Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Q2 2023 Earnings Presentation
33 slides from Wartsila Oyj Abp's earnings presentation, Jul 21, 2023
Slide 1: Wärtsilä Corporation Half-year financial report January–June 2023
Wärtsilä Corporation Half-year financial report January–June 2023 Håkan Agnevall, President & CEO Arjen Berends, CFO 21 July 2023 1 ©
Slide 2: Improved profitability and continued growth in services
Improved profitability and continued growth in services ▪ Order intake increased by 17% ▪ Net sales increased by 3% ▪ Good progress in services continued: ▪ Service order intake increased by 13% ▪ Service net sales increased by 16% ▪ The comparable operating result increased by 26% ▪ Supported by go
Slide 3: Good development in key figures
Good development in key figures MEUR 4-6/2023 4-6/2022 CHANGE 1-6/2023 1-6/2022 CHANGE Order intake 1,687 1,440 17% 3,427 2,820 22% of which services 913 811 13% 1,802 1,543 17% of which equipment 774 629 23% 1,625 1,277 27% Order book 6,249 5,936 5% of which current year deliveries 2,589 2,732 Net
Slide 4: Market sentiment remained positive for Wärtsilä's key segments
Market sentiment remained positive for Wärtsilä’s key segments Higher prices of new ships and available capacity at shipyards limited growth in newbuild investments ▪ The number of vessels ordered in the review period Total vessel contracting increased to 773 (701 in the corresponding period in Numb
Slide 5: Energy market outlook – solid long-term opportunities
Energy market outlook – solid long-term opportunities Commodity markets ease while interest rates rise Contracting for gas and liquid fuelled power ▪ H1/2023 has brought relief in some commodity plants <500 MW prices, especially in battery raw materials, while MW, 12m rolling rising interest rates i
Slide 6: Order intake increased by 17%
Order intake increased by 17% Equipment Services Equipment order MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling intake increased by 23% 1,600 4,000 1,600 4,000 1,400 3,500 1,400 3,500 Service order intake 1,200 3,000 1,200 3,000 increased by 13% 1,000 2,500 1,000 913 2,500 774 811 800 2,000 800 2,000
Slide 7: Strong order book, rolling book-to-bill continues above 1
Strong order book, rolling book-to-bill continues above 1 Remaining order book for the current year lower than last year Order book by business Order book delivery schedule MEUR MEUR 8,000 1.30 3,000 7,000 1.20 2,500 6,000 1.10 2,000 5,000 1.00 4,000 0.90 1,500 3,000 0.80 1,000 2,000 0.70 500 1,000
Slide 8: Profitability continued to improve
Profitability continued to improve Net sales Comparable operating result Net sales increased by MEUR MEUR, 12m rolling MEUR %, 12m rolling 3% 2,000 7,000 180 12.0% Comparable operating 1,800 6,000 160 10.0% result increased by 1,600 1,407 1,454 140 26% 1,400 5,000 120 8.0% 108 1,200 1,131 4,000 100
Slide 9: Net sales increased by 3%
Net sales increased by 3% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling Equipment net sales 1,100 3,500 1,100 3,500 decreased by 9% 1,000 1,000 3,000 3,000 900 900 807 Service net sales 800 712 2,500 800 696 2,500 increased by 16% 700 647 700 2,000 588 2,000 600 543 600 500 1,500
Slide 10: Technology and partnership highlights
Technology and partnership highlights Enabling industry decarbonisation Wärtsilä’s energy storage technology secures new fire safety standard ▪ After rigorous testing Wärtsilä’s GridSolv Quantum is now compliant with the NFPA 69 Standard. ▪ The Standard sets safety requirements for explosion prevent
Slide 11: Marine Power
Cg WARTSILA Marine Power
Slide 12: Marine Power: good development in comparable operating result
Marine Power: good development in comparable operating result Good service performance continued Order intake Comparable operating result Comparable operating result +21% 12m rolling MEUR MEUR 2,696 MEUR MEUR 12m rolling 10.2% 90 10.5% 1,000 3,000 800 697 575 80 2,000 600 463 + Good service performa
Slide 13: Good development in Marine Power service agreements
Good development in Marine Power service agreements Net sales from installations under agreement strongly increasing MEUR, 12m rolling ▪ Agreements are signed across multiple segments 500 450 ▪ LNG carriers fleet under agreement grew by 28% in past 4 years 400 350 ▪ Cruise slightly declined due to C
Slide 14: Accelerating Stena Line's decarbonisation journey through methanol conversions
Accelerating Stena Line’s decarbonisation journey through methanol conversions ▪ Wärtsilä will convert some of Swedish ferry operator Stena Line’s vessels to operate with methanol fuel. ▪ The conversions will include fuel supply system and engine modifications, as well as integrating the new install
Slide 15: Marine Systems
Marine Systems 15 > WARTSILA,
Slide 16: Marine Systems: order intake increased
Marine Systems: order intake increased Comparable operating result declined due a provision taken for a single sizable turnkey project in Gas Solutions Order intake Comparable operating result Comparable operating result 12m rolling +21% MEUR 12m rolling 5.1% MEUR MEUR 597 MEUR 400 800 20 10.0% 300
Slide 17: Energy
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Slide 18: Energy: order intake and comparable operating result increased
Energy: order intake and comparable operating result increased Good development in service continued Order intake Comparable operating result Comparable operating result +15% 12m rolling MEUR MEUR 2,946 MEUR MEUR 12m 12mrolling rolling3.7% 1,200 4,000 70 7.3% 9.0% 1,000 750 3,000 800 654 60 8.0% 600
Slide 19: Good development in energy storage
Good development in energy storage Profitability improving, rolling 12 months comparable operating result margin -1% Quarterly development Rolling 12 months development MEUR MEUR % of net sales 400 1,200 5 350 1022 4 328 992 321 1,000 975 892 3 300 281 275 807 257 785 775 2 245 252 800 745 250 1 203
Slide 20: Continued good development in Energy service agreements
Continued good development in Energy service agreements MW 22,000 32% Long-standing relationship with Brazilian customer 20,000 enhanced with renewal of Operation & Maintenance 30% agreement 18,000 16,000 ▪ The two-year renewal ensures that Brazilian Independent 28% 14,000 energy producer, Gera Amaz
Slide 21: Comparable operating result improved – biggest improvement in Marine Power
Comparable operating result improved – biggest improvement in Marine Power MEUR % of net sales Comparable operating result increased by 26% 7.4% 2.0% 6.1% -7.6% 7.1% (-6.9) (8.2) (6.4) 10.8% (6.9) Comparable Marine Marine Energy Portfolio Comparable operating result Power Systems Business operating
Slide 22: Other key financials
Cc WARTSILA Other key financials
Slide 23: Other key financials
Other key financials MEUR 4-6/2023 4-6/2022 1-6/2023 1-6/2022 Cash flow from operating activities 75 -90 219 -213 Working capital 134 168 Net interest-bearing debt 462 432 Gearing 0.23 0.21 Solvency, % 33.5 35.8 Basic earnings/share, EUR 0.05 0.09 0.14 -0.16 23 ©
Slide 24: Cash flow from operating activities increased
Cash flow from operating activities increased Cash flow from operating activities Working capital to net sales ratio MEUR MEUR, 12m rolling MEUR 800 800 200 10% 168 700 700 150 134 8% 600 600 6% 100 73 500 500 4% 400 400 50 300 245 300 2% 0 200 200 0% 75 100 100 -50 -2% 0 0 -100 -4% -100 -100 -90 -2
Slide 25: Prospects
Prospects Marine ▪ Wärtsilä expects the demand environment for the next 12 months (Q3/2023-Q2/2024) to be similar to that of the comparison period. Energy ▪ Wärtsilä expects the demand environment for the next 12 months (Q3/2023-Q2/2024) to be similar to that of the comparison period. 25 ©
Slide 26: WARTSILA
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Slide 27: Appendix
Appendix 27 ©
Slide 28: Order intake
Order intake Second quarter development 5% (6) 41% Marine Power (40) Marine Systems Services Order intake 46% Order intake 44% by business Energy (44) by business type 54% Equipment (45) (56) Portfolio Business 9% (9) 28 ©
Slide 29: Net sales
Net sales Second quarter development 5% (6) Marine Power 44% 45% Services Net sales (37) Marine Systems Net sales by business (51) by business type Equipment 44% Energy 55% (49) (45) Portfolio Business 7% (12) 29 ©
Slide 30: Second quarter development by business type
Second quarter development by business type Order intake Net sales 28% Spare parts Spare parts 32% (27) (28) Field service Field service 34% Marine 38% Marine (43) Service agreements Service agreements Businesses (37) Businesses EUR 742 million Service projects EUR 856 million Service projects (693)
Slide 31: January–June order intake by customer segment
January–June order intake by customer segment Special Marine Businesses Gas carriers Cruise & ferry Offshore Navy vessels Merchant Other Marine Power Equipment 9% (18) 24% (22) 5% (3) 13% (1) 5% (15) 41% (36) 3% (4) Services 16% (17) 23% (22) 18% (14) 6% (7) 11% (11) 24% (27) 1% (2) Marine Systems E
Slide 32: Orders received for Energy equipment globally
Orders received for Energy equipment globally Europe 257 (114) Americas Asia 219 (365) 294 (50) Utilities IPP’s Africa and (Independent Middle East Power Producers) 48 (71) Industrials Others Equipment order intake 1-6/2023: MEUR 818 (599) 32 ©
Slide 33: WARTSILA
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