Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (November 2013)
27 slides from Wartsila Oyj Abp's investor day presentation, Nov 14, 2013
Slide 1: A Strategy That Pays Off
A STRATEGY THAT PAYS OFF JAAKKO ESKOLA Senior Executive Vice President and Deputy to the CEO President, Ship Power 1 © Wärtsilä 14 November 2013 JAAKKO ESKOLA
Slide 2: Agenda
Agenda 1 Strategic focus 2 Market environment 3 Competitive landscape • Competition • R&D • Hamworthy 4 Our future 5 Cases 2 © Wärtsilä 14 November 2013 JAAKKO ESKOLA
Slide 3: Strategic focus
Strategic focus Ship Power’s strategic goal To be recognised as the leading provider of innovative 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 opera
Slide 4: The most complete marine offering on earth
The most complete marine offering on earth 44 © Wärtsilä 13 November142013 November 2013 Wärtsilä capital JAAKKO markets ESKOLAday 2013
Slide 5: Market Environment
MARKET ENVIRONMENT v 5 © Wärtsilä 14 November 2013 JAAKKO ESKOLA
Slide 6: Drivers support activity in shipping and offshore
Drivers support activity in shipping and offshore Seaborne trade follows GDP Oil price development support offshore 12% Seaborne trade Growth 10% World GDP Growth 8% 6% 4% 2% 0% 2003 2000 2001 2002 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F 2014F -2% -4% -6% Source: Clarkson Research Service
Slide 7: Contracting Activity Development - Merchant
Contracting Activity Development - Merchant Tankers Bulkers Containerships LNG carriers LPG Carriers Other Merchant 180 160 140 120 Number of vessels 100 80 60 40 20 0 Jun-12 Jul-12 Jan-13 Jun-13 Jul-13 Apr-12 Oct-12 Apr-13 Oct-13 Mar-12 Aug-12 Sep-12 Nov-12 Dec-12 Mar-13 Aug-13 Sep-13 Feb-12 Feb-13
Slide 8: Contracting Activity Development - Specials
Contracting Activity Development - Specials Offshore Special Vessels Cruise and Ferry 60 50 40 Number of vessels 30 20 10 0 Jul-12 Jul-13 Jun-12 Jan-13 Jun-13 Apr-12 Oct-12 Apr-13 Oct-13 Mar-12 Aug-12 Sep-12 Nov-12 Dec-12 Mar-13 Aug-13 Sep-13 Feb-12 Feb-13 May-12 Source: Clarkson Research Services,
Slide 9: China and S.Korea continue to be dominant shipbuilding countries
China and S.Korea continue to be dominant shipbuilding countries Yard country - share of deliveries (CGT) Yard country - share of contracting (CGT) 100% 100% Other Other 90% 90% Europe Europe 80% 80% Japan 70% Japan 70% 60% 60% South Korea 50% 50% 40% South Korea 40% 30% 30% 20% 20% China 10% China
Slide 10: ClarkSea index and newbuilding prices still on low levels
ClarkSea index and newbuilding prices still on low levels ClarkSea and newbuilding price index Key points 250 60000 • Newbuilding prices are attractive • Financing, some signs of easing can 50000 200 be seen across the industry Newbuilding price index 40000 ClarkSea Index 150 30000 100 20000 50 1000
Slide 11: Fundamental shift in the economics of shipping
Fundamental shift in the economics of shipping The cost of fuel for ships (Based on Aframax tanker, 1 year TC rate and Rotterdam bunker price) 40 000 2013: 2005: Ship costs Half fuel Ship costs 3x Fuel 35 000 30 000 25 000 USD/Day 20 000 15 000 10 000 5 000 0 2013 (1st Oct) 1999 1990 1991 1992 1993
Slide 12: Competitive Landscape
COMPETITIVE LANDSCAPE 12 © Wärtsilä 14 November 2013 JAAKKO ESKOLA
Slide 13: Why do our customers choose us?
Why do our customers choose us? The fundamentals has not changed just the order of importance Wärtsilä does: Customer needs: • Continuously responsive to • Customer understanding customer needs, competent - Understands customers and reliable business and needs - Matching offering that suits • Integr
Slide 14: The competition has changed
The competition has changed E&A Propulsion Gas Systems LGE * ** 4-stroke Flow medium Systems speed Local pumps makers SHIP POWER Ship 2-stroke Environ- EGCS MARIC Design mental solutions Major IGS BWMS Shipyards 14 © Wärtsilä 14 November 2013 JAAKKO ESKOLA
Slide 15: Our expertise in the gas value chain
Our expertise in the gas value chain Distribution Power generation & transport LNG terminal & Regasification LPG/LEG/LNG (FSRU/JRU) Small-scale tanker LNG plants LNG liquefaction LNG & terminal receiving terminal LNG carrier LNG fuelled LNG fuelled vessels vessels LNG bunkering & barges Oil tanker P
Slide 16: R&D
R&D 2S dual-fuel New 4S engine portfolio engines Wärtsilä 3C Medium voltage power drive New generation X engines LNGPac™ ISO System integration at its best Evergas BWMS WST – 45U aquarius EGC Gas reformer 16 © Wärtsilä 14 November 2013 JAAKKO ESKOLA
Slide 17: Dual-fuel applications – references
Dual-fuel applications – references LNGC Conversion Coastal Patrol • 130 vessels • 1 Chem. Tanker • DF-propulsion • 520 engines • 2 engines • DF main and Multigas Carrier auxiliary engines • 5 vessels • 20 engines Merchant Navy OSV’s Production TUG Guide Ship • 21 vessels • 1 platform • 2 vessel • 1
Slide 18: Hamworthy has proven to be a high quality acquisition
Hamworthy has proven to be a high quality acquisition Hamworthy has transformed We are now a gas Hamworthy’s financial us into a market leading competence house – not performance has met our environmental player with only gas engines and fuel expectations; supported by proprietary technologies for g
Slide 19: Our future
Our future Gas fueled installations / Energy efficiency and vessels Environmental performance We will maintain our clear leadership in We leverage on an expanding portfolio powering and equipping gas fuelled of innovative products and system installations/vessels as market grows integration capabili
Slide 20: The most complete marine offering on earth
The most complete marine offering on earth 20 © Wärtsilä 14 November 2013 JAAKKO ESKOLA
Slide 21: Cases
CASES 21 © Wärtsilä 14 November 2013 JAAKKO ESKOLA
Slide 22: Harvey Energy
Harvey Energy LNG FUELLED PSV OFFERING OPERATIONAL SAVINGS AND ENVIRONMENTAL BENEFITS Shipowner: Harvey Gulf International Marine Shipyard: TY offshore Design: STX Marine inc. Delivery: 2014 Scope of supply • Dual-fuel machinery • Power management system • Electrical and automation package • Complet
Slide 23: Bumi Armada
Bumi Armada CUSTOMIZED DESIGN AND FULLY INTEGRATED EQUIPMENT SOLUTION Shipowner: Armada Offshore Mpsv Limited Shipyard: Fujian Mawei Shipbuilding Ltd Design: Wärtsilä Ship Design Delivery: 2015 Scope of supply • Initial, basic and detail design • Complete propulsion system • Engines • Complete LLC p
Slide 24: STQ − environmentally advanced ferries
STQ − environmentally advanced ferries Shipowner: Société des traversiers du Québec Shipyard: Chantier Davie Canada Delivery: 2015 Scope of supply • Dual-fuel machinery • Complete propulsion system • Electrical and automation package • LNG fuel storage and handling components including 3C • Site man
Slide 25: Siem Symphony
Siem Symphony LNG PSV OPTIMIZED TO ENHANCE EFFICIENCY AND OPERATIONAL SAFETY Shipowner: Siem Offshore Shipyard: Hellesøy Verft Design: Wärtsilä Ship Design Delivery: 2014 Scope of supply • Initial, basic and detail design • Complete propulsion system • Dual-fuel machinery • Power management system •
Slide 26: Exhaust Gas Cleaning retrofit contract
Exhaust Gas Cleaning retrofit contract EXHAUST GAS CLEANING RETROFIT CONTRACTS First order Scope of supply • June 2013 for SuperSpeed II • 4 x open loop scrubber for each ship • Delivery in Q2/2014 Retrofit services Second order • Basic design • September 2013 for SuperSpeed I, Color • Detail design
Slide 27: Wärtsilä
re, WARTSILA