Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (March 2012)
14 slides from Wartsila Oyj Abp's investor day presentation, Mar 29, 2012
Slide 1: Environmental Solutions for Air and Water
ENVIRONMENTAL SOLUTIONS FOR AIR AND WATER JOE OATLEY Vice President, Environmental Solutions 1 © Wärtsilä 29 March 2012 JOE OATLEY
Slide 2: Environmental issues need solutions
Environmental issues need solutions Particulates NOx CO2 SOx Waste water Ballast water Bilge water 2 © Wärtsilä 29 March 2012 JOE OATLEY
Slide 3: Cleaning the exhaust gases
Cleaning the exhaust gases 3 © Wärtsilä 29 March 2012 JOE OATLEY
Slide 4: Strict regulations have been set
Strict regulations have been set Emission Control Areas (ECA) – Emission Control Sulphur (SOx) limits Areas (ECA) 4 © Wärtsilä 29 March 2012 JOE OATLEY
Slide 5: Options to meet legislation
Options to meet legislation • Low Sulphur Residual Fuel (LSFO): ̶ Limited availability • Low-Sulphur Distillates (MGO): ̶ Similar to automotive fuel ̶ Supply shortage in 2015 ̶ Significant price premium • Liquid Natural Gas (LNG), Compressed Natural Gas (CNG) ̶ Natural gas prices expected to remain
Slide 6: Significant market potential
Significant market potential • Market is in its infancy but set to develop as 2015 approaches • Biggest market is retrofit • Approximately 8,000 vessels affected by current ECA regulations • Global cap in 2020 will effect an estimated 40,000 vessels • Retrofit value between €1m to €5m per vessel • N
Slide 7: Wärtsilä is set to win
Wärtsilä is set to win • With the acquisition of Hamworthy, Wärtsilä is now by far the market leader • More marine references than the rest Zandaam Messina of the market combined ̶ 8 systems installed/delivered ̶ 7 systems on order • Few competitors • Sources of competitive advantage for APL Solvang
Slide 8: Ballast water treatment to stop invasive species
Ballast water treatment to stop invasive species Needed to stop the spread of non-indigenous invasive species via the management and treatment of ship ballast water and sediments • 7,000 species can be carried in a ballast tank at one time • 7 billion tonnes of ballast water are discharged each year
Slide 9: Legislation driven
Legislation driven IMO global requirements Existing fleet of mid New small to mid sized ships sized ships New large ships All existing fleet 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 • Implemented globally one year after ratification • Hurdle for ratification is 30 countries repres
Slide 10: Biggest market potential is retrofit
Biggest market potential is retrofit • Over 40,000 vessels affected by the legislation • Newbuild market will be 1,000+ vessels per annum once market is mature • Average equipment value per vessel circa €500k; retrofitting cost can be a similar value • 2016 deadline may be relaxed spreading retrofit
Slide 11: Wärtsilä is in good position
Wärtsilä is in good position • Over 30 competitors in the market with also new entrants • Few suppliers with credentials, resources and routes to market • Technologies are concentrating around two alternatives ̶ Filter + UV ̶ Filter + Electro Chlorination • “Fast-follower” strategy has allowed Wärts
Slide 12: Technology development of a global leader
Technology development of a global leader • Wärtsilä UV based system developed in conjunction with Trojan, a global leader in UV water treatment systems • Hamworthy has developed two alternate systems (UV and Electro-chlorination) to offer a portfolio approach • Hamworthy land based testing complete
Slide 13: Winner in growing environmental markets
Winner in growing environmental markets • Exhaust Gas Cleaning and Ballast Water Treatment represent two new market opportunities • Both markets are expected to develop from 2013 onwards • Market value for equipment alone over next ten years expected to be in excess of €30bn • The retrofit market of
Slide 14: © Wärtsilä 29 March 2012 JOE OATLEY
14 © Wärtsilä 29 March 2012 JOE OATLEY