The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Sebastian Kuenne - RBC Capital Markets, Research Division - Analyst
: I have only one question on the comments from Reuters yesterday that Fincantieri in Italy is indicating it wants to stop the cooperation with you
on the 4-stroke engines. And given that he's got the biggest cruise ship yards, Wouldn't that be severe problem for you guys. Can you maybe
elaborate a bit on this one?
Question: Sebastian Kuenne - RBC Capital Markets, Research Division - Analyst
: Sorry, just to follow up, do you see -- I mean, how angry are they that your accidents...
Question: Sebastian Kuenne - RBC Capital Markets, Research Division - Analyst
: But you have spoken to them in the past date.
Question: Antti Kansanen - SEB, Research Division - Analyst
: I hope you're hearing me well. Through to the price and cost. So did I interpret it right that you are seeing better price realization on vendors but
not so much on, let's say, actual orders during Q2. And let's follow up that assuming that the inflation is flattening out. However, you have quite
long lead times, it would take into, let's say, back half of next year before we will see kind of the pricing improvements, especially on the new
equipment side.
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JULY 21, 2022 / 7:00AM, WRT1V.HE - Q2 2022 Wartsila Oyj Abp Earnings Call
Question: Antti Kansanen - SEB, Research Division - Analyst
: And a quick follow-up on that one. If we are then seeing kind of inflation turning and let's say, your customers are then expecting the cost levels
to come down, are you fearful that they would be starting to postpone investment decisions waiting for more affordable prices?
Question: Antti Kansanen - SEB, Research Division - Analyst
: And I think you guys mentioned earlier that you are introducing this new type of cost indexation, would that also help in that regards to the
customer will also get the benefit of lower input costs, assuming that, that happens?
Question: Erkki Vesola - Inderes Oyj, Research Division - Analyst
: Can you hear me?
Question: Erkki Vesola - Inderes Oyj, Research Division - Analyst
: Regarding order intake growth, is there any possibility to divide that growth in Q2 between volume and pricing components in both energy and
marine in general?
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JULY 21, 2022 / 7:00AM, WRT1V.HE - Q2 2022 Wartsila Oyj Abp Earnings Call
Question: Erkki Vesola - Inderes Oyj, Research Division - Analyst
: So kind of apples-to-apples price increases they are -- they just can't be disclosed?
Question: Antti Kansanen - SEB, Research Division - Analyst
: Yes. Just a housekeeping regarding the [3 asset] ramp down and kind of the cost savings and one-offs that you flagged, how should we kind of
find those and then perhaps kind of could you also remind us how the costs are allocated between the Marine and Energy divisions, where the
fixed cost actually exceeds?
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JULY 21, 2022 / 7:00AM, WRT1V.HE - Q2 2022 Wartsila Oyj Abp Earnings Call
Question: Antti Kansanen - SEB, Research Division - Analyst
: Yes. But if I remember correctly, kind of the majority of your engine manufacturing fixed cost is in the Marine Power side and then kind of the
energy price production slots is that we also for kind of the tested -- and just thinking about the margin impact between energy, marine and power?
Question: Erkki Vesola - Inderes Oyj, Research Division - Analyst
: Okay. Thanks for the follow-up. In June, the EU Council agreed to raise the binding EU level target of energy from renewables from 32% to 40% by
2030. When should we see this kind of force acceleration to show in your storage and renewable offering order intake? Will it be kind of back-end
loaded, i.e., not so much before '25 or well sure already in the near future, just a take on that.
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JULY 21, 2022 / 7:00AM, WRT1V.HE - Q2 2022 Wartsila Oyj Abp Earnings Call
Question: Erkki Vesola - Inderes Oyj, Research Division - Analyst
: That's very helpful.
Question: Antti Kansanen - SEB, Research Division - Analyst
: Yes. Just a quick question on voyage and kind of the reorganization and what you're doing there and compared to the losses that you have made
in the past couple of quarters. So how should we think about that the following quarters. I mean I assume there's a lot of moving parts in there,
but how does kind of the loss picture in your minds develop in the next second half and going into next year?
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JULY 21, 2022 / 7:00AM, WRT1V.HE - Q2 2022 Wartsila Oyj Abp Earnings Call
Question: Antti Kansanen - SEB, Research Division - Analyst
:
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