Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Presentation (2004)
39 slides from Wartsila Oyj Abp's investor presentation, 2004
Slide 1: Wärtsilä Corporation
Wärtsilä Corporation Corporate presentation 2004 © Wärtsilä
Slide 2: 170 Years of Excellence
170 Years of Excellence Corporate presentation 2004 © Wärtsilä 2
Slide 3: Wärtsilä operates in two markets
Wärtsilä operates in two markets Wärtsilä is The Ship Power Supplier for builders, owners and operators of vessels and offshore installations. We are the only company with a global service network to take complete care of customers’ ship machinery at every lifecycle stage. Wärtsilä is a leading prov
Slide 4: Values: Energy, Excellence, Excitement
Values Energy Capture opportunities and make things happen Excellence Do things better than anyone else in your industry Excitement Foster openness, respect and trust to create excitement Corporate presentation 2004 © Wärtsilä 4
Slide 5: 170 Years of Excellence
170 Years of Excellence 1989 Wärtsilä Diesel acquires SACM and Stork Werkspoor B.V. This company is renamed 1936 Stork-Wärtsilä Diesel Wärtsilä acquires the B.V. 1834 Onkilahti engineering 1984 Wärtsilä is workshop in Vaasa. Wärtsilä to be quoted established in the municipality of 1965 on the London
Slide 6: 170 Years of Excellence
170 Years of Excellence 2003 Wärtsilä and Volvo Penta to 1991 2000 cooperate. Imatra Steel is Wärtsilä NSD and created when Ovako John Crane-Lips sign AB is split up 1997 an alliance. Metra between its owners, Wärtsilä NSD group renamed as Metra and SKF. Corporation is Wärtsilä Corporation. created.
Slide 7: Group key figures 2003
Group key figures 2003 MEUR 2003 2002 Change Net sales 2,357.5 2,519.0 -6.4% Operational EBITA1 127.0 100.6 26.2% Operational EBIT 100.0 77.8 28.5% EBIT -18.4 188.9 Result before extraordinary items -34.4 170.4 Earnings per share, EUR -0.66 2.05 1 EBITA is the operating profit before amortization of
Slide 8: Wärtsilä's worldwide network
Wärtsilä’s worldwide network Wärtsilä is close to its customers through subsidiaries in roughly 60 countries. Corporate presentation 2004 © Wärtsilä 8
Slide 9: Power Businesses
Power Businesses MEUR 2003 2002 Change Net sales 2,155.8 2,319.9 -7.1% Operational EBIT 95.0 74.6 % of net sales 4.4% 3.2% Operating result -35.0 1 74.6 % of net sales -1.6% 3.2% Order intake 2,148.7 1,882.8 14.1% Order book, end of year 1,245.0 1,206.6 3.2% 1 Includes restructuring cost of EUR 130
Slide 10: Personnel
Personnel Personnel 2003 Personnel in figures 2003 Total number of employees on 31 Dec. 2003 12 110 On average Power Businesses 90% Power Businesses 10 976 Imatra Steel 10% Imatra Steel 1 317 Group 12 293 Average age of employees 34,4 years Total wage and salary costs in 2003 EUR 554,4 million Perso
Slide 11: Main focuses during recent decades
Main focuses during recent decades Sustainable development 2000’s Quality of living 1990’s Virtual products 2010’s ? R&D- oriented 1980’s Demand- driven 1970’s Corporate presentation 2004
Slide 12: Research & Development
Research & Development Continuous investments in R&D secure competitiveness Environment Life cycle cost Reliability Market needs Product development Research Innovations Corporate presentation 2004 © Wärtsilä 12
Slide 13: Sustainable Development
Sustainable Development Sustainable Sustainabledevelopment development Economics Environment Reporting Reportingof ofresults results Social • Profitability • Sustainable use • Well-being and • Efficiency of natural Continuous improvement training at work Continuous improvement Economics • Competitiv
Slide 14: Ship Power
Ship Power Wärtsilä is The Ship Power Supplier. Wärtsilä supplies engines, propulsion and control systems for all types of marine vessels and offshore applications. Corporate presentation 2004 © Wärtsilä 14
Slide 15: Ship Power
Ship Power Deep Sea Seals and JMT seals and bearings Controls CP and FP Propellers Water jets Generating set Efficiency Gears Wärtsilä engines Transverse Rudders thruster Steerable thruster Corporate presentation 2004 © Wärtsilä 15
Slide 16: Vessel orders
Vessel orders Tankers Bulk carriers Containers Others 3 months moving average 12 10 8 Volume [ million DWT ] 6 4 2 0 12-99 03-00 06-00 09-00 12-00 03-01 06-01 09-01 12-01 03-02 06-02 09-02 12-02 03-03 06-03 09-03 12-03 Source: Based on data from Clarkson Research Studies Note: Cargo vessels > 5,000
Slide 17: Global market development
Global market development Vessel orders 2000 Vessel orders 2003 Europe Europe Asia 5% 11% Others 95% Others 0% 2% Asia 87% Vessel orders 2000 and 2003, Market share of dwt. Vessels > 100gt. Source: Lloyd´s Register-Fairplay, March 2004 Corporate presentation 2004 © Wärtsilä 17
Slide 18: Market share by yard country
Market share by yard country Long-term trends in market shares by yard country Percent of CGT Other world E. Europe W. Europe China South Korea Japan Sources: MSR-Consult, Clarkson Research Studies, Lloyd’s Register-Fairplay Corporate presentation 2004 © Wärtsilä 18
Slide 19: Wärtsilä's marine engine market position
Wärtsilä’s marine engine market position Medium speed Low speed Auxiliary engines main engines main engines Wärtsilä Wärtsilä Wärtsilä 38% (34%)* 33% (25%)* 8% (11%)* Total market volume: Total market volume: Total market volume: 3 182 MW * 13 521 MW * 3 431 MW * (2 774 MW) * (7 521 MW) * (2 842 MW)
Slide 20: Wärtsilä and CSSC/CME joining forces
Wärtsilä and CSSC/CME joining forces Wärtsilä-CME Zhenjiang Propeller Co., Ltd. CSSC one of the leading propeller manufacturers in China CME Wärtsilä market share 35% in China 45% 55% well-known propeller brands Lips and Kaida Wärtsilä-CME Zhenjiang Propeller Co., Ltd. CSSC The leading shi
Slide 21: Licensing business
Licensing business Biggest Sulzer For Wärtsilä, licensing brings 12RTA96C the company close to its length: 23,2 m width: 4,48 m customers. hight: 13,52 m weight: 2,050 tons This is of critical importance output: 68,640 kW as the global hub of shipbuilding is gradually shifting to Asia. We have
Slide 22: Wärtsilä's licensees
Wärtsilä’s licensees Hyundai, Korea H. Cegielski-Poznan, Poland HSD Engine, Korea Zgoda, Poland Dalian, China 3.Maj, Croatia Yichang, China Isotta Fraschini Motori, Italy Hudong, China China Steel Machinery Corp, Taiwan Hitachi Zosen, Japan Diesel United, Japan Mitsubishi, Japan NKK, Japan Corporate
Slide 23: Ship Power
Ship Power MEUR 2003 2002 Change Net sales 686.1 772.9 -11.2% Order intake 626.4 522.8 19.8% Order book at end of the year 606.8 662.6 -8.4% Power Businesses, net sales 2003 totally EUR 2,155.8 million. Ship Power 32% Every third vessel has Ship Power equipment supplied by Wärtsilä. Corporate pres
Slide 24: Active engine base
Active engine base Active engine base 130 GW 1000 MW 140 120 100 80 Ship Power 60 Power Plants 40 20 0 1999 2000 2001 2002 2003 Corporate presentation 2004 © Wärtsilä 24
Slide 25: Service
Service Wärtsilä provides service and reconditioning both for ship machinery and power plants. Wärtsilä is expanding its service business by providing innovative services that support its customers’ business, service for several engine brands in key ports, long-term service contacts, predictive and
Slide 26: Developing the service business – major trade routes
Developing the service business – major trade routes Five acquired and two Wärtsilä established CISERV companies since 2001. Gothenburg Denmark Vancouver Netherlands Los Angeles Dubai Singapore Corporate presentation 2004 © Wärtsilä 26
Slide 27: The Total Service Supplier
The Total Service Supplier A power system is a long-term investment. Wärtsilä’s Total Service strategy, therefore, is to add value to its customers’ business by maximizing the performance, availability and reliability of the power system during its entire lifecycle. Condition Based Maintenance R
Slide 28: The Total Service Supplier
The Total Service Supplier WLSA – Wärtsilä Land and Sea Academy Online services Operations & Maintenance Corporate presentation 2004 © Wärtsilä 28
Slide 29: Service
Service 2003 2002 Change Net sales, MEUR 885.5 843.4 5.0% Personnel, end of year 5 993 5 644 6.2% Long-term service agreements, MW 9,629 9,756 -1.3% O&M (operations and maintenance) -agreements, MW 2,289 2,056 11.3% Power Businesses, net sales 2003 totally EUR 2,155.8 million. Service 41% Corporat
Slide 30: Power Plants
Power Plants Wärtsilä is a leading supplier of power plants for decentralized power generation. We offer power plant solutions based on oil, gas and dual-fuel engines. Corporate presentation 2004 © Wärtsilä 30
Slide 31: Wärtsilä's focus in Power Plants business
Wärtsilä’s focus in Power Plants business Operational Infrastructure perspective perspective Base load Centralised Focus markets Intermediate in Decentralised Power Plants business Peaking Directed Corporate presentation 2004 © Wärtsilä 31
Slide 32: Reciprocating engine and gas turbine orders to power plants
Reciprocating engine and gas turbine orders to power plants Total market: 17 096 MW (17 243 MW) 4.8% (8.3) 63.1% (62.9) 32.1% (28.8) Wärtsilä Gas turbines Other engine makers From June 02 to May 03. Source: Diesel & Gas Turbine Worldwide, Wärtsilä Figures between brackets indicate last year's result
Slide 33: Power Plants, order intake 2003: 1,468 MW
Power Plants, order intake 2003: 1,468 MW (832) Europe 228 (226) Asia 432 (195) 112 117 (57) (170) 72 360 (34) Americas (161) 331 (329) 322 9 (257) (73) Africa and other regions 476 (81) 455 21 gas (65) (16) oil Corporate presentation 2004 © Wärtsilä 33
Slide 34: Decentralised power production
Decentralised power production Baseload power plants Wärtsilä offers both stationary and floating baseload power plants with multifuel capability. High efficiency, low emissions and proven long-term reliability have made Wärtsilä the leader in the demanding 1-300 MW market segment. Peaking/intermedi
Slide 35: Flexible power generation
Flexible power generation Mechanical drives Wärtsilä Mechanical drives are based on proven Wärtsilä engines tuned to meet the special needs of gas compression and pumping applications. The engines can run on light fuel oil, heavy fuel oil, crude oil or natural gas. Dual-fuel solutions are also avail
Slide 36: Power Plants
Power Plants MEUR 2003 2002 Change Net sales 577.5 666.0 -13.3% Order intake 639.3 427.9 49.4% Order intake (MW) 1,468 832 76.4% HFO 1,249 539 131.6% gas 219 293 -25.2% Biopower, MWth 133 107 25.3% Order book at the end of the year 357.2 255.2 40.0% Power Businesses’ net sales 2003 totally EUR 2,155
Slide 37: Special Steel and Forged Components
Special Steel and Forged Components Modernization of the base metallurgical line at the Imatra Steel Imatra Steel’s Works will further enhance product quality, strengthen net sales by market competitiveness and raise the service capabilities of the Works. segment 2003 Key figures, MEUR 2003 2002 Cha
Slide 38: Assa Abloy
Assa Abloy Wärtsilä owns 4.7% of Assa Abloy shares. Holding’s market value EUR 176.7 million (16 March 2004). Book value in group balance sheet EUR 41.8 million. Corporate presentation 2004 © Wärtsilä 38
Slide 39: Prospects for 2004
Prospects for 2004 Power Divisions Demand in traditional passenger ship and RoPax markets picking up Record demand in low-speed engine market expected to slow down Signs of recovery in power plant market Service will grow at last year’s level. Unfavourable exchange rates will intensify pres