WÄRTSILÄ CORPORATION HALF YEAR FINANCIAL REPORT JANUARY-JUNE July 2017 Jaakko Eskola, President & CEO. Wärtsilä PUBLIC

Transcription

1 WÄRTSILÄ CORPORATION HALF YEAR FINANCIAL REPORT JANUARY-JUNE July 217 Jaakko Eskola, President & CEO 1 Wärtsilä PUBLIC 2 July 217 Half year financial report 217

2 Highlights Q2/217 Order intake EUR 1,363 million, +14% Net sales EUR 1,292 million, +8% Book-to-bill 1.5 (1.) Comparable operating result EUR 126 million (122), which represents 9.7% of net sales (1.2) Earnings per share EUR.38 (.19) Cash flow from operating activities EUR 2 million (22) Order book at the end of the period EUR 5,65 million (5,83) 2

3 Order intake developed well in all business areas Second quarter development 1 6 1, ,194 14% % % Services Marine Solutions % Energy Solutions Q2/216 Q2/217 Q1-Q2 Q3-Q4 3

4 Net sales supported by higher power plant deliveries Second quarter development 1 6 1, ,196 8% 1 2 1% 1 Services % Marine Solutions % Energy Solutions Q2/216 Q2/217 Q1-Q2 Q3-Q4 4

5 Net sales by business 1-6/217 Services 45% (48) Marine Solutions 27% (36) Energy Solutions 28% (16) 5

6 Book-to-bill 5 5 1, ,2 1, 3 5 3,8 2 5, ,4 1 5, /217 Order intake Net sales Book-to-bill, 6 Wärtsilä PUBLIC 2 July 217 Half year financial report 217

7 Order book distribution Delivery current year Delivery next year or later 7

8 Operating result 7 14% % 11.9% 12.2% 12.1% 12% 1% 24 Review period development 14% 4 8% % 9.2% 12% 1% 3 2 6% 4% % 6% 4% 1 2% 4 2% % 1-6/ /217 % Comparable operating result % of net sales Items affecting comparability included costs related to restructuring programmes of EUR 8 million (26) in the second quarter of 217 and EUR 14 million (27) during the review period January-June. Figures for 213 include both discontinued and continuing operations. 8

9 SERVICES 9

10 SERVICES Stable development in Services net sales Second quarter development % Q2/216 Q2/217 Q1-Q2 Q3-Q4 1 Wärtsilä PUBLIC 2 July 217 Half year financial report 217

11 SERVICES Net sales distribution 1-6/217 By product area By segment Spare parts 51% (51) Field service 23% (24) Special vessels 7% (8) Offshore 7% (9) Navy 9% (8) Power plants 38% (37) Agreements 17% (15) Projects 9% (9) Merchant 23% (25) Cruise & ferry 16% (13) Total EUR 1,35 million (1,42) 11

12 SERVICES Installed base covered by service agreements 2 3% % MW % 15% 8 6 1% 4 2 5% /217 % MW under agreement Energy Solutions % of Energy Solutions installed base MW under agreement Marine Solutions % of Marine Solutions installed base 12

13 Wärtsilä to install a hybrid system with batteries on board Eidesvik Offshore s vessel The Viking Princess is the first offshore supply vessel to replace a generator with batteries The storage solution improves efficiency, generating fuel savings and reducing CO2 emissions Copyright: Eidesvik 13

14 ENERGY SOLUTIONS 14

15 ENERGY SOLUTIONS Quotation activity by fuel type MW Multi-fuel Gas Liquid fuel 2 1 Q4/214 Q1/215 Q2/215 Q3/215 Q4/215 Q1/216 Q2/216 Q3/216 Q4/216 Q1/217 Q2/217 Calculated on a 12 months rolling basis 15 Wärtsilä PUBLIC 2 July 217 Half year financial report 217

16 ENERGY SOLUTIONS Continued momentum in Energy Solutions order intake 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 16

17 ENERGY SOLUTIONS Order intake globally Europe 198 (92) 13 Asia 1,87 (368) 8 Americas 348 (299) Utilities IPP s (Independent Power Producers) Industrials 329 Africa and Middle East 173 (299) Order intake 1-6/217: 1,86 MW (1,886) 17

18 Energy storage steps in to solve peaker plant crisis Greensmith s GEMS software platform selected when a sudden loss in peaker plant capacity in Pomona, California was replaced with energy storage By leveraging major OEM relationships, North America s largest and most complex energy storage system was delivered safely, reliably in a record less than 4 months The storage solution delivers 8 MWh of electricity during peak periods of energy demand to power around 15, homes for 4 hours each day 18

19 ENERGY SOLUTIONS Market for gas and liquid fuel power plants, <5 MW Wärtsilä 12% (13) Other GT s 4% (4) Ansaldo 15% (1) GE 31% (31) MHI 15% (2) <5 MW market volume last 12 months: 28.4 GW (26.1) Total market volume last 12 months: 58. GW (64.8) Siemens 24% (22) Market shares are calculated on a 12 months rolling basis, numbers in brackets are from the end of the previous quarter. 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 MARINE SOLUTIONS Marine market environment remains challenging Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT* 25 5, 4,5 2 4, 3,5 Number of vessels , 2,5 2, 1,5 * 5 1,,5, Million CGT Source: Clarkson Research Services, figures exclude late contracting * CGT= gross tonnage compensated with workload 21 Wärtsilä PUBLIC 2 July 217 Half year financial report 217

22 MARINE SOLUTIONS Marine Solutions order intake supported by favourable vessel mix 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% 22

23 Wärtsilä s unique HY hybrid power module increases efficiency and flexibility The hybrid power module combines engines, energy storage, and power electronics Benefits include reduced fuel consumption and emissions, as well as improved vessel performance and safety Rimorchiatori Riuniti s new harbour tug will be the first vessel to feature the Wärtsilä HY innovation Kuva pitää vaihtaa, bonny kalvon kuva voisi sopia tähän 23

24 MARINE SOLUTIONS Market position of Wärtsilä s marine engines Medium-speed main engines Others 17% (11) Auxiliary engines Wärtsilä 8% (2) Caterpillar 13% (17) Wärtsilä 4% (45) Others 92% (8) MAN D&T 3% (27) Total market volume last 12 months: 3,65 MW (2,235) Total market volume last 12 months: 1,68 MW (1,34) Wärtsilä s market shares are calculated on a 12 months rolling basis, numbers in brackets are from the end of the previous quarter. The calculation is based on Wärtsilä s own data portal. 24

25 FINANCIALS 25

26 FINANCIALS Cash flow from operating activities affected by increased receivables 7 6 Review period development / /217 26

27 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 27 Wärtsilä PUBLIC 2 July 217 Half year financial report 217

28 FINANCIALS Gearing,5 Review period development,4,5,3,4,2,3,2,1,1, , Wärtsilä PUBLIC 2 July 217 Half year financial report 217

29 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) 29

30 THANK YOU Further information: Natalia Valtasaari Director, Investor & Media Relations Tel () natalia.valtasaari@wartsila.com 3