Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Q2 2005 Earnings Presentation
23 slides from Wartsila Oyj Abp's earnings presentation, Aug 5, 2005
Slide 1: Wärtsilä Corporation Interim Report January-June 2005
Wärtsilä Corporation Interim Report January-June 2005 Ole Johansson, President & CEO 5 August 2005 © Wärtsilä
Slide 2: Mission and Vision
Mission and Vision Mission We provide life cycle power solutions to enhance the business of our customers, whilst creating better technologies that benefit both the customer and the environment. Vision We will be the most valued business partner of all our customers. © Wärtsilä 2
Slide 3: Our offering
Our offering Ship OEM services Power services Plants Engines Propulsors Ship Power systems O&M Competitors’ engines © Wärtsilä 3
Slide 4: Our offering … and we are seeking growth beyond the organic growth
Our offering …and we are seeking growth beyond the organic growth Non engine related services Ship OEM services Power services Plants Additional Engines products Propulsors Ship Power systems O&M Competitors’ engines Additional engine brands © Wärtsilä 4
Slide 5: Highlights of the second quarter
Highlights of the second quarter Net sales grew to EUR 686.8 million (581.3) Operating income improved to EUR 48.4 million (32.9) Power Businesses profitability (EBITA) 6.7% Order intake grew 43.1% to EUR 841.8 million (588.3) Order book at new record level EUR 2,267.9 million (1,779.2) Engine base
Slide 6: Wärtsilä Group
Wärtsilä Group MEUR Q2/2005¹ Q2/2004 Net sales 686.8 581.3 Operating income 48.4 32.9 Profit before taxes 50.2 38.1 EPS, EUR 0.40 0.28 MEUR 1-6/2005¹ 1-6/2004 2004 Net sales 1,257.5 1,103.0 2,478.2 Operating income 94.8 -30.3 112.0 Profit before taxes 92.5 78.2 217.3 EPS, EUR 0.73 0.50 1.42 ¹ Imatra
Slide 7: Cash flow
Cash flow MEUR 1-6/2005 1-6/2004 2004 Cash flow from operating activities -92.1 -2.7 220.1 Cash flow from investing activities -165.6 114.8 85.0 Cash flow from financing activities 203.9 -112.0 -284.9 Liquid funds at the end of period 119.6 152.2 169.6 © Wärtsilä 7
Slide 8: Solvency and gearing
Solvency and gearing % Solvency Gearing 50 0,7 45 0,6 40 35 0,5 30 0,4 25 0,3 20 15 0,2 10 0,1 5 0 0 00 01 02 03 04 Q2/05 00 01 02 03 4 Q2/05 Solvency 1 Gearing 1 NOTE: 2000-2003 according to FAS, 2004- IFRS Convertible subordinated debentures treated as equity © Wärtsilä 8
Slide 9: Power Businesses
Power Businesses MEUR Q2/2005 Q2/2004 Change% Net sales 655.2 517.0 26.7% Operating income 43.6 27.2 60.1% % net sales 6.7% 5.3% Order intake 841.8 588.3 43.1% MEUR 1-6/2005 1-6/2004 Change% 2004 Net sales 1,139.0 980.3 16.2% 2,224.7 Operating income 72.9 -38.9 87.7 % net sales 6.4% -4.0% 3.9% Order
Slide 10: Power Businesses – Key figures
Power Businesses – Key figures MEUR Net sales Order intake Order book 2400 2,267.9 700 655.2 900 841.8 2000 800 1,855.3 1,779.2 600 517.0 700 24,4% 1600 500 15.0% 588.3 600 35.7% 400 500 1200 -14.5% 121.0% 400 -23.2% 300 800 300 200 75.3% 200 105.7% -14.6% 400 100 100 0 0 0 Q2/04 Q2/05 Q2/04 Q2/05 3
Slide 11: Power Businesses - Order book split
Power Businesses - Order book split MEUR 1200 1000 800 2004 2005 600 2006 2007 + 400 200 0 30.6.2004 30.6.2005 © Wärtsilä 11
Slide 12: Delivered engine megawatts from own factories
Delivered engine megawatts from own factories MW 5 000 4 000 3 000 2 000 1 000 0 2000 2001 2002 2003 2004 1-6/2005 Power Plants Ship Power Estimate 2005 © Wärtsilä 12
Slide 13: Ship Power
Ship Power MEUR Q2/2005 Q2/2004 Change 2004 Net sales 153.0 179.1 -14.6% 631.2 Order intake 409.9 199.3 105.7% 836.7 Order book, end of period 1,230.8 702.0 75.3% 812.7 Power Businesses net sales Q2/2005 EUR 655.2 million. Ship Power 23.4% © Wärtsilä 13
Slide 14: The market position of Wärtsilä's marine engines Q2/2005
The market position of Wärtsilä’s marine engines Q2/2005 Own production Production of licensees Own production Medium speed main engines Low speed main engines Medium speed auxiliary engines Wärtsilä 39% (29) Wärtsilä 19% (21) Wärtsilä 9% (9) Others 61% (71) Others 81% (79) Others 91% (91) Total mar
Slide 15: 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 12-03 03-04 06-04 09-04 12-04 03-05 06-05 Source: Clarkson Research Studies Note: Cargo
Slide 16: Net sales of Ship Power by vessel type
Net sales of Ship Power by vessel type 800 600 400 200 0 2000 2001 2002 2003 2004 1-6/2005 Tankers Bulk carriers Container ships Others W ärtsilä Propulsion © Wärtsilä 16
Slide 17: Service
Service Q2/2005 Q2/2004 Change% 2004 Net sales, MEUR 266.8 232.0 15.0% 936.8 Personnel, end of period 6 839 6 193 10.4% 6 378 Long-term service agreements, MW 9,505 9,668 -1.7% 9,609 O&M (operation and maintenance agreements), MW 2,560 2,572 -0.5% 2,569 Power Businesses net sales Q2/2005 EUR 655.2 m
Slide 18: Long-term service and O&M agreements
Long-term service and O&M agreements Active engine base 148,000 MW Long-term service and O&M agreements cover 12,000 MW MW MW 3000 10000 2750 9500 2500 9000 2250 Long-term service agreements 2000 8500 O&M agreements 1750 8000 1500 7500 1250 1000 7000 2001 2002 2003 2004 30.6.2005 © Wärtsilä 18
Slide 19: Power Plants
Power Plants MEUR Q2/2005 Q2/2004 Change 2004 Net sales 230.9 104.5 121.0% 651.9 Order intake 123.9 161.4 -23.2% 1,019.5 Order intake, MW heavy fuel oil 188 292 -35.7% 1,664 gas 133 77 73.2% 649 BioPower, MWth 21 0 110 Order book, end of period 665.9 778.7 -14.5% 752.4 Power Businesses net sales Q2/
Slide 20: Power plant order intake 1-6/2005: 627 MW (1,359)
Power plant order intake 1-6/2005: 627 MW (1,359) Europe Asia 107 297 (91) (345) 98 9 155 142 (91) (0) (137) (208) Americas 44 (121) 9 35 Africa and Middle East (32) (89) 179 (803) 27 152 (25) (778) Gas Oil © Wärtsilä 20
Slide 21: Wärtsilä's holdings
Wärtsilä’s holdings The new company was accounted for as an associated company from 1st of May 2005. Wärtsilä’s ownership in the company is 26.5%. Wärtsilä’s share of the associated company’s result was EUR 6.7 million. The holding’s balance sheet value EUR 101.0 million. Wärtsilä has granted a shar
Slide 22: Wärtsilä's prospects 2005 and 2006
Wärtsilä’s prospects 2005 and 2006 The net sales of Wärtsilä Power Businesses for the current year are estimated to grow approximately 15%. Regardless of the fluctuations between the individual quarters, the full-year profitability (EBITA) of Power Businesses is expected to be around 8%. Net sales i
Slide 23: THANK YOU!
YOU! e | WARTSILA