Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (May 2018)
26 slides from Wartsila Oyj Abp's investor day presentation, May 31, 2018
Slide 1: Marine Solutions: Growth Through a Smart Marine Ecosystem
MARINE SOLUTIONS: GROWTH THROUGH A SMART MARINE ECOSYSTEM Roger Holm, President, Marine Solutions & Executive Vice President
Slide 2: Marine Markets and Drivers
MARINE MARKETS AND DRIVERS Positive global economic conditions support shipping tonnage demand growth, while political and regulatory uncertainty limit the market recovery World seaborne Newbuilding price index Clarksons average earnings Deliveries, removals and net trade and GDP Yr/Yr change (USD/D
Slide 3: Offshore Markets and Drivers
OFFSHORE MARKETS AND DRIVERS Despite higher oil prices, US onshore production growth delays the offshore recovery Oil price and Clarksons E&P capex spend, MUSD Offshore E&P capex offshore index difference % 300000 80 65 35% 70 250000 60 25% 60 200000 15% 50 55 MUSD USD/bbl 5% 150000 40 50 30 -5% 100
Slide 4: Vessel Contracting
VESSEL CONTRACTING General market sentiment is cautiously optimistic Merchant contracting Gas carriers contracting Cruise and ferry Offshore contracting 3 000 200 contracting 800 181 734 180 166 250 2 384 700 641 2 500 160 203 200 600 2 000 140 113 152 153 146 500 No of vessels No of vessels No of v
Slide 5: Short-Term Outlook
SHORT-TERM OUTLOOK Drivers and sentiment vary in different vessel segments Cruise: There is continuing optimism over the prospect for global expansion of the cruise fleet. Increased interest towards small expedition ships. There is growing interest in LNG power. Record order book. Bulk: Price increa
Slide 6: Transforming our operations to meet market requirements
Transforming our operations to meet market requirements 6 © Wärtsilä PUBLIC 31 May 2018 Roger Holm
Slide 7: Adapting Our Cost Base
ADAPTING OUR COST BASE Realignment and operational excellence has significantly improved our competitiveness… Capacity cost decreased with FTEs decreased with ~1,000 FTEs ~120 MEUR over the past two years over the past two years 0 0 -10 -100 -20 -200 -30 MEUR FTEs -300 -40 -400 -50 -500 -60 -70 -600
Slide 8: Continuous Improvement
CONTINUOUS IMPROVEMENT …and we have new targets for further improvements Lead time reduction Targets for further optimisation (2017–2020) achieved (2016–2018) Machine stop Defect WIP reduction reduction reduction Production lead time -20% 40% 15% 30% By enabling Predictive By a better resources util
Slide 9: Marine Solutions Market Position and Competitor Landscape
MARINE SOLUTIONS MARKET POSITION AND COMPETITOR LANDSCAPE Marine power solutions Processing solutions Voyage solutions Top player • Power supply Top player • Water & waste Top player • Automation, Gas carriers • Power conversion Gas carriers • Flow solutions Cruise & ferry navigation Cruise & ferry
Slide 10: Leading the industry transformation towards a Smart Marine Ecosystem
Leading the industry transformation towards a Smart Marine Ecosystem 10 © Wärtsilä PUBLIC 31 May 2018 Roger Holm
Slide 11: From Products to a Smart Marine Ecosystem
FROM PRODUCTS TO A SMART MARINE ECOSYSTEM 11 © Wärtsilä PUBLIC 31 May 2018 Roger Holm
Slide 12: Opportunities for Wärtsilä and Customers
OPPORTUNITIES FOR WÄRTSILÄ AND CUSTOMERS 20 BEUR waste is incurred annually from poor fuel efficiency & time at terminal Fuel efficiency Time at Terminal Offshore 0.2 BEUR 0.7 BEUR Cruise 0.5 BEUR - Ferry 1.3 BEUR - Gas Carrier 0.3 BEUR 1.0 BEUR Containership 14.5 BEUR 2.1 BEUR Total global shipping
Slide 13: The Smart Marine Ecosystem
The Smart Marine Ecosystem 13 © Wärtsilä PUBLIC 31 May 2018 Roger Holm
Slide 14: Towards a zero emission future
Towards a zero emission future Eliminating sources of waste through digitalisation 14 © Wärtsilä PUBLIC 31 May 2018 Roger Holm
Slide 15: Environmental legislation creating growth opportunities
TOWARDS A ZERO EMISSIONS FUTURE Environmental legislation creating growth opportunities Inert Gas System mandatory for Global cap 0.5% SOx newbuild tankers above 8,000 DWT North sea and Baltic as of 1 January 2018 sea become NECA 2016 2017 2018 2019 2020 2025 2050 Carbon emissions halved NOx Tier II
Slide 16: Shipping Today
SHIPPING TODAY ROUTE BASED ON HUMAN MANUAL EXPERIENCE O P E R AT I O N S FOSSIL FUELS SHORT TERM PLANNING PRESCRIPTIVE MAINTENANCE PORT CONGESTION 16 © Wärtsilä PUBLIC 31 May 2018 Roger Holm
Slide 17: Shipping Today: Wärtsilä Case
SHIPPING TODAY: WÄRTSILÄ CASE Saving per voyage with just-in-time arrival: 74.5 tons of fuel* 22,200 EUR** 964 MWh actually consumed – 640 MWh simulated consumption 324 MWh potential savings 3.5 days CASE: 5,500 TEU Containership Distance: 1,150 Nautical Miles * Assuming average SFOC : 230 g/kwh **
Slide 18: Connecting Smart Vessels to Smart Ports
CONNECTING SMART VESSELS TO SMART PORTS 01000111000 01000111000 01000111000 010001110001 Smart Energy Navigation & Smart Management Intelligent Automation Ports 18 © Wärtsilä PUBLIC 31 May 2018 Roger Holm
Slide 19: PUBLIC
19 © Wärtsilä PUBLIC 31 May 2018 Roger Holm
Slide 20: The Voyage of the Future Requires an Industry Transformation
THE VOYAGE OF THE FUTURE REQUIRES AN INDUSTRY TRANSFORMATION O P T I M I S E D O P E R AT I O N CONNECTED TO ECOSYSTEM AV O I D C O N G E S T I O N ARRIVE TO PORT JUST IN TIME REAL TIME SLOT I N F O R M AT I O N O P E X S AV I N G S * Wärtsilä case study from one major port identified the range of 1
Slide 21: Our customers view on future shipping
Our customers view on future shipping 21 © Wärtsilä PUBLIC 31 May 2018 Roger Holm
Slide 22: Teekay – New Shuttle Spirit
TEEKAY – NEW SHUTTLE SPIRIT “Making shipping a cleaner, more effective way of transporting goods.” The main ecological and economical features compared to traditional vessels: • CO2 eq. reduced by more than 42% • NOx reduction of 80% • SOx and particles almost entirely eliminated • Use of VOC as fue
Slide 23: Norled – Autodocking
NORLED – AUTODOCKING “A mutually beneficial partnership.” Norwegian ro-ro passenger ship Folgefonn, owned by ferry operator Norled. Autodocking is one of the first steps in PLAY VIDEO ON DIFFERENT SCREEN fully autonomous shipping. Wärtsilä’s autodocking technology delivers notable benefits to operat
Slide 24: SeaWays – Training Facilities
SEAWAYS – TRAINING FACILITIES “Creating the world’s fastest and most reactive tug models.” SeaWays has worked closely with Transas over the past 10 years. • 360° TugSim- the most advanced in the world • Simulation benefits: realistic exercises, improved safety, time and fuel savings • Training benef
Slide 25: Growth is at no time by mere chance
"Growth is at no time by mere chance; it is the result of forces working together." 25 © Wärtsilä PUBLIC 31 May 2018 Roger Holm
Slide 26: Thank You
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