Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Q1 2020 Earnings Presentation

26 slides from Wartsila Oyj Abp's earnings presentation, Apr 21, 2020

  1. Slide 1: Wärtsilä Corporation Interim Report January-March 2020

    WÄRTSILÄ CORPORATION INTERIM REPORT JANUARY-MARCH 2020 21 April 2020 Jaakko Eskola, President & CEO 1 © Wärtsilä PUBLIC 21 April 2020 INTERIM REPORT JANUARY-MARCH 2020

  2. Slide 2: Net sales stable, profitability burdened by COVID-19 impacts and mix

    Net sales stable, profitability burdened by COVID-19 impacts and mix © Wärtsilä PUBLIC

  3. Slide 3: Key figures Q1/2020

    KEY FIGURES Q1/2020 Order intake EUR 1,247 million, -12% Order book at the end of the period EUR 5,745 million, -4% Net sales EUR 1,170 million, +2% Book-to-bill 1.07 (1.23) Comparable operating result EUR 56 million (102), or 4.8% of net sales (8.9) Earnings per share EUR 0.05 (0.10) Cash flow from

  4. Slide 4: Demand was reasonable considering the market conditions

    Demand was reasonable considering the market conditions First quarter development Rolling 12m, MEUR (6) 5% 7,000 6,000 38% Wärtsilä Marine (35) Order intake Wärtsilä Energy 5,000 by business area 57% Portfolio Business (60) 4,000 3,000 2,000 Q1 -12% 1,000 Services 1,416 Order intake 1,247 50% 50% by

  5. Slide 5: Net sales increased slightly driven by the Marine Business

    Net sales increased slightly driven by the Marine Business Rolling 12m, MEUR First quarter development (4) 5% 6,000 30% 5,000 (35) Wärtsilä Marine Net sales Wärtsilä Energy by business area 4,000 65% Portfolio Business (61) 3,000 2,000 Q1 +2% 1,000 Net sales Services 1,151 1,170 49% 51% by business

  6. Slide 6: Book-to-bill

    Book-to-bill Rolling 12m, MEUR 7,000 1.40 1.20 1.22 1.15 1.17 1.18 1.15 6,000 1.13 1.20 1.03 0.99 5,000 1.00 4,000 0.80 3,000 0.60 2,000 0.40 1,000 0.20 0 0.00 Q217-Q118 Q317-Q218 Q417-Q318 Q118-Q418 Q218-Q119 Q318-Q219 Q418-Q319 Q119-Q419 Q219-Q120 Order intake Net sales Book-to-bill 6 © Wärtsilä P

  7. Slide 7: Order book distribution

    Order book distribution MEUR 3,500 3,000 2,500 2,000 1,500 1,000 500 0 31.3.2019* 31.3.2020 Delivery in current year Delivery next year or later *During 2019, Wärtsilä implemented stricter requirements for the booking of new orders, which resulted in certain projects being removed from the Energy Bu

  8. Slide 8: Operating result impacted by weaker fixed cost absorption and service sales mix

    Operating result impacted by weaker fixed cost absorption, service sales mix, and delivery of projects affected by cost overruns Rolling 12m, MEUR Review period development 700 11.3% 12% MEUR 11.1% 120 14% 600 9.6% 10% 8.8% 100 12% 500 7.9% 8% 80 10% 400 8.9% 6% 60 8% 300 40 6% 4% 200 4.8% 20 4% 2%

  9. Slide 9: Cash flow from operating activities

    Cash flow from operating activities MEUR Review period development 700 50 45 600 40 500 35 30 400 25 300 20 200 15 10 100 5 0 0 2015 2016 2017 2018 2019 1-3/2019 1-3/2020 9 © Wärtsilä PUBLIC 21 April 2020 INTERIM REPORT JANUARY-MARCH 2020

  10. Slide 10: Working capital

    Working capital MEUR Review period development 1,600 18% 1,600 18% 1,400 16% 1,400 16% 14.2% 14% 14% 1,200 11.2% 1,200 11.5% 12.5% 12.7% 10.8% 12% 12% 1,000 10.2% 1,000 10% 10% 800 732 800 8% 656 660 8% 563 581 600 543 600 490 6% 6% 400 400 4% 4% 200 2% 200 2% 0 0% 0 0% 2015 2016 2017 2018 2019 31.3

  11. Slide 11: Gearing

    Gearing Review period development 0.50 0.50 0.40 0.40 0.30 0.30 0.20 0.20 0.10 0.10 0.00 0.00 2015 2016 2017 2018 2019 31.3.2019 31.3.2020 11 © Wärtsilä PUBLIC 21 April 2020 INTERIM REPORT JANUARY-MARCH 2020

  12. Slide 12: Wärtsilä Marine Business

    Wärtsilä Marine Business © Wärtsilä PUBLIC

  13. Slide 13: Decline in vessel contracting reflects market uncertainty

    WÄRTSILÄ MARINE BUSINESS Decline in vessel contracting reflects market uncertainty Total vessel contracting Specialised tonnage Merchant Offshore 250 Cruise and Ferry Special vessels 5.0 80 Offshore Cruise and Ferry Special vessels LNG carriers LPG carriers 3 months moving average in CGT 4.5 70 200

  14. Slide 14: Marine Business: Order intake development

    WÄRTSILÄ MARINE BUSINESS Order intake development First quarter development QTD, MEUR Rolling 12m, MEUR 6% (5) 1,200 4,500 18% 4,000 31% (25) (33) 1,000 3,500 Equipment order intake 800 3,000 by segment 18% 3% (4) ◼ Cruise & Ferry 2,500 (24) ◼ Offshore 600 10% (4) 2,000 14% (6) ◼ Navy ◼ Special Vess

  15. Slide 15: Marine Business: Net sales development

    WÄRTSILÄ MARINE BUSINESS Net sales development QTD, MEUR Rolling 12m, MEUR 1,200 4,500 4,000 25% (27) 1,000 3,500 800 3,000 2,500 First quarter 600 49% development 2,000 (49) EUR 759 million (699) 400 1,500 15% (16) 1,000 200 500 6% (6) 0 0 5% (3) 1-3/2019* 4-6/2019* 7-9/2019* 10-12/2019 1-3/2020 Sp

  16. Slide 16: Net sales from installations under agreement

    WÄRTSILÄ MARINE BUSINESS Net sales from installations under agreement Rolling 12m, MEUR 300 Wärtsilä introduces a new agreement-based solution 250 for offshore installations 200 • The solution provides the asset with up to six months of 150 operating time without planned maintenance activity onboard

  17. Slide 17: Providing greater efficiency and performance: BC Ferries

    PROVIDING GREATER EFFICIENCY AND PERFORMANCE • Wärtsilä will provide an integrated system consisting of an LNG plant, dual-fuel engines, and an electrical propulsion system for the latest addition to Canada- based BC Ferries’ series of Salish Class vessels • The LNG solutions enable BC Ferries to re

  18. Slide 18: Wärtsilä Energy Business

    Wärtsilä Energy Business © Wärtsilä PUBLIC

  19. Slide 19: Market for gas and liquid fuel power plants, <500 MW

    WÄRTSILÄ ENERGY BUSINESS Market for gas and liquid fuel power plants, <500 MW Rolling 12m, MW 25,000 20,000 15,000 10,000 5,000 21% 17% 13% 14% 15% 14% 17% 9% 0 Q217-Q118 Q317-Q218 Q417-Q318 Q118-Q418 Q218-Q119 Q318-Q219 Q418-Q319 Q119-Q419 Wärtsilä Others The total market, including also power plan

  20. Slide 20: Energy Business: Order intake development

    WÄRTSILÄ ENERGY BUSINESS Order intake development First quarter development QTD, MEUR Rolling 12m, MEUR (23) 1% 2% (67) 800 2,500 700 2,000 Equipment 600 order intake by segment 500 1,500 400 ◼ Utilities 97% (10) ◼ Independent Power Producers 1,000 300 ◼ Industrials 14% (8) ◼ Others 200 28% (28) 500

  21. Slide 21: Orders received for energy equipment globally

    WÄRTSILÄ ENERGY BUSINESS Orders received for energy equipment globally Europe 12 (24) Asia Americas 24 (220) 448 (172) Utilities IPP’s (Independent Africa and Power Producers) Middle East Industrials 60 (191) Others Order intake 1-3/2020: 544 MW (607) 21 © Wärtsilä PUBLIC 21 April 2020 INTERIM REPOR

  22. Slide 22: Energy installed base covered by long-term service agreements

    WÄRTSILÄ ENERGY BUSINESS Energy installed base covered by long-term service agreements MW 14,000 30% An O&M agreement with a Colombian cement producer 12,000 25% extended to its 25th year 10,000 • The O&M agreement 20% relationship between Wärtsilä 8,000 and Cemex Colombia is one of 15% the longest

  23. Slide 23: Energy Business: Net sales development

    WÄRTSILÄ ENERGY BUSINESS Net sales development QTD, MEUR Rolling 12m, MEUR 800 2,500 19% (22) 700 2,000 600 500 1,500 First quarter 7% (5) 400 48% development 1,000 (53) 300 EUR 351 million (403) 200 500 100 21% (18) 0 0 1-3/2019* 4-6/2019* 7-9/2019* 10-12/2019 1-3/2020 5% (2) Wärtsilä Energy, equip

  24. Slide 24: Collaborating for innovation: hybrid power, EPC contracts, Wasaline ferry

    COLLABORATING FLEXIBLE BASELOAD FORPOWER LIFECYCLE TO LATIN INNOVATION AMERICA • Wärtsilä Wärtsilä’s hybrid, was dual-fuel awarded full engineering, solution procurement, establishes theand newconstruction Wasaline RoPax (EPC) ferry contracts as a benchmark for two in power efficiency plantsand in L

  25. Slide 25: Prospects

    PROSPECTS The coronavirus (COVID-19) outbreak and the measures taken to contain the pandemic will materially impact Wärtsilä’s net sales and earnings for 2020. The full financial impact cannot be quantified at this time. Consequently, Wärtsilä withdrew its market outlook for 2020 on 31 March 2020 pe

  26. Slide 26: Thank you

    THANK YOU Further information: Natalia Valtasaari Vice President, Investor Relations Tel. +358 (0) 10 709 5637 E-mail: natalia.valtasaari@wartsila.com

Wartsila Oyj Abp — Q1 2020 Earnings Presentation on 6ix