WÄRTSILÄ CORPORATION HANDELSBANKEN NORDIC LARGE CAP SEMINAR

Transcription

1 WÄRTSILÄ CORPORATION HANDELSBANKEN NORDIC LARGE CAP SEMINAR Jaakko Eskola President & CEO 1 Wärtsilä PUBLIC 2 September 217 Jaakko Eskola

2 Wärtsilä s net sales by business 1-6/217 SERVICES, 45% ENERGY SOLUTIONS, 28% MARINE SOLUTIONS, 27% 2

3 Net sales and profitability MEUR % % 11.2% 11.9% 12.2% 12.1% 12% 1% 8% 6% 4% 2% Review period development 9.5% 9.2% 14% 12% 1% 8% 6% 4% 2% % H1/216 H1/217 % Net sales Comparable operating result, % of net sales Figures for include both discontinued and continuing operations. 3 Wärtsilä PUBLIC 2 September 217 Jaakko Eskola

4 Order book distribution MEUR Delivery current year Delivery next year or later 4

5 Focus on long-term profitable growth ENERGY EFFICIENT SOLUTIONS GAS BASED TECHNOLOGY INNOVATIVE SOLUTIONS 5

6 SERVICES Stable development in Services net sales MEUR Navy 9% (8) Review period development Total EUR 1,35 million (1,42) Special vessels 7% (8) Offshore 7% (9) Power plants 38% (37) Merchant 23% (25) Q1-Q2 Q3-Q4 Cruise & ferry 16% (13) 6 Wärtsilä PUBLIC 2 September 217 Jaakko Eskola

7 MW SERVICES Installed base covered by service agreements 2 3% % 14 2% % 8 6 1% 4 5% /217 % MW under agreement Energy Solutions % of Energy Solutions installed base MW under agreement Marine Solutions % of Marine Solutions installed base 7

8 12-year strategic partnership with Carnival Corporation Ensuring safety and reliability of Carnival s fleet and reduced operational costs Scope includes all engine maintenance and monitoring for 79 vessels Emphasis on continuous planning together with Carnival and digitising fleet operations Performance-based revenue model 8

9 SERVICES Strategic focus areas CUSTOMER FIRST GO DIGITAL ASSET & LIFECYCLE NEW CUSTOMER MANAGEMENT ACCESS Growth in existing business by improving customer loyalty Growth through optimising customer performance Growth through value-adding lifecycle services & projects Growth beyond the traditional Wärtsilä installed base 9

10 ENERGY SOLUTIONS Renewables increasing globally, electricity demand growing in the emerging markets OECD Gross annual capacity additions (GW) Gas Other flexible capacity Batteries Wind Solar Others Non-OECD Gross annual capacity additions (GW) Gas Other flexible capacity Batteries Wind Solar Others Source: Bloomberg New Energy Finance Note: Flexible capacity includes power storage, demand response and other potential resources. Others include: coal, oil, nuclear, hydro and other renewables than wind or solar 1 Wärtsilä PUBLIC 2 September 217 Jaakko Eskola

11 ENERGY SOLUTIONS Market trends support Energy Solutions order intake MEUR 1 8 Review period development Total EUR 766 million (616) % 1% 64% Utilities Independent power producers 1 2 Industrials Review period order intake by fuel in MW 4 2 Oil 38% Gas 62% Q1-Q2 Q3-Q4 11

12 Urgent need for additional electrical capacity in Bangladesh The Bangladeshi economy, industries and population are growing putting strain on power supply More reliable power generation need to be added to the national grid Orders received in Q3 include equipment for engines for a 22 MW plant in Chandpur and a 3 MW power plant in Gazipur Wärtsilä s installed base in Bangladesh now amounts to 35 MW Photographer: Reynaldo F. Eugenio II 12

13 ENERGY SOLUTIONS The acquisition of Greensmith will enable Wärtsilä to become a global systems integrator A US-based leader in intelligent energy storage technology and solutions Specialised in energy storage optimization and integration software Enables Wärtsilä' expansion to the energy storage market with solutions that combine and optimise different forms of power generation, energy storage and demand side management 13

14 Number of vessels Million CGT MARINE SOLUTIONS The marine market environment remains challenging Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT * 25 5, 4,5 2 4, 3, , 2,5 2, 1,5 1,,5, * Source: Clarkson Research Services, figures exclude late contracting * CGT= gross tonnage compensated with workload 14 Wärtsilä PUBLIC 2 September 217 Jaakko Eskola

15 MARINE SOLUTIONS Marine Solutions order intake supported by favourable vessel mix MEUR Review period development Total EUR 725 million (741) Offshore 2% Special vessels 6% 9 6 Gas carriers 29% Cruise 31% Q1-Q2 Q3-Q4 Traditional merchant 18% Others 3% Navy 9% Ferry 3% 15

16 Good activity in FSRU market Cost efficiency, flexibility and mobility is creating demand for floating regasification units Höegh LNG s two new FSRUs will feature Wärtsilä s latest regasification technology and Wärtsilä s dual-fuel main engines Wärtsilä will service the new vessels and eight of Höegh s existing ships under a 5-year technical management agreement Kuva pitää vaihtaa, bonny kalvon kuva voisi sopia tähän 16

17 Developing technologies that enable a Smart Marine future In August, Wärtsilä successfully tested the remote control of ship operations using satellite communication Gulfmark Offshore s vessel in the North Sea was remotely navigated from Wärtsilä s office in San Diego, California The vessel was driven through a sequence of maneuvers using a combination of dynamic positioning and manual joystick control over an almost 4 hour period Photographer: Reynaldo F. Eugenio II 17

18 Prospects for 217 Setti 1 Setti 1 Wärtsilä's overall development in 217 is expected to be relatively unchanged from the previous year. Demand by business area is anticipated to develop as follows: Solid in Services with growth opportunities Good in Energy Solutions Solid in Marine Solutions (raised from soft) 18

19 THANK YOU IR Contact: Natalia Valtasaari Director, Investor & Media Relations Tel () natalia.valtasaari@wartsila.com 19 Wärtsilä PUBLIC 2 September 217 Jaakko Eskola