Wartsila Oyj Abp Pre Silent Call Q3 Transcript

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

Question: Johan Eliason - - Analyst : I'll sure, you didn't say anything about the strategic review you are doing with businesses left and right. I think it's now almost a year since you announced it. Arjen Berends - Wartsila Oyj Abp - Chief Financial Officer, Executive Vice President, Member of the Board of Management Yeah. Now let's say, we have said before that, let's say, when there is news to say we will come with that holding one, go to everybody at the same time. And so far there is not any news to announce. We are still looking into it.

Question: Johan Eliason - - Analyst : And anything on the quarters will it be very Q4 tilted or will you start already in Q3 with the deliveries? Arjen Berends - Wartsila Oyj Abp - Chief Financial Officer, Executive Vice President, Member of the Board of Management I will not comment on that. Let's say that needs to be seen.

Question: Johan Eliason - - Analyst : Okay, thank you.

Question: Johan Eliason - - Analyst : Yeah, hi again. I'm just curious about M&A, not your divestments, but how would you characterize the M&A market right now? And also from a buyer's point of view of, I mean, are you interested in buying something we know, Volkswagen has been or I mean this has been talked about historically, but would you say that the prices are okay now or high or low or any input would be appreciated? Arjen Berends - Wartsila Oyj Abp - Chief Financial Officer, Executive Vice President, Member of the Board of Management Let's say, if you look at our strategy, decarbonization and moving up the service value rather than being, let's say, front-run the thought leader, et cetera, in this whole journey and the go to 44 customers, I believe we have what it takes. I don't think we miss any real big item or competence or it's not clear, we don't miss that. I think we can do this journey. Of course, we might do bolt-ons, let's say, on the specific competence or something new, let's say coming to market. But I would say these are small bolt-ons, and I don't see any it's a big things, like, let's say, several hundreds of thousands of euros in an acquisition, EUR100 million, sorry, of Euros in an acquisition. MAN we have always been open about it, let's say, for sure if it comes to markets and it's an interesting thing to look into not at any price. And okay, Volkswagen, I said that until 20240, they'll own it. And then okay, now it's 2024. There is some noise in Volkswagen, as I'm sure you have heard and will this open the door? Difficult to say. We are, of course, trying also to, let's say, put our eyes and ears out in the market. What's happening. Yeah, it's how would I say it's a there is noise in the Volkswagen Group. And look, let's say there is no clear, let's say, pass for MAN, at least not that we know of. But for sure if it comes to market, we will look at it. So I think Wartsila is a company cannot say, okay, we won't look at this. This is still an interesting thing to check. Again, not at any price, but interesting to look, we will look.

Question: Johan Eliason - - Analyst : Yeah, just the nitty-gritty on the storage business again, have you communicated the book value on the I mean, it's no. I think you've said it's sort of there's no real assets it's a business that's been assembled by subcontractors and then you do the installations. So I guess it's a project business and that working capital should probably also to run at a very low level, but you capitalize R&D. Is that sort of the main item on the balance sheet really for the storage business? Arjen Berends - Wartsila Oyj Abp - Chief Financial Officer, Executive Vice President, Member of the Board of Management That is clearly a key item correct.