Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Metra — Shareholder Meeting (March 2000)
32 slides from Wartsila Oyj Abp's shareholder meeting presentation, Mar 23, 2000
Slide 1: Metra Annual General Meeting
Metra Annual General Meeting 23 March 2000 2000 1
Slide 2: Highlights
Highlights Metra’s result improved: Wärtsilä NSD improved but still loss-making Large profits on asset sales Sanitec acquired Sphinx Gustavsberg Cummins Wärtsilä split between the principals Metra-9MET020 2000 2
Slide 3: Group Net Sales
Group Net Sales EUR mill. 2500 2000 1500 1000 500 0 1994 1995 1996 1997 1998 1999 Wärtsilä NSD Imatra Steel Sanitec Others Metra-8MET038 2000 3
Slide 4: Metra operating profit
Metra operating profit EUR mill. 300 250 200 150 100 50 0 1995 1996 1997 1998 1999 -50 Industrial operations Non-industrial operations, profit Non-industrial operations, loss Metra-0MET071 2000 4
Slide 5: Divisional Profits
Divisional Profits Operating Profit incl. Associated Companies EUR mill. 1999 1998 Change Wärtsilä NSD -29 -108 +79 Imatra Steel 11 21 -10 Sanitec 81 77 +4 Other operations 209 98 +111 Total 273 88 +185 % 18 15 12 9 6 3 0 -3 -6 1994 1995 1996 1997 1998 1999 Wärtsilä NSD Sanitec Imatra Steel Metra Gr
Slide 6: Group Income Statement
Group Income Statement EUR mill. 1999 1998 Change Net Sales 2,700 2,603 +97 Share of associated companies -10 -40 +30 Operating profit 273 88 +185 Financial items (net) -36 -43 -7 Profit before extraordinary 237 45 +192 items Earnings/share, euro 2,43 0,45 +1,95 Dividend/share, euro 0.50+2.35* 0.37+
Slide 7: Gross capital expenditure and depreciation
Gross capital expenditure and depreciation EUR mill. 300 0,9 0,8 250 0,7 200 0,6 0,5 150 0,4 100 0,3 0,2 50 0,1 0 0 1995 1996 1997 1998 1999 Fixed assets Shares Gearing Depreciation Metra-9MET045 2000 7
Slide 8: Wärtsilä NSD Net Sales by Business Area
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Slide 9: Wärtsilä NSD
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Slide 10: Imatra Steel
Imatra Steel Advanced special steel production for automotive and engineering industry n Sharp decline in demand for special engineering steels at start of year Billnäs, Finland 8% n Result satisfactory given market conditions Imatra, Finland 61% Kilsta, Sweden 31% Net sales 173 million euro 1999 A
Slide 11: Imatra Steel
Imatra Steel EUR mill. 1999 1998 Change Net sales 173 195 -22 Operating profit 11 21 -10 Profit before taxes 7 19 -12 Balance sheet total 161 160 +1 Equity/Metra’s book 51 Distribution of Net Sales Other 2% Finland 16% Other EU Other Nordic countries 44% countries 38% Metra-9IMA001, rev. 3/00 11
Slide 12: Sanitec 1998-1999
Sanitec 1998-1999 (85PLOO &KDQJH 1HWVDOHV 2SHUDWLQJSURILW 3URILWEHIRUHWD[HV 3URILWIRUILQDQFLDOSHULRG %DODQFHVKHHWWRWDO 0DUNHWFDSLWDOLVDWLRQ 0HWUDVVKDUH 568 Outlook for 2000: Net sales will grow significantly Result improves, relative profitability will weaken slightly Sanitec-0SAN051 12
Slide 13: Assa Abloy 1998-1999
Assa Abloy 1998-1999 EUR mill. 1999 1998 Change Net sales 1,171 977 +194 Operating profit 136 110 +26 Profit before taxes 112 85 +27 Profit for financial period 78 60 +18 Contribution to Metra´s result 18 15 +3 Balance sheet total 1,320 1,078 +242 Market capitalisation 22.3.2000 6,672 Metra´s share
Slide 14: Strategy
Strategy Sanitec holding below 50% Wärtsilä NSD now 100% owned subsidiary Metra becomes an engineering group Metra and Wärtsilä NSD corporate management will be merged Metra-0MET074 2000 14
Slide 15: Metra International engineering group
Metra International engineering group Holdings 100 % 64.2 % => < 50 % 100 % 19.8 % Marine Marine Power Power Service Service Metra-9MET005 2000 15
Slide 16: Becoming a global system and service provider for power solutions
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Slide 17: Wärtsilä NSD
;ÇVXWMPÇ27( Environmentally friendly and reliable power solutions for land and sea :KRZHDUH 6ROXWLRQ SURYLGHU 6\VWHP &RQWUDFWRU (QJLQH 0DQXIDFWXUHU 2XU SURGXFW (QJLQH 7XUQNH\ (QHUJ\ 6ROXWLRQ A METRA COMPANY Metra-9WNS021 17
Slide 18: Wärtsilä NSD: The realm of marine power systems
;ÇVXWMPÇ0MTW8LIVIEPQSJQEVMRI TS[IVW]WXIQW Wärtsilä NSD markets total systems (QJLQHV 0RGXOL]HGDQFLOODULHV 3URSHOOHUV *HQVHWV &RQWUROV 'LHVHOHOHFWULF 5XGGHUV V\VWHPV 5HGXFWLRQJHDUV Wärtsilä NSD delivers John Crane-Lips delivers A METRA COMPANY Metra-0WNS077 18
Slide 19: Wärtsilä NSD's marine market shares
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Slide 20: Enviroengine
)RZMVSIRKMRI 'EVRMZEP'SVTSVEXMSRERH;ÇVXWMPÇ27( EVIHIZIPSTMRKEWQSOIPIWWIRKMRI A METRA COMPANY Metra-0WNS085 20
Slide 21: Power plant solutions
4S[IVTPERXWSPYXMSRW A METRA COMPANY 1IXVE;27 21
Slide 22: Reciprocating Engine Orders for Power Plants
6IGMTVSGEXMRK)RKMRI3VHIVWJSV4S[IV4PERXW JVSQ.YRIXS1E] 7RWDO0: ;ÇVXWMPÇ27( 3XLIV)RKMRI1EOIVW 6RXUFH'LHVHO *DV7XUELQH:RUOGZLGH A METRA COMPANY Metra-0WNS081 22
Slide 23: Service and operations
7IVZMGIERHSTIVEXMSRW )RKMRIMRWXEPPIHFEWI n Operation and maintenance 1; services up 9 % n Market share in low-speed engines still low n Operation services will grow vigorously m Spare part sales => total service responsibility m Annual service => long-term service contracts m Operator training => op
Slide 24: Wärtsilä NSD outlook
;ÇVXWMPÇ27(SYXPSSOJSV n Operation and maintenance services will increase => profitable growth n Wärtsilä NSD’s net sales forecast to grow n Result of operations will improve, result before extraordinary items will enter into profit A METRA COMPANY Metra-0WNS084 24
Slide 25: Outlook for 2000
Outlook for 2000 Capital gains have a positive impact on the result Wärtsilä NSD Wärtsilä NSD result will improve and be positive Imatra Steel Net sales will increase, result will improve Sanitec Sanitec becomes an associated company Metra-9MET041 2000 25
Slide 26: Board's proposals to the AGM
Board’s proposals to the AGM - Dividend 0.50 euro / share -Extraordinary dividend as Sanitec shares, value 2.35 euro / share - dividend adjustment of subordinated convertible debentures and options - authorization to repurchase and sell company shares Metra-0MET072 2000 26
Slide 27: Value of extra dividend for the receiver
Value of extra dividend for the receiver Extra dividend 127,370,578.10 EUR 2.35 EUR / Metra share Average price of Sanitec on the payment day, 7 April 2000, is decisive in calculation of the number of shares to be distributed For example: Holding 100 Metra shares => Dividend 100 x 2.35 EUR => 16 sha
Slide 28: Taxation consequences for the receiver
Taxation consequences for the receiver No tax consequences for the Finnish shareholders, except for those due to the by 1%-unit increased capital tax rate The average price on the payment day, i.e. 7.4.2000, is regarded as the acquisition cost The payment day, i.e. 7.4.2000, is regarded acquisition
Slide 29: Important dates
Important dates Record date 28 March 2000 Payment day 7 April 2000 On account 10 April 2000 Metra-99MET064 2000 29
Slide 30: Changing the terms of convertibles and warrants
Changing the terms of convertibles and warrants The terms for the convertible subordinated bonds and warrants will be changed in accordance with the extra dividend Reasons for change: The extra dividend differs from the normal dividend Equality of shareholders Normal market procedure Change was also
Slide 31: Convertible subordinated bonds
Convertible subordinated bonds 2 x FIM 350m, MEUR 0.5 converted A series: now: FIM 10,000 = 39 A + 39 B, increase of share capital EUR 9,555,000 new: FIM 10,000 = 44 A + 44 B, increase of share capital EUR 10,780,000 B series: now: FIM 10,000 = 78 B, increase of share capital EUR 9,555,000 new: FIM
Slide 32: Bond with warrants
Bond with warrants Bond with warrants 1996 FIM 180,000 180 warrants à 1,200 B shares = total 216,000 shares Conversion period ends 2.5.2003 Converted until today 9,600 B shares => 206,400 B shares remain Subscription price now: EUR 15.84 = FIM 94.18 New subscription price: EUR 13.49 = FIM 80.21 Metr