WÄRTSILÄ CORPORATION · 9/16/2015 · © Wärtsilä WÄRTSILÄ CORPORATION HANDELSBANKEN NORDIC...

© Wärtsilä

WÄRTSILÄ CORPORATIONHANDELSBANKEN NORDIC LARGE CAP SEMINAR16 SEPTEMBER 2015Björn Rosengren,President & CEO

1 16 September 2015 Björn Rosengren

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Services, 47%

This is Wärtsilä

Energy Solutions, 23%

Marine Solutions, 30%


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Net sales and profitability

MEUR

Figures shown before nonrecurring restructuring items.Figures for 2011-2013 and H1/2014 include both discontinued and continuing operations.

3

11.1% 10.9% 11.2%11.9%

0%

2%

4%

6%

8%

10%

12%

14%

0

1000

2000

3000

4000

5000

6000

2011 2012 2013 2014

Net sales EBIT %

10.9%10.7%

0%

2%

4%

6%

8%

10%

12%

14%

0

500

1000

1500

2000

2500

1-6/2014 1-6/2015

Review period development

MEUR

16 September 2015 Björn Rosengren

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We aim for faster than market growth

Megatrends drive demand for our solutions

Opportunities in strategic focus areas

Strong presence in growth markets

Strengthening market position through acquisitions


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Actions for reaching our long-term profitability target

11.9% 14.0%

Pricing

Securing value based and market driven pricing

Ensuring competitivenessInvesting into technological leadership

Productivity

Optimising lead times and focusing on continuous process improvement

Streamlining

Group efficiency program implemented during 2014

Increasing accountabilitySetup of business line driven organisation


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58 GW of installed power plant capacity in 175 countries

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IPP’sUtilities

* December 2014

AsiaEurope

OthersIndustry

AmericasAfrica & Middle East


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The world needs clean, affordable and reliablepower generation

• Economic growth, electrification and increased standard of living

• Demand for sustainability and reducing carbon emissions

• Rapid growth of intermittent renewable generation and escalating demand fluctuation

• Increasing role of natural gas • Ageing installed capacity

Energy Solutions – market trends & drivers


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0

200

400

600

800

1000

1200

1400

1600

1800

2011 2012 2013 2014 2015

MEUR Review period developmentTotal EUR 475 million (409)

IPP’s*

Utilities

Industrials

Oil 56%

Gas44%

Review period order intake by fuel in MW

x%

8

Energy Solutions’ order intake

49%

10%

41%

Q1-Q2 Q3-Q4

*IPP = Independent Power Producer


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Maintain leading position in flexible baseload power plants

Grow in LNG infrastructure projects

Grow strongly in large utility gas power plants

Grow in industrial applications

Energy Solutions – strategic goals


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The most complete marine offering on earth


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A dynamic global market, but with distinctive segment-specific and local needs

• Marine trade and transportation growth

• Demand for environmental solutions and gas as a marine fuel

• Energy efficiency, operating performance and security

• Investments in exploration and production of offshore oil & gas impacted by oil price development

Marine Solutions – market trends & drivers


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0

1

2

3

4

5

0

50

100

150

200

250

01.0

903

.09

05.0

907

.09

09.0

911

.09

01.1

003

.10

05.1

007

.10

09.1

011

.10

01.1

103

.11

05.1

107

.11

09.1

111

.11

01.1

203

.12

05.1

207

.12

09.1

211

.12

01.1

303

.13

05.1

307

.13

09.1

311

.13

01.1

403

.14

05.1

407

.14

09.1

411

.14

01.1

503

.15

05.1

5

Mill

ion

CG

T

# of

ves

sels

Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT

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Vessel contracting activity

Source: Clarkson Research Services, figures exclude late contracting

* CGT= gross tonnage compensated with workload

*

*

06.1

5


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0

300

600

900

1200

1500

1800

2011 2012 2013 2014 2015

MEUR

Review period developmentTotal EUR 728 million (823)

Offshore15%

Traditional merchant

16%

Special vessels10%

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Marine Solutions’ order intake

Others 4%

Q1-Q2 Q3-Q4

Gas carriers34%

Cruise & Ferry18%Navy

3%


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Acquisition of MSI strengthens our position in automation and electrical systems

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DPsystems

Sonar

Safetysystems

Electricpropulsion

AV system

Automation Radar

Powerand drivesTransformers

Switchboards

Navigation andcommunication

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• The Wärtsilä 31 engine is the industry’s most advanced, powerful, fuel efficient, fuel flexible, and environmentally sound engine

• The engine achieved a Guinness World Records title for the most efficient 4-stroke diesel engine

• Remarkable increases in fuel efficiency andfuel flexibility are matched by significant reductions in maintenance costs

• The engine comes in three alternative versions; diesel, dual-fuel and spark-ignited gas

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A brand new medium-speed Wärtsilä 31 engine launched in June


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Gas and dual-fuel solutions

Efficiency

Broader scope of supply

Environmental solutions

Growth opportunities in marine markets


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Wärtsilä Services’ global network

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Marine installed base by operating countryPower installed base by operating countryService locations

11,000 service professionals in 70 countries, 160 locations…


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• Development of installed baseand installation utilisation

• Growing importance of gas as a fuel

• Need for real-time data • Downtime avoidance• Focus on efficiency • New and stricter regulations

Services – market trends & drivers


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0

200

400

600

800

1000

1200

1400

1600

1800

2000

2011 2012 2013 2014 2015

Services’ net sales

MEUR

19

Q1-Q2 Q3-Q4

Field service24%

Contracts17%

Spare parts51%

Projects7%

Review period developmentTotal EUR 1,034 million (903)


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MW

Development of service agreements

MW under agreement – Energy Solutions MW under agreement – Marine Solutions

% of Marine Solutions’ installed base% of Energy Solutions’ installed base

0%

5%

10%

15%

20%

25%

30%

0

2000

4000

6000

8000

10000

12000

14000

2009 2010 2011 2012 2013 2014 30.6.2015


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GO-DIGITAL ASSET & LIFECYCLEMANAGEMENT

CUSTOMER FIRST

We will nourish our partnership with our existing customer base

We will digitalise our customer engagement

We will continue to develop and commercialise our portfolio of value-adding services

Services’ strategic focus areas


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Wärtsilä expects its net sales for 2015 to grow by 5-10% and its operational profitability (EBIT% before non-recurring items) to be between 12.0-12.5%.

The guidance includes the impact of the L-3 Marine Systems International acquisition.

Prospects for 2015


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We are dedicated to reaching our long-term financial targets

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Dividend of at least 50% of EPS over the cycle

Grow faster than global GDP

Reach 14%profitability

Maintain gearing below 50%


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WARTSILA.COM

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IR Contact:Natalia ValtasaariDirector, Investor Relations Tel. +358 (0) 40 187 7809E-mail: [email protected]


WÄRTSILÄ CORPORATION · 9/16/2015 · © Wärtsilä WÄRTSILÄ CORPORATION HANDELSBANKEN NORDIC...

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Transcript of WÄRTSILÄ CORPORATION · 9/16/2015 · © Wärtsilä WÄRTSILÄ CORPORATION HANDELSBANKEN NORDIC...