Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (March 2010)
20 slides from Wartsila Oyj Abp's investor day presentation, Mar 24, 2010
Slide 1: Wärtsilä 2010 and Beyond
WÄRTSILÄ 2010 AND BEYOND OLE JOHANSSON, PRESIDENT & CEO 1 © Wärtsilä 24 March 2010 OLE JOHANSSON
Slide 2: The foundation of Wärtsilä's competitive edge
The foundation of Wärtsilä’s competitive edge Installed base The foundation of Wärtsilä’s competitive edge lies in its continuous focus on innovation and R&D Marketing and its aim is to be the technology leader in its Service & & sales industries. Wärtsilä’s ability to focus on long-term Maintenance
Slide 3: Current global markets
Current global markets Marine Power Plants Shipbuilding will further concentrate in Asia Average net sales by region 2007-2009 Asia & Australia 6% Americas 27% Africa 22% Middle East 17% Europe 28% 3 © Wärtsilä 24 March 2010 OLE JOHANSSON
Slide 4: Ship Power market - vessel order development
Ship Power market - vessel order development All vessels Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in DWT # of vessels DWT # of vessels Millions Source data: Clarkson Research Services 4 © Wärtsilä 24 March 2010 OLE JOHANSSON
Slide 5: Ship Power demand drivers
Ship Power demand drivers The one certainty: Drivers for growth in shipping: Our world needs shipping • Population growth means increased • Shipping is the enabler of need for energy, commodities, food globalisation and water increased need for • Shipping is the most efficient transportation way o
Slide 6: Ship Power demand drivers
Ship Power demand drivers Key requirements for new ships • From optimised ships to optimising fleet and allowing ship owners to grow their business • Minimised operating and voyage costs • Efficiency: no trade off between environment and economy • Reliability • Safety • Flexibility for load condit
Slide 7: Power Plants demand drivers
Power Plants demand drivers • Long term increase in electricity demand – need for ENERGY – Electricity demand is increasing faster than primary energy demand – Growth in emerging countries - industrialisation – Consumer electronics – entertainment, air conditioning etc. – Electric vehicles - better
Slide 8: Power Plants demand drivers
Power Plants demand drivers • Tightening environmental regulations – especially in western countries – Greenhouse gas emissions are in focus, and this favors carbon neutral, low carbon intensity generation (natural gas) and high efficiency generation – Local emission requirements lead to further use
Slide 9: Net sales development
Net sales development Services share of net sales MEUR 6000 5000 CAGR = 20% 4000 3000 2000 1000 41% 40% 41% 40% 35% 0 2005 2006 2007 2008 2009 Services share of net sales 9 © Wärtsilä 24 March 2010 OLE JOHANSSON
Slide 10: Wärtsilä's installed engine base
Wärtsilä’s installed engine base MW Installed base CAGR = 2% Services CAGR = 14% Power Plants Ship Power 10 © Wärtsilä 24 March 2010 OLE JOHANSSON
Slide 11: Services product lines
Services product lines Customers Solutions Management 11 © Wärtsilä 24 March 2010 OLE JOHANSSON
Slide 12: Offering adapted to customer's needs
Offering adapted to customer’s needs Solution Complexity We have experience in assembling the appropriate products and services 4 in customised solutions. 3 2 1 Basic Products Packages Solutions & Partnerships and Services Agreements & Integrations • Spare Parts • Service Products • Advanced Package
Slide 13: Drivers of Wärtsilä R&D
Drivers of Wärtsilä R&D Customer focus = our focus ENERGY ULTRA LOW RELIABILITY LIFE CYCLE EFFICIENCY EMISSIONS COST MEUR R&D expenses % of net sales 13 © Wärtsilä 24 March 2010 OLE JOHANSSON
Slide 14: Wärtsilä engine portfolio & focus areas
Wärtsilä engine portfolio & focus areas 1985 1990 1995 2000 2005 2010 2015 2020 2025 TODAY IMO TIER 2 IMO TIER 3 RT96 Diesel engines GAS/DF engines RT84T RT82C/T RT68T RT60 Bore size / power output - 4-stroke portfolio / 2-stroke portfolio RT58T Under Development RT50 Future Portfolio RT48T Main dif
Slide 15: Technology highlights for Power Plants
Technology highlights for Power Plants More competitiveness in large gas plants – 20V34SG with higher output was introduced in 2009 – 18V50SG, new pure gas engine for large gas plants coming to market introduction in 2010 – Optimised large gas power plant solutions both for simple cycle and combined
Slide 16: Restructuring manufacturing 1999 – 2004
Restructuring manufacturing 1999 – 2004 Turku Vaasa Trollhättan Ramsgate*) Trieste Mt. Vernon Zwolle Mulhouse Mantes Bermeo Assembly Factory • Decreasing market demand required restructuring • Task to reduce the capacity but still maintain the possibility to go up to 5000 MW if needed • Flexibility
Slide 17: From strategy to practise - Examples
From strategy to practise - Examples 1 Vaasa - 500+ project Trieste – 3000+ project Shanghai 17 © Wärtsilä 24 March 2010 OLE JOHANSSON
Slide 18: From strategy to practise - Examples
From strategy to practise - Examples 2 From cell assembly MW delivered by Wärtsilä 8000 7000 6000 5000 4000 3000 2000 1000 0 2004 2005 2006 2007 2008 2009 To line assembly 18 © Wärtsilä 24 March 2010 OLE JOHANSSON
Slide 19: Global presence and broad offering support future growth
Global presence and broad offering support future growth Net sales by business Net sales by geography Ship Power Power Plants Europe Asia 34% (33) 31% (27) 31% (37) 37% (39) Other 9% (9) Services Americas 35% (40) 22% (15) 19 © Wärtsilä 24 March 2010 OLE JOHANSSON
Slide 20: © Wärtsilä 16 March 2010 Ole Johansson CMD 2010
20 © Wärtsilä 16 March 2010 Ole Johansson CMD 2010