Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — Q1 2009 Earnings Presentation

28 slides from Wartsila Oyj Abp's earnings presentation, Apr 24, 2009

  1. Slide 1: Wärtsilä Corporation Interim Report January-March 2009

    WÄRTSILÄ CORPORATION INTERIM REPORT JANUARY-MARCH 2009 OLE JOHANSSON, PRESIDENT & CEO 24 APRIL 2009 1 © Wärtsilä

  2. Slide 2: Q1/09 Highlights

    Q1/09 Highlights • Very strong net sales EUR 1 241 million (+46%) • Operating result (EBIT) EUR 130 million (+60%), 10.5% of net sales • EPS EUR 0.89 (0.49) • Order intake EUR 958 million (-51%) • Cancellations EUR 51 million 2 © Wärtsilä

  3. Slide 3: Order intake

    Order intake MEUR 6000 First quarter development 5500 5000 2000 1936 1800 -51% 4500 1600 4000 1400 -17% 3500 1200 1000 958 3000 -83% 800 2500 600 -43% 2000 400 200 1500 0 1000 Q1/2008 Q1/2009 500 0 2005 2006 2007 2008 1-3/2009 Order intake Power Plants Ship Power Services 3 © Wärtsilä

  4. Slide 4: Order book still on high level

    Order book still on high level MEUR 8000 -10% 7 219 7000 -11% 6 477 6000 5000 -14% 4000 3000 2000 0% 1000 0 2005 2006 2007 2008 31.3.2008 31.3.2009*) Order book Power Plants Ship Power Services *) Cancellations amounting to EUR 51 million have been deducted from the order book during the review peri

  5. Slide 5: Order book distribution

    Order book distribution MEUR 5000 4000 3000 2000 1000 0 31.3.2008 31.3.2009 Delivery current year Delivery next year + 5 © Wärtsilä

  6. Slide 6: Net sales growth strong

    Net sales growth strong Especially favourable development in Power Plants MEUR 5000 4500 First quarter development 4000 23% MEUR 1400 46% 1 241 3500 1200 18% 1000 3000 27% 850 1% 800 2500 600 53% 400 2000 146% 200 1500 0 Q1/2008 Q1/2009 1000 500 0 2005 2006 2007 2008 1-3/09 Net sales Power Plants Sh

  7. Slide 7: Net sales by business 1-3/2009

    Net sales by business 1-3/2009 Ship Power Power Plants 30% (29) 35% (21) Services 35% (50) 7 © Wärtsilä

  8. Slide 8: Strong operating profit

    Strong operating profit MEUR 200 180 160 140 120 100 80 60 40 20 0 Q1 Q2 Q3 Q4 2006 2007 2008 2009 8 © Wärtsilä

  9. Slide 9: Ship Power market - vessel order development

    Ship Power market - vessel order development Market conditions remain unchanged Source: Clarkson Research Services Limited 9 © Wärtsilä

  10. Slide 10: Ship Power market

    Ship Power market Market position of Wärtsilä’s marine engines Medium-speed main engines Low-speed main engines Auxiliary engines Others Mitsubishi Wärtsilä 21%(18) 5%(4) 6%(8) Wärtsilä 13%(15) Wärtsilä 35%(37) MAN Diesel 27%(24) MAN Diesel Others Caterpillar 82%(81) 94%(92) (MAK) 17%(20) Wärtsilä’s

  11. Slide 11: Ship Power quarterly order intake

    Ship Power quarterly order intake MEUR 900 800 700 600 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 Q1 Q2 Q3 Q4 11 © Wärtsilä

  12. Slide 12: Ship Power order intake

    Ship Power order intake MEUR First quarter development 2800 Merchant Offshore 2400 30% 34% 2000 1600 1200 800 Ship 400 Design Cruise 5% & Ferry Special 0 Vessels Navy 18% 2005 2006 2007 2008 1-3/2009 5% 8% 12 © Wärtsilä

  13. Slide 13: Ship Power order intake

    Ship Power order intake Merchant segment order distribution First quarter development MEUR Merchant 2800 30% RoRo Bulkers 4% 2400 5% 2000 Cargo 7% 1600 Container 8% 1200 Tankers 6% 800 400 0 2005 2006 2007 2008 1-3/2009 13 © Wärtsilä

  14. Slide 14: Power Plants quarterly order intake

    Power Plants quarterly order intake MEUR 600 500 400 300 200 100 0 *) 2004 2005 2006 2007 2008 2009 Q1 Q2 Q3 Q4 *) 2004 Iraq-orders 14 © Wärtsilä

  15. Slide 15: Power Plants order intake by application

    Power Plants order intake by application MEUR 2000 1800 Industrial 1600 self-generation 33% 1400 Grid stability 1200 & peaking 41% Flexible 1000 baseload 800 26% 600 400 200 Gas 41% 0 Oil 59% 2005 2006 2007 2008 1-3/2009 15 © Wärtsilä

  16. Slide 16: Power Plants order intake

    Power Plants order intake Americas strongest region Order intake 1-3/2009: 587 MW (1,004) Asia 0 (57) Europe 112 (151) 78 34 Americas 261 (747) 209 Africa and Middle East 213 (50) 53 193 20 Flexible baseload Industrial self-generation Oil & gas Grid stability & peaking 16 © Wärtsilä

  17. Slide 17: Services net sales

    Services net sales Last year’s high level maintained MEUR 2000 1800 First quarter development 18% MEUR 500 1600 434 428 1% 1400 22% 400 16% 1200 300 1000 200 800 100 600 0 Q1/2008 Q1/2009 400 200 0 2005 2006 2007 2008 1-3/2009 17 © Wärtsilä

  18. Slide 18: Services net sales distribution

    Services net sales distribution Field service 28% Spare parts 56% Contracts 13% Projects 3% 18 © Wärtsilä

  19. Slide 19: Services – Order intake per quarter

    Services – Order intake per quarter MEUR 700 600 500 400 300 200 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q1 Q2 Q3 Q4 19 © Wärtsilä

  20. Slide 20: Services potential: laid-up tonnage increasing

    Services potential Laid-up tonnage increasing % of Fleet 18% 16% 14% 12% 10% 8% 6% 4% 2% May.08 Jun.08 Jul.08 Aug.08 Sep.08 Oct.08 Nov.08 Dec.08 Jan.09 Feb.09 Mar.09 Apr.09 Anchored * Idle** * Anchored (reported navigation status at anchor). Source Bloomberg (AISLive). More than 25 000 vessels (>299

  21. Slide 21: Services potential: more vessels being broken up

    total fleet 0.1% of F e b .0 9 N o v .0 8 A u g .0 8 Source: Bloomberg (AISLive) M a y .0 8 F e b .0 8 N o v .0 7 A u g .0 7 More vessels being broken up M a y .0 7 F e b .0 7 N o v .0 6 Services potential A u g .0 6 M a y .0 6 F e b .0 6 N o v .0 5 A u g .0 5 11 10 9 8 7 6 5 4 3 2 1 0 © Wärtsilä #

  22. Slide 22: Service potential: average speed decreasing

    Service potential Average speed decreasing 9,5 9,0 Knots 8,5 8,0 Aug.08 Oct.08 Jan.09 Apr.09 Source: Bloomberg (AISLive) 22 © Wärtsilä

  23. Slide 23: Cash flow

    Cash flow MEUR 1-3/09 1-3/08 2008 Cash flow from operating activities 23 75 278 Cash flow from investing activities -46 -35 -329 Cash flow from financing activities -27 100 -26 Liquid funds at the end of period 149 416 197 23 © Wärtsilä

  24. Slide 24: Financial position

    Financial position Solvency Gearing % 50 0,60 45 0,50 40 35 0,40 30 0,30 25 20 0,20 15 0,10 10 5 0,00 2005 2006 2007 2008 31.3.2009 0 2005 2006 2007 2008 31.3.2009 -0,10 24 © Wärtsilä

  25. Slide 25: Business risks

    Business risks • Ship Power – Slippage of ship yard delivery schedules – Cancellation of existing orders, Wärtsilä sees a potential cancellation risk of approximately EUR 1 000 million • Power Plants – Impact of financial crisis on the timing of orders • Services – Possible reduction of maintenance

  26. Slide 26: Market outlook

    Market outlook • Ship Power: number of laid up vessels increases, major changes in new ordering outlook not expected • Power Plants: ordering activity expected to remain at a good albeit lumpy level • Stable development in Services continues, visibility has become shorter 26 © Wärtsilä

  27. Slide 27: Prospects for 2009 reiterated

    Prospects for 2009 reiterated • Despite the risk of cancellations, the substantial order book should support a 10- 20 percent growth in net sales for 2009, which would maintain the profitability at last year’s good level. 27 © Wärtsilä

  28. Slide 28: Presentation name / Author

    Presentation name / Author

Wärtsilä — Q1 2009 Earnings Presentation on 6ix