Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — Investor Presentation (June 2007)

36 slides from Wartsila Oyj Abp's investor presentation, Jun 17, 2007

  1. Slide 1: This is Wärtsilä

    THIS IS WÄRTSILÄ 1 © Wärtsilä 17 June 2007 WÄRTSILÄ CORPORATION

  2. Slide 2: We are Wärtsilä

    We are Wärtsilä We have 173 years of experience in power generation on land and at sea. We are one company united by the same values and vision and our businesses are: Ship Power, Services and Power Plants. Our heritage remains an important part of our way of doing things throughout all these busine

  3. Slide 3: We are the Engine of Industry

    We are the Engine of Industry Our customers keep the world running, keep it powered and heated, keep commerce moving and energy flowing. An Engine is a source of power, a source of energy and movement. An Engine can be trusted to perform day in and day out. It’s exactly these qualities that we bring

  4. Slide 4: We are driving the industries of the world by

    We are driving the industries of the world by • constantly creating better technologies, systems and services that bring higher return on investment • creating new ways to help organize customers’ operations more cost effectively • developing environmentally sound technologies and creating business

  5. Slide 5: 173 years of experience

    173 years of experience • Heritage in engine building • Getting things done • We are Doers 5 © Wärtsilä 17 June 2007 WÄRTSILÄ CORPORATION

  6. Slide 6: The world has enough talkers, we are doers

    The world has enough talkers, we are doers 1000 3000 500 500 1500 1000 1000 Wärtsilä is the Engine of Industry More than 14,000 people across the globe dedicated to achieving our clients’ goals. 6 © Wärtsilä 17 June 2007 WÄRTSILÄ CORPORATION

  7. Slide 7: We are Ship Power

    We are Ship Power • For any challenge in the marine industry we have a solution. We provide solutions for builders, owners and operators of any type of marine vessel and offshore application. • This is done via an impressive worldwide network of Wärtsilä locations that have a deep and complete under

  8. Slide 8: Ship Power market offering

    Ship Power market offering Product areas • Medium-speed engines • Low-speed engines • Propulsion • Automation • Seals and bearings • System integration Related services • Ship design • Engineering • Project management • Commissioning • Lifetime support 8 © Wärtsilä 17 June 2007 WÄRTSILÄ CORPORATION

  9. Slide 9: Ship Power market segments

    Ship Power market segments Merchant Offshore Cruise & Ferry Naval Special vessels 9 © Wärtsilä 17 June 2007 WÄRTSILÄ CORPORATION

  10. Slide 10: We are Services

    We are Services • We continuously develop innovative solutions and products for all our customers whether it involves servicing our own brands or other makes, power systems, power plants or shipping services all around the world. • We understand our customers’ real needs through direct face-to-face

  11. Slide 11: Wärtsilä Services

    Wärtsilä Services Engine Operations & services Management Automation Reconditioning services services Propulsion Training services services Ship services 11 © Wärtsilä 17 June 2007 WÄRTSILÄ CORPORATION

  12. Slide 12: Wärtsilä Services

    Wärtsilä Services 12 © Wärtsilä 17 June 2007 WÄRTSILÄ CORPORATION

  13. Slide 13: We are Power Plants

    We are Power Plants Wärtsilä is the leading supplier for flexible power plant solutions in selected niches. – We supply flexible baseload power solutions for the developing world, islands and remote areas – We supply solutions for grid stability and peaking needs for industries – We supply solutions

  14. Slide 14: Power Plants world leader in selected niche markets

    Power Plants world leader in selected niche markets Flexible baseload • Our installed base 21.1 GW, 1 529 power plants Grid stability and peaking • Our installed base 4.2 GW, 446 power plants Industrial self-generation • Our installed base 11.0 GW, 1 412 power plants Oil & gas industry solutions • O

  15. Slide 15: We are Wärtsilä

    We are Wärtsilä No matter what your industry is, it needs an engine. One that has the will and power to take you to the next level. And that is where we can help. These values are energy, excellence and excitement in everything we do and being the best in our field. 15 © Wärtsilä 17 June 2007 WÄRTSI

  16. Slide 16: Key figures 2006

    Key figures 2006 Net sales by business 2006 Change 2006 2005* (%) Net sales 3.189,6 2.520,3 26,6 Operating income 261,6 202,5 29,2 % of net sales 8,2 8,0 Power Plants Income before taxes 446,82 212,41 Services 29,3% (28,2) 39,7% (43,4) Earnings/share, EUR 3,72 1,80 Ship Power 30,9% (28,2) 1) The fig

  17. Slide 17: Key figures

    Key figures Net sales Order intake Order book 3500 5000 5000 MEUR 3,189.6 MEUR 4,621.1 MEUR 4,438.9 4500 4500 3000 26.6% 4000 32.4% 4000 52.8% 2,520.3 2500 3,491.1 3500 3500 15.9% 3000 22.8% 3000 2,905.7 17.6% 2000 2500 2500 12.4% 18.7% 1500 31.5% 2000 2000 1500 46.9% 1500 82.1% 1000 38.6% 1000 1000

  18. Slide 18: Comparable sales by market area 2002 - 2006

    Comparable sales by market area 2002 - 2006 3500 MEUR 3000 2500 2000 1500 1000 500 0 2002 2003 2004 2005 2006 Asia Europe America Other 18 © Wärtsilä 17 June 2007 WÄRTSILÄ CORPORATION

  19. Slide 19: Personnel development 2002 - 2006

    Personnel development 2002 - 2006 16000 14000 12000 10000 8000 6000 4000 2000 0 2002 2003 2004 2005 2006 Services Ship Power Power Plants Engine Division 19 © Wärtsilä 17 June 2007 WÄRTSILÄ CORPORATION

  20. Slide 20: Delivered engine megawatts from own factories

    Delivered engine megawatts from own factories 5500 MW 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2001 2002 2003 2004 2005 2006 E2007 Power Plants Ship Power Full-year estimate 20 © Wärtsilä 17 June 2007 WÄRTSILÄ CORPORATION

  21. Slide 21: Strong financial position enables further growth

    Strong financial position enables further growth Solvency Gearing 50 0.6 % 45 0.5 40 35 0.4 30 25 0.3 20 0.2 15 10 0.1 5 0 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 NOTE: 2002-2003 according to FAS, 2004- IFRS Convertible subordinated debentures treated as equity 21 © Wärtsilä 17 June 2007

  22. Slide 22: EPS and dividend/share

    EPS and dividend/share 4.0 EUR 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 -0.5 -1.0 2002 2003 2004 2005 2006 EPS Dividend Extra dividend 22 © Wärtsilä 17 June 2007 WÄRTSILÄ CORPORATION

  23. Slide 23: Wärtsilä Ship Power

    Wärtsilä Ship Power Ship Power net sales Change MEUR 2006 2005 (%) Net sales 984.7 710.3 38.6 Order intake 2,270.5 1,545,3 46.9 Order book* 3,019.7 1,658.5 82.1 30.9% of total net sales *) End of period 23 © Wärtsilä 17 June 2007 WÄRTSILÄ CORPORATION

  24. Slide 24: Net sales of Ship Power by vessel type

    Net sales of Ship Power by vessel type 1000 Tankers Cruise MEUR 12% & Ferry 900 18% Bulk carriers 800 3% 700 Container ships 600 14% General cargo 500 10% 400 300 LNG Special vessels Offshore 3% 200 & other 29% 100 11% 0 2002 2003 2004 2005 2006 Others Tankers Bulk carriers Container ships 24 © Wärt

  25. Slide 25: Market position of Wärtsilä's marine engines Q4/2006

    Market position of Wärtsilä’s marine engines Q4/2006 Medium-speed main engines Low-speed main engines Auxiliary engines (Own production) (Production by licensees) (Own production) Others Comp. 3 Wärtsilä 13%(13) 3%(4) 6%(7) Wärtsilä 16%(17) Comp. 1 13%(14) Wärtsilä 51%(50) Comp. 2 Comp. 1 Others 23%

  26. Slide 26: The market position of Wärtsilä's propellers Q4/2006

    The market position of Wärtsilä’s propellers Q4/2006 Controllable pitch propellers Fixed pitch propellers Steerable thrusters (includes JV) Wärtsilä Wärtsilä 11%(18) 11%(11) Wärtsilä 36%(35) Others 64%(65) Others Others 89%(82) 89%(89) Wärtsilä own calculation based on: Lloyd’s Register – Fairplay &

  27. Slide 27: Global market development

    Global market development China growing fast in shipbuilding Vessel orders 2000 Vessel orders 2004 Vessel orders 2006 Others Others Others Europe 3% 5% Europe 5% 9% Europe 3% 8% China 6% Korea 32% Korea China Korea China 38% 17% 48% 35% Japan 34% Japan Japan 38% 19% 67.595.039 dwt 104.940.490 dwt 14

  28. Slide 28: Wärtsilä in China - growing presence

    Wärtsilä in China - growing presence Qingdao Qiyao Wärtsilä MHI Linshan Marine Diesel Co Ltd (QMD) Manufacturing of low-speed engines (Starting operations in 2008) Wärtsilä CME Zhenjiang Propeller Co., Ltd Manufacturing of fixed pitch propellers (Investments in additional capacity) Wärtsilä Propulsi

  29. Slide 29: Wärtsilä Hyundai Engine Company Ltd.

    Wärtsilä Hyundai Engine Company Ltd. To meet demand of growing LNG market • Joint Venture 50/50 with Hyundai Heavy Industries, Korea • New factory to produce Wärtsilä 50DF (dual-fuel engines) • Production volume: 100 engines a year • Additional capacity for LNG-carrier market • Investment EUR 58 mil

  30. Slide 30: Wärtsilä Services

    Wärtsilä Services Services net sales Change MEUR 2006 2005 (%) Net sales 1,266 1,093.1 15.9 Personnel* 8,539 7,200 18.6 39.7% of total net sales *) End of period 30 © Wärtsilä 17 June 2007 WÄRTSILÄ CORPORATION

  31. Slide 31: Wärtsilä Services

    Wärtsilä Services 30 60 % % 25 50 20 40 15 30 10 20 5 10 0 0 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Services growth per Q Services share of sales 31 © Wärtsilä 17 June 2007 WÄRTSILÄ CORPORATION

  32. Slide 32: Wärtsilä Power Plants

    Wärtsilä Power Plants Power Plants net sales Change MEUR 2006 2005 (%) Net sales 934.2 710.3 31.5 Order intake 1,027.3 865.9 18.7 Order book* 1,061.4 943.9 12.4 29.3% of total net sales *) End of period 32 © Wärtsilä 17 June 2007 WÄRTSILÄ CORPORATION

  33. Slide 33: Wärtsilä Power Plants market share

    Wärtsilä Power Plants market share Target markets per fuel 2002 - 2006 16000 MW 14000 12000 10000 8.1% (7.8) 8000 23.0% 6000 (8.7) 4000 33.8% 2000 (44.2) 0 2002 2003 2004 2005 2006 Wärtsilä’s market share HFO 1-60 MW LFO 3,5-60 MW GAS 3,5-60 MW Note I: Wärtsilä’s gas power plant target markets have

  34. Slide 34: Gas power plant market

    Gas power plant market Rec.engines 16000 MW 1,327 MW Wärtsilä 63.5% 14000 12000 10000 8.1% (7.8) 8000 6000 Gas turbines 9,044 MW Market potential 4000 23% (8.7) for Wärtsilä 2000 33.8% (44.2) 0 2006 HFO 1-60 MW LFO 3,5-60 MW GAS 3,5-60 MW Note I: Wärtsilä’s gas power plant target markets have change

  35. Slide 35: Wärtsilä's prospects in 2007

    Wärtsilä’s prospects in 2007 • Demand in the ship power and energy markets will remain active for Wärtsilä for at least the first half of 2007. • Based on the strong order book, Wärtsilä’s net sales are expected to grow this year by around 15%. • Profitability will exceed 9%. • Wärtsilä sees further

  36. Slide 36: www.wartsila.com

    WWW.WARTSILA.COM

Wärtsilä — Investor Presentation (June 2007) on 6ix