Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Handelsbanken Nordic Large Cap Seminar 2012
24 slides from Wartsila Oyj Abp's conference presentation, Sep 10, 2012
Slide 1: Handelsbanken Nordic Large Cap Seminar
Handelsbanken Nordic Large Cap Seminar BJÖRN ROSENGREN, PRESIDENT AND CEO 10 SEPTEMBER 2012 © Wärtsilä
Slide 2: This is Wärtsilä
This is Wärtsilä POWER PLANTS SHIP POWER SERVICES 2 © Wärtsilä
Slide 3: Global net sales - top 10 countries
Global net sales - top 10 countries Norway 5% Turkey China USA 4% Dominican Republic 9% 9% 5% The Netherlands 3% 5% 3% South Korea Bangladesh 3% 5% Singapore Brazil 3 © Wärtsilä
Slide 4: Net sales – emphasis on high growth areas
Net sales – emphasis on high growth areas Forecasted GDP growth 20121 Net sales by market area 2011 (MEUR): 520 12% 1,249 30% 845 20% Europe Asia The Americas 1.594 38% Others MEUR Forecasted GDP growth 20131 2 500 2 000 1 500 1 000 500 Notes: 1Estimates by Citigroup Global 0 Markets (22 February 20
Slide 5: Net sales by currency – small impact on profitability
Net sales by currency – small impact on profitability Net sales by currency 2011: Sensitivity analysis Impact of EUR exchange rate 18% compared to other currencies 2012: 2% • +/- 10% (compared to Feb 2012) 13% EUR would result in -/+ 4% change in net 68% USD sales NOK • Impact on profitability would
Slide 6: Profitability
Profitability MEUR 250 16% 14% 12.8% 200 11.9% 11.5% EBIT% 11.0% 11.2% 12% 12.1% target: 11.4% 11.1% 10-14% 10.7% 10% 150 10.3% 8% 100 6% 4% 50 2% 0 0% 2008 2009 2010 2011 2012 Q1 Q2 Q3 Q4 EBIT% before non-recurring items EBITA% before non-recurring items and intangible asset amortisation related to
Slide 7: Target markets and solutions
Target markets and solutions Flexible base- Grid stability Industrial Solutions for load power and peaking self-generation oil and gas generation industry Oil, dual-fuel Liquid biofuel Flexible grid Combined heat Pumping and and gas fired power plants stability power & power plants compression power
Slide 8: Order intake by application
Order intake by application MEUR Review period development 2000 Total EUR 591 million (672) 1800 Industrial 9% 16% 9% self-generation 1600 Flexible baseload 1400 Oil & gas 67% Grid stability & 1200 peaking 1000 800 Review period order intake by fuel in MW 600 400 Oil 39% Gas 200 61% 0 2008 2009 2010
Slide 9: Global order intake
Global order intake Europe 19 (550) Asia 771 (298) 19 110 59 Americas 425 (199) 602 58 29 Africa and Middle East 186 (440) 110 229 59 Flexible baseload Industrial self-generation Grid stability & peaking Oil & gas 127 Order intake 1-6/2012: 1,401 MW (1,487) 9 © Wärtsilä
Slide 10: Market for gas and liquid based power plants
Market for gas and liquid based power plants 2011 Total market 100.8 GW 2.0% 8.8% 3.3% GE 3.3% Siemens 4.3% MHI 34.6% Alstom 14.4% Wärtsilä Russian 29.3% Other gas turbines Other combustion engines* Market data includes all prime mover units over 5 MW and estimated output of steam turbines for combi
Slide 11: Power Plant strategy going forward
Power Plant strategy going forward • Maintain our leading position in HFO power plants • Grow strongly in large gas power plants • Grow in power plants based on renewables • Grow in oil and gas and emergency power applications 11 © Wärtsilä
Slide 12: Smart Power Generation
Smart Power Generation Energy efficiency Smart Power Generation Fuel Operational flexibility flexibility 12 © Wärtsilä
Slide 13: Shipbuilding has moved to Asia
Shipbuilding has moved to Asia 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 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20
Slide 14: Vessel order development
# of vessels 14 © Wärtsilä 0 20 40 60 80 100 120 140 01.09 02.09 03.09 04.09 Merchant 05.09 06.09 07.09 Source: Clarkson Research Services 08.09 09.09 Offshore 10.09 11.09 * CGT= gross tonnage compensated with workload 12.09 01.10 02.10 03.10 04.10 05.10 06.10 Cruise and Ferry 07.10 08.10 09.10 10.1
Slide 15: Order intake increased by 51%
Order intake increased by 51% MEUR 2000 Review period development Total EUR 723 million (479) 1600 Merchant Offshore 32% 43% 1200 800 Other 2% Special 400 vessels 7% Cruise Navy & ferry 12% 4% 0 2008 2009 2010 2011 1-6/2012 15 © Wärtsilä
Slide 16: 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
Slide 17: Wärtsilä Services global network
70 countries, 160 locations, 5000 field service experts Installed Wärtsilä Services global network base 180,000 MW Widest range of offering and expertise 17 © Wärtsilä
Slide 18: Wide range of expertise
Wide range of expertise Electrical & Engine services Propulsion services Boiler services automation services Environmental Service agreements Service projects Training services services 18 © Wärtsilä
Slide 19: Net sales by quarter
Net sales by quarter MEUR 600 500 400 300 200 100 0 2005 2006 2007 2008 2009 2010 2011 2012 Q1 Q2 Q3 Q4 19 © Wärtsilä
Slide 20: Net sales distribution
Net sales distribution By product, 1-6/2012 By region, 2011 22% 24% 29% 43% 21% 14% 27% 9% Spare parts Field service Middle-East and Asia Northern Europe Contracts Projects Southern Europe and Africa Americas 20 © Wärtsilä
Slide 21: Our strategic goal
Our strategic goal We will: • Maximise our market share with our present customer base • Constantly develop our offering proposition with value-enhancing solutions • Grow by providing more service agreements with new Ship Power and Power Plants deliveries • Become our industry’s market leader in env
Slide 22: Market outlook
Market outlook • Power Plants: The power generation market is expected to remain active in 2012. • Ship Power: Full year vessel contracting expected to be somewhat lower than in 2011. Robust contracting activity is expected for the offshore, gas carrier, and other specialised vessel markets. • Servi
Slide 23: Prospects for 2012 reiterated
Prospects for 2012 reiterated Wärtsilä expects its net sales for 2012 to grow by 5-10% and its operational profitability (EBIT% before non-recurring items) to be 10-11%. 23 © Wärtsilä
Slide 24: IR Contact: Pauliina Tennilä
IR Contact: Pauliina Tennilä Director, Investor Relations Tel. +358 (0) 40 570 5530 E-mail: [email protected]
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