Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wartsila Corp B Shs — Q3 2024 Earnings Presentation

30 slides from Wartsila Oyj Abp's earnings presentation, Oct 29, 2024

  1. Slide 1: Result presentation Q3 2024

    Wärtsilä Corporation Result presentation Q3 2024 Håkan Agnevall, President & CEO Arjen Berends, CFO 29 October 2024 1 ©

  2. Slide 2: Improved net sales, profitability and cash flow

    Improved net sales, profitability and cash flow ▪ Net sales increased by 18% ▪ Continued strong order book (7,583 MEUR) ▪ Comparable operating result increased by 41% ▪ Good progress in services continued: ▪ Service order intake increased by 4% ▪ Service net sales increased by 6% ▪ Strong cash flow

  3. Slide 3: Good development in key figures

    Good development in key figures MEUR 7-9/2024 7-9/2023 CHANGE 1-9/2024 1-9/2023 CHANGE Order intake 1,803 1,787 1% 5,580 5,214 7% of which services 874 842 4% 2,805 2,644 6% of which equipment 929 946 -2% 2,776 2,570 8% Order book 7,583 6,594 15% of which current year deliveries 1,648 1,570 Net sale

  4. Slide 4: Marine: market sentiment is positive for Wärtsilä’s key segments

    Marine: market sentiment is positive for Wärtsilä’s key segments Increase in demand for new ships in the third quarter ▪ The number of vessels ordered in the review period increased to Total and specialised vessel contracting 1,953 (1,356 in the corresponding period in 2023, excluding late Number of

  5. Slide 5: Energy: solid long-term market opportunities

    Energy: solid long-term market opportunities Rising protectionism and decreasing inflation impact energy markets in the third quarter ▪ Macroeconomic development continued to be impacted by Development on installed wind and solar capacity * protectionism and elevated risks in the geopolitical enviro

  6. Slide 6: Organic order intake increased by 4%

    Organic order intake increased by 4% Equipment Services Order intake MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling increased by 1% 1,600 4,000 1,600 4,000 Equipment order 1,400 3,500 1,400 3,500 intake decreased by 1,200 3,000 1,200 3,000 2%, primarily driven 1,000 884 946 929 2,500 1,000 874 2,500

  7. Slide 7: Strong order book, rolling book-to-bill continues above 1

    Strong order book, rolling book-to-bill continues above 1 Order book by business Order book delivery schedule MEUR MEUR 8,000 1.6 4,000 7,000 1.4 3,500 6,000 1.2 3,000 5,000 1.0 2,500 4,000 0.8 2,000 3,000 0.6 1,500 2,000 0.4 1,000 1,000 0.2 500 0 0.0 0 30.9.2022 31.3.2023 30.9.2023 30.3.2024 30.9.2

  8. Slide 8: Organic net sales increased by 21%

    Organic net sales increased by 21% Equipment Services MEUR MEUR, 12m rolling MEUR MEUR, 12m rolling Net sales increased by 1,200 3,500 1,200 3,500 18% 1,100 1,100 3,000 1,000 3,000 1,000 911 Equipment net sales 900 900 807 800 769 2,500 800 762 2,500 increased by 32% 690 664 700 2,000 700 2,000 600

  9. Slide 9: Profitability continued to improve

    Profitability continued to improve Net sales Comparable operating result MEUR MEUR, 12m rolling MEUR %, 12m rolling Net sales increased by 2,200 7,200 200 177 12.0% 18% 2,000 6,400 180 1,800 1,718 5,600 160 10.0% Comparable operating 1,600 1,433 1,452 4,800 140 125 8.0% result increased by 41% 1,400

  10. Slide 10: Technology and partnership highlights

    Technology and partnership highlights Enabling industry decarbonisation Landmark deal between Wärtsilä and Eidesvik Offshore pioneers growing demand for ammonia in shipping ▪ Wärtsilä has signed a contract with Norwegian shipowner Eidesvik to supply the equipment for the conversion of an offshore pl

  11. Slide 11: Marine

    Cc WARTSILA Marine

  12. Slide 12: Marine: Good performance continued

    Marine: Good performance continued Net sales and comparable operating result increased Order intake +0% Comparable operating result Comparable operating result 12m rolling MEUR MEUR 3,563 MEUR MEUR 12m rolling 12.1% 1,000 902 902 4,000 120 14.0% 800 3,000 600 12.0% 2,000 100 400 + Higher service 200

  13. Slide 13: Good development in Marine service

    Good development in Marine service Marine net sales to agreement installations was stable at over 500 MEUR in Q3 Net sales to agreement installations (12 month rolling)1) MEUR, 12m rolling Wärtsilä and Royal Caribbean Group sign Lifecycle Agreement to accelerate 550 sustainability goals 500 ▪ Wärtsi

  14. Slide 14: Energy

    co WARTSILA Energy 14 © WARTSILA,

  15. Slide 15: Energy: Comparable operating result increased

    Energy: Comparable operating result increased Equipment orders and deliveries grew clearly in Engine Power Plants Order intake Comparable operating result Comparable operating result -19% 12m rolling MEUR MEUR 2,899 MEUR MEUR 12m 12mrolling 11.1% rolling 1,000 3,200 7.3% 805 100 12.0% 800 679 3,000

  16. Slide 16: Energy Storage & Optimization: Comparable operating result margin continued to improve

    Energy Storage & Optimization: Comparable operating result margin (12m rolling) continued to improve while the order intake is lumpy Quarterly development Rolling 12 months development MEUR MEUR % of net sales 400 1,400 5.0 350 4.0 321 328 1,200 1056 1034 300 992 1022 275 975 961 983 992 3.0 271 1,0

  17. Slide 17: Agreement coverage in Energy continues to grow

    Agreement coverage in Energy continues to grow MW under agreement globally MW Wärtsilä strengthens commitment to 20,000 35% Zambia with O&M agreement renewal for 19,000 Ndola power plant 30% 18,000 17,000 25% ▪ Wärtsilä has signed a renewal of its Operations & 16,000 Maintenance (O&M) agreement cove

  18. Slide 18: Comparable operating result improved – increase in all businesses

    Comparable operating result improved – increase in all businesses: Marine, Energy and Portfolio Business MEUR % of net sales 200 9.0% 1 0 10.5% (8.4%) (3.9%) 10.3% Comparable operating result increased by 41% 160 10.4% (10.0%) 140 8.6% 120 100 0 60 40 20 0 Comparable Marine Energy Portfolio Comparab

  19. Slide 19: Other key financials

    Pa) WARTSILA Other key financials © WARTSILA

  20. Slide 20: Other key financials: Strong cash flow from operating activities

    Other key financials: Strong cash flow from operating activities MEUR 6-9/2024 6-9/2023 1-9/2024 1-9/2023 Cash flow from operating activities 296 213 770 432 Working capital -501 43 Net interest-bearing debt -405 356 Gearing -0.17 0.17 Solvency, % 36.9 35.2 Earnings per share (EPS), basic and dilute

  21. Slide 21: Strong cash flow from operating activities

    Strong cash flow from operating activities Cash flow from operating activities Working capital to net sales ratio MEUR MEUR, 12m rolling MEUR 500 1200 300 4% 200 1000 108 2% 400 100 43 296 800 0% 300 0 213 600 -100 -2% 200 400 -200 -4% 100 100 -300 200 -6% -400 0 0 -8% -500 -501 -100 -200 -600 -10%

  22. Slide 22: Prospects

    Prospects Marine ▪ Wärtsilä expects the demand environment for the next 12 months (Q4/2024–Q3/2025) to be better than that of the comparison period. Energy ▪ Wärtsilä expects the demand environment for the next 12 months (Q4/2024–Q3/2025) to be better than that of the comparison period. 22 ©

  23. Slide 23: WARTSILA

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  24. Slide 24: Appendix

    Appendix 24 ©

  25. Slide 25: Order intake

    Order intake Third quarter development 19% (12) 50% Marine Services Order intake Order intake 48% (50) 52% Equipment by business Energy by business type (47) (53) Portfolio Business 31% (38) 25 ©

  26. Slide 26: Net sales

    Net sales Third quarter development 10% (12) 43% Marine Services Net sales (46) Net sales 47% Energy 53% Equipment by business by business type (52) (48) Portfolio Business 47% (42) 26 ©

  27. Slide 27: Third quarter development by business type

    Third quarter development by business type Order intake Net sales 28% Spare parts Spare parts 31% (26) (32) Field service Field service 34% 39% (32) Marine Service agreements Marine (45) Service agreements EUR 739 million EUR 902 million Retrofits and upgrades (671) (902) Retrofits and upgrades Equi

  28. Slide 28: January–September order intake by customer segment

    January–September order intake by customer segment Marine Gas carriers Cruise & ferry Offshore Navy Special vessels Merchant Other Equipment 6% (9) 23% (26) 5% (6) 6% (10) 11% (3) 44% (42) 4% (4) Services 13% (14) 22% (22) 17% (18) 11% (8) 10% (11) 26% (25) 1% (2) Total 10% (12) 22% (23) 13% (13) 9%

  29. Slide 29: Orders received for Energy equipment globally

    Orders received for Energy equipment globally Europe 213 (312) Americas Asia 486 (430) 373 (334) Utilities IPP’s (Independent Africa and Power Producers) Middle East Industrials 29 (122) Others Equipment order intake 1-9/2024: MEUR 1,101 (1,198) 29 ©

  30. Slide 30: WARTSILA

    re, WARTSILA

Wartsila Corp B Shs — Q3 2024 Earnings Presentation on 6ix