Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Q2 2020 Earnings Presentation

26 slides from Wartsila Oyj Abp's earnings presentation, Jul 17, 2020

  1. Slide 1: 17 July 2020 – Jaakko Eskola, President & CEO

    17 JULY 2020 JAAKKO ESKOLA, PRESIDENT & CEO

  2. Slide 2: Stable net sales and strong cash flow, while COVID-19 impact and mix weakened profitability

    STABLE NET SALES AND STRONG CASH FLOW, WHILE COVID-19 IMPACT AND MIX WEAKENED PROFITABILITY

  3. Slide 3: Key figures

    KEY FIGURES MEUR 4-6/2020 CHANGE 1-6/2020 CHANGE Order intake 1,011 -27% 2,259 -19% of which services 486 -22% 1,120 -12% Order book 5,401 -12% Net sales 1,220 0% 2,390 +1% of which services 510 -17% 1,103 -7% Book-to-bill 0.83 -0.30 0.95 -0.23 Comparable operating result 55 -51% 111 -48% % of net s

  4. Slide 4: Vessel orders remained at a very low level

    VESSEL ORDERS REMAINED AT A VERY LOW LEVEL Total vessel contracting Specialised tonnage Number of vessels Million CGT Number of vessels 250 5.0 90 Merchant Offshore Offshore Special vessels LPG carriers Cruise and Ferry Special vessels 4.5 80 Cruise and Ferry LNG carriers 200 3 months moving average

  5. Slide 5: Energy markets at a stable level

    ENERGY MARKETS AT A STABLE LEVEL Market for gas and liquid fuel power plants <500 MW MW, 12m rolling 25,000 20,000 15,000 10,000 5,000 17% 13% 14% 15% 14% 17% 9% 8% 0 Q317-Q218 Q417-Q318 Q118-Q418 Q218-Q119 Q318-Q219 Q418-Q319 Q119-Q419 Q219-Q120 Wärtsilä Others The total market, including also powe

  6. Slide 6: Order intake

    ORDER INTAKE Second quarter development 5% (3) Marine Power MEUR, 12m rolling 39% Marine Systems 7,000 Order intake (46) 39% by business area Voyage (32) Energy 6,000 Portfolio Business 5,000 5% 12% (14) (5) 4,000 3,000 2,000 Q2 -27% Services Order intake 1,000 52% by business type 48% Equipment 1,3

  7. Slide 7: January–June order intake by customer segment

    JANUARY–JUNE ORDER INTAKE BY CUSTOMER SEGMENT Marine Businesses Energy Marine Power Equipment 6% 32% 7% 11% 24% 19% Other 14% (10) 11% (19) (15) (34) (3) (16) (11) (20) Industrials Services 16% 13% 16% 12% 15% 25% 3% (16) (27) (13) (9) (12) (22) (2) 30% (35) Marine Systems Independent Equipment 42%

  8. Slide 8: Order book

    ORDER BOOK Order book by business area Order book delivery schedule MEUR MEUR 7,000 1.60 3,000 6,000 1.40 2,500 1.20 5,000 2,000 1.00 4,000 0.80 1,500 3,000 0.60 1,000 2,000 0.40 1,000 500 0.20 0 0.00 0 31.3.2018* 30.9.2018* 31.3.2019** 30.9.2019** 31.3.2020 Delivery Delivery next Delivery after cur

  9. Slide 9: Net sales

    NET SALES Second quarter development 4% (5) 34% (37) Marine Power MEUR, 12m rolling Marine Systems 6,000 37% Net sales by business area Voyage (33) Energy 5,000 Portfolio Business 4,000 20% (19) 5% (6) 3,000 2,000 Q2 Services 0% Net sales 42% 1,000 Equipment by business type (50) 1,217 1,220 58% 0 (

  10. Slide 10: Net sales by business type

    NET SALES BY BUSINESS TYPE Second quarter development 23% (25) MEUR MEUR, 12m rolling Marine Businesses 1,800 3,000 Spare parts EUR 715 million 56% Field service (756) 13% (16) 1,600 (48) 2,500 Service agreements 1,400 4% (7) Service projects 4% (4) Equipment 1,200 2,000 1,000 1,500 800 17% (19) 600

  11. Slide 11: Net sales bridge

    NET SALES BRIDGE MEUR 11 © Wärtsilä 17 July 2020 HALF YEAR REPORT JANUARY-JUNE 2020

  12. Slide 12: Comparable operating result

    COMPARABLE OPERATING RESULT Review period development MEUR, 12m rolling MEUR 700 11.1% 12% 250 10% 9.1% 600 9.6% 10% 8.8% 200 8% 500 7.9% 6.8% 8% 400 150 6% 6% 300 4.7% 100 4% 4% 200 50 2% 100 2% 0 0% 0 0% Q318-Q219 Q418-Q319 Q119-Q419 Q219-Q120 Q319-Q220 Comparable operating result Comparable opera

  13. Slide 13: Cash flow from operating activities

    CASH FLOW FROM OPERATING ACTIVITIES Review period development MEUR MEUR 700 350 600 300 250 500 200 400 150 300 100 200 50 100 0 0 -50 2015 2016 2017 2018 2019 1-6/2019 1-6/2020 13 © Wärtsilä 17 July 2020 HALF YEAR REPORT JANUARY-JUNE 2020

  14. Slide 14: Working capital

    WORKING CAPITAL MEUR 4,000 16% 3,000 14% 14.2% 2,000 11.5% 11.2% 12% Other non-interest-bearing liabilities 10.2% 9.5% Advances received 1,000 10% Trade payables 563 581 732 0 490 492 8% Other non-interest-bearing receivables Trade receivables -1,000 6% Inventories Working capital -2,000 4% Working

  15. Slide 15: 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 30.6.2019 30.6.2020 15 © Wärtsilä 17 July 2020 HALF YEAR REPORT JANUARY-JUNE 2020

  16. Slide 16: © Wärtsilä

    re Cc WARTSILA q WARTSILA

  17. Slide 17: Marine Power

    MARINE POWER MARINE POWER MEUR Order intake 700 600 500 400 • Order intake decreased by 38% to EUR 391 300 million (632) 200 • Ordering activity under pressure due to 100 idling of fleet and customers adjusting their 0 capital and operating expenditures Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 • Net sale

  18. Slide 18: Marine Power: net sales from installations under agreement

    MARINE POWER NET SALES FROM INSTALLATIONS UNDER AGREEMENT MEUR, 12m rolling 450 A new remote service to overcome travel restrictions 400 • Wärtsilä introduced its Assured Operations 350 remote support service for Wärtsilä 4-stroke 300 and 2-stroke engine customers 250 • The service enables technical

  19. Slide 19: Marine Systems

    MARINE SYSTEMS MARINE SYSTEMS MEUR Order intake 300 250 200 • Order intake decreased by 40% to EUR 119 150 million (198) 100 • Reduced fuel spreads resulted in lower 50 demand for scrubber investments 0 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 • Net sales increased by 1% to EUR 238 million (237) MEUR • C

  20. Slide 20: Voyage

    VOYAGE VOYAGE MEUR Order intake 120 100 80 • Order intake decreased by 23% to EUR 56 60 million (72) 40 • Net sales decreased by 23% to EUR 56 million 20 (73) 0 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 • COVID-19 caused project postponements and less transactional service business MEUR • Comparable opera

  21. Slide 21: Vessels connected to Voyage digital services increased 90%

    VOYAGE VESSELS CONNECTED TO VOYAGE DIGITAL SERVICES INCREASED 90% – RECORD HIGH NUMBER OF VESSELS IN ORDER BOOK Number of connected vessels +90% Voyage is committed to creating a Smart Marine Ecosystem, whereby every vessel can connect to digital services that make voyaging safer and greener Connect

  22. Slide 22: Energy

    ENERGY ENERGY MEUR Order intake 700 600 500 400 • Order intake decreased by 10% to EUR 390 300 million (435) 200 • Received equipment orders included a 200 100 MW flexible baseload power plant to be 0 delivered to South America Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 • Net sales increased by 14% to EUR

  23. Slide 23: Energy installed base covered by long-term service agreements

    ENERGY ENERGY INSTALLED BASE COVERED BY LONG-TERM SERVICE AGREEMENTS MW 14,000 30% 12,000 25% 10,000 20% 8,000 15% 6,000 10% 4,000 2,000 5% 0 0% 2015 2016 2017 2018 2019 30.6.2020 MW under agreement* % of Energy installed base *Includes agreements covering both installed assets and assets to be inst

  24. Slide 24: Orders received for energy equipment globally

    ENERGY ORDERS RECEIVED FOR ENERGY EQUIPMENT GLOBALLY Europe 22 (24) Americas Asia 719 (248) 101 (525) Utilities IPP’s (Independent Africa and Power Producers) Middle East 70 (291) Industrials Others ORDER INTAKE 1-6/2020: 912 MW (1,058) 24 © Wärtsilä 17 July 2020 HALF YEAR REPORT JANUARY-JUNE 2020

  25. Slide 25: COVID-19 impact and withdrawn market outlook

    The COVID-19 outbreak and the measures taken to contain the pandemic will materially impact the demand for Wärtsilä’s solutions and services, as well as the company’s financial performance in 2020. The full financial impact cannot be quantified at this time. Consequently, Wärtsilä withdrew its marke

  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 — Q2 2020 Earnings Presentation on 6ix