Wartsila Oyj Abp Capital Markets Day 2019 Transcript

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

Question: Antti Kansanen - SEB, Research Division - Analyst : Yes. It's Antti Kansanen from SEB. This might also be a question more regarding to Energy, but if we think about pricing on new orders this year, do you feel that you have lost any market share or lost any deals due to pricing? And how do you consider it for next year in terms of defending your market shares more aggressively versus getting the cost base more flexible and potentially cutting down fixed costs?

Question: Antti Kansanen - SEB, Research Division - Analyst : I mean -- but overall as a group, how do you feel, kind of pricing versus cost savings on the manufacturing side? How do you balance that?

Question: Antti Kansanen - SEB, Research Division - Analyst : And if you think about your manufacturing capacity, kind of how long out do you feel that you have sufficient capacity if you now see short-term weaknesses that you maybe have to adjust?

Question: Antti Kansanen - SEB, Research Division - Analyst : And the kind of the 10% margin target, which is on the lower end, that's kind of valid. And that is something that you optimize your fixed base -- fixed-cost base to or... 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. NOVEMBER 26, 2019 / 7:25AM, WRT1V.HE - Wartsila Oyj Abp Capital Markets Day 2019

Question: Antti Kansanen - SEB, Research Division - Analyst : It's Antti from SEB. The first question on the marine engine spare parts and aftermarket side. If you look at the 2 trends that you've been mentioning, LNG and then running the engines in a more efficient manner with maybe less peaks and with more energy savings, does this have an impact on the expected spare parts sales or the aftermarket sales going forward?

Question: Antti Kansanen - SEB, Research Division - Analyst : So it's more about monetizing more in the new installation side than maybe to get it afterwards.

Question: Antti Kansanen - SEB, Research Division - Analyst : Okay. And then second pretty basic question on the Voyage Solutions and on the road optimization side. Where is the data actually coming from? Is there a proprietary nature of the data? Or is it something that is commonly available?

Question: Antti Kansanen - SEB, Research Division - Analyst : But if there would be some kind of a new competitor in the market, would they have access to a similar data that they answer the solution?

Question: Antti Kansanen - SEB, Research Division - Analyst : It's Antti Kansanen from SEB. Just a question on the gas peakers. And maybe just to simplify it very much, do you see the role of these peakers more of a seasonal backup as you have highlighted that you have weeks of lower wind or lower sun? Or do you see them playing a big role in balancing the intraday volatility, the kind of the duck curve, that you need more flexible gas generation within a day to balance those peaks and valleys? Albert Cheung;Bloomberg Both, and I don't want to oversimplify. But if you simplify a little bit, it's easy to say that batteries -- what batteries will do is do a lot of the very short-term stuff better and more quickly and so on. But that actually may oversimplify because you also need things like spinning reserves and inertia and things like that, which may be better off provided by gas plant. So I think, clearly, for the seasonal, that's the role for gas. But even in the intraday in the short term, I think it -- you don't want to oversimplify and say, oh, that's just for batteries because actually there's some other services that need to be provided as well. There's one over here on the left.