Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Nordea Finnish Large Cap Summit 2012
26 slides from Wartsila Oyj Abp's conference presentation, Nov 21, 2012
Slide 1: Nordea Finnish Large Cap Summit 2012
NORDEA FINNISH LARGE CAP SUMMIT 2012 RAIMO LIND, EVP & CFO 21 NOVEMBER 2012
Slide 2: Net sales by business 1-9/2012
Net sales by business 1-9/2012 Ship Power 27% (24) Services 43% (44) Power Plants 29% (32) Total EUR 3,191 million (2,970) 2 © Wärtsilä
Slide 3: Growth in order intake and order book
Growth in order intake and order book Order intake Order book 6000 8000 7000 5000 6000 10% 17% 4000 5000 3000 4000 -2% -6% 3000 2000 28% 99% 2000 1000 1000 -3% 14% 0 0 2008 2009 2010 2011 1-9/2012 2008 2009 2010 2011 1-9/2012 Power Plants Ship Power Services 3 © Wärtsilä
Slide 4: Order book distribution
Order book distribution MEUR 4000 3000 2000 1000 0 30.9.2011 30.9.2012 Delivery current year Delivery next year or later 4 © Wärtsilä
Slide 5: Profitability
Profitability MEUR 250 16% 14% 12.8% 200 11.9% 11.5% EBIT% 11.0% 11.1% 12% 12.1% target: 11.4% 11.1% 10-14% 10.7% 10% 150 10.4% 8% 100 6% 4% 50 2% 0 0% 2008 2009 2010 2011 2012 Q1 Q2 Q3 Q4 EBIT% before non-recurring items EBITA% before non-recurring items and intangible asset amortisation related to
Slide 6: Good level of quoted MW
Good level of quoted MW Quoted MW per Fuel Type 16000 14000 12000 MW 10000 Others 8000 Natural gas 6000 Heavy fuel oil 4000 2000 0 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 2004 2005 2006 2007 2008 2009 2010 2011 2012 Share of natural ga
Slide 7: Order intake by application
Order intake by application MEUR Review period development 2000 Total EUR 1,045 million (1,138) 1800 5% Industrial 8% 14% self-generation 1600 Flexible baseload 1400 Oil & gas Grid stability & 1200 73% peaking 1000 800 Review period order intake by fuel in MW 600 400 Oil 30% Gas 200 69% Renewables 0
Slide 8: Global order intake
Global order intake Europe 79 (778) Asia 851 (514) 20 110 79 59 Americas 612 (428) 662 58 29 Africa and Middle East 871 (688) 189 337 95 Flexible baseload Industrial self-generation Grid stability & peaking Oil & gas 777 Order intake 1-9/2012: 2,414 MW (2,407) 8 © Wärtsilä
Slide 9: Major dual fuel order from Mauritania
Major dual fuel order from Mauritania • Wärtsilä awarded a turnkey contract to construct, supply and engineer a major power plant to be built in Nouakchott, Mauritania in West Africa • Order placed by the state utility, Société Mauritanienne d’Electricité • Contract value EUR 128 million • Scope of
Slide 10: Market for gas and liquid based power plants
Market for gas and liquid based power plants H1 2012 Total market 28.8 GW 1.9%3.1% 3.5% 4.9% GE Siemens 32.2% MHI Wärtsilä 26.3% Ansaldo Alstom 28.1% Other gas turbines Market data includes all prime mover units over 5 MW and estimated output of steam turbines for combined cycles. The data is gather
Slide 11: Vessel order development
# of vessels 11 © Wärtsilä 0 100 120 140 20 40 60 80 01.09 02.09 03.09 04.09 Merchant 05.09 06.09 07.09 08.09 Source: Clarkson Research Services 09.09 10.09 11.09 Offshore 12.09 01.10 *CGT= gross tonnage compensated with workload 02.10 03.10 04.10 05.10 06.10 07.10 08.10 Cruise and Ferry 09.10 10.10
Slide 12: Order intake increased by 65%
Order intake increased by 65% MEUR 2000 Review period development Total EUR 1,114 million (675) 1600 Merchant Offshore 28% 46% 1200 800 Other 1% Special vessels 400 11% Cruise & ferry Navy 4% 9% 0 2008 2009 2010 2011 1-9/2012 12 © Wärtsilä
Slide 13: Environmental solutions
Environmental solutions • Exhaust gas scrubbers – Widest portfolio in the market consisting of open-loop, closed-loop and hybrid scrubbers – Wärtsilä has 45 exhaust gas cleaning scrubbers delivered or on order, for a total of 23 vessels – Price range EUR 1-5 million, depending on size of vessel and
Slide 14: Ship Power order book 30 September 2012
Ship Power order book 30 September 2012 RoRo LNG 2% 7% Bulkers 5% Containers 2% Offshore Merchant 30% Tankers 45% 9% Cargo 5% Others 2% Navy 9% Special Cruise & Ferry vessels 5% 8% 14 © Wärtsilä
Slide 15: Market position of Wärtsilä's marine engines
Market position of Wärtsilä’s marine engines Medium-speed main engines Low-speed main engines Auxiliary engines Mitsubishi Wärtsilä 2%(3) 5%(5) Wärtsilä Others 18%(22) 23%(25) Wärtsilä 48%(49) MAN Diesel 23%(19) Others MAN Diesel 95%(95) 80%(75) Caterpillar (MAK) 6%(7) Total market volume last 12 mo
Slide 16: Steady development in power plant services
Steady development in power plant services • Power plants customers’ interest in Operations & Maintenance (O&M) agreements continues – 10-year O&M agreement signed with Gulf Power Ltd, a subsidiary of Gulf Energy Ltd, a market leader in the Kenyan energy sector • Agreement will cover the full operat
Slide 17: Net sales development
Net sales development MEUR 2000 1800 0% 0% 0% Third quarter development 1600 MEUR 1400 500 5% 435 1200 412 400 1000 800 300 600 200 400 100 200 0 0 2008 2009 2010 2011 1-9/2012 Q3/2011 Q3/2012 17 © Wärtsilä
Slide 18: Net sales distribution 1-9/2012
Net sales distribution 1-9/2012 Field service 24%(24) Spare parts 54%(53) Contracts 15%(16) Projects 7%(7) Total EUR 1,377 million (1,303) 18 © Wärtsilä
Slide 19: Fleet utilisation
Fleet utilisation Anchored* & Idle Vessels**, percent of fleet 26% 22% 18% 14% 10% 6% 2% Jun.11 Aug.12 Sep.12 Oct.11 Dec.11 Nov.12 Aug.11 Sep.11 May.12 Jul.12 Apr.12 Jan.12 Jun.12 Feb.12 Nov.11 May.11 Jul.11 Apr.11 Oct.12 Mar.12 Anchored Idle Fleet Average Speed***, knots 10,5 10,0 9,5 9,0 Aug.11 Se
Slide 20: Development of Power Plants service agreements
Development of Power Plants service agreements MW 4500 90% 4000 80% 72% 3500 70% 57% 58% 3000 60% 53% 2500 50% 2000 40% 31% 1500 30% 1000 20% 500 10% 0 0% 2008 2009 2010 2011 1-9/2012 O&M and maintenance agreements Power Plants deliveries % of delivered MWs 20 © Wärtsilä
Slide 21: Cash flow from operating activities
Cash flow from operating activities MEUR 700 600 500 400 300 200 100 0 -100 2008 2009 2010 2011 1-9/2012 21 © Wärtsilä
Slide 22: Net working capital development
Net working capital development MEUR 2000 25% 1800 1600 20% 1400 1200 15% 12.7%* 1000 800 9.2% 10% 6.8% 600 539 5.8% 482 .3.7% 400 5% 267 285 170 200 0 0% 2008 2009 2010 2011 30.9.2012 Net Working Capital Total Inventories Advances Received Net Working Capital / Net sales * Working Capital / Annuali
Slide 23: Financial position
Financial position Solvency Gearing 50% 0,70 45% 0,60 40% 0,50 35% 30% 0,40 25% 0,30 20% 0,20 15% 10% 0,10 5% 0,00 0% 2008 2009 2010 2011 30.9.2012 -0,10 2008 2009 2010 2011 30.9.2012 23 © Wärtsilä
Slide 24: Market outlook
Market outlook • Power Plants: The power generation market is expected to remain active in 2012. • Ship Power: Robust contracting activity is expected for the offshore, gas carrier, and other specialised vessel markets. Full year vessel contracting expected to be lower than in 2011. • Services: The
Slide 25: Prospects for 2012 revised
Prospects for 2012 revised Wärtsilä expects its net sales for 2012 to grow by 10-15% (previously 5-10%) and its operational profitability (EBIT% before non- recurring items) to be 10.5-11% (previously 10-11%).
Slide 26: IR Contact: Pauliina Tennilä
IR Contact: Pauliina Tennilä Director, Investor Relations Tel. +358 (0) 40 570 5530 E-mail: pauliina.tennila@wartsila.com