Slide 1: Wärtsilä Corporation Result Presentation 2017
WÄRTSILÄ CORPORATION RESULT PRESENTATION 2017 31 January 2018 Jaakko Eskola, President & CEO 1 © Wärtsilä PUBLIC 31 January 2018 Full year result presentation 2017
Slide 2: 2017 – A year of solid sales and strong order intake
2017 – A YEAR OF SOLID SALES AND STRONG ORDER INTAKE 2 © Wärtsilä PUBLIC 31 January 2018 Full year result presentation 2017
Slide 3: Key financials 2017
Key financials 2017 • Order intake EUR 5,644 million, +15% • Net sales EUR 4,923 million, +3% • Book-to-bill 1.15 (1.03) • Comparable operating result EUR 590 million (583), 12.0% of net sales (12.1) • Earnings per share EUR 1.95 (1.79) • Cash flow from operating activities EUR 430 million (613) • O
Slide 4: Growth in order intake
Growth in order intake MEUR 6 000 5 500 Fourth quarter development 5 000 MEUR 4 500 1 800 4 000 1,514 1 600 3 500 1,324 14% 1 400 3 000 1 200 Services 14% 2 500 1 000 Marine 2 000 800 Solutions 42% 1 500 600 1 000 Energy 400 Solutions 500 200 0% 0 0 2013 2014 2015 2016 2017 Q4/2016 Q4/2017 Q1-Q3 Q4
Slide 5: Solid full year sales development
Solid full year sales development MEUR 5 500 5 000 Fourth quarter development 4 500 MEUR 4 000 1 800 1,559 3 500 1 600 -7% 1,445 3 000 1 400 3% 2 500 1 200 Services 1 000 2 000 Marine 800 Solutions 1 500 -28% 600 1 000 Energy 400 3% Solutions 500 200 0 0 2013 2014 2015 2016 2017 Q4/2016 Q4/2017 Q1-Q
Slide 6: Net sales by business 2017
Net sales by business 2017 Services Marine Solutions 45% (46) 27% (35) Energy Solutions 28% (20) 6 © Wärtsilä PUBLIC 31 January 2018 Full year result presentation 2017
Slide 7: Book-to-bill
Book-to-bill MEUR 6 000 1,4 5 500 1.15 1,2 5 000 1.05 1.06 1.03 4 500 0.98 1,0 4 000 3 500 0,8 3 000 2 500 0,6 2 000 0,4 1 500 1 000 0,2 500 0 0,0 2013 2014 2015 2016 2017 Order intake Net sales Book-to-bill 7 © Wärtsilä PUBLIC 31 January 2018 Full year result presentation 2017
Slide 8: Order book distribution
Order book distribution MEUR 3 500 3 000 2 500 2 000 1 500 1 000 500 0 31.12.2016 31.12.2017 Delivery next year Delivery after next year 8 © Wärtsilä PUBLIC 31 January 2018 Full year result presentation 2017
Slide 9: Operating result in line with previous year
Operating result in line with previous year MEUR 700 14% 12.2% 12.1% 11.9% 12.0% 600 12% 11.2% 500 10% 400 8% 300 6% 200 4% 100 2% 0 0% 2013 2014 2015 2016 2017 Comparable operating result % of net sales Items affecting comparability amounted to EUR 19 million (22) in the fourth quarter of 2017 and
Slide 10: Services
SERVICES 10 © Wärtsilä PUBLIC 31 January 2018 Full year result presentation 2017
Slide 11: Services net sales development
SERVICES Net sales development By product area MEUR 2 400 Field service 23% (23) 2 200 Spare parts 2 000 49% (49) 1 800 Agreements 18% (15) 1 600 1 400 Projects 11% (13) 1 200 1 000 By segment Special vessels 800 8% (8) Offshore 600 8% (9) 400 Navy Power 8% (8) plants 200 39% (39) 0 2013 2014 2015 2
Slide 12: Installed base covered by service agreements
SERVICES Installed base covered by service agreements 20 000 30% 18 000 25% 16 000 14 000 20% 12 000 MW 10 000 15% 8 000 10% 6 000 4 000 5% 2 000 0 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 MW under agreement – Energy Solutions MW under agreement – Marine Solutions % of Energy Solutions’ insta
Slide 13: Wärtsilä to retrofit the world's first energy storage solution on board a large offshore supply vessel
Wärtsilä to retrofit the world’s first energy storage solution on board a large offshore supply vessel • The system will be installed on the North Sea Giant, one of the world’s largest and most advanced sub-sea construction vessels • Benefits of the solution include: • Reduced energy consumption • L
Slide 14: Energy Solutions
ENERGY SOLUTIONS 14 © Wärtsilä PUBLIC 31 January 2018 Full year result presentation 2017
Slide 15: Quotation activity by fuel type
ENERGY SOLUTIONS Quotation activity by fuel type MW 70 000 60 000 50 000 Multi-fuel 40 000 Gas 30 000 Liquid fuel 20 000 10 000 0 Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Calculated on a 12 months rolling basis 15 © Wärtsilä PUBLIC 31 Ja
Slide 16: Energy Solutions' order intake
ENERGY SOLUTIONS Energy Solutions’ order intake Review period development MEUR Total EUR 1,685 million (1,448) 1 800 15% Utilities 1 600 Independent 1 400 power producers 35% 49% 1 200 Industrials 1 000 800 Review period order intake 600 by fuel in MW 400 Oil Gas 49% 51% 200 0 2013 2014 2015 2016 20
Slide 17: Order intake globally
ENERGY SOLUTIONS Order intake globally Europe 198 (1,206) Asia 2,380 (960) 13 18 75 110 Americas 796 (921) 1,422 940 28 187 580 Africa and Middle East 402 (427) Utilities IPP’s 95 (Independent Power Producers) 196 Industrials 110 Order intake 2017: 3,775 MW (3,513) 17 © Wärtsilä PUBLIC 31 January 20
Slide 18: Energy markets shifting towards smart, clean & flexible technologies
Energy markets shifting towards smart, clean & flexible technologies • 200 MW gas power plant addresses intermittency challenges associated with the expansion of renewable energy in Arizona, USA • 52 MWp solar PV plant increases the share of renewables in Jordan • Integrated energy management system
Slide 19: Market for gas and liquid fuel power plants, <500 MW
ENERGY SOLUTIONS Market for gas and liquid fuel power plants, <500 MW Other GT’s 2% (4) Wärtsilä 15% (14) GE 28% (30) Ansaldo 14% (19) MHI Siemens 15% (14) 26% (19) <500 MW market volume last 12 months: 25.2 GW (24.8) Total market volume last 12 months: 54.9 GW (54.6) Market shares are calculated on
Slide 20: Marine Solutions
MARINE SOLUTIONS 20 © Wärtsilä PUBLIC 31 January 2018 Full year result presentation 2017
Slide 21: Vessel contracting supported by improved sentiment
MARINE SOLUTIONS Vessel contracting supported by improved sentiment Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT * 250 5,0 4,5 200 4,0 3,5 Number of vessels 150 3,0 * Million CGT 2,5 100 2,0 1,5 50 1,0 0,5 0 0,0 12.17 01.09 03.09 05.09 07.09 09.09 11.09 01.10 03.
Slide 22: Marine Solutions' order intake
MARINE SOLUTIONS Marine Solutions’ order intake MEUR 1 800 Review period development Total EUR 1,478 million (1,285) 1 500 Offshore 3% Special vessels 1 200 8% Gas carriers 25% 900 Cruise 27% 600 300 Traditional merchant 23% Ferry 0 2013 2014 2015 2016 2017 4% Others Navy Q1-Q3 Q4 4% 7% 22 © Wärtsil
Slide 23: Marine Solutions' order book 31 December 2017
MARINE SOLUTIONS Marine Solutions’ order book 31 December 2017 Bulk carriers 2% Containers 3% Cargo 1% Offshore 9% RoRo 2% Tankers 9% Gas carriers Cruise & Ferry 19% 34% Other vessel 1% Non-vessel 2% Special vessels Navy 7% 12% 23 © Wärtsilä PUBLIC 31 January 2018 Full year result presentation 2017
Slide 24: Market position of Wärtsilä's marine engines
MARINE SOLUTIONS Market position of Wärtsilä’s marine engines Medium-speed main engines Auxiliary engines Wärtsilä Others 10% (13) 20% (20) Wärtsilä 47% (43) Others Caterpillar 90% (87) 10% (10) MAN D&T 23% (27) Total market volume last 12 months: Total market volume last 12 months: 3,017 MW (2,982)
Slide 25: Wärtsilä's smart technology at the heart of a new shuttle tanker concept
Wärtsilä’s smart technology at the heart Kuva of a new shuttle tanker concept pitää • TEEKAY’s four new shuttle tankers will vaihtaa, feature a wide range of Wärtsilä’s latest technology innovations bonny • Wärtsilä’s smart solutions enable optimal economic and ecological kalvon performance • Eniram
Slide 26: Financials
FINANCIALS 26 © Wärtsilä PUBLIC 31 January 2018 Full year result presentation 2017
Slide 27: Cash flow from operating activities
FINANCIALS Cash flow from operating activities MEUR 700 600 500 400 300 200 100 0 2013 2014 2015 2016 2017 27 © Wärtsilä PUBLIC 31 January 2018 Full year result presentation 2017
Slide 28: Working capital
FINANCIALS Working capital MEUR 1 600 25% 1 400 20% 1 200 1 000 15% 12.0% 800 10.8% 10.2% 591 10% 600 543 6.8% 490 400 5.2% 313 5% 251 200 0 0% 2013 2014 2015 2016 2017 Working capital Total inventories Advances received Working capital / Net sales 28 © Wärtsilä PUBLIC 31 January 2018 Full year resu
Slide 29: Gearing
FINANCIALS Gearing 0,50 0,40 0,30 0,20 0,10 0,00 2013 2014 2015 2016 2017 29 © Wärtsilä PUBLIC 31 January 2018 Full year result presentation 2017
Slide 30: EPS and dividend per share
FINANCIALS EPS and dividend per share EUR 2,5 1.95 2,0 1.38 1,5 1,0 0,5 0,0 2013 2014 2015 2016 2017* EPS Dividend * Dividend 2017 - Proposal of the Board 30 © Wärtsilä PUBLIC 31 January 2018 Full year result presentation 2017
Slide 31: Prospects for 2018
Setti 1 Setti 1 Prospects for 2018 The demand for Wärtsilä’s services and solutions in 2018 is expected to improve somewhat from the previous year. Demand by business area is anticipated to be as follows: • Good in Services • Good in Energy Solutions • Solid in Marine Solutions 31 © Wärtsilä PUBLIC
Slide 32: Thank you
THANK YOU Further information: Natalia Valtasaari Director, Investor & Media Relations Tel. +358 (0) 10 709 5637 E-mail: natalia.valtasaari@wartsila.com 32 © Wärtsilä PUBLIC 31 January 2018 Full year result presentation 2017