 2500 51% 49% 50% 2000 40% 1500 30% 1000 20% 500 10% 0 0% 2010 2011 2012 2013 Q1/2014 12m rolling O&M and maintenance agreements Power Plants deliveries % of delivered MWs 24 © Wärtsilä

  25. Slide 25: Fleet utilisation

    Fleet utilisation Fleet utilisation Anchored Vessels & Fleet Development* 35% 22500 Nr of Active Vessels Percent Anchored 30% 22000 25% 21500 20% 21000 15% 20500 09.11 12.11 03.12 06.12 09.12 12.12 03.13 06.13 09.13 12.13 03.14 Anchored Active Fleet Fleet Average Speed, knots** 10,5 10,0 9,5 9,0 8,5

  26. Slide 26: Strong financial position

    Strong financial position 26 © Wärtsilä

  27. Slide 27: Favourable development in operating cash flow

    Favourable development in operating cash flow MEUR 700 600 First quarter development 500 MEUR 150 400 125 300 100 75 200 50 100 25 0 0 2010 2011 2012 2013 Q1/2013 Q1/2014 27 © Wärtsilä

  28. Slide 28: Focus on working capital development

    Focus on working capital development MEUR 2000 25% 1800 1600 20% 1400 1200 15% 1000 9.8% 800 10% 6.7% 600 6.1% 5.6% 465 400 313 5% 235 292 2.6% 200 118 0 0% 2010 2011 2012 2013 31.3.2014 Working capital Total inventories Advances received Working capital / Net sales 28 © Wärtsilä

  29. Slide 29: 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% 2010 2011 2012 2013 31.3.2014 -0,10 2010 2011 2012 2013 31.3.2014 29 © Wärtsilä

  30. Slide 30: Market outlook

    Market outlook • Power Plants: Although customers are still delaying their decision-making, the forecasted GDP growth in 2014 is expected to result in a NEW slightly improved overall market for liquid and gas fuelled power generation. Ordering activity PIC remains focused on the emerging markets. •

  31. Slide 31: Prospects for 2014 unchanged

    Prospects for 2014 unchanged Wärtsilä expects its net sales for 2014 to grow by 0-10% and its operational profitability (EBIT% before non-recurring items) to be around 11%. 31 © Wärtsilä

  32. Slide 32: IR Contact: Natalia Valtasaari, Director, Investor Relations

    IR Contact: Natalia Valtasaari Director, Investor Relations Tel. +358 (0) 40 187 7809 E-mail: natalia.valtasaari@wartsila.com

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