WÄRTSILÄ CORPORATION INTERIM REPORT JANUARY-SEPTEMBER October 2018 Jaakko Eskola, President & CEO. Wärtsilä PUBLIC

Transcription

1 WÄRTSILÄ CORPORATION INTERIM REPORT JANUARY-SEPTEMBER October 218 Jaakko Eskola, President & CEO 1 Wärtsilä PUBLIC 23 October 218 Interim Report January-September 218

2 GOOD DEVELOPMENT IN NET SALES 2

3 Highlights Q3/218 Order intake stable at EUR 1,372 million Order book at the end of the period EUR 5,918 million, +16% Net sales EUR 1,33 million, +13% Book-to-bill 1.3 (1.15) Comparable operating result EUR 141 million (131), which represents 1.6% of net sales (11.2) Earnings per share EUR.17 (.14) Cash flow from operating activities EUR 122 million (15) Comparison figures have been restated due to the adoption of IFRS 15. EPS figures have been calculated based on the new amount of shares. 3

4 Marine Solutions and Services driving order intake Third quarter development 1,354 1% 1,372 17% 55% -65% Services Marine Solutions Energy Solutions Q3/217 Q3/218 Q1-Q3 Q4 Comparison figures for 217 have been restated due to the internal reorganisation of service activities. 4

5 Net sales boosted by growth in newbuild deliveries Third quarter development ,175 13% 1% 1,33 Services % Marine Solutions % Energy Solutions Q3/217 Q3/218 Q1-Q3 Q4 Comparison figures for 217 have been restated due to the internal reorganisation of service activities and the adoption of IFRS 15. 5

6 Net sales by business 1-9/218 Marine Solutions 24% (23) Services 46% (49) Energy Solutions 3% (28) Comparison figures for 217 have been restated due to the internal reorganisation of service activities and the adoption of IFRS 15. 6

7 Book-to-bill 6 1, , , , /218 Order intake Net sales Book-to-bill, Comparison figures for 217 have been restated due to the adoption of IFRS Wärtsilä PUBLIC 23 October 218 Interim Report January-September 218

8 Order book distribution Delivery current year Delivery next year or later Comparison figures for 217 have been restated due to the adoption of IFRS 15. 8

9 Comparable operating result affected by the sales mix 7 14% % 12.2% 12.1% 11.7% 12% 1% 4 Review period development 14% 35 12% 4 8% 3 9.7% 9.7% 1% 3 2 6% 4% % 6% 1 2% 1 5 4% 2% % 1-9/ /218 % Comparable operating result % of net sales Comparison figures for 217 have been restated due to the adoption of IFRS 15. 9

10 Wärtsilä s Smart Technology Hub to be built in Vaasa, Finland The new centre for research, development and production is the latest tangible step in Wärtsilä's Smart Marine and Smart Energy visions. The hub will enable more agile and efficient testing and development of solutions. Wärtsilä will invest EUR 83 million in modern testing and production technology for the hub. Kuva pitää vaihtaa, bonny kalvon kuva voisi sopia tähän 1

11 SERVICES 11

12 SERVICES Steady development in Services net sales Third quarter development % Q3/217 Q3/218 Q1-Q3 Q4 Comparison figures for 217 have been restated due to the internal reorganisation of service activities and the adoption of IFRS Wärtsilä PUBLIC 23 October 218 Interim Report January-September 218

13 SERVICES Net sales distribution 1-9/218 By product area By segment Spare parts 48% (49) Field service 23% (23) Agreements 21% (17) Special vessels 7% (7) Oil&Gas 4% (3) Offshore 4% (4) Navy 7% (8) Merchant 24% (23) Others 2% (2) Power plants 33% (35) Projects 9% (11) Cruise & ferry 18% (17) Total EUR 1,689 million (1,696) 13

14 MW SERVICES Installed base covered by service agreements 25 3% 2 25% 2% 15 15% 1 1% 5 5% /218 % MW under agreement Energy Solutions % of Energy Solutions installed base MW under agreement Marine Solutions % of Marine Solutions installed base 14 Wärtsilä PUBLIC 23 October 218 Interim Report January-September 218

15 ENERGY SOLUTIONS 15

16 Q1/215 Q2/215 Q3/215 Q4/215 Q1/216 Q2/216 Q3/216 Q4/216 Q1/217 Q2/217 Q3/217 Q4/217 Q1/218 Q2/218 Q3/218 ENERGY SOLUTIONS Quotation activity by fuel type MW Multi-fuel Gas Liquid fuel 1 Calculated on a 12 months rolling basis 16 Wärtsilä PUBLIC 23 October 218 Interim Report January-September 218

17 ENERGY SOLUTIONS 1 8 Energy Solutions order intake impacted by postponed investment decisions 1 6 Review period development Total EUR 921 million (1,184) 6% Utilities % 5% Independent power producers 1 2 Industrials Review period order intake by fuel in MW 4 2 Oil 37% Gas 6% Q1-Q3 Q4 Renewables 2% 17

18 ENERGY SOLUTIONS Ordering activity highest in Asia Americas 36 (348) 1 51 Europe 231 (198) Asia 1,56 (2,31) Utilities IPP s (Independent Power Producers) Africa and Middle East 275 (279) Industrials Order intake 1-9/218: 1,868 MW (2,856)

19 ENERGY SOLUTIONS Market for gas and liquid fuel power plants, <5 MW Other GT s 2% Ansaldo 7% Wärtsilä 17% Siemens 28% MHI 22% GE 24% <5 MW market volume: 2.7 GW (18.1) Total market volume: 44.2 GW (49.8) Market shares are calculated on a 12 months rolling basis, numbers in brackets are from the end of the previous period. Market data includes all Wärtsilä power plants and other manufacturers gas and liquid fuelled gas turbine based power plants with prime movers above 5 MW, as well as estimated output of steam turbines for combined cycles. The data is gathered from the McCoy Power Report. Other combustion engines not included. In engine technology Wärtsilä has a leading position. 19

20 MARINE SOLUTIONS 2

21 1/29 4/29 7/29 1/29 1/21 4/21 7/21 1/21 1/211 4/211 7/211 1/211 1/212 4/212 7/212 1/212 1/213 4/213 7/213 1/213 1/214 4/214 7/214 1/214 1/215 4/215 7/215 1/215 1/216 4/216 7/216 1/216 1/217 4/217 7/217 1/217 1/218 4/218 7/218 9/218 Number of vessels Million CGT MARINE SOLUTIONS Gradual recovery in vessel contracting 25 2 Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT * 5, 4,5 4, 3, , 2,5 2, 1,5 1,,5 *, Source: Clarkson Research Services, figures exclude late contracting * CGT= gross tonnage compensated with workload 21 Wärtsilä PUBLIC 23 October 218 Interim Report January-September 218

22 MARINE SOLUTIONS Marine Solutions order intake supported by scrubbers and continued activity in the cruise and ferry segment Review period development Total EUR 1,291 million (972) Gas carriers 12% (28) Offshore 6% (3) Special vessels 5% (8) 9 6 Traditional merchant 32% (19) Cruise 24% (29) Q1-Q3 Q4 Other 6% (3) Navy 9% (6) Ferry 5% (3) Comparison figures for 217 have been restated due to the internal reorganisation of service activities. 22

23 FINANCIALS 23

24 FINANCIALS Cash flow from operating activities Review period development / /218 24

25 FINANCIALS Working capital % 1 4 Review period development 1 2 2% % % % % % % 15% 1% 5% %* %* 2% 15% 1% 5% % % Working capital Total inventories Advances received Working capital / Net sales *Working capital / 12 months rolling net sales Comparison figures for 217 have been restated due to the adoption of IFRS Wärtsilä PUBLIC 23 October 218 Interim Report January-September 218

26 FINANCIALS Gearing,5 Review period development,4,5,3,4,2,3,2,1,1, , Wärtsilä PUBLIC 23 October 218 Interim Report January-September 218

27 Prospects for 218 Setti 1 Setti 1 The demand for Wärtsilä s services and solutions in 218 is expected to improve somewhat from the previous year. Demand by business area is anticipated to be as follows: Solid in Services (lowered from good) Good in Energy Solutions Good in Marine Solutions 27

28 Wärtsilä redesigns organisation to enhance customer value Wärtsilä Marine Business and Wärtsilä Energy Business will cover both new sales and services for the respective markets. Forming two business areas aims at: Accelerating growth and the implementation of the Smart Marine and Smart Energy strategies. Strengthening the focus on complete lifecycle solutions tailored to specific market needs. Serving customers more effectively with increased flexibility and faster response times. The new organisation will be operational as of 1 January 219. Kuva pitää vaihtaa, bonny kalvon kuva voisi sopia tähän 28

29 THANK YOU Further information: Natalia Valtasaari Director, Investor Relations Tel () natalia.valtasaari@wartsila.com 29