Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (May 2005)
17 slides from Wartsila Oyj Abp's investor day presentation, May 31, 2005
Slide 1: Wärtsilä Capital Markets Day: Strategy and future plans
Wärtsilä Capital Markets Day Strategy and future plans Ole Johansson, President & CEO Trieste, Italy, 31 May 2005 © Wärtsilä
Slide 2: Our offering
Our offering We are in business to power your business SHIP SERVICES OEM SERVICES POWER PLANTS ENGINES PROPULSORS SHIP POWER SYSTEMS O&M COMPETITORS’ ENGINES © Wärtsilä 2
Slide 3: Our offering: seeking growth beyond organic growth
Our offering …and we are We seeking are ingrowth business beyond to power the organic your business growth SHIP SERVICES Non engine related OEM SERVICES services POWER PLANTS ENGINES Additional products PROPULSORS SHIP POWER SYSTEMS O&M Additional engine brands COMPETITORS’ ENGINES © Wärtsilä 3
Slide 4: Total Energy Consumption of the World
Total Energy Consumption of the World MBDOE 120 36 % 36 % 100 37 % 37 % 80 25 % Oil 24 % 23 % Gas 60 22 % Coal 40 Others 20 0 2005 2010 2015 2020 Source: ExxonMobil © Wärtsilä 4
Slide 5: Status of fuel versatility - Wärtsilä engines
Status of fuel versatility - Wärtsilä engines Bio Oils Bottom Oils Orimulsion® Crude Oil Natural Gas Heavy Fuel Diesel Oil 1970 1980 1990 2000 2010 © Wärtsilä 5
Slide 6: Transportation demand shapes the oil barrel
Transportation demand shapes the oil barrel Developing countries Developed countries Source: ExxonMobil © Wärtsilä 6
Slide 7: Emission limits
Emission limits Comparison of emission reduction requirements 0,5 Year 2007 Year 2005 0,4 Inland waterways IMO PM (g/kWh) 2004/26/EC and US-EPA MARPOL 73/78 0,3 0,2 US 2010 Euro 3 0,1 Euro 5 Euro 4 0 0 2 4 6 8 10 12 14 16 18 20 Automotive NOx (g/kWh) © Wärtsilä 7
Slide 8: Gas Engine Features
Gas Engine Features High electrical efficiency Wärtsilä gas engines (4…20 MW) 43…46 % Single cycle gas turbines (1…60 MW) 25…40 % Combined cycle gas turbines (> 50 MW) 50…57 % Flexible operation characteristics Fast starting/stopping and loading High efficiency on part loads Low output reduction (de
Slide 9: Gas engine business potential
Gas engine business potential Power Plants Large scale load management plants (peak shaving) in strong grids. The benefits of gas engines have recently been demonstrated in USA Distributed power production where gas engines have a market to capture from gas turbines Fuel conversion of existing plant
Slide 10: Forecasted geographical distribution of shipbuilding
Forecasted geographical distribution of shipbuilding Sources: MSR-Consult, Clarkson Research Studies Lloyd’s Register-Fairplay © Wärtsilä 10
Slide 11: Developing the service business – major trade routes
Developing the service business – major trade routes Six acquired and four Wärtsilä established CISERV companies since 2001 Gothenburg Denmark Estonia Vancouver Netherlands Los Angeles Korea Dubai Singapore Ciserv concept will be further developed to ports where ships sail © Wärtsilä 11
Slide 12: Developing the service business – major ports worldwide
Developing the service business 15 major ports worldwide Hamburg New York/ Busan Los Angeles New Jersey Rotterdam Qingdao Long Beach Antwerpen Dubai Shanghai Shenzhen Hong Kong Kaohsiung Port Kelang Singapore Source: ISL Shipping Statistics Yearbook 2004 © Wärtsilä 12
Slide 13: Container port development 1999-2004
Container port development 1999-2004 1999 2000 2001 2002 2003 2004 120 000 000 100 000 000 80 000 000 TEU throughput 60 000 000 40 000 000 20 000 000 0 am en rg s h p ai ng g Po bai n g n Sh re ao le ac er an sa un ia gh bu o zh Ko gd ge rd u nt tw ap Be Bu Kl si an D am en Ya te in An oh An g ng rt
Slide 14: Major lines' TEU fleet capacities 1993-2004
Major lines’ TEU fleet capacities 1993-2004 1000000 Maersk EMC 900000 P&ONL 800000 CMA-CGM HJS TEU standing slots 700000 NYK 600000 Cosco MSC 500000 APL 400000 300000 200000 100000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: Clarkson Research Studies © Wärtsilä 14
Slide 15: Volatile ship power and power plant markets
Volatile ship power and power plant markets Engine power installed (propulsion) and orders (diesel, dual fuel, and gas) GW 17 Peak levels 2001 16 15 -30% 14 Diesel, Dual-Fuel and 13 Gas Engine orders 12 11 Installed propulsion -30% engine power 10 9 8 2003 levels 7 1995 1996 1997 1998 1999 2000 2001
Slide 16: Market share development
Market share development Percent 80% 75% Power generation* (HFO) 70% 65% 60% 55% 50% 45% 40% 35% Medium speed (4-stroke)* 30% 25% Low speed (2-stroke)** 20% Power generation* (gas) 15% 10% Auxiliary engine* 5% 0% Power generation* (LFO) 1997 1998 1999 2000 2001 2002 2003 2004 *Share of MW. Total mar
Slide 17: Outlook
Outlook 2005 net sales to grow approx. 15 % Profitability for the whole year 2005 around 8% 2006 net sales up approx. 10 % and profitability slightly better than 2005 © Wärtsilä 17