Wartsila Oyj Abp Q4 2018 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Johan Eliason - Kepler Cheuvreux, Research Division - Analyst : I was wondering about the -- can you hear me?

Question: Johan Eliason - Kepler Cheuvreux, Research Division - Analyst : I was wondering about your outlook statement. If you look at Marine, you say it's solid. But obviously, I would be guessing that the environmental business should still have a pretty visible positive development in terms of orders in 2019. Are you seeing any weakness in the other Marine-related business that would sort of make you end up at solid rather than good?

Question: Johan Eliason - Kepler Cheuvreux, Research Division - Analyst : Okay. Then just a question on the cost-cutting program then. I kind of understand why you implement it, obviously having seen your margin development over the last few years. Now will this cost-cutting program be enough to take you to your 14% margin target? Or what else do you need to see happening? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JANUARY 30, 2019 / 8:00AM, WRT1V.HE - Q4 2018 Wartsila Oyj Abp Earnings Call

Question: Erkki Vesola - Inderes Oy - Analyst : Still coming back to your savings program. How sales mix agnostic are these expected EUR 100 million savings? I mean, if Energy sales volumes drop meaningfully while Marine grows, would the impact still be the same? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JANUARY 30, 2019 / 8:00AM, WRT1V.HE - Q4 2018 Wartsila Oyj Abp Earnings Call

Question: Erkki Vesola - Inderes Oy - Analyst : I can repeat it, can you hear me now?

Question: Erkki Vesola - Inderes Oy - Analyst : Yes. About the savings program. How sales mix agnostic are these expected EUR 100 million savings? I mean, if Energy sales volumes drop meaningfully while Marine grows, would the impact still be the same?

Question: Glen Liddy - JP Morgan Chase & Co, Research Division - Analyst : You seem more confident about being able to achieve your long-term margin target at 14%. In the past, when you talked about your margin target, you've also said it's going to be very dependent on mix. Is that still the case? Or does this get you to your margin target with less need to greater Service business because at the moment you've got strong order backlog for equipment deliveries. So can you get to your margin target without a big lift in the proportion of Service revenue?

Question: Glen Liddy - JP Morgan Chase & Co, Research Division - Analyst : Okay. Secondly, on the Energy business and you said that about 1/3 of the revenue -- or orders are now coming from renewables. Are batteries playing a significant part in the development of the business? I think people want batteries as well as engines. Or is that still something that's too early to decide?