Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — Handelsbanken Marine and Crane Seminar 2012

20 slides from Wartsila Oyj Abp's conference presentation, Nov 23, 2012

  1. Slide 1: Handelsbanken Marine and Crane Seminar

    HANDELSBANKEN MARINE AND CRANE SEMINAR JAAKKO ESKOLA GROUP VICE PRESIDENT, SHIP POWER 23 NOVEMBER 2012 1 © Wärtsilä

  2. Slide 2: This is Wärtsilä

    This is Wärtsilä POWER PLANTS SHIP POWER SERVICES 2 © Wärtsilä

  3. Slide 3: Ship Power's offering covers all key segments

    Ship Power’s offering covers all key segments Cruise Special Merchant Offshore Navy and Ferry Vessels 3 © Wärtsilä

  4. Slide 4: Ship Power order book 30 September 2012

    Ship Power order book 30 September 2012 RoRo LNG 2% 7% Bulkers 5% Containers 2% Offshore Merchant 30% Tankers 45% 9% Cargo 5% Others 2% Navy 9% Special Cruise & Ferry vessels 5% 8% 4 © Wärtsilä

  5. Slide 5: Shipping and shipbuilding demand depends on global economy

    Shipping and shipbuilding demand depends on global economy 12% Underlying demand 10% to grow modestly 8% 6% 4% 2% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 f 2013 f 2014 f 2015 f -2% Projected -4% -6% Seaborne trade World GDP- revised Source: IMF, Clarkson Research Services

  6. Slide 6: Contracting activity development

    Contracting activity development 6 000 100 90 • Contracting activity has slowed 5 000 80 down during 2012 70 • Finance and poor freight markets 4 000 are clouding recovery CGT, Millions 60 # Vessels 3 000 50 • A change in mix of vessels contracted is favouring 40 2 000 specialised tonnage 30 • Offsh

  7. Slide 7: Contracting activity development

    # of vessels 20 40 60 80 0 100 120 140 7 © Wärtsilä 01.09 02.09 03.09 04.09 Merchant 05.09 Source: Clarkson Research Services 06.09 07.09 08.09 *Contracting activity as per 3rd November 2012 09.09 10.09 11.09 Offshore 12.09 01.10 02.10 03.10 04.10 05.10 06.10 07.10 08.10 Cruise and Ferry 09.10 10.10

  8. Slide 8: Shipbuilding has moved to Asia

    Shipbuilding has moved to Asia China has gained the top merchant builder position… Merchant contracting volumes (DWT): share by region 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1

  9. Slide 9: Asian builders are diversifying their product mix

    Asian builders are diversifying their product mix China South Korea Japan Containers offshore Tankers Bulkers Gas Containers offshore Tankers Bulkers Gas Containers offshore Tankers Bulkers Gas CGT CGT CGT 100% 100% 100% 90% 90% 90% 80% 80% 80% 70% 70% 70% 60% 60% 60% 50% 50% 50% 40% 40% 40% 30% 30%

  10. Slide 10: Contracting activity by ship building region

    Contracting activity by ship building region Contracting by builder country, Contracting by builder country, No. of vessels 2012 YTD CGT 2012 YTD Rest of world Europe 5% Rest of Brazil 8% Europe 5% world China China 5% 18% 40% 37% Brazil Japan 6% 12% Japan South 12% Korea South Korea 19% 33% Source:

  11. Slide 11: Shipyard overcapacity – how to adapt?

    Shipyard overcapacity – how to adapt? 120 • Deliveries growing faster than seaborne trade 100 • Order book declining more rapidly 80 GT, Millions • Yards have to re-think their 60 strategies if they are to survive 40 • Restructuring unavoidable? 20 - 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979

  12. Slide 12: LNGC – current slow down, but near-term optimism

    LNGC – current slow down, but near-term optimism LNG contracting activity 80 Less 70 speculative ordering 60 50 # vessels 40 30 20 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 f 2014 f 2015 f 2016 f ytd • New build potential looks promising • Long liquefaction project l

  13. Slide 13: A view on the fundamentals of LNG transport

    A view on the fundamentals of LNG transport • Demand for natural gas is expected An imbalance between export and to grow import capacity exists today: • Export capacity set to grow with a number of projects already on the Global energy consumption of natural gas pipeline 5000 • As new export plants

  14. Slide 14: Joint venture ordering activity

    Joint venture ordering activity MEUR 600 • Order intake in the South Korean 550 joint venture producing dual-fuel 500 engines and the Chinese joint 450 venture producing auxiliary engines 400 totalled EUR 175 million (216) during 350 the review period January-September 2012 300 250 • Wärtsilä’s shar

  15. Slide 15: Offshore contracting activity – healthy market

    Offshore contracting activity – healthy market Offshore Contracting activity 1200 • High oil price above US$100 driving strong exploration and production activity 1000 • Oil and gas fields are getting deeper, harsher and more remote, stimulating 800 demand requirement for high spec units # vessels 6

  16. Slide 16: Brazilian offshore markets active

    Brazilian offshore markets active • Contract to supply main generating engines and thrusters for six new deep water drill ships to be built in Brazil • Each ship will be powered by six 16-cylinder Wärtsilä 32 main generating sets and six thrusters • Considerations in the award of the contract: – Str

  17. Slide 17: Increasing activity in scrubber markets

    Increasing activity in scrubber markets • Wärtsilä has to date 45 exhaust gas cleaning scrubbers delivered or on order, for a total of 23 vessels • Price range EUR 1-5 million, depending on size of vessel and technology of equipment • Wärtsilä’s scrubber portfolio is the widest in the market and con

  18. Slide 18: Key trends and drivers

    Key trends and drivers Short term Medium term • Uncertainty over global economy • New owner base casting shadows of uncertainty in • Fuel flexibility and fuel efficiency shipping and shipbuilding • Increased interest over LNG • Mix of vessels will continue to favor powered ships specialised tonnage

  19. Slide 19: Ship Power's focus on growth

    Ship Power’s focus on growth OUR STRATEGIC GOAL To be recognised as the leading solutions provider in the marine industry for: Gas and dual-fuel Environmental Efficiency solutions solutions LEADER IN OFFERING THROUGH • Lifecycle solutions for ship owners and operators • Enhanced system integration f

  20. Slide 20: IR Contact

    IR Contact: Pauliina Tennilä Director, Investor Relations Tel. +358 (0) 40 570 5530 E-mail: [email protected]

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