Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (November 2021)
21 slides from Wartsila Oyj Abp's investor day presentation, Nov 18, 2021
Slide 1: Profitable growth by focusing on decarbonisation and services
Profitable growth by focusing on decarbonisation and services Roger Holm, President, Marine Power & Executive Vice President November 18, 2021 1 © Wärtsilä
Slide 2: Well-positioned to lead the decarbonisation transformation
Well-positioned to lead the decarbonisation transformation Decarbonisation will Fuel flexible engine Our services business drives transform the marine technology takes the industry stability, profitability and industry during a single on the only upgrade path that growth. Increased vessel’s lifespan
Slide 3: Marine Power product portfolio provides upgradable solutions for a net-zero future
Marine Power product portfolio provides upgradable solutions for a net-zero future Propulsion Transactional equipment services 4-stroke medium speed engines Agreements NOx Performance-based reducers agreements (SCR) Energy & power Hybrid systems Fuel gas supply Project services management (including
Slide 4: Transform – We play a central role in maritime decarbonisation
Transform – We play a central role in maritime decarbonisation 4 © Wärtsilä
Slide 5: Decarbonisation targets are shaping the future of our industry
Decarbonisation targets are shaping the future of our industry. Banks, cargo owners and public opinion have increasing influence in the speed of change 2050 2021 2023 2026 2030 -70% carbon intensity & Regulations Today EEXI, CII CII - 40% carbon intensity -50% in total GHG emissions Fuels Fossil fue
Slide 6: CII introduces a clear rating framework for differentiating vessels
CII introduces to the maritime industry a clear rating framework for differentiating vessels based on their GHG emissions performance Vessel carbon intensity Key takeaways ▪ CII will categorise ships from A to E ▪ Cargo owners can easily establish their own requirements on ratings to match own decar
Slide 7: Ship owners need to plan their future fleet against moving targets
Ship owners need to plan their future fleet against moving targets and find trusted partners capable of future upgrades New build Invest in upgradable assets and a partner able to deliver upgrades throughout the asset's lifecycle Build zero carbon ships Build alternative fuel-ready assets EEXI EEDI
Slide 8: Transition to green fuels will be slow yet relentless
Transition to green fuels will be slow yet relentless. 2050 is a single vessel’s lifespan away – customers need to invest in fuel flexibility to avoid risk of stranded assets Move from a single-fuel industry to a multi-fuel one Distribution of fuel types for Decarbonisation 2050 (1.5ºC scenario), EJ
Slide 9: Fuel conversions will play a vital role in the fuel transition
Fuel conversions will play a vital role in the fuel transition for both existing and new vessels built during this and next decade. Fuel selection impacts the vessel structure Heavy Fuel Oil Liquified Methanol Ammonia Liquid Compressed Marine Battery Fuel type @ 20°C Natural Gas @ 20°C @ -33°C Hydro
Slide 10: Our multi-fuel technology is the only viable upgrade path
Infrastructure and availability of green fuels need time to mature. Our multi-fuel technology is the only viable upgrade path Our technology allows a progressive adoption of green fuels Technical Feasibility Transition fuels Drop-in Blending 100% Pure Drop in the tank Injecting into the compatible b
Slide 11: Front-runner in alternative fuel engine technology
Front-runner in alternative fuel engine technology. Our portfolio goes beyond – we power vessels throughout the path towards decarbonisation 2021 2022 2023 2024 2025 Diesel FAME/HVO1) LNG Bio-methane Synthetic methane LPG Hydrogen blends Hydrogen 100% Technical concept Engines Ammonia Technical conc
Slide 12: Perform – Focus on decarbonisation and services
Perform – Focus on decarbonisation and services 12 © Wärtsilä
Slide 13: Our strategy focuses on decarbonisation and services
Our strategy focuses on decarbonisation and services Four clear growth drivers ▪ Maintain leading position in 4S medium speed engines and grow market share in auxiliary engines ▪ Increase sales for transactional business ▪ Tap into fuel conversions, energy saving devices, efficiency upgrades and hyb
Slide 14: Strengthening focus on customers with small transaction amounts
We are strengthening the focus on customers with small transaction amounts and are seeing a positive trend in order intake Categorisation per customer type Turning volume into value Spend ratio EUR/kW Optimised lead management process: opportunities are identified 18-36 months in advance 1X 1) 0.65X
Slide 15: Our retrofit business has the potential to grow by 3X by 2030
Our retrofit business has the potential to grow by 3X by 2030 1) CII requires continuous Vessels built 2010-2030 will improvement of vessel need to evaluate options for GHG performance use of alternative fuels Our offering 4-stroke ▪ Methane slip reduction ▪ Fuel blending and full fuel conversion pa
Slide 16: 2.5% fuel consumption savings are achievable for agreement customers
We have proved to our agreement customers that 2.5% fuel consumption savings are achievable. Global fuel bill of the maritime industry is EUR 96bn Fuels will be more expensive in the future: maximising fuel efficiency will be of paramount importance ▪ Alternative fuels (ammonia, hydrogen, methanol)
Slide 17: We aim to double the number of vessels covered by agreements
We aim to double the number of vessels covered by agreements From 1X 2) Up to 2X-3X 2) 94% Renewal rate Confirms that long term agreements create value for our customers 12%1) 59%1) Performance ▪ Major overhauls represent a considerable spike in cash flow for customers 28%1) Optimised based agreemen
Slide 18: Guaranteeing performance and sharing risk results in stronger partnerships
Guaranteeing performance and sharing risk results in stronger partnerships and unprecedented value Savings for fuel expenses Reduction of unscheduled Savings by increasing time between per annum maintenance costs over a overhauls, and minimising interruptions 2-year period and downtime in operations
Slide 19: Well-positioned to lead the decarbonisation transformation
Well-positioned to lead the decarbonisation transformation Decarbonisation will Fuel flexible engine Our services business drives transform the marine technology takes the industry stability, profitability and industry during a single on the only upgrade path that growth. Increased vessel’s lifespan
Slide 20: Disclaimer
Disclaimer The information and conclusions in this presentation are based upon calculations, observations, assumptions, publicly available competitor information, and other information obtained by Wärtsilä or provided to Wärtsilä by its customers, prospective customers or other third parties (the ”i
Slide 21: Wärtsilä
e, WARTSILA