Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (November 2013)
18 slides from Wartsila Oyj Abp's investor day presentation, Nov 14, 2013
Slide 1: 4-Stroke with Excellence
4-STROKE WITH EXCELLENCE ROGER HOLM Senior Vice President, 4-stroke / 1 © Wärtsilä 14 November 2013 ROGER HOLM Doc.ID: DBAB205391 Revision: - Status: Finalised
Slide 2: 4-stroke product portfolio
4-stroke product portfolio Medium-speed engines Gas engines Wärtsilä 20 Wärtsilä 26 Wärtsilä 32 Wärtsilä 38 Wärtsilä 46 Wärtsilä 46F Wärtsilä 34SG Dual-fuel engines Generator sets Wärtsilä 20DF Wärtsilä 34DF Wärtsilä 50DF Wärtsilä Wärtsilä Auxpac 20 Auxpac 26 Wärtsilä 50SG Wärtsilä 32GD Wärtsilä 46G
Slide 3: The 4-stroke business environment
The 4-stroke business environment Efficiency Gas and dual-fuel Environmental Smart Power solutions solutions Generation Secure the best customer value with the most competitive 4-stroke products and services Provide industry Competitiveness Secure ability leading with special focus to deliver in all
Slide 4: Simplifying the 4-stroke organisation
Simplifying the 4-stroke organisation 4-stroke organisation AS-IS PowerTech Governance & management Ship Power 4-stroke Product R&D Centre 4s SP 4-stroke SP 4-stroke Project Operations & Sales management Delivery Delivery JV’s products Centre Vaasa Centre Trieste 4-stroke organisation AS OF 1.1.2014
Slide 5: A need to change the 4-stroke value stream…
A need to change the 4-stroke value stream… Product Sales Project Project delivery, Sales support management engineering Ship Power construction & installation Customer PowerTech Sourcing Production Includes sub-assembly, testing and finishing Product Fundamental Technology Product management Market
Slide 6: … into a more seamless set up
… into a more seamless set up Integrating governance, management and operations Product Sales Project Project delivery, Customer Sales Sourcing Production Support Management engineering construction & installation Product Fundamental Technology Product management Market research development developm
Slide 7: Lead time improved, target to improve further
Lead time improved, target to improve further Lead time indexed (W20/2009=100) 180 Shortened lead times improve: 160 2009 • flexibility 2013 • reaction speed 140 • ability to capture orders 120 100 The new 4-stroke organisation will enable the best lead times in the 80 market, generating more sales
Slide 8: Capability to handle volume fluctuations
Capability to handle volume fluctuations 4-stroke MW delivered by Wärtsilä Figures include DCV, DCT, WHEC, WQDC 8000 Different demand drivers in Ship Power Plants Ship Power Power and Power Plants markets 7000 JVs Overall max. variation 2,084MW = 33% ► Complementary effect with 6000 regards to volum
Slide 9: 4-stroke manufacturing footprint
4-stroke manufacturing footprint Securing the ability to deliver in all markets Delivery Centre Vaasa (DCV - Vaasa, Finland) 4-stroke engines Wärtsilä Hyundai Engine Company Ltd (WHEC - Mokpo, South Korea) 4-stroke engines Wärtsilä TMH Diesel Engine Company LLC (WTEC - Penza, Russia) 4-stroke engine
Slide 10: Wärtsilä Yuchai Engine Company
Wärtsilä Yuchai Engine Company Key facts Partner • Yuchai Marine Power Co., Ltd. (already a 2-stroke licensee for Wärtsilä) Ownership • Equally owned factory in the Zhuhai Fushan Industrial Park Objective • Enabling Wärtsilä to develop its brand awareness, broaden its customer base, and further expa
Slide 11: Wärtsilä Transmashholding Engine Company
Wärtsilä Transmashholding Engine Company Key facts Partner • Transmashholding Ownership • 50% Wärtsilä, 50% Transmashholding Objective • Further strengthen industrial foothold in Russia and broaden Wärtsilä’s business into the rail market. Export potential also to CIS countries. Wärtsilä TMH Diesel
Slide 12: Wärtsilä Delivery Centre Açu
Wärtsilä Delivery Centre Açu Key facts Ownership • 100% Wärtsilä Model • Multi product factory Objective • Strengthen presence in Brazil, respond to increasing market demand and meet local content requirements End markets • Brazilian local market Products • Gensets & thrusters Facilities • Greenfiel
Slide 13: Supply chain optimisation: Auxpac
Supply chain optimisation: Auxpac 20 Wärtsilä Qiyao Diesel Company Localisation % of purchased items Ltd (WQDC - 100% Lingang, China) 4-stroke engines 90% 81% 82% 84% 77% 80% 71% 70% 58% 60% 50% 40% 30% 20% 10% 2% 1% 0% 2005 2006 2007 2008 2009 2010 2011 2012 13 © Wärtsilä 14 November 2013 ROGER HOL
Slide 14: 4-stroke engine development drivers
4-stroke engine development drivers Emission Energy Total cost legislation efficiency of ownership • Reducing the environmental • Best in class engine and • Lower total cost of ownership footprint total plant efficiency • Competitive price > • Compliance with rules and lower product cost regulations
Slide 15: Keeping the lead in engine products
Keeping the lead in engine products 4-stroke portfolio program • Upgrades on existing engines to maintain competitiveness • Completely new engines and one new engine portfolio Auxpac 16 Current portfolio products W20 locomotive New portfolio products Small bore Future upgrades / new products 0.5-5.4
Slide 16: Example of products in the pipeline
Example of products in the pipeline Auxpac 16 New 4S engine Wärtsilä 46DF • Small bore genset for marine • Medium bore engine, first • Large bore dual-fuel engine applications, extends portfolio engine type of the newly for marine applications into lower output segment designed future portfolio • Me
Slide 17: Positioned to harvest the fruits
Positioned to harvest the fruits 1. Organisation change to maximise customer value 2. Footprint developments on-going, ready to catch further opportunities 3. R&D investments provide promise for new products 17 © Wärtsilä 14 November 2013 ROGER HOLM -
Slide 18: Wärtsilä
re, WARTSILA