Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Q1 2022 Earnings Presentation

35 slides from Wartsila Oyj Abp's earnings presentation, Apr 28, 2022

  1. Slide 1: Interim report January-March 2022

    Wärtsilä Corporation Interim report January-March 2022 Håkan Agnevall, President & CEO Arjen Berends, CFO 28 April 2022 1 © Wärtsilä

  2. Slide 2: Order intake increased, however a MEUR 200 write-down burdened operating result

    Order intake increased, however a MEUR 200 write-down burdened operating result ▪ Order intake increased by 11% ▪ Equipment order intake increased by 17% ▪ Service order intake increased by 6% ▪ Net sales increased by 30% ▪ Service net sales increased by 17% ▪ Russia-Ukraine war intensified overall

  3. Slide 3: The war between Russia and Ukraine and its impact on Wärtsilä

    The war between Russia and Ukraine and its impact on Wärtsilä ▪ Wärtsilä strongly condemns the war in Ukraine. ▪ Wärtsilä has suspended all deliveries, sales, orders, and bidding to Russia and complies with all sanctions applicable to its operations. ▪ In the current environment, it is not viable fo

  4. Slide 4: Key figures

    Key figures MEUR 1-3/2022 1-3/2021 CHANGE Order intake 1,380 1,244 11% of which services 732 691 6% Order book 6,107 5,399 13% of which current year deliveries 3,334 2,961 Net sales 1,231 946 30% of which services 631 540 17% Book-to-bill 1.12 1.32 Operating result -147 36 % of net sales -11.9 3.8 C

  5. Slide 5: First quarter highlights

    First quarter highlights Net sales Comparable operating result MEUR %, 12m rolling Net sales EUR 1,231 MEUR MEUR, 12m rolling million 2,000 6,000 180 14.0% 1,800 160 ▪ 17% increase in 12.0% 1,600 5,000 140 service sales 1,400 10.0% 1,231 4,000 120 1,170 1,200 100 8.0% 1,000 946 3,000 Comparable oper

  6. Slide 6: Marine market activity varying by segment

    Marine market activity varying by segment Newbuild investments softened mostly due to increased prices and slot availability at key shipyards​ ▪ The number of vessels ordered in the review period Total vessel contracting decreased to 274 (376 in the corresponding period in Number of vessels 2021, ex

  7. Slide 7: Energy market situation

    Energy market situation Unforeseen turbulence and price volatility ▪ The war in Ukraine and the economic sanctions against Market for gas and liquid fuelled power plants <500 MW Russia have caused unforeseen turbulence and price volatility in the energy markets, resulting in a negative MW, 12m rolli

  8. Slide 8: Order intake increased by 11%

    Order intake increased by 11% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling 1,600 3,500 1,600 3,500 ▪ Equipment order 1,400 3,000 1,400 intake increased 3,000 1,200 1,200 by 17% 2,500 2,500 1,000 2,000 1,000 2,000 ▪ Service order 800 800 732 613 648 1,500 635 691 1,500 intake incr

  9. Slide 9: Increase in order book

    Increase in order book Book-to-bill decreased Order book by business Order book delivery schedule MEUR MEUR 7,000 1.40 4,500 4,000 6,000 1.20 3,500 5,000 1.00 3,000 4,000 0.80 2,500 3,000 0.60 2,000 1,500 2,000 0.40 1,000 1,000 0.20 500 0 0.00 0 31.3.2020 30.9.2020 31.3.2021 30.9.2021 31.3.2022 Deli

  10. Slide 10: Net sales increased by 30%

    Net sales increased by 30% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling 1,000 3,000 1,000 3,000 ▪ Equipment net sales 900 900 increased by 48% 2,500 2,500 800 800 700 700 ▪ Service net sales 631 2,000 600 2,000 600 577 600 593 540 increased by 17% 500 1,500 500 1,500 406 400 400

  11. Slide 11: Technology and partnership highlights

    Technology and partnership highlights Enabling industry decarbonisation First order for newbuild methanol-fuelled engines ▪ A new offshore wind installation vessel being built for Van Oord will be powered by five Wärtsilä 32 engines capable of operating with methanol ▪ The order includes also the ne

  12. Slide 12: Marine Power

    Marine Power 12 © Wärtsilä

  13. Slide 13: Marine Power: increase in all key figures

    Marine Power: increase in all key figures Service order intake increased by 15% Order intake Comparable operating result Comparable operating result +34% 12m rolling MEUR MEUR 2,164 MEUR MEUR 12m rolling 10.6% 80 14.0% 800 2,500 599 600 496 2,000 70 12.0% 446 1,500 400 1,000 60 200 500 10.0% 0 0 + S

  14. Slide 14: Marine Power service agreements

    Marine Power service agreements Net sales from installations under agreement increasing MEUR, 12m rolling 400 Wärtsilä optimises maintenance and emissions for MMS gas carriers 350 ▪ The Optimised Maintenance Agreements (OMAs) cover 300 two LNG carrier vessels technically managed and 250 operated by

  15. Slide 15: Marine Systems

    Marine Systems 15 © Wärtsilä

  16. Slide 16: Marine Systems: increase in all key figures

    Marine Systems: increase in all key figures Service order intake increased by 41% Order intake Comparable operating result Comparable operating result 12m rolling +29% MEUR MEUR 880 MEUR MEUR 12m rolling 8.3% 400 1,200 60 12.0% 1,000 300 800 153 198 200 600 50 10.0% 113 400 100 200 0 0 40 8.0% Q120

  17. Slide 17: Voyage

    Voyage 17 © Wärtsilä

  18. Slide 18: Voyage: order intake and comparable operating result decreased

    Voyage: order intake and comparable operating result decreased Profitability burdened by delays and sanctions on Russia Order intake Comparable operating result Comparable operating result 12m rolling -23% MEUR MEUR 273 MEUR MEUR 12m rolling -10.5% 120 107 400 Q121 Q122 5 0.0% 100 86 300 80 66 60 20

  19. Slide 19: Voyage cloud solutions

    Voyage cloud solutions Increase of 28% in connected vessels +28% Wärtsilä invests in Marindows to support shipping Number of vessels connected to decarbonisation efforts in Japan our cloud solutions ▪ Marindows links edge computing onboard ships with cloud services and shore-based applications to pr

  20. Slide 20: Energy

    Energy 20 20 © Wärtsilä

  21. Slide 21: Energy: significant increase in net sales and profitability

    Energy: significant increase in net sales and profitability Service order intake decreased by 7% Order intake Comparable operating result Comparable operating result +3% 12m rolling MEUR MEUR 2,458 MEUR MEUR 7.4% 12m rolling 7.3% 1,200 3,000 80 9.0% 1,000 2,500 800 2,000 70 8.0% 600 475 507 1,500 49

  22. Slide 22: Wärtsilä to supply flexible thermal balancing power to support Italy

    Wärtsilä to supply 110 MW of flexible thermal balancing power to support Italy’s increasing focus on sustainable energy ▪ Wärtsilä’s fast-starting internal combustion engine technology will be used to balance the power system and ensure its stability when the share of renewables is increased. ▪ The

  23. Slide 23: Energy service agreements

    Energy service agreements Installed base covered by long-term service agreements increasing MW Wärtsilä Guaranteed Asset Performance agreement 16,000 30% will ensure reliability for Senegal power plant 14,000 25% ▪ The 10-year contract covers the 130 MW Malicounda 12,000 Melec power plant scheduled

  24. Slide 24: Other key financials

    Other key financials 24 © Wärtsilä

  25. Slide 25: Other key financials

    Other key financials MEUR 1-3/2022 1-3/2021 Cash flow from operating activities -122 67 Working capital -18 243 Net interest-bearing debt 276 419 Gearing 0.14 0.20 Solvency, % 35.3 37.0 Basic earnings/share, EUR -0.24 0.04 25 © Wärtsilä

  26. Slide 26: Cash flow from operating activities decreased

    Cash flow from operating activities decreased Cash flow from operating activities First quarter development MEUR MEUR, 12m rolling MEUR 800 400 700 300 600 200 500 400 100 67 42 300 0 200 -100 100 -122 -200 0 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Cash flow from operating activities Cash flow

  27. Slide 27: Prospects

    Prospects Wärtsilä expects the demand environment in the second quarter to be similar to that of the corresponding period in the previous year. However, the prevailing market conditions make the outlook uncertain. 27 © Wärtsilä

  28. Slide 28: Q&A

    Q&A 28 © Wärtsilä

  29. Slide 29: Appendix

    Appendix 29 © Wärtsilä

  30. Slide 30: Order intake

    Order intake First quarter development 1% (5) 37% Marine Power (40) 43% (36) Marine Systems Services Order intake 47% Order intake Voyage by business type Equipment by business (44) 53% Energy (56) Portfolio Business 5% (7) 14% (12) 30 © Wärtsilä

  31. Slide 31: Net sales

    Net sales First quarter development 1% (3) 37% Marine Power (45) Marine Systems Services 43% Net sales Net sales Voyage 49% 51% Equipment (30) by business by business type Energy (43) (57) Portfolio Business 13% 5% (15) (6) 31 © Wärtsilä

  32. Slide 32: First quarter development by business type

    First quarter development by business type Order intake Net sales 29% 31% (29) Spare parts Spare parts (29) Marine Field service Marine Field service 41% Businesses Businesses (45) Service agreements 44% Service agreements EUR 678 million EUR 863 million (40) (626) Service projects (685) Service pro

  33. Slide 33: January–March order intake by customer segment

    January–March order intake by customer segment Special Marine Businesses Gas carriers Cruise & ferry Offshore Navy vessels Merchant Other Marine Power Equipment 11% (7) 21% (17) 5% (1) 4% (15) 25% (35) 34% (23) 0% (2) Services 15% (21) 25% (18) 12% (14) 7% (11) 11% (13) 28% (23) 3% (1) Marine System

  34. Slide 34: Orders received for Energy equipment globally

    Orders received for Energy equipment globally Europe 49 (4) Asia 21 (28) Americas Utilities 124 (174) IPP’s Africa and (Independent Middle East Power Producers) 71 (27) Industrials Others Equipment order intake 1-3/2022: MEUR 265 (232) 34 © Wärtsilä

  35. Slide 35: WARTSILA

    re, WARTSILA

Wartsila Oyj Abp — Q1 2022 Earnings Presentation on 6ix