Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wartsila Corp B Shs — H1 2024 Earnings Presentation

30 slides from Wartsila Oyj Abp's earnings presentation, Jul 19, 2024

  1. Slide 1: Wärtsilä Corporation Half-year result presentation 2024

    Wärtsilä Corporation Half-year result presentation 2024 Håkan Agnevall, President & CEO Arjen Berends, CFO 19 July 2024 1 ©

  2. Slide 2: Order intake, profitability and cash flow all improved

    Order intake, profitability and cash flow all improved ▪ Net sales increased by 7% ▪ Order intake increased by 10% ▪ Order book continues at all-time high (7,607 MEUR) ▪ Comparable operating result increased by 63% ▪ Double-digit comparable operating margin ▪ Good progress in services continued: ▪ S

  3. Slide 3: Good development in key figures

    Good development in key figures MEUR 4-6/2024 4-6/2023 CHANGE 1-6/2024 1-6/2023 CHANGE Order intake 1,854 1,687 10% 3,778 3,427 10% of which services 982 913 8% 1,931 1,802 7% of which equipment 872 774 13% 1,847 1,625 14% Order book 7,607 6,249 22% of which current year deliveries 2,967 2,589 Net s

  4. Slide 4: Marine: market sentiment is positive for Wärtsilä's key segments

    Marine: market sentiment is positive for Wärtsilä’s key segments Continued good appetite for new ships in the second quarter ▪ The number of vessels ordered in H1 increased to 1,069 (773 Total and specialised vessel contracting in the corresponding period in 2023, excluding late reporting Number of

  5. Slide 5: Energy: solid mid to long-term market opportunities

    Energy: solid mid to long-term market opportunities Continued uncertainty in the market environment in the second quarter ▪ Macroeconomic development in Q2 was influenced by Development on installed wind and solar protectionist policies, with trade risks elevated by developments capacity ** such as

  6. Slide 6: Organic order intake increased by 12%

    Organic order intake increased by 12% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling Order intake increased by 10% 1,600 4,000 1,600 4,000 1,400 3,500 1,400 3,500 Equipment order intake 1,200 3,000 1,200 3,000 increased by 13% 982 1,000 872 2,500 1,000 913 2,500 Service order intak

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

    Record high order book, rolling book-to-bill continues above 1 Order book delivery schedule in Marine is slightly longer due to constraints in shipyard capacity Order book by business Order book delivery schedule MEUR MEUR 8,000 1.6 3,500 7,000 1.4 3,000 6,000 1.2 2,500 5,000 1.0 2,000 4,000 0.8 1,5

  8. Slide 8: Organic net sales increased by 9%

    Organic net sales increased by 9% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling Net sales increased by 1,100 3,500 1,100 3,500 7% 1,000 1,000 3,000 3,000 900 900 807 834 Equipment net sales 800 800 712 722 2,500 696 2,500 increased by 12% 700 647 700 2,000 2,000 600 600 Service ne

  9. Slide 9: Profitability continued to improve

    Profitability continued to improve Net sales Comparable operating result MEUR MEUR, 12m rolling MEUR %, 12m rolling Net sales increased by 2,000 6,400 200 176 12.0% 7% 1,800 5,600 180 1,600 1,454 1,556 160 10.0% Comparable operating 1,407 4,800 1,400 140 8.0% result increased by 63% 1,200 4,000 120

  10. Slide 10: Technology and partnership highlights

    Technology and partnership highlights Enabling industry decarbonisation Wärtsilä launches world’s first large-scale 100% hydrogen-ready engine power plant concept ▪ 100% hydrogen-ready engine power plant concept based on the Wärtsilä 31 engine platform is certified by TÜV SÜD ▪ TÜV SÜD’s certificati

  11. Slide 11: Marine

    Marine 11 ©

  12. Slide 12: Marine: Good performance continued

    Marine: Good performance continued Order intake, net sales and comparable operating result increased Order intake +17% Comparable operating result Comparable operating result 12m rolling MEUR MEUR 3,563 MEUR MEUR 12m rolling 12.1% 1,000 901 4,000 120 14.0% 771 800 3,000 103 600 + Higher service 12.0

  13. Slide 13: Good development in Marine service

    Good development in Marine service Marine net sales to agreement installations increasing Net sales to agreement installations (12 month rolling)1) MEUR, 12m rolling Success in retrofits Wärtsilä to convert two Scandlines ferries 550 to plug-in hybrid operation 500 ▪ Wärtsilä will supply the electri

  14. Slide 14: Energy

    © WARTSILA Energy 14 © WARTSILA,

  15. Slide 15: Energy: Comparable operating result increased

    Energy: Comparable operating result increased Equipment order intake decreased driven by lower orders in ES&O while orders in EPP increased Order intake Comparable operating result Comparable operating result -6% 12m rolling MEUR MEUR 3,025 MEUR MEUR 12m 12mrolling 10.6% rolling 1,000 3,200 7.3% 100

  16. Slide 16: Energy Storage & Optimization: Comparable operating result margin continued to improve

    Energy Storage & Optimization: Comparable operating result margin (12m rolling) continued to improve Quarterly development Rolling 12 months development MEUR MEUR % of net sales 400 1,400 3.0 350 321 328 1,200 2.0 1056 1034 300 992 1022 275 271 1,000 975 961 983 992 257 261 263 926 245 892 1.0 252 2

  17. Slide 17: Energy service agreements coverage continues to improve

    Energy service agreements coverage continues to improve MW under agreement globally MW Wärtsilä service agreement central to 19,000 35% maintaining Nigerian cement plant’s 18,000 30% production schedule 17,000 25% ▪ Wärtsilä has signed a ten-year Operations and 16,000 Maintenance (O&M) Agreement for

  18. Slide 18: Comparable operating result improved – increase in all businesses

    Comparable operating result improved – increase in all businesses: Marine, Energy and Portfolio Business MEUR % of net sales 4.6% (-15.3%) 11.3% Comparable operating 10.5% result increased by 63% (7.1%) 13.5% (11.5%) Comparable operating 7.4% margin-% typically reaches its high in Q4. In 2024, we do

  19. Slide 19: Other key financials

    Pa) WARTSILA Other key financials 19 © WARTSILA

  20. Slide 20: Other key financials: Strong cash flow from operating activities

    Other key financials: Strong cash flow from operating activities MEUR 4-6/2024 4-6/2023 1-6/2024 1-6/2023 Cash flow from operating activities 216 75 475 219 Working capital -420 134 Net interest-bearing debt -250 462 Gearing -0.11 0.23 Solvency, % 35.3 33.5 Earnings per share (EPS), basic and dilute

  21. Slide 21: Strong cash flow from operating activities

    Strong cash flow from operating activities Cash flow from operating activities Working capital to net sales ratio MEUR MEUR, 12m rolling MEUR 500 1200 300 6% 200 168 4% 400 1000 134 100 2% 300 800 216 0 0% 200 600 -100 -2% 100 75 400 -200 -4% 0 200 -300 -6% -100 0 -90 -400 -8% -200 -200 -420 -500 -1

  22. Slide 22: Prospects

    Prospects Marine ▪ Wärtsilä expects the demand environment for the next 12 months (Q3/2024–Q2/2025) to be better than that of the comparison period. Energy ▪ Wärtsilä expects the demand environment for the next 12 months (Q3/2024–Q2/2025) to be better than that of the comparison period. 22 ©

  23. Slide 23: WARTSILA

    co WARTSILA

  24. Slide 24: Appendix

    WARTSILA Appendix 24 © WARTSILA

  25. Slide 25: Order intake

    Order intake Second quarter development 13% (10) 49% Marine Services Order intake (46) 47% Order intake by business Energy (46) by business type 53% Equipment (54) 38% Portfolio Business (44) 25 ©

  26. Slide 26: Net sales

    Net sales Second quarter development 12% (8) Marine 49% Services Net sales 46% Net sales (48) Energy Equipment by business (45) by business type 54% Portfolio Business (55) 40% (44) 26 ©

  27. Slide 27: Second quarter development by business type

    Second quarter development by business type Order intake Net sales 27% Spare parts 30% Spare parts (31) (33) Field service Field service 32% 34% (31) Marine Service agreements (33) Marine Service agreements EUR 759 million EUR 901 million Service projects Service projects (701) (771) Equipment Equip

  28. Slide 28: January–June order intake by customer segment

    January–June order intake by customer segment Marine Gas carriers Cruise & ferry Offshore Navy Special vessels Merchant Other Equipment 5% (8) 27% (22) 5% (5) 6% (12) 13% (5) 38% (45) 6% (3) Services 14% (15) 23% (22) 15% (17) 10% (8) 11% (11) 26% (26) 1% (2) Total 11% (12) 24% (22) 11% (13) 9% (9)

  29. Slide 29: Orders received for Energy equipment globally

    Orders received for Energy equipment globally Europe 177 (257) Americas Asia 359 (219) 270 (294) Utilities IPP’s (Independent Africa and Power Producers) Middle East Industrials 27 (48) Others Equipment order intake 1-6/2024: MEUR 832 (818) 29 ©

  30. Slide 30: WARTSILA

    re, WARTSILA

Wartsila Corp B Shs — H1 2024 Earnings Presentation on 6ix