Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (November 2023)
11 slides from Wartsila Oyj Abp's investor day presentation, Nov 9, 2023
Slide 1: Good progress towards financial targets with improving trend in profitability
Good progress towards financial targets with improving trend in profitability Arjen Berends Executive Vice President & CFO November 9, 2023 1 ©
Slide 2: Strong commitment and a clear path to reach our financial targets
Strong commitment and a clear path to reach our financial targets 12% Operating margin 5% 1 2 3 Annual organic growth Key focus on Decarbonisation – Clear capital improving profitability a key driver for organic growth allocation principles <0.5 Gearing ≥50% Dividend of earnings 2 ©
Slide 3: Good financial progress made despite headwinds
Good financial progress made despite headwinds ✓ ~ ✓ ✓ Net sales Profitability Capital structure Dividend Equipment (EURbn) Comparable operating margin Gearing DPS (EUR) Services (EURbn) Operating margin (in brackets DPS/EPS ratio) +5% 23% 7.7%1) 0.24 (73%) 0.26 (neg. EPS) 5.8 6.1 6.2%1) 6.0%1) 17%
Slide 4: Marine & Energy Engine Power Plants combined have double digit profitability
Marine & Energy Engine Power Plants combined have double digit profitability. Energy Storage & Optimisation is now profitable Group simulation (LTM Q3/2023), net sales EURbn Comparable operating margin 10.5% 0.3% 8.7% 7.7% LTM Q3/2023 Operating margin 10.0% 0.1% 8.2% 6.0% LTM Q3/2023 Net sales CAGR
Slide 5: Improving profitability, continuing growth and reiterating clear capital allocation principles
Improving profitability, continuing growth and reiterating clear capital allocation principles Key focus on improving Decarbonisation – a key Value creating M&A Strong dividends profitability driver for organic growth ▪ Strong focus on quality ▪ Industry-leading ▪ Current focus mainly on ▪ Dividend
Slide 6: Energy transition and decarbonisation driving our >5% organic growth target
Energy transition and decarbonisation driving our >5% organic growth target LTM Q3/2023 net sales EUR 6.1bn Drivers of net sales growth1) Share of absolute growth ▪ Energy Storage & Optimisation − Fast growing demand for energy storage and power system optimisation solutions ▪ Marine newbuild driven
Slide 7: Services and decarbonisation key drivers towards 12% operating margin
Services and decarbonisation key drivers towards 12% operating margin LTM Q3/2023 operating margin 6.0%1) Drivers of improved profitability2) Share of absolute improvements ▪ Moving up the service value ladder in Marine and Energy ▪ Marine new build driven by decarbonisation ▪ Energy Engine Power Pl
Slide 8: Strong balance sheet and financial position to support strategy execution
Strong balance sheet and financial position to support strategy execution Cash flow from operating Working capital (EURm) Gearing Solvency ratio activities (EURm) % of sales Net interest-bearing debt Net interest bearing debt % of sales (EURm) (EURm) 30% 15% 15% 14% 8% 23% 4% 6% 3% -1% 1% 41% -2% 38
Slide 9: Strong commitment and a clear path to reach our financial targets
Strong commitment and a clear path to reach our financial targets 12% 5% <0.5 ≥50% Operating margin Annual organic Gearing Dividend of growth earnings 9 ©
Slide 10: Disclaimer
Disclaimer The information and conclusions in this presentation are based upon calculations, observations, assumptions, publicly available competitor information, and other information obtained by Wärtsilä or provided to Wärtsilä by its customers, prospective customers or other third parties (the ”i
Slide 11: WARTSILA
re, WARTSILA