WÄRTSILÄ CORPORATION JP MORGAN CAZENOVE EUROPEAN CAPITAL GOODS CEO CONFERENCE

Transcription

1 WÄRTSILÄ CORPORATION JP MORGAN CAZENOVE EUROPEAN CAPITAL GOODS CEO CONFERENCE Jaakko Eskola President & CEO 1 Wärtsilä PUBLIC Jaakko Eskola

2 Wärtsilä s net sales by business Q1/2016 SERVICES, 52% ENERGY SOLUTIONS, 14% MARINE SOLUTIONS, 35% 2

3 Operating result and profitability MEUR % % 11.2% 11.9% 12.2% 12% 10% MEUR 140 First quarter development 14% 400 8% % 8.7% 12% 10% 300 6% 80 8% 200 4% 60 6% 40 4% 100 2% 20 2% % 0 Q1/2015 Q1/2016 0% Comparable operating result % of net sales Items affecting comparability include restructuring costs of EUR 1 million for Q and EUR 25 million for the full year Figures for include both discontinued and continuing operations. 3

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5 ENERGY SOLUTIONS Market trends & drivers Economic growth, electrification and increased standard of living Growth in sustainable energy and reducing carbon emissions Rapid growth of intermittent renewable generation and escalating demand fluctuation Increasing role of natural gas Ageing installed capacity ʼʼ The world needs clean, affordable and reliable power generation ʼʼ 5

6 ENERGY SOLUTIONS >4,500 power plants in 175 countries Utilities IPP s Industrials Others Europe Asia Africa & Middle East Americas * December

7 ENERGY SOLUTIONS Solid power plant ordering activity MEUR First quarter development Total EUR 312 million (287) Utilities Independent power producers Industrials First quarter order intake by fuel in MW Oil 65% Gas 35% Q1 Q2-Q4 7

8 Wärtsilä enters the utility-scale solar business Leveraging our global EPC expertise to help our customers reduce carbon emissions by offering hybrid solutions that couple solar PV parks with Smart Power Generation power plants in focus areas such as Africa, the Middle East, the Americas and Southeast Asia. 8

9 ENERGY SOLUTIONS Strategy Grow strongly in large utility gas power plants market by capturing market share from gas turbines Maintain our leading position in HFO & dual-fuel power plants Gain market share in utility-scale solar PV business with EPC capability Grow in the small to medium scale LNG terminal business by introducing a new value proposition to selected markets 9

10 MARINE SOLUTIONS THE MOST COMPLETE MARINE OFFERING ON EARTH 10

11 MARINE SOLUTIONS Market trends & drivers Urbanisation, globalisation and population growth support increase in seaborne trade Technological developments and new breakthroughs demand faster product development and create new business models Increasing consumption and growing middle class population support demand for cruise sector Growing energy demand Climate change and gas as a fuel 11

12 Number of vessels Million CGT MARINE SOLUTIONS The demand for new vessels remains limited 250 Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT * 5,0 4, ,0 3, ,0 2,5 * 100 2,0 1,5 50 1,0 0,5 0 0,0 Source: Clarkson Research Services, figures exclude late contracting * CGT= gross tonnage compensated with workload 12

13 MARINE SOLUTIONS Order intake supported by strong activity in Cruise & Ferry MEUR Traditional merchant 11% First quarter development Total EUR 379 million (336) Gas carriers 11% Offshore 3% Special vessels 11% Others 6% Navy 10% Cruise & Ferry 48% Q1 Q2-Q4 13

14 MARINE SOLUTIONS Strategy LEADER IN EFFICIENCY GAS AND DUAL- FUEL SOLUTIONS ENVIRONMENTAL SOLUTIONS THROUGH OFFERING Lifecycle solutions for ship owners and operators Integrated solutions for the shipbuilding industry, owners and operators The best customer value and customer experience in the marine industry 14

15 SERVICES We are where our customers need us to be 11,000 service professionals in 70 countries, 160 locations Marine installed base by operating country Power installed base by operating country Service locations 15

16 SERVICES Steady progression in Services net sales MEUR Spare parts 51% (53) First quarter development EUR 500 million (485) Field service 24% (24) Agreements 17% (17) Q1 Q2-Q4 Projects 8% (6) 16 Wärtsilä PUBLIC Jaakko Eskola

17 SERVICES Strategic focus areas CUSTOMER FIRST GO DIGITAL ASSET & LIFECYCLE MANAGEMENT NEW CUSTOMER ACCESS We will grow by Doing more business with existing customers Exploring opportunities within new customer segments by leveraging current competences Acquiring businesses in growing markets 17

18 MW SERVICES Development of service agreements % % % % % % /2016 0% MW under agreement Energy Solutions % of Energy Solutions installed base MW under agreement Marine Solutions % of Marine Solutions installed base 18 Wärtsilä PUBLIC Jaakko Eskola

19 PROSPECTS FOR 2016 Wärtsilä expects its net sales for 2016 to grow by 0-5% and its profitability (comparable operating result as a percent of net sales) to be % 19

20 THANK YOU IR Contact: Natalia Valtasaari Director, Investor & Media Relations Tel (0) Wärtsilä PUBLIC Jaakko Eskola