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
: My key question is on the tax rate today. I spoke to IR this morning, and there seems some issue with losses in the Voyage business that leads to,
let's say, regional differences. We have loss from one region, gains in another region we can't offset really, leading to a high tax rate that was
probably the main disappointment today. What do you expect for the next year? Do we have a similar headwind on -- from tax? And what does it
mean when the energy storage business is growing, this is loss-making; this could make large losses in one region? Do we have to expect tax rates
of 40%, 50% going forward? Maybe you can elaborate a little bit on that.
Question: Sebastian Kuenne - RBC Capital Markets, Research Division - Analyst
: Energy storage is growing fast...
Question: Antti Kansanen - SEB, Research Division - Analyst
: It's Antti from SEB. So you mentioned that it will be a pretty equipment-heavy year in '22. But then if we look at the service business, what are you
kind of seeing still, as say, potentials to improve. And I mean like if we're going to see the COVID impact starting to fade, and obviously, cruise is
still a tailwind for the first half, so where are we if you think about the normalization of profitability where there are still potential to grow faster
than what the, let's say, the structural growth in services? So could you provide a bit more outlook on the services side regarding Marine divisions
and Energy?
Question: Antti Kansanen - SEB, Research Division - Analyst
: All right. And then if we think about the service project business, I guess you have flagged that there has been, in certain areas, a bit high activity
in '21. So is this something that we should be concerned regarding year-over-year basis? Or is the demand kind of accelerating on that front still?
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JANUARY 28, 2022 / 8:00AM, WRT1V.HE - Q4 2021 Wartsila Oyj Abp Earnings Presentation
Question: Antti Kansanen - SEB, Research Division - Analyst
: Okay. And then last question for me. If we look at the backlog that you have to be delivered in next year and year beyond that, we are looking at
like 15% to 20% growth year-over-year. Can you comment a little bit on what's the volume or the price impact on that growth?
Question: Antti Kansanen - SEB, Research Division - Analyst
: So the pricing in the backlog, I mean, we see that the backlog value is significantly up year-over-year. What's the component of price in that one?
Question: Antti Kansanen - SEB, Research Division - Analyst
: But you're not willing to provide any, let's say, ballpark on price increases that you realized during '21 orders or in the backlog, just any numerical?
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JANUARY 28, 2022 / 8:00AM, WRT1V.HE - Q4 2021 Wartsila Oyj Abp Earnings Presentation
Question: Erkki Vesola - Inderes Oyj - Analyst
: About the storage market competition dynamics, I mean, what are currently the major decision factors the customers have? Is it integration
capabilities and track record? Is it the optimization software? Is it price? Is it lead times? I mean, how is the current competitive arena vis-a-vis the
likes of Tesla influence? And what makes you win the contracts if and when you do?
Question: Sebastian Kuenne - RBC Capital Markets, Research Division - Analyst
: I have a follow-up on the energy storage again. There's talk that battery prices go up this year rather than down per kilowatt hour. How do you
hedge that business because this is now becoming almost half of your Energy business? This is extremely high growth rates. So how -- can you
explain how you hedge the costs in that particular business? And on the margin, just briefly, you say it's loss-making, sure, but is it loss-making on
the gross profit level or just on the EBIT level? Because if it's loss-making on the gross profit level, we can grow it as much as you like. It will never
turn positive.
Question: Sebastian Kuenne - RBC Capital Markets, Research Division - Analyst
: So positive on gross profit. So you have a contribution margin from that business currently.
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