Slide 1: Wärtsilä Corporation Interim Report January-September 2007
WÄRTSILÄ CORPORATION INTERIM REPORT JANUARY- SEPTEMBER 2007 OLE JOHANSSON, PRESIDENT & CEO 30 OCTOBER 2007 1 © Wärtsilä
Slide 2: Highlights
Highlights • Good demand continues in main markets • Net sales growing 22% • Profitability further improving • Strong cash flow 2 © Wärtsilä
Slide 3: Key figures
Key figures MEUR Q3/07 Q3/06 1-9/07 1-9/06 2006 Order intake 1 514 1 090 4 039 3 304 4 621 Order book 6 162 4 108 4 439 Net sales 933 767 2 491 2 204 3 190 Operating result 96 56 233 162 262 % of net sales 10.3 7.3 9.3 7.4 8.2 Profit before taxes 95 581 227 1632 2553 Earnings/share, EUR 0.71 0.401 1
Slide 4: Market development - Ship Power: Vessel orders
Market development - Ship Power Vessel orders Tankers Bulk carriers Containerships Others 3 months moving average in dwt 450 25 400 350 20 Volume [million DWT] 300 # of vessels 15 250 200 10 150 100 5 50 0 0 01-03 04-03 07-03 10-03 01-04 04-04 07-04 10-04 01-05 04-05 07-05 10-05 01-06 04-06 07-06 10
Slide 5: Market development - Ship Power: Vessel orders - other vessels
Market development - Ship Power Vessel orders - other vessels LNG carriers LPG carriers Reefers Other dry > 5,000 dwt Offshore & other Cruise vessels Ro-Ro ferries 3 months moving average dwt 2 125 Volume [million DWT] # of vessels 100 75 1 50 25 0 0 01-03 04-03 07-03 10-03 01-04 04-04 07-04 10-04 0
Slide 6: Market position of Wärtsilä's marine engines Q3/2007
Market development - Ship Power Market position of Wärtsilä’s marine engines Q3/2007 Medium-speed main engines Low-speed main engines Auxiliary engines Others Mitsubishi Wärtsilä 12%(11) 3%(3) 5%(5) Wärtsilä 16%(15) MAN Diesel Wärtsilä 23%(20) 42%(42) MAN Diesel Others Caterpillar (MAK) 81%(82) 95%(
Slide 7: Market development - Power Plants
Market development - Power Plants • Markets continued to be globally active • Demand for oil-fired power plants was strong during the review period • The order intake for power plants running on renewable fuels continued actively • Demand for gas-fired power plants remained at a healthy level 7 © Wä
Slide 8: Market shares in Power Plants
Market development - Power Plants Market shares in Power Plants Target markets per fuel 2003 - 2007 16000 MW 14000 12000 10000 12% (8) 8000 6000 24% (23) 4000 38% 2000 (34) 0 2003 2004 2005 2006 2007 Wärtsilä’s market share HFO 1-60 MW LFO 3.5-60 MW GAS 3.5-60 MW Note I: Wärtsilä’s gas power plant t
Slide 9: Order intake - Power Plants
Market development - Power Plants Order intake - Power Plants 1-9/2007: 2 057 MW (1 511) Asia Europe 311 (249) 854 (239) 240 (159) 406 (63) 358 (91) Americas 71 (90) 151 (399) 90 (85) 78 (170) 73 (229) Africa and Middle East 741 (624) 36 (315) 705 (309) Gas Oil Renewable fuels 9 © Wärtsilä
Slide 10: Order intake continued strong
Order intake continued strong MEUR 5000 Third quarter development 4500 MEUR 1600 1 514 4000 39% 1400 3500 1200 1 090 23% 3000 1000 2500 800 56% 600 2000 400 1500 25% 200 1000 0 Q3/2006 Q3/2007 500 0 2003 2004 2005 2006 1-9/2007 Total order intake 1-9 order intake Power Plants Ship Power Services 10
Slide 11: Order book - growth 50%
Order book - growth 50% MEUR 6500 6 162 6000 5500 50% 5000 4500 27% 4 108 4000 3500 3000 49% 2500 2000 1500 1000 60% 500 0 2003 2004 2005 2006 30.9.2006 30.9.2007 Total order book Power Plants Ship Power Services 11 © Wärtsilä
Slide 12: Order book distribution
Order book distribution MEUR 5500 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 30.9.2006 30.9.2007 Delivery current year Delivery next year + 12 © Wärtsilä
Slide 13: Net sales
Net sales MEUR 3500 3000 Third quarter development MEUR 1000 933 2500 22% 800 767 26% 2000 600 69% 400 1500 200 -17% 1000 0 Q3/2006 Q3/2007 500 0 2003 2004 2005 2006 1-9/2007 Total net sales 1-9 net sales Power Plants Ship Power Services 13 © Wärtsilä
Slide 14: Net sales by business 1-9/2007
Net sales by business 1-9/2007 Ship Power Power Plants 35% (24) 20% (36) Services 45% (41) 14 © Wärtsilä
Slide 15: Net sales 1-9/2007 - Ship Power
Net sales 1-9/2007 - Ship Power MEUR Tankers Cruise & 1000 12% Ferry 900 16% Bulk carriers 800 2% General 700 cargo 600 Container 7% ships 500 14% 400 LNG 10% 300 Special vessels 200 & other 13% 100 Offshore 0 26% 2003 2004 2005 2006 1-9/2007 Others Tankers Bulk carriers Container ships 15 © Wärtsil
Slide 16: Net sales 1-9/2007 - Power Plants
Net sales 1-9/2007 - Power Plants MEUR Others 10% 1000 900 800 Industrial Self- 700 Generation 32% 600 Flexible Baseload 500 Power Generation 58% 400 300 200 100 0 2003 2004 2005 2006 1-9/2007 16 © Wärtsilä
Slide 17: Net sales 1-9/2007 - Services
Net sales 1-9/2007 - Services MEUR 1400 1200 • Engine Services 1000 • Operation & Management Services • Automation Services 800 • Propulsion Services 600 • Ship Services • Reconditioning Services 400 • Training Services 200 0 2003 2004 2005 2006 1-9/2007 17 © Wärtsilä
Slide 18: Wärtsilä Services - solid growth
Wärtsilä Services - solid growth 30 60 % % 25 50 20 40 15 30 10 20 5 10 0 0 03 03 03 03 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Services growth per Q Services share of sales 18 © Wärtsilä
Slide 19: Delivered engine megawatts from own factories
Delivered engine megawatts from own factories MW 5500 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2001 2002 2003 2004 2005 2006 1-9/2007 Ship Power Power Plants Full-year estimate 19 © Wärtsilä
Slide 20: Cash flow
Cash flow MEUR 1-9/07 1-9/06 2006 Cash flow from operating activities 299 172 302 Cash flow from investing activities -159 29 148 Cash flow from financing activities -115 -174 -387 Liquid funds at the end of period 202 143 179 20 © Wärtsilä
Slide 21: Financial position
Financial position Solvency Gearing 50 0,6 % 45 0,5 40 35 0,4 30 25 0,3 20 0,2 15 10 0,1 5 0 0,0 2003 2004 2005 2006 1-9/2007 2003 2004 2005 2006 1-9/2007 NOTE: 2003 according to FAS, 2004- IFRS Convertible subordinated debentures treated as equity 21 © Wärtsilä
Slide 22: Wärtsilä's prospects
Wärtsilä’s prospects • Demand in the ship power and energy markets looks likely to remain active for Wärtsilä for the next two quarters • Based on the strong order book, Wärtsilä’s net sales are expected to grow this year by around 15% • Profitability will exceed 9% • Wärtsilä sees further possibili
Slide 23: Presentation name / Author
Presentation name / Author