Slide 1: Wärtsilä Corporation Interim Report January-March 2005
Wärtsilä Corporation Interim Report January-March 2005 Ole Johansson, President & CEO 4 May 2005 © Wärtsilä
Slide 2: Highlights of the first quarter
Highlights of the first quarter Net sales up by 9.4% to EUR 570.7 million (521.7) Operating income improved to EUR 46.4 million (-63.2) Order book at new record level EUR 2,066.9 million (1,656.2) Profitability of Power Businesses 6.0% Agreement on transfer of Imatra Steel to new steel com
Slide 3: Wärtsilä Group
Wärtsilä Group IFRS MEUR Q1/2005 Q1/2004 2004 Net sales 570.7 521.7 2.478.2 Operating income 46.4 -63.2² 112.0¹ Profit before taxes 42.2 40.1 217.3 EPS, EUR 0.33 0.22 1.42 FAS MEUR Q1/2004 Net Sales 521.7 Operating income 101.5 Profit before taxes 97.4 EPS, EUR 0.79 ¹ The Assa Abloy capital gains ar
Slide 4: IFRS vs. FAS
IFRS vs. FAS Adjustments in shareholders’ equity Pension liabilities Goodwill Timing of restructuring provisions R&D Deferred tax IAS 39 fair value adjustments Assa-Abloy (other holdings) Cash flow Hedges © Wärtsilä Q1/2005 presentation 4
Slide 5: Cash flow
Cash flow MEUR Q1/2005 Q1/2004 2004 Cash flow from operating activities 6.9 4.5 220.1 Cash flow from investing activities -125.8 124.3 85.0 Cash flow from financing activities 88.6 -130.8 -284.9 Liquid funds at the end of period 140.7 150.7 169.6 © Wärtsilä Q1/2005 presentation 5
Slide 6: Solvency and gearing
Solvency and gearing Solvency Gearing 50 0,7 45 0,6 40 35 0,5 30 0,4 25 20 0,3 15 0,2 10 0,1 5 0 0 00 01 02 03 04* Q1/05* 00 01 02 03 04* Q1/05* Solvency 1 Gearing 1 * IFRS-adjusted figures NOTE: Convertible subordinated debentures treated as equity © Wärtsilä Q1/2005 presentation 6
Slide 7: Power Businesses
Power Businesses IFRS MEUR Q1/2005 Q1/2004 Change% 2004 Net sales 483.8 463.3 4.4% 2,224.7 Operating profit 29.3 -66.1¹ 87.7 % net sales 6.0% -14.3% 3.9% Order intake 678.0 888.7 -23.7% 2,791.4 Order book 2,066.9 1,656.2 24.8% 1,855.3 FAS MEUR Q1/2004 Net Sales 463.3 Operating Profit -9.2 % net sale
Slide 8: Power Businesses – Key figures
Power Businesses – Key figures MEUR Net sales Order intake Order book 600 1000 2500 2,066.9 888.7 1,656.2 900 483.8 500 463.3 2000 1,855.3 800 678.0 700 +13.4% 400 +6.6% +16.3% 600 1500 300 500 +10.7% -74.4% -9.2% 400 1000 200 300 200 500 +44.1% 100 +12.5% +52.5% 100 0 0 0 Q1/04 Q1/05 Q1/04 Q1/05 31
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 2000 2001 2002 2003 2004 Q1/2005 Power Plants Ship Power Estimate 2005 © Wärtsilä Q1/2005 presentation 9
Slide 10: Ship Power
Ship Power MEUR Q1/2005 Q1/2004 Change 2004 Net sales 133.9 119.0 12.5% 631.2 Order intake 298.9 196.0 52.5% 836.7 Order book, end of period 974.0 675.9 44.1% 812.7 Power Businesses net sales Q1/2005 EUR 483.8 million. Ship Power 27.7 % © Wärtsilä Q1/2005 presentation 10
Slide 11: The market position of Wärtsilä's marine engines
The market position of Wärtsilä’s marine engines Own production Production of licensees Own production Medium speed Low speed Auxiliary engines main engines main engines Wärtsilä 36%(29) Wärtsilä 21%(20) Wärtsilä 10%(9) Others 64%(71) Others 79%(80) Others 90%(91) Total market volume last 12 months:
Slide 12: 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 Source: Clarkson Research Studies Note: Cargo vesse
Slide 13: Net sales of Ship Power by vessel type
Net sales of Ship Power by vessel type MEUR 800 600 400 200 0 2000 2001 2002 2003 2004 Q1/2005 Tankers Bulk carriers Container ships Others W ärtsilä Propulsion © Wärtsilä Q1/2005 presentation 13
Slide 14: Service
Service MEUR Q1/2005 Q1/2004 Change 2004 Net sales 237.9 223.2 6.6% 936.8 Personnel, end of period 6 489 6 135 5.8% 6 378 Long-term service agreements, MW 9,544 9,680 -1.4% 9,609 O&M (operation and Maintenance agreements), MW 2,711 2,318 17.0% 2,569 Power Businesses net sales Q1/2005 EUR 483.8 milli
Slide 15: Long-term service and O&M agreements
Long-term service and O&M agreements 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 Q1/2005 © Wärtsilä Q1/2005 presentation 15
Slide 16: Active engine base
Active engine base Active engine base 148,000 MW (135,500) Power Plants 30,500 MW (30,500) Medium & high speed 83,000 MW (70,500) Ship Power Low speed 117,500 MW (105,000) 65,000 MW (65,000) © Wärtsilä Q1/2005 presentation 16
Slide 17: Power Plants
Power Plants MEUR Q1/2005 Q1/2004 Change 2004 Net sales 109.4 120.5 -9.2% 651.9 Order intake 120.7 470.8 -74.4% 1,019.5 Order intake, MW heavy fuel oil, MW 151 782 -80.7% 1,664 gas, MW 155 208 -25.3% 649 BioPower, MWth 58 43 34,9% 110 Order book, end of period 766.7 692.8 10.7% 752.4 Power Businesse
Slide 18: Power plant order intake Q1/2005: 306,0 MW
Power plant order intake Q1/2005: 306,0 MW (990,1) Europe Asia 44,9 182,1 (40,1) (207,1) 36,6 8,3 118,5 (40,1) 63,5 (0) (137,2) (69,9) Americas 0,0 (22,4) 0,0 Africa and Middle East (10,5) 79,1 0,0 (720,6) (11,9) 0,0 79,1 MW (18,6) (702,0) Gas Oil No order intake © Wärtsilä Q1/2005 presentation 18
Slide 19: Imatra Steel
Imatra Steel IFRS FAS MEUR Q1/2005 Q1/2004 Change 2004 Q1/2004 Net sales 87.3 58.7 48.8% 254.4 58.7 Operating income 17.1 2.9 490.1% 24.3 2.9 % net sales 19.6% 4.9% 9.5% 4.9% Demand for special steels remained buoyant and delivery volumes of both steels and forgings increased In February Wärtsil
Slide 20: Outlook for the rest of the year 2005
Outlook for the rest of the year 2005 Power Businesses Wärtsilä maintains its forecast for the year unchanged. Net sales of Wärtsilä's Power Businesses will rise 10-15% during 2005 based on the Group's strong order book. Profitability will vary from quarter to quarter, the first quarter being