Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (November 2021)
25 slides from Wartsila Oyj Abp's investor day presentation, Nov 18, 2021
Slide 1: Shaping the decarbonisation of Marine and Energy
Shaping the decarbonisation of Marine and Energy Håkan Agnevall, President & CEO November 18, 2021 1 © Wärtsilä
Slide 2: Technology leader in decarbonisation with significant value creation potential
As a technology leader in the decarbonisation transformation, Wärtsilä has significant value creation potential Decarbonisation will transform the world Pioneer and leading partner for decarbonisation Set for performance ▪ Electricity generation will grow by Leading Leading ▪ Well-positioned to leve
Slide 3: A new phase in Wärtsilä's development
A new phase in Wärtsilä’s development 2002-2010 2011-2015 2016-2020 2021- LIFECYCLE POWER BECOMING TOTAL SMART MARINE AND SHAPING THE SOLUTIONS SOLUTIONS PROVIDER 100% RENEWABLE ENERGY DECARBONISATION OF MARINE AND ENERGY Expansion into propulsion, Expansion into environmental Digital solutions, neg
Slide 4: Our world
Our world 4 © Wärtsilä
Slide 5: Marine will move with an unprecedented speed towards decarbonisation
Marine will move with an unprecedented speed towards decarbonisation Shipping generates approx. 2% of GHG emissions 1) Regulations & Markets Technology Connectivity and Data ▪ IMO target: 50% lower GHG in ▪ Focus on carbon neutral and ▪ Vessels as data pools - shipping by 2050 zero carbon fuels. Car
Slide 6: Energy is moving towards a 100% renewable future
Energy is moving towards a 100% renewable future Electricity and heat generate approx. 30% of GHG emissions 1) Growing electricity demand Policies & Regulations Technology disruption ▪ Electricity generation is ▪ EU: Carbon neutral by 2050 ▪ Wind and solar growing expected to grow by 3X, rapidly for
Slide 7: Transform – Decarbonisation creates new business opportunities
Transform – Decarbonisation creates new business opportunities 7 © Wärtsilä
Slide 8: Decarbonisation of Marine and Energy is accelerating
Decarbonisation of Marine and Energy is accelerating. Large regional variances in speed of change Share of carbon neutral and zero carbon fuels in maritime Share of renewables in global electricity generation (%) 100 Decarbonisation 2050 (1.5°C scenario) (%) Renewables Other IMO baseline Total elect
Slide 9: There is no silver bullet – numerous technologies and fuels
There is no silver bullet – entering an era with numerous technologies and fuels Future technologies … … In Marine … In Energy ▪ Fuels: ▪ Battery technologies: ▪ Rapid growth in intermittent - Hybrids / plug-in hybrids renewables drives growth in - Biofuels - Full electric balancing power Carbon neu
Slide 10: Wärtsilä is very well-positioned for the decarbonisation transformation
Wärtsilä is very well-positioned for the decarbonisation transformation Leader in Pioneer in ▪ Carbon neutral & zero carbon fuels ▪ Marine electric drivetrain - Available today: biofuels, methanol, up to 25% hydrogen blends - 2023: ammonia concept ▪ Marine carbon capture - 2025: 100% hydrogen concep
Slide 11: Leading decarbonisation through R&D commitment and partnering
Leading the decarbonisation journey with a strong commitment to R&D and through partnering for a broad solution offering Proactive dialogue on customers’ specific Key takeaways technology roadmap ▪ Working with many of the new technologies for decades Competence & experience to engage in a credible
Slide 12: Perform – Leverage market recovery and growth
Perform – Leverage market recovery and growth 12 © Wärtsilä
Slide 13: Well-positioned as #1-3 in global markets – focus on organic growth
Wärtsilä well-positioned as #1-3 in global markets – focus on organic growth driven by decarbonisation and services. Complement with potential partnerships and bolt-on acquisitions Marine Power Voyage Marine Energy Non-core (60-70% hardware) Systems businesses Topline growth Continue active potentia
Slide 14: Growing Marine Power's transactional services business
Growing Marine Power’s transactional services business. Leveraging our installed base and capturing the needs of customers with smaller transaction amounts Categorisation per customer type Enablers for growth Spend ratio EUR/kW ▪ Leveraging digital solutions - Customer intelligence 1) - Automated le
Slide 15: Performance-based agreements have significant growth potential
Performance-based agreements have significant growth potential, both in Marine and Energy 25% of Spend ratio installed base Enablers for growth EUR/kW 2-5X ▪ Optimised asset performance for our customers Agreements & Performance-based agreements ▪ Leveraging connectivity, big data, machine learning
Slide 16: Green transition provides opportunity for retrofits and conversions
Green transition is expected to provide a notable opportunity for retrofits and conversions 4S/2S Marine HFO to LNG/ green fuels 1) Estimated total market size of EUR ~2.5bn 2) Future potential 4S Energy for conversions HFO to gas to green fuels 1) 1) depends on fuel availability 2) estimated total
Slide 17: Electricity demand growth accelerates demand for balancing power
Demand for electricity will grow by 3X with renewables being the way forward, thus accelerating the demand for balancing power Baseload Thermal balancing Energy storage Addressable annual market (GW) Addressable annual market (GW) Addressable annual market (GWh) - +30% p.a. +30% p.a. 2 1) 5 12 12 30
Slide 18: Energy storage business is growing rapidly
Wärtsilä’s energy storage business is growing rapidly and is expected to become profitable within a few years Power system optimisation for the lowest energy cost, highest uptime and reliability Energy storage key facts Global #1-3 2021 order intake Solar Wind Thermal balancing Energy storage > EUR
Slide 19: Perform – Robust execution
Perform – Robust execution 19 © Wärtsilä
Slide 20: The Wärtsilä Way sets the scene for profitable growth
The Wärtsilä Way sets the scene for profitable growth Enabling sustainable societies through innovation in technology and services Shaping the decarbonisation of Marine and Energy - New financial targets - New decarbonisation targets Roadmap to improve performance and reach Target Position Customer
Slide 21: Strategic priorities to improve performance and reach Target Position
Strategic priorities to improve performance and reach Target Position Excel in creating customer value 1 We continuously evolve our understanding of and responsiveness to our customers to make them successful. ▪ Improve performance in existing businesses Develop high performing teams that make a dif
Slide 22: Developing a performance culture
Developing a performance culture ▪ Being successful by making our customers successful ▪ Clear leadership and delegated profit & loss responsibilities ▪ Caring for people and professional development ▪ Discipline in risk management for capturing and executing projects ▪ Improve speed and make decisi
Slide 23: Ambitious sustainability targets for 2030
Ambitious sustainability targets for 2030 To provide a product portfolio which will To become carbon neutral in be ready for zero carbon fuels our own operations 23 © Wärtsilä
Slide 24: 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 25: WARTSILA
e, WARTSILA