Slide 1: Interim Report January-March 2012
INTERIM REPORT JANUARY-MARCH 2012 BJÖRN ROSENGREN, PRESIDENT & CEO 20 APRIL 2012
Slide 2: Highlights Q1/2012
Highlights Q1/2012 • Order intake EUR 1,109 million, +13% • Net sales EUR 1,005 million, -7% • EBIT EUR 102 million, 10.1% of net sales • EBITA EUR 109 million, 10.9% of net sales • EPS EUR 0.33 (0.38) • The acquisition of Hamworthy became effective on 31 January 2012 EBIT is shown excluding non-rec
Slide 3: Order intake increased by 13%
Order intake increased by 13% MEUR 6000 5500 5000 4500 First quarter development 4000 MEUR 1400 3500 1 109 3000 1200 979 13% 2500 1000 2000 800 - 5% 1500 600 1000 400 60% 500 200 22% 0 0 2008 2009 2010 2011 1-3/2012 Q1/2011 Q1/2012 Power Plants Ship Power Services 3 © Wärtsilä
Slide 4: Net sales in line with our expectations
Net sales in line with our expectations MEUR 5500 5000 14% -13% 4500 4000 -7.6% First quarter development 3500 MEUR 1400 -7% 3000 1200 1 083 2500 1 005 1000 2000 12% 800 1500 600 -19% 1000 400 500 200 -22% 0 0 2008 2009 2010 2011 1-3/2012 Q1/2011 Q1/2012 Power Plants Ship Power Services 4 © Wärtsilä
Slide 5: Net sales by business 1-3/2012
Net sales by business 1-3/2012 Ship Power 24% (27) Services 49% (41) Power Plants 27% (32) 5 © Wärtsilä
Slide 6: Book-to-bill ratio remains above one
Book-to-bill ratio remains above one MEUR 6000 1,4 5500 1.21 1,2 5000 1.10 1.07 4500 1,0 4000 3500 0.88 0,8 0.63 3000 2500 0,6 2000 0,4 1500 1000 0,2 500 0 0,0 2008 2009 2010 2011 1-3/2012 Order intake Net sales Book-to-bill 6 © Wärtsilä
Slide 7: Order book development
Order book development MEUR 7000 6000 20% 5000 4 409 4000 3 669 1% 3000 21% 2000 1000 31% 0 2008 2009 2010 2011 31.3.2011 31.3.2012 Power Plants Ship Power Services 7 © Wärtsilä
Slide 8: Order book distribution
Order book distribution MEUR 4000 3000 2000 1000 0 31.3.2011 31.3.2012 Delivery current year Delivery next year + 8 © Wärtsilä
Slide 9: Profitability
Profitability MEUR 250 16% 14% 12.8% 200 11.9% 11.5% EBIT% 11.0% 12% 12.1 % 10.9% target: 11.4 % 11.1 % 10-14% 10.7 % 10% 150 10.1 % 8% 100 6% 4% 50 2% 0 0% 2008 2009 2010 2011 2012 Q1 Q2 Q3 Q4 EBIT% before non-recurring items EBITA% before non-recurring items and intangible asset amortisation relat
Slide 10: Power Plants order intake increased by 22%
Power Plants order intake increased by 22%
Slide 11: High activity in gas based markets
High activity in gas based markets Quoted MW per Fuel Type 16000 14000 12000 Others MW 10000 8000 Natural gas 6000 Heavy fuel oil 4000 2000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2004 2005 2006 2007 2008 2009 2010 2011 2012 Share of natur
Slide 12: Quarterly order intake
Quarterly order intake MEUR 600 500 400 300 200 100 0 2005 2006 2007 2008 2009 2010 2011 2012 Q1 Q2 Q3 Q4 12 © Wärtsilä
Slide 13: Order intake by application
Order intake by application MEUR First quarter development 2000 Total EUR 309 million (253) 1800 Industrial 11% 26% self-generation 1600 Flexible baseload 1400 Grid stability & peaking 1200 62% 1000 800 Q1/2012 order intake by fuel in MW 600 400 200 Oil Gas 50% 50% 0 2008 2009 2010 2011 1-3/2012 Ren
Slide 14: Major power plant order from Alaska
Major power plant order from Alaska • Order received to supply the engineering and generating equipment for a power plant to be installed in Alaska, USA • Order placed by Matanuska Electric Association, a co-operative utility • The value of the order is USD 106 million • Scope of supply includes 10
Slide 15: Global order intake
Global order intake Europe 5 (307) Asia 212 (103) 5 59 110 Americas 258 (152) 43 29 Africa and Middle East 134 (120) 229 42 Flexible baseload Industrial self-generation Grid stability & peaking 92 Order intake 1-3/2012: 608 MW (682) 15 © Wärtsilä
Slide 16: Market for gas and liquid based power plants
Market for gas and liquid based power plants 2011 Total market 100.8 GW 2.0% 8.8% 3.3% GE 3.3% Siemens 4.3% MHI 34.6% Alstom 14.4% Wärtsilä Russian 29.3% Other gas turbines Other combustion engines* Market data includes all prime mover units over 5 MW and estimated output of steam turbines for combi
Slide 17: Ship Power order intake increased by 60%
Ship Power order intake increased by 60%
Slide 18: Vessel order development
# of vessels 18 © Wärtsilä 100 120 140 0 20 40 60 80 01.09 02.09 03.09 04.09 Merchant 05.09 06.09 Source: Clarkson Research Services 07.09 08.09 09.09 Offshore 10.09 11.09 * CGT= gross tonnage compensated with workload 12.09 01.10 02.10 03.10 04.10 05.10 Cruise and Ferry 06.10 07.10 08.10 09.10 10.1
Slide 19: Order intake by segment
Order intake by segment MEUR 2000 First quarter development Total EUR 276 million (173) 1600 Merchant Offshore 27% 47% 1200 Other 2% 800 Special vessels 400 15% Cruise Navy & ferry 5% 4% 0 2008 2009 2010 2011 1-3/2012 19 © Wärtsilä
Slide 20: LNG powering U.S. offshore
LNG powering U.S. offshore • Repeat order for two gas fuelled offshore support vessels from Harvey Gulf International • Scope of delivery includes an integrated system with dual-fuel machinery, an electrical and automation package, complete propulsion equipment, and the LNG fuel storage and gas cond
Slide 21: Joint venture ordering activity
Joint venture ordering activity MEUR 550 • Order intake in the South Korean 500 joint venture producing dual-fuel engines and the Chinese joint 450 venture producing auxiliary engines 400 totalled EUR 54 million (3) during the 350 review period January-March 2011 300 • Wärtsilä’s share of ownership
Slide 22: 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) 5%(4) Wärtsilä Others 24%(22) 26%(20) Wärtsilä 49%(46) MAN Diesel 15%(22) Others Caterpillar MAN Diesel 95%(96) (MAK) 74%(76) 10%(12) Total market volume last 12
Slide 23: Services' net sales increased by 12%
Services’ net sales increased by 12%
Slide 24: Net sales development
Net sales development MEUR 2000 1800 0% 0% 0% First quarter development 1600 MEUR 1400 600 12% 492 1200 500 439 1000 400 800 300 600 200 400 200 100 0 0 2008 2009 2010 2011 1-3/2012 Q1/2011 Q1/2012 24 © Wärtsilä
Slide 25: Net sales by quarter
Net sales by quarter MEUR 600 500 400 300 200 100 0 2005 2006 2007 2008 2009 2010 2011 2012 Q1 Q2 Q3 Q4 25 © Wärtsilä
Slide 26: Net sales distribution 1-3/2012
Net sales distribution 1-3/2012 Field service 23%(22) Spare parts 52%(55) Contracts 13%(15) Projects 12%(8) Total EUR 492 million (439) 26 © Wärtsilä
Slide 27: Service agreements of interest in both end markets
Service agreements of interest in both end markets • A three-year O&M agreement signed for the 380 MW Suape II power plant in Brazil, the biggest plant ever built by Wärtsilä: – On-site operation and maintenance optimises the availability of the plant • One of the most comprehensive service agreemen
Slide 28: Development of Power Plants service agreements
Development of Power Plants service agreements MW 4500 120% 107% 4000 100% 3500 3000 80% 2500 57% 58% 53% 60% 2000 1500 40% 31% 1000 20% 500 0 0% 2008 2009 2010 2011 1-3/2012 O&M and maintenance agreements Power Plants deliveries % of delivered MWs 28 © Wärtsilä
Slide 29: Fleet utilisation
Fleet utilisation Anchored* & Idle** Vessels Percent of Fleet Fleet Average Speed*** Knots * Source Bloomberg (AISLive). More than 25 000 vessels (>299 GT) covered. ** Idle (no movement for 19 days for containerships, others 35 days). Source Lloyd’s MIU. Around 15 000 vessels (>299 GT) covered. ***
Slide 30: Cash flow from operating activities
Cash flow from operating activities MEUR 700 600 500 400 300 200 100 0 2008 2009 2010 2011 1-3/2012 30 © Wärtsilä
Slide 31: Net working capital development
Net working capital development MEUR 2000 25% 1800 1600 20% 31 March 2012 MEUR 1400 1600 1400 1200 15% 1200 1000 1000 800 9.2% 10% 8.4% 800 600 6.8% 7.5%* 5.5% 5.8% 482 600 3.7% 400 5% 267 285 400 212 2.7% 302 176 170 200 102 200 0 0% 0 2005 2006 2007 2008 2009 2010 2011 * Working Capital / Annualis
Slide 32: Committed loans 31 March 2012
Committed loans 31 March 2012 MEUR 1600 1400 1200 494 1000 100 Total EUR 858 million 800 drawn 251 600 86 400 522 200 0 Drawn long- Current portion Drawn short- Undrawn long- Undrawn term loans of long-term term loans term loans revolving credits loans At the end of the reporting period, drawn revol
Slide 33: Financial position
Financial position Solvency Gearing 50% 0,70 45% 0,60 40% 0,50 35% 30% 0,40 25% 0,30 20% 0,20 15% 10% 0,10 5% 0,00 0% 2008 2009 2010 2011 31.3.2012 -0,10 2008 2009 2010 2011 31.3.2012 33 © Wärtsilä
Slide 34: Market outlook
Market outlook • Power Plants: The power generation market is expected to remain on a good level in 2012. • Ship Power: The overall outlook for vessel contracting activity during 2012 remains largely unchanged, with full year contracting expected to be at a similar level or slightly lower than in 20
Slide 35: Prospects for 2012 reiterated
Prospects for 2012 reiterated Wärtsilä expects its net sales for 2012 to grow by 5-10% and its operational profitability (EBIT% before non-recurring items) to be 10-11%.
Slide 36: IR Contact: Pauliina Tennilä
IR Contact: Pauliina Tennilä Director, Investor Relations Tel. +358 (0) 40 570 5530 E-mail: pauliina.tennila@wartsila.com