Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (December 2008)
27 slides from Wartsila Oyj Abp's investor day presentation, December 2008
Slide 1: Strategic Roadmap
STRATEGIC ROADMAP OLE JOHANSSON, PRESIDENT & CEO 1 © Wärtsilä Wärtsilä Capital Markets Day
Slide 2: Outlook 2008
Outlook 2008 • Orderbook for 2008 solid • Economic uncertainty continues • Service growth continues • Ship orders down • Power plants market active • Power Plants financing? +/- High level of activity and capacity constraints continue Guidance for 2008 reiterated 2 © Wärtsilä Wärtsilä Capital Market
Slide 3: Outlook 2009
Outlook 2009 • Orderbook for 2009 approx. 3,800 • Financial constraints may trigger MEUR cancellations and/or postpone- • Service continues to grow by ments 10-15% • Supplier strength requires • Supplier capacity in place monitoring • Raw material and component • Slower economic activity may prices
Slide 4: Balanced portfolio for continued growth
Balanced portfolio for continued growth SHIP POWER POWER PLANTS SERVICES 4 © Wärtsilä Wärtsilä Capital Markets Day
Slide 5: Shipbuilding Trends: Shipyards' perspective
Shipbuilding Trends: Shipyards’ perspective Orderbook and Contracting 700 Million DWT 600 500 400 300 200 100 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Contracts Size of Orderbook Source: Clarkson Research Services 5 © Wärtsilä Wärtsilä Capital Markets Day
Slide 6: Shipbuilding Trends: Shipyards' perspective
Shipbuilding Trends: Shipyards’ perspective Deliveries 200 Million DWT 175 150 125 100 75 50 25 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Historical Scheduled according to Orderbook Source: Clarkson Research Services 6 © Wärtsilä Wärtsilä Capital Markets Day
Slide 7: Shipbuilding trends: Owners' perspective
Shipbuilding trends: Owners’ perspective Orderbook and share of fleet, MGt Crude 41% Products 50% Chemical/Products 47% Pure Chemical 56% LPG 27% LNG 44% Other tanker 23% Bulker 67% General cargo 21% Other dry 8% Container 51% Vehicle 43% RoRo 18% Ferry 10% Cruise 28% Million Gt 0 50 100 150 200 250
Slide 8: Shipbuilding trends: Owners' perspective
Shipbuilding trends: Owners’ perspective Average Newbuilding Prices $/DWT 1,510.00 $/DWT 1,410.00 1,310.00 1,210.00 1,110.00 1,010.00 910.00 810.00 710.00 610.00 510.00 10/80 10/82 10/84 10/86 10/88 10/90 10/92 10/94 10/96 10/98 10/00 10/02 10/04 10/06 Source: Clarkson Research Services 8 © Wärtsilä
Slide 9: Ship Power's Competitive Edge
Ship Power’s Competitive Edge A highly diversified customer base Strong product portfolio A true lifecycle service provider: from pre-design and sales to delivery, commissioning and after-sales services Strong on total efficiency: energy, operational, environmental and safety efficiency 9 © Wärtsilä
Slide 10: Wärtsilä Ship Power's offering covers all key segments
Wärtsilä Ship Power’s offering covers all key segments Cruise Special Merchant Offshore Navy and Ferry Vessels 10 © Wärtsilä Wärtsilä Capital Markets Day
Slide 11: Ship Power's Competitive Edge
Ship Power’s Competitive Edge Engines Propulsion Seals & Automation Power Power bearings distribution drives Merchant Wärtsilä components Offshore Segment specific R&D • Concepts Cruise & Ferry • Applications Ship design • Project execution models Product • System integration engineering Navy capabi
Slide 12: Ship Design is key to early entry and full lifecycle presence
Ship Design is key to early entry and full lifecycle presence Wärtsilä’s envisaged lifecycle entry point DESIGN Wärtsilä’s historical lifecycle entry point OPERATE BUILD 12 © Wärtsilä Wärtsilä Capital Markets Day
Slide 13: Owners demanding environmentally sound solutions
Owners demanding environmentally sound solutions Environmental awareness and regulations call for: • Solutions to reduce emissions (SOx, NOx, CO2 and PM) • Alternatives to HFO: gas, biofuels, fuel cells • Flexibility in fuel usage: dual fuel • Solutions to maximize efficiency of components • Optimiz
Slide 14: World electricity consumption
World electricity consumption World Electricity Generation 22000 TWh 20000 18000 16000 14000 12000 10000 1991 1992 1993 1994 1995 1996 1997 1998 2000 2001 2002 2003 2004 2005 2006 2007 Actual Trend 14 © Wärtsilä Wärtsilä Capital Markets Day
Slide 15: Power Plants order intake by application
Power Plants order intake by application Industrial self-generation 18% 1800 MEUR 1600 Grid 1400 stability & peaking 1200 Flexible 32% baseload 1000 48% 800 Oil & gas 600 2% 400 Renewable 3% 200 0 Gas 2004 2005 2006 2007 1-9/2008 36% Oil 61% 15 © Wärtsilä Wärtsilä Capital Markets Day
Slide 16: Power plant business outlook
Power plant business outlook Electricity demand and economic growth correlate almost 1:1 • Domestic consumption should • Industrial sector demand may continue to grow decrease +/- Population growth, rising living standards and substitution should keep electricity demand growing 16 © Wärtsilä Wärtsil
Slide 17: Wärtsilä's competitive advantages
Wärtsilä’s competitive advantages • Flexibility of – Fuels – Plants sizing, modularity – Operation mode – Delivery scope incl. EPC – Operation & Maintenance support • High product efficiency and reliability • Global presence and experience from developing world 17 © Wärtsilä Wärtsilä Capital Markets
Slide 18: Customers
Value to customer’s business We become the most valued business partner… Deutz AG Engine Services Germany, 2005 Total Decam Automation BV Automation Services TheSingapore, Netherlands, 2006 2004 Customer Relationship McCall Propeller Marine Customers Propulsion Services United SouthKingdom, Africa,
Slide 19: Acquisitions & Joint Ventures
Acquisitions & Joint Ventures JMC Marine A/S Decam B.V. Stockholms International Denmark Netherlands fartygreparationer AB Combustion CGL Industries Ltd Elco Systems B.V Sweden Engineering A/S Canada Netherlands INTEC Injectortechnic GmbH Denmark, Dubai Metalock Germany Claus D. Christophel Singapor
Slide 20: We are continuously developing our Services network
We are continuously developing our Services network 70 countries > 160 locations > 10’000 people > 7’000 field service forces Manpower density per country 300-500+ 100-300 0-100 20 © Wärtsilä Wärtsilä Capital Markets Day
Slide 21: Number of Field Service personnel per country
We are continuously developing our Services network 70 countries > 160 locations > 10’000 people > 7’000 field service forces Number of Field Service personnel per country 300- 500+ 100- 300 0-100 AMERICAS EUROPE & AFRICA ASIA & MIDDLE EAST 21 © Wärtsilä Wärtsilä Capital Markets Day
Slide 22: Wärtsilä Industrial Operations - a flexible provider of products
Wärtsilä Industial Operations - a flexible provider of products SHIP POWER POWER PLANTS Mission ”We provide lifecycle power solutionsSERVICES to enhance the business of our customers, whilst creating better technologies that benefit both the customer and the environment. 22 © Wärtsilä Wärtsilä Capit
Slide 23: Delivered engine megawatts from own factories
Delivered engine megawatts from own factories MW 7000 6000 5000 4000 3000 2000 1000 0 2001 2002 2003 2004 2005 2006 2007 1-9/2008 Ship Power Power Plants Full-year estimate 23 © Wärtsilä Wärtsilä Capital Markets Day
Slide 24: Capacity utilization alternative - What if?
Capacity utilization alternative - What if? Engine, % Propulsion, % As-is Could-Be As-is Could-Be Services Retrofit Power Plants Ship Power Lost 24 © Wärtsilä Wärtsilä Capital Markets Day
Slide 25: Interchangeability between Marine and Power plant engine
Interchangeability between Marine and Power plant engine Cost % 1-2 mo Sales phase 4-7 mo Time Bill of Ex Works Material Delivery Configuration frozen 25 © Wärtsilä Wärtsilä Capital Markets Day
Slide 26: Competitive landscape is changing
Competitive landscape is changing • Performance requirements Competition adding engine and increase propeller capacity • Complexity of installations • Hyundai increase • MAN • Uncertainty about fuel price • Rolls Royce supports engine solutions Services competition increasing • Quality services in h
Slide 27: WARTSILA.COM
WARTSILA.COM © WARTSILA