Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (March 2012)
22 slides from Wartsila Oyj Abp's investor day presentation, Mar 29, 2012
Slide 1: Ship Power: Your shorter route to bigger profits
SHIP POWER YOUR SHORTER ROUTE TO BIGGER PROFITS JAAKKO ESKOLA Group Vice President, Ship Power 1 © Wärtsilä 29 March 2012 JAAKKO ESKOLA
Slide 2: Shipping has a future
Shipping has a future Sea transports are LESS still the MOST NO THAN 1.0% 90% of the price of coffee SUSTAINABLE of world trade is still SUPRISE comes from the cost means of transporting done by sea it doesn’t cost a thing of sea transportation goods 2 © Wärtsilä 29 March 2012 JAAKKO ESKOLA
Slide 3: Shipbuilding activity development
Shipbuilding activity development CGT Millions CGT Millions • 2011: a significant shift in contracting 100 250 activity 90 – Mix of vessels contracted favoured 80 200 specialised tonnage 70 • Shipyard order books continue to 60 150 decline 50 – Order books continue to be high 40 100 compared to hist
Slide 4: Merchant: slow down and differentiation
Merchant: slow down and differentiation Merchant contracting activity, • Strong niches and slow recovery historical and 2012 forecast • Instability in Middle East drives up oil Contracting by vessel category Number of vessels / Units prices 5,000 • LNG demand boosted by oil supply 4,000 uncertainty
Slide 5: Offshore: good fundamentals
Offshore: good fundamentals Offshore contracting activity Fundamentals are good Contracting by vessel category • High global demand for oil and gas Number of vessels / Units 1,200 • Increased concerns over tight 1,000 supply/demand balances drive further offshore exploration and 800 production • Cur
Slide 6: Specials: market stabilising
Specials: market stabilising Specials Special vessels market demand 1400 responding to global financial crisis • Significant increase in fishing vessel 1200 contracting during Q1/2012 • Strong list of newbuilding projects in the 1000 pipeline, especially for dredgers, heavy-lift vessels, wind farm i
Slide 7: Shipbuilding has moved to Asia
7 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% © Wärtsilä 1971 1972 1973 1974 1975 29 March 2012 1976 1977 1978 1979 China Source: Wärtsilä’s Marine Market Database 1980 1981 JAAKKO ESKOLA 1982 Japan 1983 1984 1985 1986 1987 1988 South Korea 1989 1990 Contracting volumes (DWT): share by region 1991 S
Slide 8: Future challenges and opportunities
Future challenges and opportunities The fundamentals show risks and opportunities • Risks of downturn in global economy are tangible • High oil prices represent a risk towards global economic growth, however they also stimulate investments in exploration and production for oil and gas • Expansion of
Slide 9: Ship Power's focus on growth
Ship Power’s focus on growth FOCUS ON GROWTH: Environmental compliance / Gas fuelled vessels efficiency optimised vessels Marine Lifecycle Solution System Integration Product Sales FOCUS ON EXCELLENCE: Operational Excellence and Flexibility People & Culture China Brazil South Korea Russia India 9 ©
Slide 10: Emission controlled areas will increase
Emission controlled areas will increase Established Emission Controlled Areas Emission Controlled Areas under consideration Shipping critical points 10 © Wärtsilä 29 March 2012 JAAKKO ESKOLA
Slide 11: Alternatives for decreasing emissions
Alternatives for decreasing emissions LNG • Simultaneous reduction of GHG / SOx / NOx / PM • Market: mainly ships with regular routes and limited autonomy requirements operating in ECAs • Infrastructure development is needed for larger uptake • Conversion solution available HFO • NOx: SCR or wet met
Slide 12: Natural gas reduces emissions
Natural gas reduces emissions -20% Emission values [%] 100 90 80 70 -85% 60 50 -99% 40 GHG 30 NOx -99% 20 SOx 10 Particulates 0 Diesel Dual-fuel engine engine in gas mode 12 © Wärtsilä 29 March 2012 JAAKKO ESKOLA
Slide 13: Gas fuelled vessels - market development & drivers
Gas fuelled vessels - market development & drivers Estimated new building market (contracting) Total newbuilding market forecasts-IHS Fairplay March 2012 Gas fuelled vessels market - LNG price<HFO price • Environmental legislation # of Political & • Gas handling regulations vessels Gas fuelled vesse
Slide 14: Clear leadership in dual-fuel applications
Clear leadership in dual-fuel applications Power Merchant Offshore Cruise Plants & Ferry DF power plants LNG carriers PSVs/FPSOs LNG ferries • 51 installations • 108 vessels • 20 vessels • 1+1 vessels • 186 engines • 429 engines • 96 engines • 4 engines per • Online from 1997 • Online from 1994 vess
Slide 15: Solutions for LNG powered vessels
Solutions for LNG powered vessels LNGPac: a complete and modularised F solution for LNG fuelled ships E D A A. Storage tanks B. Evaporators C B C. Dual-fuel main engine D. Dual-fuel aux engines E. Bunkering station(s) F. Integrated control system 15 © Wärtsilä 29 March 2012 JAAKKO ESKOLA
Slide 16: Our low speed dual-fuel engines will comply with IMO regulations
Our low speed dual-fuel engines will comply with IMO regulations • Program announced in February 2011 • Successful test announced in September 2011 • Dual-fuel capability – Fuel flexibility enables low emissions and the lowest operating costs – LNG – MDO – HFO • Low gas feed pressure – Safety: no hi
Slide 17: Hamworthy in a nutshell
Hamworthy in a nutshell • Specialist provider of fluid FY 2010 revenue by sector handling equipment and Marine Oil & Gas services for marine and offshore • Leading position in key LNG & LPG carriers FPSOs sectors Oil and product tankers Drilling rigs • Significant long-term growth Cruise ships FLNG
Slide 18: Products, solutions and services
Products, solutions and services Flow solutions Oil & Gas systems Water systems Inert gas systems Deepwell cargo pump systems LNG/LPG/Ethylene reliquefaction Grey & black water treatment Exhaust gas cleaning Pump room systems LNG regasification Vacuum toilet systems Inert gas systems Fire fighting s
Slide 19: Hamworthy will benefit from Wärtsilä footprint
Hamworthy will benefit from Wärtsilä footprint Wärtsilä sales & services Wärtsilä production (incl. JVs) Hamworthy sales & services Hamworthy production
Slide 20: Wärtsilä and Hamworthy: total offering
Wärtsilä and Hamworthy: total offering Power Communication Automation Power drives distribution and control Engines Flow & Gas Solutions Seals & bearings Environmental Solutions Propulsion Service agreements Ship Design 20 © Wärtsilä 29 March 2012 JAAKKO ESKOLA
Slide 21: Supporting our customers in environmental compliance
Supporting our customers in environmental compliance Legislation à compliance with all requirements • Wärtsilä’s solutions to receive early approval from all relevant authorities Functionality à technical risks to be minimised • R&D competences and capacity • Testing and validation on land and onb
Slide 22: © Wärtsilä 29 March 2012 JAAKKO ESKOLA
22 © Wärtsilä 29 March 2012 JAAKKO ESKOLA