Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — Investor Day (May 2018)

15 slides from Wartsila Oyj Abp's investor day presentation, May 31, 2018

  1. Slide 1: Smart Strategies Driving Profitable Growth

    SMART STRATEGIES DRIVING PROFITABLE GROWTH Jaakko Eskola, President & CEO 1 © Wärtsilä PUBLIC 31 May 2018 Jaakko Eskola

  2. Slide 2: The marine and energy industries are transforming

    The marine and energy industries are transforming CLEAN ENERGY MARKET SHAPING ENVIRONMENT INTELLIGENCE & INNOVATION A future without An optimised way A union of new emissions or of producing and technology and pollution using energy business models 2 © Wärtsilä PUBLIC 31 May 2018 Jaakko Eskola

  3. Slide 3: Smart solutions are the foundation for our long-term value creation

    Smart solutions are the foundation for our long-term value creation NEW OPERATIONAL OFFERINGS EFFICIENCY SMART SOLUTIONS, NEW BUSINESS MODELS AND KNOWLEDGE SHARING SUSTAINABLE SOCIETIES GROWTH 3 © Wärtsilä PUBLIC 31 May 2018 Jaakko Eskola

  4. Slide 4: We are accelerating our digital transformation

    We are accelerating our digital transformation ENABLE AND DEVELOP THE CORE PROFITABLE TRANSFORM • Product development GROWTH • Culture & competencies • Supply chain & logistics • Operating model • Sales & marketing & technology • Customer experience • Data capability GROW THE NEW • New business mode

  5. Slide 5: Marine market sentiment is cautiously optimistic

    Marine market sentiment is cautiously optimistic Vessel contracting • Improving 3 000 economic outlook 2 500 2 384 • Increasing demand for LNG 2 000 • Regulatory 1 579 1 500 1 490 1 311 developments 1 236 1 021 953 920 933 1 166 • Emerging 1 000 855 technologies 509 536 580 500 334 271 327 342 384 4

  6. Slide 6: Our Smart Marine vision

    OUR SMART MARINE VISION SMART ROUTING AND V O YA G E P L A N N I N G C O L L I S I O N AV O I D A N C E AND AUTO-DOCKING REMOTE EMISSIONS & PERFORMANCE MONITORING HYBRID SHIP REAL-TIME VISIBILITY OF S H I P E TA AND ETD 6 © Wärtsilä PUBLIC 31 May 2018 Jaakko Eskola

  7. Slide 7: Building on our smart marine competences

    Building on our smart marine competences MARINE SYSTEMS ENIRAM GUIDANCE MARINE TRANSAS INTERNATIONAL Automation, navigation Voyage optimisation Situational awareness Navigation, simulation and electrical systems and traffic control 7 © Wärtsilä PUBLIC 31 May 2018 Jaakko Eskola

  8. Slide 8: PUBLIC

    8 © Wärtsilä PUBLIC 31 May 2018 Jaakko Eskola

  9. Slide 9: As energy markets transition to renewables and flexible capacity…

    As energy markets transition to renewables and flexible capacity… Cumulative installed capacity Cumulative installed capacity in OECD countries (GW) in non-OECD countries (GW) 10 000 10 000 8 000 8 000 6 000 6 000 4 000 4 000 2 000 2 000 0 0 2017 2020 2025 2030 2035 2040 2017 2020 2025 2030 2035 204

  10. Slide 10: …we continue to strengthen our position in addressable markets

    …we continue to strengthen our position in addressable markets WÄRTSILÄ WÄRTSILÄ WÄRTSILÄ 9% 13% 19% 2015 2016 2017 26.2 GW 26.1 GW 20.1 GW Source: McCoy Power Report. Includes GT-based gas and liquid-fuelled, <500 MW power plants with prime movers above 5 MW. Includes estimated output of steam turb

  11. Slide 11: Our Smart Energy vision

    OUR SMART ENERGY VISION 100% RENEWABLE ENERGY Flexible thermal capacity provides RENEWABLE BASELOAD seasonal back-up, daily energy Energy storage becomes variations managed with storage affordable, enabling increase in TIPPING POINT renewable energy Existing thermal capacity replaced with flexible g

  12. Slide 12: Customers' interest in our new service models is increasing

    Customers’ interest in our new service models is increasing 200 000 40% MW 180 000 35% 160 000 30% 140 000 25% 120 000 100 000 20% 80 000 15% 60 000 10% 40 000 5% 20 000 0 0% 2010 2011 2012 2013 2014 2015 2016 2017 Total installed base MW Installed base under agreement 12 © Wärtsilä PUBLIC 31 May 20

  13. Slide 13: Our short-term market outlook is improving…

    Our short-term market outlook is improving… ENERGY SOLUTIONS MARINE SOLUTIONS SERVICES Good demand outlook due to renewables Gradual market recovery, despite challenges Growth opportunities from long-term growth and increasing electricity demand related to overcapacity and lack of financing. agreeme

  14. Slide 14: …and we remain committed to our long-term financial targets

    …and we remain committed to our long-term financial targets <50% ≥50% GROW FASTER REACH 14% MAINTAIN GEARING DELIVER DIVIDEND THAN GLOBAL GDP PROFITABILITY BELOW 50% OF ≥50% OF EPS Focus on strengthening Enhanced performance Unleveraged balance OVER THE CYCLE position in strategic growth through con

  15. Slide 15: Thank you

    y WARTSILA

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