Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Non-Deal Roadshow (August 2011)
23 slides from Wartsila Oyj Abp's roadshow presentation, August 2011
Slide 1: Welcome to Wärtsilä China
WELCOME TO WÄRTSILÄ CHINA JAAKKO ESKOLA, GROUP VICE PRESIDENT , SHIP POWER JAMES HAN PRESIDENT OF WÄRTSILÄ CHINA LTD. 1 © Wärtsilä
Slide 2: Topics
Topics Wärtsilä in brief Chinese Economy Update Wärtsilä in China Marine Market in China - Overview Chinese Power Industry in General Wärtsilä Services Business in China 2 © Wärtsilä China 24 February 2012 Corporate Presentation
Slide 3: This is Wärtsilä
This is Wärtsilä SHIP POWER POWER PLANTS SERVICES 3 © Wärtsilä
Slide 4: Net Sales and Profitability
Net Sales and Profitability EUR 6 000 16% 14% 5 000 12,1% 11,4% 11,1% 12% 10,7% 4 000 10,1% 10% 3 000 8% 6% 2 000 4% 1 000 2% 0 0% 2007 2008 2009 2010 2011 Net sales Operating profit, % 4 © Wärtsilä
Slide 5: Chinese Economy Update
Chinese Economy Update • GDP has slowed to 8.9% during Q411 from 9.1% in Q311. • CPI in Jan rose to 4.5%, higher than expected 4.2% due to Chinese New Year factor. This may deter policymaker from further loosening the monetary policy. • Trade figures are weak in Jan. Imports sank 15.3% yoy in Jan, t
Slide 6: Wärtsilä in China
Wärtsilä in China WCN, Dalian Rep. Office Dalian Marine Diesel Works WCN Shanhaiguan Shipyard Service Station WCN, Beijing Rep. Office Qingdao Qiyao Wärtsilä MHI Linshan Marine Diesel Co Ltd Low-speed engines Wärtsilä Ventures Wärtsilä CME Zhenjiang Propeller Co Ltd FPPs, CPPs, shaft lines, blades a
Slide 7: Wärtsilä in China
Wärtsilä in China • Wärtsilä has been present in China for more than 20 years, through its fully owned subsidiary and long-term licensing agreements. • Wärtsilä has established joint ventures for propeller and auxiliary generating set production with leading Chinese shipbuilding groups, and our thru
Slide 8: Wärtsilä China Manufacturing Facilities
Wärtsilä China Manufacturing Facilities 8 © Wärtsilä
Slide 9: Delivery Centre – Thrusters, Seals, Bearings / Wuxi (China)
Delivery Centre – Thrusters,Seals,Bearings / Wuxi (China) Established Oct 2004 and Inauguration phase 2 Nov 2007 100% owned by Wärtsilä Employees: 167 (Jan. 2012) 9 © Wärtsilä
Slide 10: Wärtsilä CME (Zhenjiang) – FPP & CPP (China)
Wärtsilä CME (Zhenjiang) – FPP & CPP (China) Established June 2004 and inauguration CPP factory June 2011 Joint Venture Wärtsilä 55% CSSC1 45% Employees: 462 (Jan 2012) Note: 1 CSSC = China State Shipbuilding Corporation 10 © Wärtsilä China Corporate Presentation 10 © Wärtsilä
Slide 11: Delivery Centre - Auxpac 20 & 26 Shanghai (China)
Delivery Centre - Auxpac 20 & 26 Shanghai (China) Inauguration June 2006 Joint Venture Wärtsilä 50% CSIC1 50% Employees: 145 (Jan. 2012) Note: 1 CSIC = China Shipbuilding Industry Corporation Note: 1 CSIC = China Shipbuilding Industry Corporation 11 © Wärtsilä China 11 © Wärtsilä
Slide 12: Delivery Centre - 2-stroke engines / Qingdao (China)
Delivery Centre - 2-stroke engines / Qingdao (China) Inauguration April 2009 Joint Venture Wärtsilä 34% CSIC1 50% MHI2 16% Employees: 556 (Jan. 2012) Note: 1 CSIC = China Shipbuilding Industry Corporation, 2 Mitsubishi Heavy Industries 12 © Wärtsilä
Slide 13: Marine Market in China - Overview
Marine Market in China - Overview Over 1000 Shipyards in China In 2011, total production volume was increased by 16.9% to 76.65 million DWT(comparing to 52.91million DWT from Korea). However, new order intake decreased by 51.9% to 36.22 million DWT. In 2011, major state owned companies, such as CSSC
Slide 14: China in merchant vessels
China in merchant vessels Merchant vessels: contracting volumes (DWT), share by region 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Slide 15: …and in other vessel segments
…and in other vessel segments Offshore vessels: contracting volumes Special* vessels: contracting volume (GT), share by region (GT), share by region 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 200
Slide 16: Main Chinese Shipyards
Main Chinese Shipyards 16 © Wärtsilä
Slide 17: Main Shipowners in China
Main Shipowners in China • COSCO: China Ocean Shipping Corp. • CNOOC: China National Offshore Oil Corp. • MOC: The Ministry of Communication China • CSG: China Shipping Group • Sinotrans: China National Foreign COSCO HQ CSG Passenger Ferry Trade Tran. Corp. CNOOC COSCO Dalian CNPE HOSCO • STS: Shang
Slide 18: Chinese Power Industry in General
Chinese Power Industry in General China power generation is dominated by coal generation (78%). Hydro (16%), nuclear (2%). The gas generation is still at low level. The Government controls also the grid company which has been split into 2 Companies: China State Grid and China South Grid There is a m
Slide 19: Wärtsilä Power Plants history in China
Wärtsilä Power Plants history in China 1990’s to early 2000 when availability of electricity from grid could not meet increasing demand, Wärtsilä focused on captive power plants for industrial parks. 2000 – 2005 China ramped up the construction of large coal fired power plants. Wärtsilä targets the
Slide 20: Wärtsilä Services Business in China
Wärtsilä Services Business in China Spare Parts, Field Service and Special Projects • Marine Engine Dalian • Reconditioning • Propulsion system • Automation • Boiler Shanghai • In-situ machining • Training Zhoushan Guangzhou Hong Kong Repair Yard Wärtsilä 20 ©©Wärtsilä 20 Wärtsilä
Slide 21: Wärtsilä’s ambitions in China
Wärtsilä’s ambitions in China Defend our strong position in China and aggressively pursue further growth • Clear leadership for certain vessel types • Differentiated approach to customers • Maximized synergies with Ship Design • Continue expanding our local manufacturing footprint as well as enginee
Slide 22: Uncertainty ahead?
Uncertainty ahead? The fundamentals show risks and Highlights about the present opportunities • Earnings are at very low levels • Risks of downturn in global economy are • Overcapacity continues to cast shadows in tangible, also for Chinese economy main merchant segments • High oil prices represent
Slide 23: Q&A
Q&A 23 © Wärtsilä China August 2011