Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (November 2023)
20 slides from Wartsila Oyj Abp's investor day presentation, Nov 9, 2023
Slide 1: Improved profitability, and continued growth driven by decarbonisation
Improved profitability, and continued growth driven by decarbonisation Anders Lindberg President, Wärtsilä Energy and Executive Vice President November 9, 2023 1 ©
Slide 2: Significant value creation opportunity – improving performance and capturing growth
Significant value creation opportunity – improving performance and capturing growth Perform – on track to deliver our Transform – growth opportunity Transform – growth opportunity targets in Engine Power Plants in Energy Storage & Optimisation § Driving performance in new build § Thermal balancing a
Slide 3: CMD 2021: Capture growth in balancing solutions and services
CMD 2021: “Capture growth in balancing solutions and services” Targets from CMD in 2021 Status as of 2023 1 Improve profitability in energy storage Energy Storage & Optimisation is now profitable Perform +31% total services order intake Focus on Capture growth in services +21% in transactional servi
Slide 4: My first 5 months – Energy has a good foundation to build on
My first 5 months – Energy has a good foundation to build on The energy transition Energy has the right Improved risk / reward creates opportunities solutions and services for and project management our customers Energy has extensive Quality of order book is competence and Convertibility and future-
Slide 5: Perform – improve profitability in new build and grow agreements in services
Perform – improve profitability in new build and grow agreements in services 5 ©
Slide 6: Actions taken to improve new build profitability and achieve better risk / reward
Actions taken to improve new build profitability and achieve better risk / reward Organisation, team & governance § New organisation structure with three global Business Units with P&L responsibility § Significant changes in Energy management & leadership § Energy has implemented new governance: - U
Slide 7: Continued good profitability in services with a solid foundation for future growth
Continued good profitability in services with a solid foundation for future growth Service order intake, MEUR Energy services – growth drivers +14% p.a. MEUR 1,198 § Growing installed base over 1 200 time 1,062 § Stable total operating hours 915 1 000 § Increasing agreement Service projects coverage
Slide 8: Moving up the service value ladder
We increase sales, profitability and customer satisfaction by moving up the service value ladder Wärtsilä service value ladder Continuous growth in agreement coverage Sales EUR/kW relative to transactional § Securing service agreements for new power plants 5x § Maintaining high renewal rate for exis
Slide 9: Energy Storage has grown 3X since 2021 and is now profitable
Energy Storage has grown 3X1) since 2021 and is now profitable – key focus on commercial approach and differentiated offering Selective commercial approach § Focusing on growth of utility scale storage in selected geographies § Systematic project selection to drive profitability Differentiated offer
Slide 10: Transform – decarbonisation driving future growth in balancing
Transform – decarbonisation driving future growth in balancing 10 ©
Slide 11: Balancing solutions are key enablers for the renewable energy transition
As the renewable energy transition accelerates, balancing solutions are key enablers for the transition Share of renewables in global energy generation Technology disruption in the energy sector Renewables Other Renewable generation 1) Renewables becoming main source of power 8X Gradual replacement
Slide 12: Thermal balancer market expected to grow ~20% per year
Thermal balancer market expected to grow ~20% per year – the baseload market outlook remains stable Engine power plant - baseload Engine power plant - balancers Outlook Addressable annual market (GW) Addressable annual market (GW) 1) § The transition towards renewables is the driving force behind de
Slide 13: Engine power plants are in a strong position as the balancing market grows
Engine power plants are in a strong position as the balancing market grows. Power system knowledge makes Wärtsilä the go-to partner for capacity planning Engines superior to Gas Turbines for Wärtsilä is clear market leader in engine Wärtsilä in strong position as balancing power plants thermal balan
Slide 14: Case Texas shows future trends
Case Texas shows future trends. Increasing renewables creates need for balancing with engines outperforming competing technologies 30 million population with 133 GW of 1.6X higher¹ real time market revenue Texas as a proofpoint for installed power (system size equal to France) potential for engines
Slide 15: Credible roadmap for engine convertibility to avoid stranded assets
We have a credible roadmap for engine convertibility to avoid stranded assets Technology roadmap for engines Sustainable fuels for engine power plants 2023 2024 2025 We are preparing for a range of future sustainable fuels Diesel in Energy as there will be no single global green fuel for Biodiesels
Slide 16: Energy storage growth outlook remains strong
Energy storage growth outlook remains strong Order intake Market outlook Outlook Order intake (GWh) Addressable annual market (GWh) 1) § Focus on profitable growth. Maintain top 5 market position +17% p.a. +35% § Strong new build sales growth expected, driven by market demand § >11 GWh energy storag
Slide 17: Future performance driven by strong sales growth and service volumes
Future performance will be driven by strong sales growth and service volumes, continuous improvement, and a future-proof solution portfolio New build margins New build sales Recent actions: New organisation & governance Strong thermal balancing growth New organisational Stronger risk management Stro
Slide 18: On track to improve profitability in Energy
On track to improve Growth opportunity in Focus on profitable profitability in Energy thermal balancing growth in energy storage 18 ©
Slide 19: Disclaimer
Disclaimer The information and conclusions in this presentation are based upon calculations, observations, assumptions, publicly available competitor information, and other information obtained by Wärtsilä or provided to Wärtsilä by its customers, prospective customers or other third parties (the ”i
Slide 20: Wärtsilä
re, WARTSILA