Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Presentation (June 2013)
29 slides from Wartsila Oyj Abp's investor presentation, Jun 7, 2013
Slide 1: Welcome to Wärtsilä China
WELCOME TO WÄRTSILÄ CHINA James Han, President of Wartsila China 1 © Wärtsilä 7 June 2013
Slide 2: Wärtsilä China today
Wärtsilä China today • 20+ years history in China • Strong manufacturing footprint through JVs, fully owned companies and 2-stroke engine licensing • In marine market, some leading Chinese ship owners and shipyards are not only Wärtsilä customers, but also JV partners • Wärtsilä Services provides se
Slide 3: Major Milestone of Wärtsilä in China
Major Milestone of Wärtsilä in China 2010 Wartsila China Engineering Center 2008 was setup in 2004 Shanghai Top management 1st manufacturing of Wartsila Ship 1978 JV with CSSC for Power moved to As the first western propeller in China company to license Zhenjiang, Jiangsu 2006 2 stroke engine in Pro
Slide 4: Wärtsilä footprint in China
Wärtsilä footprint 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
Slide 5: Key success factors for doing business in China
Key success factors for doing business in China Strong brand with leading technologies Product portfolio meeting growing market demands and regulatory changes Forging strategic local partnerships with strong market players Localization of manufacturing / supply chain / innovation capability
Slide 6: Marine market trends and drivers in China
Marine market trends and drivers in China • Chinese shipbuilding is moving from low-cost merchant ships towards more complex high value vessels • Shipbuilding overcapacity will drive consolidation with government plans to support top shipyards • Growing intra-Asian trade and drive towards securing r
Slide 7: Shipbuilding Market Share in 2012
Shipbuilding Market Share in 2012 Million DWT In Terms of Percentage 50,00% 120 45,00% 43,60% 106,95 41,50% 40,70% 100 40,00% 35,00% 32,80% 80 31,60% 68,6 30,00% 60,21 26,60% 58,22 60 25,00% 22,60% 48,44 19,70% 19,80% 20,00% 40 29,3 23,86 15,00% 20,41 20 14,79 9,30% 9,82 10,00% 9,21 6,70% 2,45 5,00%
Slide 8: China moving towards more complex high value ships
China is quickly moving towards more complex and high value ships both for energy security and shipbuilding competitiveness • China has a strong strategic ambition to China LNG Imports secure it’s energy import • There has been tremendous growth in LNG imports to China but LNG still represents only
Slide 9: Main state-owned shipyards – CSSC, CSIC & COSCO
Main state-owned shipyards – CSSC, CSIC & COSCO COSCO Dalian Wärtsilä Premises CSIC Bohai Wärtsilä Services centres CSIC Shanhaiguan CSIC Shipyards CSIC Dalian Shipbuild. CSSC Shipyards COSCO Shipyards CSIC Beihai COSCO Nantong + CSIC Xingang COSCO Qidong CSSC Jiangnan CSSC Changxing CSSC Waigaoqiao
Slide 10: Some of the main private / JV shipyards in China
Some of the main private / JV shipyards in China Wärtsilä Premises Wärtsilä Services centres CSIC Shipyards Yantai CIMC Raffles Shipyard CSSC Shipyards New Times & New Century S/Ys COSCO Shipyards NACKS Private / JV Shipyards Rongsheng SHI Sino-Pacific Offshore Qidong Xin Ya Ouhua Shipyard Private/J
Slide 11: The competition is tough but outside engines more fragmented
The competition is tough but outside engines it is more fragmented * Propulsion ** E&A LGE Gas Systems 2-stroke SHIP POWER Flow Systems 4-stroke medium speed •Local pumps makers Ship Design EGCS BWMS IGS Environmental SDARI solutions MARIC • Major Shipyards 12 © Wärtsilä June 7, 2013
Slide 12: Competitive market demands multiple offerings to differentiate
The very competitive market demands multiple offerings in terms of products, solutions, pricing and services to differentiate Himsen Local Rolls- Japanese Wärtsilä MAN Caterpillar (Hyundai) Chinese Royce Import brands Established Global Engine Brand Strong focus on Gas Extensiv
Slide 13: Integrated solution and support for local Chinese yards
Wärtsilä can offer integrated solution & support local Chinese yards in technically complex vessels to address ship-owner’s concerns 14 © Wärtsilä 7 June 2013
Slide 14: Opportunities for power industry in China
Opportunities for power industry in China Ambitious national Policy maker is shifting Power generating Wind power has been target being set to to support low carbon capacity to grow to ~ developed at brisk slash the carbon economy with clean 1,500 GW by 2020 pace with total emission level in 2020 en
Slide 15: 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 focuses on captive power plants for industrial parks. 2000 – 2005 China ramped up the construction of large coal fired power plants. Wärtsilä targets the
Slide 16: Wärtsilä Services in China
Wärtsilä Services in China We provide total and 24/7 services Shanhaiguan Engine Services Propulsion System Dalian Automation Boiler HRDD In-situ Machining Shanghai Training Reconditioning Zhoushan Guangzhou Taipei Longxue Kaohsiung Yiulian Hong Kong 50 largest Repair Yards in China that dock foreig
Slide 17: Major Wärtsilä Services workshops in China
Major Wärtsilä Services workshops in China Shanghai Guangzhou Hong Kong • Established: 1999 • Established : 1994 • Established: 1991 • Location: Tangzhen Shanghai • Location: Nansha, Guangzhou • Located in Hong Kong United Dockyards (HUD) • Main activities: • Field service covering – Reconditioning
Slide 18: Service cooperation with Chinese shipyards
Service cooperation with Chinese shipyards Shanhaiguan Shanghai Guangzhou 2008 2010 2010 Zhoushan Shenzhen 2011 2011 In order to serve customers better, Wärtsilä China entered a cooperation with major shipyards in China. A team of Wärtsilä experts is permanently stationed there and jointly provide a
Slide 19: Wärtsilä China manufacturing facilities
Wärtsilä China manufacturing facilities We provide market leading products 20 © Wärtsilä 7 June 2013
Slide 20: Delivery Centre – Thrusters, Seals, Bearings / Wuxi
Delivery Centre – Thrusters, Seals, Bearings / Wuxi Wärtsilä Propulsion (Wuxi) Co., Ltd Inauguration phase 2 November 2007 Employees: 161 (April 2013) 21 © Wärtsilä 7 June 2013 7 June 2013 Corporate Presentation
Slide 21: Delivery Centre – CPP & FPP / Zhenjiang
Delivery Centre – CPP & FPP / Zhenjiang Wärtsilä CME Zhenjiang Propeller Co., Ltd Founded in 2004 and new CPP factory inauguration in June 2011 Employees: 407 (April 2013) Joint Venture (Wärtsilä 55%, CSSC1 45%) Note: CSSC1 = China State Shipbuilding Corporation 22 © Wärtsilä 7 June 2013
Slide 22: Delivery Centre - Auxpac 20 & 26 / Shanghai
Delivery Centre - Auxpac 20 & 26 / Shanghai Wärtsilä Qiyao Diesel Company Ltd. (Shanghai) Inaugurated in 2006 Employees: 141 (April 2013) Joint Venture (Wärtsilä 50%, CSIC1 50%) Note: CSIC1 = China Shipbuilding Industry Corporation Note: 1 CSIC = China Shipbuilding 72013 June 2013 Industry Corporati
Slide 23: Delivery Centre - 2-stroke engines / Qingdao
Delivery Centre - 2-stroke engines / Qingdao 2-stroke engine QMD doers One million horsepower produced Qingdao Qiyao Wärtsilä MHI Linshan Marine Diesel Co., Ltd Inauguration April 2009 Employees: 490 (April 2013) Joint Venture (Wärtsilä 34%, CSIC1 50%, MHI2 16%) Note: 1 CSIC = China Shipbuilding Ind
Slide 24: Delivery Centre - Environment & Safety Product / Suzhou
Delivery Centre- Environment & Safety Product / Suzhou • Inauguration in 1998 (former Hamworthy Suzhou) • Employee: 103 (April 2013) • Products: sewage water treatment plants, inert gas systems, control panels 25 © Wärtsilä 7 June 2013
Slide 25: Sourcing in China
Sourcing in China • Supports both local needs in China (cost and short lead times) and export to Europe (cost) • Increasing part of our purchase volume will be sourced in China. • Significant part of our strategic sourcing organisation located in China –one critical factor for success • Other critic
Slide 26: New JV for Wärtsilä medium speed engines in China
New JV for Wärtsilä medium speed engines in China Wärtsilä -Yuchai Engine Ltd. Co. Location: Zhuhai, China Products: W20, W26, W32 Operations planned to start in 2014 27 © Wärtsilä 7 June 2013
Slide 27: Growth drivers in China
Growth drivers in China World second largest economy and biggest trading nation Sustained GDP growth expected to continue 2015 and beyond: starting to rival US in economic scale One fifth of world population with rapidly rising middle class population and urbanization Domestic consumption
Slide 28: Wärtsilä China Future Strategy
Wärtsilä China Future Strategy Launch key initiatives (e.g. 4-stroke engine JV) to support long term growth Strengthen high level customer contacts and external relationships (government, JV partners, etc) to ensure business success. Simplify operating model with entrepreneurial driven organiz
Slide 29: WARTSILA.COM
WARTSILA.COM © WARTSILA