Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Presentation (September 2013)
37 slides from Wartsila Oyj Abp's investor presentation, Sep 11, 2013
Slide 1: Wärtsilä Corporation Corporate Presentation 2013
WÄRTSILÄ CORPORATION CORPORATE PRESENTATION 2013
Slide 2: Today we are much more than an engine company
Today we are much more than an engine company Passion for optimising lifecycle value for our customers with modern and sustainable power solutions. 2 © Wärtsilä 11 September 2013 CORPORATE PRESENTATION 2013
Slide 3: Our mission, vision, and values
Our mission, vision, and values We provide lifecycle power solutions to enhance MISSION the business of our customers, while creating better technologies that benefit both the customers and the environment. We will be the most valued business VISION partner of all our customers. ENERGY EXCELLENCE EX
Slide 4: Our business areas
Our business areas POWER PLANTS SHIP POWER SERVICES 4 © Wärtsilä 11 September 2013 CORPORATE PRESENTATION 2013
Slide 5: This is what we bring to the market
This is what we bring to the market ENVIRONMENTAL FUEL EFFICIENCY SOLUTIONS FLEXIBILITY 5 © Wärtsilä 11 September 2013 CORPORATE PRESENTATION 2013
Slide 6: Our offering
Our offering Services Ship Power solutions CUSTOMERS integrated solutions Lifecycle Equipment solutions Power Plants customised From spare solutions parts to service agreements 6 © Wärtsilä 11 September 2013 CORPORATE PRESENTATION 2013
Slide 7: R&D and manufacturing set up
R&D and manufacturing set up POWERTECH SHIP POWER POWER PLANTS R&D and manufacturing R&D and manufacturing • Medium-speed engines for the R&D and manufacturing • Low-speed engines marine and power plant markets • Auxiliary modules • Propulsion • Auxiliary engines • Electrical & Automation • Catalyti
Slide 8: Our personnel
Our personnel Nearly 19,000 professionals, 114 nationalities in 70 countries, present in 160 locations 8 © Wärtsilä 11 September 2013 CORPORATE PRESENTATION 2013
Slide 9: Profitable growth by focusing on three areas
Profitable growth by focusing on three areas Smart Power Gas as a fuel Environmental Generation solutions The transition to sustainable Economic and environmental Environmental regulation and and modern energy systems reasons increase the growth of increased focus on improved drives the demand for s
Slide 10: Financial highlights
Financial highlights MEUR 2012 2011 2010 2009 Order intake 4 940 4 516 4 005 3 291 Order book at the end of the period 4 492 4 007 3 795 4 491 Net sales 4 725 4 209 4 553 5 260 Operating result1 515 469 487 638 % of net sales1 10.9 11.1 10.7 12.1 Earnings/share, EUR 1.72 1.44 1.96 1.97 1) Figures ex
Slide 11: Net sales by market area
Net sales by market area MEUR 6000 5000 4000 3000 2000 1000 0 2009 2010 2011 2012 Asia Europe Americas Other 11 © Wärtsilä 11 September 2013 CORPORATE PRESENTATION 2013
Slide 12: Solid profitability
Solid profitability MEUR 800 16% 700 14% 600 12% 500 10% 400 8% 300 6% 200 4% 100 2% 0 0% 2009 2010 2011 2012 EBIT EBIT % EBITA % before intangible asset amortisation related to acquisitions Figures shown before nonrecurring restructuring items 12 © Wärtsilä 11 September 2013 CORPORATE PRESENTATION
Slide 13: Power Plants
Power Plants We provide superior value to our customers with our flexible, efficient and environmentally advanced energy solutions, which enable a transition to a more sustainable and modern energy infrastructure. 13 © Wärtsilä 11 September 2013 CORPORATE PRESENTATION 2013
Slide 14: Power Plants offering
Power Plants offering • We are a major supplier of flexible baseload power plants operating on various liquid and gaseous fuels • We provide unique, dynamic solutions for grid stability, reserve, peaking, load following and intermittent power generation • Our multi-fuel solutions provide security an
Slide 15: Our customer segments
Our customer segments UTILITIES IPPs* INDUSTRIAL CUSTOMERS Entities supplying Financial investors Industries such as mining, electricity to residential, investing in power plants cement and oil & gas commercial & industrial and selling power to investing in captive power end users utilities plants S
Slide 16: Market trends and drivers
Market trends and drivers • GDP growth, electrification and increasing standard of living drive the growth of electricity demand • Demand for sustainability and focus on climate change • Rapid growth of intermittent renewable generation • Escalating daily, weekly and seasonal demand fluctuation incr
Slide 17: Smart Power Generation optimises energy systems
Smart Power Generation optimises energy systems A unique all-in-one combination of valuable ...enables the transition to features that.... a modern and sustainable power system! Energy Efficiency Affordable Smart Smart Power Power Generation System Fuel Operational Flexibility Reliable Sustainable F
Slide 18: Smart Power Generation – unique features
Smart Power Generation – unique features Energy Energy efficiency • Highest simple cycle electrical efficiency efficiency • High efficiency regardless of ambient conditions Fuel flexibility • High plant efficiency over a wide load range due to multiple generating sets • Continuous choice Competitive
Slide 19: Ship Power
Ship Power We are passionate about optimising lifecycle value by offering what our customers need. We deliver on this promise through the only true total offering of marine products, integrated solutions and services in the industry – worldwide. We help our customers find the shorter route to robust
Slide 20: Strategic focus
Strategic focus Ship Power’s strategic goal To be recognised as the leading provider of products and integrated solutions in the marine and offshore oil & gas industry. Efficiency Gas and dual-fuel Environmental solutions solutions LEADER IN • Lifecycle solutions for ship owners and operators OFFERI
Slide 21: The only complete marine offering
The only complete marine offering Automation Power drives Power Environmental Communication Ship distribution solutions and control Design Propulsion Seals & Engines Flow & Gas Service bearings Solutions agreements 21 © Wärtsilä 11 September 2013 CORPORATE PRESENTATION 2013
Slide 22: Market trends and drivers
Market trends and drivers • Development of the global economy drives marine trade and transportation growth • Development of oil & gas prices stimulates investments in exploration and production of offshore oil & gas • Environmental regulations drive demand for environmental solutions and gas as a m
Slide 23: Increasing environmental regulation and alternatives for decreasing emissions
Increasing environmental regulation and alternatives for decreasing emissions NOx SOx PARTICULATE GREENHOUSE BALLAST MATTER GAS WATER Acid rains Acid rains Impact on air quality Global warming Damage to local Ozone depletion eco-systems Tier II (2011) 3.5% (2012) Along with SOx Under evaluation Glob
Slide 24: Clear leadership in dual-fuel applications
Clear leadership in dual-fuel applications Power Plants Merchant Offshore Cruise & Ferry DF power plants LNG carriers PSVs/FPSOs LNG ferries • 51 installations • 121 vessels • 20 vessels • 1 vessel • 186 engines • 481 engines • 96 engines • 4 engines • Online from 1997 Conversion • Online from 1994
Slide 25: Services
Services Preventing the unexpected and optimising our customers operations is our shared passion. We serve you whenever, wherever. We provide the broadest portfolio and best services in the industry for both shipping and power generation. We offer expertise, proximity and responsiveness for all cust
Slide 26: Services - strategic goal
Services - strategic goal • Maximise market share with the present customer base • Constantly develop the offering proposition with value-enhancing solutions • Grow by providing more service agreements with new Ship Power and Power Plants deliveries • Become the industry’s market leader in environme
Slide 27: Wide range of expertise and services
Wide range of expertise and services Engine services Propulsion services Electrical & Boiler services Seals & Bearings automation services services Environmental Service agreements Service projects Training services services 27 © Wärtsilä 11 September 2013 CORPORATE PRESENTATION 2013
Slide 28: Services - key market drivers
Services - key market drivers • Development of installed base and fleet utilisation • Increased focus on total cost of ownership and lifecycle efficiency • Changes in environmental regulations • Growth of gas as a fuel in shipping and in power generation • Outsourcing of operations and maintenance i
Slide 29: Improving lifecycle efficiency
Improving lifecycle efficiency Performance optimization Our customers are currently looking for longer-term efficiency increasing strategies to improve business efficiency and reducing operational expenses. Preventing the unexpected Reliable performance and risk management are identified as key need
Slide 30: Wärtsilä Services' global network
70 countries, 160 locations, 11,000 service professionals Installed base Wärtsilä Services’ global network 181,000 MW Widest range of offering and expertise 30 © Wärtsilä 11 September 2013 CORPORATE PRESENTATION 2013
Slide 31: PowerTech
PowerTech We provide market leading 4-stroke products and technologies Corporate Quality and Supply Management 31 © Wärtsilä 11 September 2013 CORPORATE PRESENTATION 2013
Slide 32: PowerTech key activities
PowerTech key activities Secure Customer Excellence Build a strong safety and quality Develop and provide industry culture, a reliable supply leading technologies and network and operational 4-stroke engines excellence 32 © Wärtsilä 11 September 2013 CORPORATE PRESENTATION 2013
Slide 33: PowerTech - strategy and strengths
PowerTech - strategy and strengths • Leading research & development and products – Technology leadership – Competitive portfolio of reliable, high-quality 4-stroke engines • Operational excellence – Quality in products, solutions, and services – Efficient, flexible, and agile operations – Manufactur
Slide 34: Research & Development
Research & Development • Strongest ambition to maintain technology leadership • Drives innovations • Long-term co-operation with research institutes and partners • Strong investments in Wärtsilä R&D; 2012 expenditure 188 million euro representing 4% of net sales Total efficiency, cost of ownership,
Slide 35: Wärtsilä's competitive product portfolio
Wärtsilä’s competitive product portfolio 4-stroke 2-stroke Gensets & Propellers Steerable Transverse Energy efficiency engines engines auxpacs FPP/CPP thrusters thrusters systems Frequency Propulsion Automation, I/O cabinets Switchboards Gears Catalysts converters controls monitoring & control (SCR,
Slide 36: Wärtsilä's production and R&D
Wärtsilä’s production and R&D Trondheim, Norway Aalborg, Denmark Moss, Norway Frequency converters Deepwell pumps and seawater lift pumps Inert gas and exhaust gas scrubber systems Rubbestadneset, Norway Vaasa, Finland R&D 4-stroke engines, R&D Stord, Norway Electrical & automation systems QMD (Qing
Slide 37: Passion for optimising lifecycle value with modern and sustainable power solutions
Passion for optimising lifecycle value with modern and sustainable power solutions. 37 © Wärtsilä 11 September 2013 CORPORATE PRESENTATION 2013