Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — Q3 2003 Earnings Presentation

21 slides from Wartsila Oyj Abp's earnings presentation, Oct 29, 2003

  1. Slide 1: Wärtsilä Corporation Interim Report January-September 2003

    Wärtsilä Corporation Interim Report January-September 2003 Ole Johansson President & CEO 29 October 2003 © Wärtsilä

  2. Slide 2: Highlights of the reporting period

    Highlights of the reporting period „ Order intake of Power Divisions increased. „ Clear improvement in operating profit. „ Consultations on personnel reductions started in France. „ Streamlining of operations continues. © Wärtsilä presentation Q3/2003 presentaatio 2

  3. Slide 3: Wärtsilä Group

    Wärtsilä Group MEUR Q3/2003 Q3/2002 Net sales 608.7 510.3 EBITA1 32.8 22.7 EBIT 26,1 16,1 Profit before taxes 19.3 10.5 EPS, EUR 0.27 0.05 MEUR 1-9/2003 1-9/2002 2002 Net sales 1,635.4 1,792.6 2,519.0 EBITA1 67.3 70.0 100.6 Operational EBIT 47.2 53.9 77.8 EBIT 47.2 165.0 188.9 Profit before taxes 34

  4. Slide 4: Cashflow

    Cashflow MEUR 1-9/2003 1-9/2002 2002 Cashflow from operating activities 62.6 -21.1 55.4 Cashflow from investing activities -13.0 -253.2 -286.5 Cashflow from financing activities -126.3 235.0 232.3 Liquid funds at the end of period 109.1 145.3 185.8 © Wärtsilä Q3/2003 presentation 4

  5. Slide 5: Solvency and gearing

    Solvency and gearing Solvency Gearing 50 1,2 45 1 40 35 0,8 30 0,6 25 20 0,4 15 10 0,2 5 0 0 98 99 00 01 02 1-9/03 98 99 00 01 02 1-9/03 -0,2 Solvency 1 Solvency 2 Gearing 1 Gearing 2 In solvency ratio 2 and gearing 2 shareholders’ equity includes the convertible subordinated debentures EUR 27.9 mil

  6. Slide 6: Power Divisions

    Power Divisions MEUR Q3/2003 Q3/2002 Change Net sales 568.4 469.3 21.1% EBIT 26.9 18.0 49.6% % of net sales 4.7% 3.8% Order intake 555.8 498.7 11.4% MEUR 1-9/2003 1-9/2002 Change 2002 Net sales 1,484.9 1,645.8 -9.8% 2,319.9 EBIT 49.2 50.2 -2.1% 74.6 % of net sales 3.3% 3.0% 3.2% Order intake 1,658.1

  7. Slide 7: Power Divisions – key figures

    Power Divisions – key figures MEUR Net sales Order intake Order book 568.4 555.8 1,371.6 1,405.1 498.7 469.3 1,206.6 -2.3% +6.4% -1.1% +46.0% +39.7% +70.1% +31.3% -14.1% -16.3% Q3/02 Q3/03 Q3/02 Q3/03 31.12.02 30.9.02 30.9.03 Marine Power Plants Service © Wärtsilä presentation Q3/2003 presentaatio 7

  8. Slide 8: Power Divisions’ profitability

    Power Divisions’ profitability Operating profit and EBIT-% by quarter 2000-2003 MEUR % 60 8 6 40 4 20 2 0 0 1-3/00 4-6/00 7-9/00 1-3/01 4-6/01 7-9/01 1-3/02 4-6/02 7-9/02 1-3/03 4-6/03 7-9/03 10-12/00 10-12/01 10-12/02 -2 -20 -4 -40 -6 -8 -60 -10 -80 Operating profit -12 Operating result incl. restr

  9. Slide 9: Delivered engine megawatts from Wärtsilä factories

    Delivered engine megawatts from Wärtsilä factories MW 5 000 4 000 3 000 2 000 1 000 0 1998 1999 2000 2001 2002 1-9/2003 Power Plants Marine Note! Does not include Biopower or licensing. © Wärtsilä Q3/2003 presentation 9

  10. Slide 10: Marine

    Marine MEUR Q3/2003 Q3/2002 Change 20021 Net sales 194.4 148.0 31.3% 772.9 Order intake 127.5 152.2 -16.3% 522.8 Order book, end of period 640.5 745.4 -14.1% 662.6 1 Includes income from licensing. Power Divisions net sales Q3/2003 EUR 568.4 million „ Marine 34% © Wärtsilä Q3/2003 presentation 10

  11. Slide 11: 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 Source: Based on data from Clarkson Research Studies Note: Cargo vessels > 5,000 dwt ©

  12. Slide 12: Vessel orderbook

    Vessel orderbook Tankers Bulk carriers Containers Others 150 125 100 Volume [ million dwt ] 75 50 25 0 12-96 06-97 12-97 06-98 12-98 06-99 12-99 06-00 12-00 06-01 12-01 06-02 12-02 06-03 Source: Based on data from Clarkson Research Studies Note: Cargo vessels > 5,000 dwt © Wärtsilä Q3/2003 presentat

  13. Slide 13: Shipyard order book

    Shipyard order book Korea Japan China Others 150 125 Volume [ million dwt ] 100 75 50 25 0 12-96 06-97 12-97 06-98 12-98 06-99 12-99 06-00 12-00 06-01 12-01 06-02 12-02 06-03 Source: Based on data from Clarkson Research Studies Note: Cargo vessels > 5,000 dwt, Other vessels > 2000 grt © Wärtsilä Q3/

  14. Slide 14: Net sales of Marine Division by vessel type

    Net sales of Marine Division by vessel type MEUR 800 600 400 200 0 1998PF 1999 2000 2001 2002 1-9/2003 tankers bulk carriers container ships others Wärtsilä Propulsion Note! 1998 incl. Grandi Motori Trieste © Wärtsilä Q3/2003 presentation 14

  15. Slide 15: Power Plants

    Power Plants MEUR Q3/2003 Q3/2002 Change 2002 Net sales 153.7 110.0 39.7% 666.0 Order intake 203.7 119.7 70.1% 427.9 Order intake (MW): heavy fuel oil 484 68 607.9% 539 gas 75 151 -50.2% 293 Biopower, MW th 0 10 107 Order book, end of period 462.9 317.0 46.0% 255.2 Power Divisions net sales Q3/2003

  16. Slide 16: Power plant order intake 1-9/2003: 1,175 MW (693)

    Power plant order intake 1-9/2003: 1,175 MW (693) Europe 187 (220) Asia 262 (130) 94 93 (57) (163) 227 35 Americas (108) (22) 320 (266) 311 9 (222) (44) Africa and other regions 407 (77) 385 21 Gas (61) (16) Oil © Wärtsilä Q3/2003 presentation 16

  17. Slide 17: Service

    Service Q3/2003 Q3/2002 Change 2002 Net sales, MEUR 218.7 205.5 6.4% 843.4 Personnel, end of period 5,938 5,501 8.0% 5,644 Long-term service agreements, MW 9,780 9,383 4.2% 9,756 O&M (operation and maintenance) agreements), MW 2,215 1,922 15.2% 2,056 Power Divisions net sales Q3/2003 EUR 568.4 milli

  18. Slide 18: Long-term service and O&M contracts

    Long-term service and O&M contracts „ O&M contracts’ rapid growth continues „ Long-term service and O&M contracts cover 12,000 MW „ Active engine base 130,000 MW MW MW 2500 10000 2250 9500 2000 9000 Long-term service agreements 1750 8500 O&M contracts 1500 8000 1250 7500 1000 7000 2000 2001 2002 1-9

  19. Slide 19: Imatra Steel

    Imatra Steel Key figures, MEUR Q3/2003 Q3/2002 Change 2002 Net sales 40.6 41.2 -1.5% 200.4 Operating profit -0.8 -1.9 3.2 % of net sales -2.1% -4.6% 1.6% Imatra Steel’s net sales by market segment 2002 „ Comparable net sales increased 5.1%. „ Maintenance stoppages, Trucks 52% increased raw material

  20. Slide 20: Outlook for the rest of the year 2003

    Outlook for the rest of the year 2003 ƒ Power Divisions „ Net sales and operational profitability excluding restructuring costs, at last year’s level. „ Streamlining measures continue - EUR 75- 150 million restructuring provision will be entered in fourth-quarter accounts. „ Sale of the Polar holdin

  21. Slide 21: WARTSILA

    re, WARTSILA

Wärtsilä — Q3 2003 Earnings Presentation on 6ix