Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — Q1 2008 Earnings Presentation

28 slides from Wartsila Oyj Abp's earnings presentation, Apr 25, 2008

  1. Slide 1: Wärtsilä Corporation Interim Report January-March 2008

    WÄRTSILÄ CORPORATION INTERIM REPORT JANUARY-MARCH 2008 OLE JOHANSSON, PRESIDENT & CEO 25 APRIL 2008 1 © Wärtsilä

  2. Slide 2: This is Wärtsilä

    This is Wärtsilä SHIP POWER POWER PLANTS SERVICES 2 © Wärtsilä

  3. Slide 3: Highlights

    Highlights • Demand continued strong • Order intake +67% • Net sales +12% • Operating result (EBIT) +28%, 9.6% of net sales • Strong cash flow 3 © Wärtsilä

  4. Slide 4: First quarter order intake all time high

    First quarter order intake all time high MEUR 6000 First quarter development 5500 5000 2000 1 936 1800 67% 4500 1600 4000 44% 1400 3500 1200 1 157 1000 45% 3000 800 2500 600 400 168% 2000 200 1500 0 1000 1-3/2007 1-3/2008 500 0 2004 2005 2006 2007 1-3/2008 Order intake Power Plants Ship Power Servic

  5. Slide 5: Order book exceeding EUR 7 billion

    Order book exceeding EUR 7 billion MEUR 7500 7 219 7000 6500 49% 6000 5500 4 860 36% 5000 4500 4000 3500 46% 3000 2500 2000 1500 60% 1000 500 0 2004 2005 2006 31.3.2007 31.3.2008 Order book Power Plants Ship Power Services 5 © Wärtsilä

  6. Slide 6: Approx. 45% of order book due for delivery 2008

    Approx. 45% of order book due for delivery 2008 MEUR 4000 3500 3000 2500 2000 1500 1000 500 0 31.3.2007 31.3.2008 Delivery current year Delivery next year + 6 © Wärtsilä

  7. Slide 7: Advances received reflect order book strength

    Advances received reflect order book strength MEUR 1000 Advances received at end of Q1 900 1500 800 1250 700 1 083 1000 600 698 55% 750 500 500 400 250 300 0 200 31.3.2007 31.3.2008 100 0 2004 2005 2006 2007 31.3.2008 7 © Wärtsilä

  8. Slide 8: Delivered engine megawatts from own factories

    Delivered engine megawatts from own factories MW 7000 6000 5000 4000 3000 2000 1000 0 2001 2002 2003 2004 2005 2006 2007 Q1/2008 Ship Power Power Plants Full-year estimate 8 © Wärtsilä

  9. Slide 9: Net sales developed according to plan

    Net sales developed according to plan MEUR 4000 3500 First quarter development 18% MEUR 900 850 3000 800 761 12% 27% 700 2500 600 22% 13% 500 2000 400 -5% 300 1500 200 17% 100 0 1000 1-3/2007 1-3/2008 500 0 2004 2005 2006 2007 1-3/2008 Net sales Power Plants Ship Power Services 9 © Wärtsilä

  10. Slide 10: Services constitute a considerable share of net sales

    Services constitute a considerable share of net sales Net sales by business 1-3/2008 Ship Power Power Plants 29% (34) 21% (20) Services 50% (46) 10 © Wärtsilä

  11. Slide 11: EBIT develops positively

    EBIT develops positively Quarterly profitability fluctuations remain MEUR 160 140 120 100 80 60 40 20 0 Q1 Q2 Q3 Q4 2005 2006 2007 2008 11 © Wärtsilä

  12. Slide 12: Ship Power market - vessel order development

    Ship Power market - vessel order development Merchant Cruise&Ferry Offshore & Special Vessels 3 months moving average in dwt 450 25 400 350 20 Million DWT 300 # vessels 250 15 200 10 150 100 5 50 0 0 01-03 04-03 07-03 10-03 01-04 04-04 07-04 10-04 01-05 04-05 07-05 10-05 01-06 04-06 07-06 10-06 01-0

  13. Slide 13: Ship Power market - merchant vessel order development

    Ship Power market - merchant vessel order development Tankers Bulkers Containers LNG carriers LPG carriers Reefers Other dry cargo 450 400 350 300 # vessels 250 200 150 100 50 0 01-03 04-03 07-03 10-03 01-04 04-04 07-04 10-04 01-05 04-05 07-05 10-05 01-06 04-06 07-06 10-06 01-07 04-07 07-07 10-07 01

  14. Slide 14: Ship Power - market development

    Ship Power - market development Market position of Wärtsilä’s marine engines Q1/2008 Medium-speed main engines Low-speed main engines Auxiliary engines Others Mitsubishi Wärtsilä 14%(12) 3%(3) 6%(6) Wärtsilä 13%(16) Wärtsilä 36%(38) MAN Diesel 26%(27) MAN Diesel Others Caterpillar (MAK) 84%(81) 94%(

  15. Slide 15: Ship Power order intake

    Liikevaihto Ship Power 2007 order- intake Ship Power - activity continued at high levels MEUR 2800 Merchant Offshore 2400 52% 21% 2000 1600 1200 800 Cruise & Ferry 400 13% Navy Special 1% 0 vessels 2004 2005 2006 2007 1-3/2008 13% 15 © Wärtsilä

  16. Slide 16: Ship Power order intake - Merchant segment 1-3/2008

    Ship Power order intake - Merchant segment 1-3/2008 Merchant MEUR 52% 2800 RoRo 10% Bulkers 2400 15% 2000 Cargo 1600 10% 1200 Container 800 5% 400 Tankers 12% 0 2004 2005 2006 2007 1-3/2008 16 © Wärtsilä

  17. Slide 17: Ship Power net sales 1-3/2008

    Liikevaihto Ship Power 2007 - net -sales Ship 1-3/2008 Power MEUR 1400 Merchant Offshore 1200 42% 25% 1000 800 600 400 Cruise & Ferry 200 19% Special Navy 0 5% 2004 2005 2006 2007 1-3/2008 vessels 9% 17 © Wärtsilä

  18. Slide 18: Power Plants order intake - high demand in all segments

    Power Plants order intake - high demand in all segments Industrial self-generation MEUR 5% 1600 1400 1200 Grid stability & peaking 1000 36% Flexible 800 baseload 54% 600 Oil & gas 400 5% Renewable 2% 200 Oil 44% 0 Gas 54% 2004 2005 2006 2007 1-3/2008 18 © Wärtsilä

  19. Slide 19: Power Plants - order intake by region

    Power Plants - order intake by region Order intake 1-3/2008: 1,004 MW (425) Asia 57 (55) Europe 151 (216) 45 113 Americas 747 (95) 12 387 38 Africa and Middle East 50 (59) 360 Flexible baseload Industrial self-generation Oil & gas Grid stability & peaking 19 © Wärtsilä

  20. Slide 20: Power Plants - net sales 1-3/2008

    Power Plants - net sales 1-3/2008 Grid stability & peaking MEUR 1% Oil & gas 14% 1000 900 800 700 Flexible Industrial 600 baseload self- 54% generation 500 31% 400 300 200 100 0 2004 2005 2006 2007 1-3/2008 20 © Wärtsilä

  21. Slide 21: Services - strong growth continued

    Services - strong growth continued MEUR 1600 First quarter development 1400 22% MEUR 450 428 400 1200 352 16% 350 22% 17% 300 1000 250 200 800 150 100 600 50 0 400 1-3/2007 1-3/2008 200 0 2004 2005 2006 2007 1-3/2008 21 © Wärtsilä

  22. Slide 22: Added capabilities support growth

    Added capabilities support growth Wärtsilä Services becomes the most valued business partner… Engine Services Automation Services Customer Relationship Customers Propulsion Services Management Operations & Management Reconditioning Services Training Services Ship Services Boiler Services … by unders

  23. Slide 23: Strong cash flow

    Strong cash flow MEUR 1-3/08 1-3/07 2007 Cash flow from operating activities 75 79 431 Cash flow from investing activities -35 -38 -214 Cash flow from financing activities 100 -72 -95 Liquid funds at the end of period 432 148 296 23 © Wärtsilä

  24. Slide 24: Financial position

    Financial position Solvency Gearing 50 0,30 % 45 0,25 40 0,20 35 30 0,15 25 0,10 20 0,05 15 10 0,00 5 -0,05 0 2004 2005 2006 2007 1-3/2008 -0,10 2004 2005 2006 2007 1-3/2008 Convertible subordinated debentures treated as equity 24 © Wärtsilä

  25. Slide 25: Market outlook

    Market outlook • An active Ship Power market is foreseen for at least the second quarter 2008, during the third quarter it is expected that a slowdown will be seen within the Merchant segment • Power Plant market situation remains good, continued high ordering activity in all segments for at least t

  26. Slide 26: Wärtsilä's prospects 2008 reiterated

    Wärtsilä’s prospects 2008 reiterated • Based on the strong order book, Wärtsilä’s net sales are expected to grow by about 25% in 2008 • Wärtsilä’s profitability varies considerably from one quarter to another • Full-year profitability will exceed 11% 26 © Wärtsilä

  27. Slide 27: Looking ahead

    Looking ahead … we are seeking growth beyond the organic growth NON-ENGINE RELATED SERVICES Ship services OEM Power services Plants Engines Propulsors ADDITIONAL Ship Power systems PRODUCTS O&M Competitors’ engines ADDITIONAL ENGINE BRANDS 27 © Wärtsilä

  28. Slide 28: Presentation name / Author

    Presentation name / Author

Wärtsilä — Q1 2008 Earnings Presentation on 6ix