Slide 1: Interim Report January-March 2013
INTERIM REPORT JANUARY-MARCH 2013 BJÖRN ROSENGREN, PRESIDENT & CEO 18 APRIL 2013 © Wärtsilä
Slide 2: Highlights Q1/2013
Highlights Q1/2013 • Order intake EUR 1,352 million, +22% • Net sales EUR 882 million, -12% • Order book EUR 4,998 million, +13% • Book-to-bill 1.53 • EBITA EUR 79 million, 8.9% of net sales NEW • Operating result (EBIT) EUR 70 million, PIC 8.0% of net sales • EPS EUR 0.37 • Cash flow from operating
Slide 3: Strong growth in order intake
Strong growth in order intake MEUR 5500 5000 4500 4000 First quarter development MEUR 3500 1 352 1400 3000 1 109 1200 22% 2500 1000 -4% Services 2000 800 Ship Power 1500 600 60% Power Plants 1000 400 500 31% 200 0 0 2009 2010 2011 2012 1-3/2013 Q1/2012 Q1/2013 3 © Wärtsilä
Slide 4: Net sales in line with our expectations
Net sales in Net sales developed according toline with our expectations expectations MEUR 5500 5000 -13% 4500 12% 4000 First quarter development -7.6% 3500 MEUR 1400 3000 1200 2500 1 005 -12% 1000 882 Services 2000 800 -12% Ship Power 1500 600 Power Plants 1000 3% 400 500 200 -26% 0 0 2009 2010 2011
Slide 5: Net sales by business 1-3/2013
Net sales by business 1-3/2012 Net sales by business 1-3/2013 Ship Power 28% (24) Services 49% (49) Power Plants 23% (27) 5 © Wärtsilä
Slide 6: Book-to-bill ratio remains above one
Book-to-bill ratio remains above one MEUR 6000 1,8 5500 1.53 1,6 5000 1,4 4500 4000 1,2 1.07 1.05 3500 0.88 1,0 3000 0,8 2500 0.63 2000 0,6 1500 0,4 1000 0,2 500 0 0,0 2009 2010 2011 2012 1-3/2013 Order intake Net sales Book-to-bill 6 © Wärtsilä
Slide 7: Order book distribution
Order book distribution Solid order book supports prospects MEUR 4000 3000 2000 1000 0 31.3.2012 31.3.2013 Delivery current year Delivery next year or later 7 © Wärtsilä
Slide 8: Profitability impacted by low level of deliveries
Profitability impacted by low level of deliveries MEUR 250 16% 14% 12.8% 200 11.5% 11.7% EBIT% 11.0% 12% 12.1% target: 11.1% 10-14% 10.7% 10.9% 10% 150 8.9% 8% 8.0% 100 6% 4% 50 2% 0 0% 2009 2010 2011 2012 2013 Q1 Q2 Q3 Q4 EBITA% (operating result before non-recurring items and intangible asset amor
Slide 9: Power Plants order intake increased by 31%
Power Plants order intake increased by 31%
Slide 10: Quotation activity remains focused on gas
Quotation activity remains focused on gas Quoted MW per Fuel Type 16000 14000 12000 10000 Others MW 8000 6000 Natural gas 4000 Heavy fuel oil 2000 0 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q4 Q1 2005 2006 2007 2008 2009 2010 2011 2012 2013 Share o
Slide 11: Power Plants order intake
Power Plants 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 First quarter development 2000 Total EUR 406 million (309) 1800 30% 10% Utilities 1600 Industrials 1400 IPP’s 1200 x% 60% 1000 800 Q1/2013 order intake by fuel in MW 600 400 Oil Gas 200 18% 82% 0 2009 2010 2011 2012 1-3/2013 12 © Wärtsilä
Slide 13: Major power plant order from USA
Major power plant order from USA • Order to supply the generating sets and related auxiliary equipment for a new 220 MW power plant in Oregon, USA • Scope of supply 12 Wärtsilä 50SG natural NEW gas fuelled engines PIC • Scheduled to be fully operational by 2015 • Wärtsilä 50SG engines offer high eff
Slide 14: Power Plants - global order intake
Power Plants - global order intake Europe 72 (5) Asia 50 (212) 28 44 Americas 324 (257) 50 10 47 Africa and Middle East 314 (134) 268 Utilities IPP’s Industrials 314 Order intake 1-3/2013: 760 MW (608) 14 © Wärtsilä
Slide 15: Market for gas and liquid based power plants
Market for gas and liquid based power plants 2012 Total market 75.4 GW 4.2% 3.8% 3.6% GE Siemens 4.8% MHI 34.2% Alstom 20.6% Wärtsilä Ansaldo 28.8% Other GTs Includes all Wärtsilä power plants and other manufacturers’ gas and liquid fuelled power plants with prime movers above 5MW, as well as estima
Slide 16: Robust activity in offshore and specialised vessels
Robust activity in offshore and specialised vessels
Slide 17: Vessel order development
Vessel order development Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT * 140 4 120 3 100 * # of vessels Million CGT 80 2 60 40 1 20 0 0 Source: Clarkson Research Services * CGT= gross tonnage compensated with workload 17 © Wärtsilä
Slide 18: Ship Power order intake increased by 60%
Ship Power order intake increased by 60% MEUR 1600 First quarter development Total EUR 443 million (276) 1200 Merchant Offshore 23% 50% 800 Special vessels 9% 400 Cruise & ferry 10% Navy 8% 0 2009 2010 2011 2012 1-3/2013 18 © Wärtsilä
Slide 19: Repeat order from Messina for exhaust gas cleaning systems
Repeat order from Messina for exhaust gas cleaning systems • Order to supply exhaust gas cleaning systems for four new Container Ro/Ro vessels being built for Ignazio Messina & Co, Italy • The systems will enable compliance with both NEW current and pending environmental legislation PIC – In SECAs 0
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 Diesel 450 Company Ltd in China totalled 400 EUR 25 million (54) during the 350 review period January-March 2013 300 • Wärtsilä’s share of ownership in 250 these
Slide 21: Market position of Wärtsilä's marine engines
Market position of Wärtsilä’s marine engines Medium-speed main engines Low-speed main engines Auxiliary engines Mitsubishi Wärtsilä 2%(2) 4%(4) Wärtsilä Others 15%(18) 29%(25) Wärtsilä 48%(47) MAN Diesel Others 19%(23) Caterpillar MAN Diesel 96%(96) (MAK) 83%(80) 4%(5) Total market volume last 12 mo
Slide 22: Service market outlook remains stable
Service market outlook remains stable
Slide 23: Services net sales development
Services net sales development MEUR 2000 1800 0% 0% 5% First quarter development 1600 MEUR 1400 600 -12% 1200 492 500 434 1000 400 800 300 600 200 400 200 100 0 0 2009 2010 2011 2012 1-3/2013 Q1/2012 Q1/2013 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 1-3/2013
Services net sales distribution 1-3/2013 Field service 23%(23) Spare parts 54%(52) Contracts 16%(13) Projects 7%(12) Total EUR 434 million (492) 25 © Wärtsilä
Slide 26: Five year maintenance agreement for Viking Grace
Five year maintenance agreement for Viking Grace • Agreement signed for maintaining and servicing ‘Viking Grace’, the world’s largest NEW LNG fuelled passenger ferry • The agreement covers four Wärtsilä 50DF PIC engines and the Wärtsilä LNGPac gas system's safety valves • Target to extend maintenanc
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% 2500 45% 50% 2000 40% 1500 30% 1000 20% 500 10% 0 0% 2009 2010 2011 2012 Q1/2013 12m rolling O&M and maintenance agreements Power Plants deliveries % of delivered MWs 27 © Wärtsilä
Slide 28: Fleet utilisation
Fleet utilisation Fleet utilisation Anchored* & Idle Vessels**, % of fleet 26% 22% 18% 14% 10% 6% 2% Aug.12 Sep.12 Dec.12 Oct.11 Dec.11 Nov.12 Aug.11 Sep.11 May.12 Jul.12 Apr.12 Jan.12 Jun.12 Jan.13 Feb.12 Feb.13 Nov.11 Oct.12 Mar.12 Mar.13 Anchored Idle Fleet Average Speed***, knots 10,5 10,0 9,5 9
Slide 29: Cash flow from operating activities
Cash flow from operating activities MEUR 700 600 500 400 300 200 100 0 2009 2010 2011 2012 1-3/2013 29 © Wärtsilä
Slide 30: Net working capital development
Net working capital development MEUR 2000 25% 1800 1600 20% 1400 1200 15% 12.6%* 1000 9.8% 800 9.2% 10% 600 6.8% 5.8% 486 465 446 400 5% 267 3.7% 235 200 118 0 0% 2008 2009 2010 2011 2012 31.3.2013 Net Working Capital Total Inventories Advances Received Net Working Capital / Net sales * Working Capi
Slide 31: Committed loans March 2013
Committed loans 31 March 2013 MEUR 1600 1400 1200 579 1000 Total EUR 890 million 800 219 drawn 600 92 400 578 200 0 Drawn long- Current portion of Drawn short- Undrawn term loans long-term loans term loans revolving credits At the end of the reporting period, drawn revolving credits amounted to 0 eu
Slide 32: 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 31.3.2013 -0,10 2009 2010 2011 2012 31.3.2013 32 © Wärtsilä
Slide 33: Market outlook
Market outlook • Power Plants: The overall market for natural gas and liquid fuel based power generation in 2013 is expected to be similar to 2012. NEW • PIC Ship Power: The outlook for the shipping and ship building market in 2013 is cautious, although market conditions are expected to be better th
Slide 34: Prospects for 2013 unchanged
Prospects for 2013 unchanged Wärtsilä expects its net sales for 2013 to grow by 0-10% and its operational profitability (EBIT% before non-recurring items) to be around 11%.
Slide 35: IR Contact
IR Contact: Natalia Valtasaari Director, Investor Relations Tel. +358 (0) 40 187 7809 E-mail: natalia.valtasaari@wartsila.com