wÄrtsilÄ corporation · 9/16/2015 · © wärtsilä wÄrtsilÄ corporation handelsbanken nordic...
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© Wärtsilä
WÄRTSILÄ CORPORATIONHANDELSBANKEN NORDIC LARGE CAP SEMINAR16 SEPTEMBER 2015Björn Rosengren,President & CEO
1 16 September 2015 Björn Rosengren
© Wärtsilä
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.
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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
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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%
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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
© Wärtsilä
• 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]
16 September 2015 Björn Rosengren