Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (May 2005)
11 slides from Wartsila Oyj Abp's investor day presentation, May 31, 2005
Slide 1: Wärtsilä Capital Markets Day: Power Plants business logic
Wärtsilä Capital Markets Day Power Plants business logic Pekka Ahlqvist, Group Vice President, Head of Power Plants Trieste, Italy 31 May 2005 © Wärtsilä
Slide 2: Business Drivers
Business Drivers GDP growth Population growth The more people, the more energy is needed Strive for increased standard of living Growing demand for energy Need for reliable systems Environment General & political will to safeguard economical development with minimal impact on the environment Restric
Slide 3: Electricity Market Trends
Electricity Market Trends Political strive for more competition and free energy markets Privatisation Power pools Energy industry searches for new ways to compete Environmental care Difficult to obtain permits for large projects Many fuels are almost ”banned” – coal, nuclear, hydro... Tighter emissi
Slide 4: Customer Segmentation
Customer Segmentation Customer’s Business Energy Industrial Production Manufacturing (Electricity & Heat) (Cement, Paper, etc.) Utility/Municipality/IPP Industry ROI Savings Availability Reliability Long-term Performance Response time Peace of Mind 4
Slide 5: Main Customer Groups
Main Customer Groups Utilities Large state or publicly owned companies The level of technical skills varies from very good to very bad Changes of ownership in several countries Have generated the centralised large plant & main grid thinking Used to have infrastructure development responsibility from
Slide 6: Segment 1: Developing Countries
Segment 1: Developing Countries Most of Africa, many Latin American and Central Asian countries, many islands Under-developed infrastructure The electricity grid is typically weak & overloaded. Large plants cannot be added without major grid investments Large coal, LNG etc. logistics do not exist Im
Slide 7: Segment 2: Growing markets
Segment 2: Growing markets China, India, Russia, Turkey, East Europe, Brasil etc. Rapid economical growth Political support for industrial growth Growth in electricity demand Construction of power generation, roads, harbours, gas pipelines Impacts on power business Construction of new capacity; urge
Slide 8: Segment 3: Industrialized countries
Segment 3: Industrialized countries West Europe, North America, Australia, Japan etc. Slow economical growth Strong existing infrastructure Slow growth of electricity demand Tight environmental norms Political support mainly for renewables Growing needs for peaking & reserve power Gas widely availab
Slide 9: Wärtsilä advantages
Wärtsilä advantages Empowered and skilled global sales organisation Complete energy solutions Project development capabilities Complete plant delivery Modular fast track delivery Financial services O&M with long-term commitment Technically advanced products Technology leader on diesel and gas engine
Slide 10: Order Intake 2004 and Total Installed Base (MW)
Order Intake 2004 and Total Installed Base (MW) Total installed base: 32.220 MW Order intake 2004: 2.313 MW Europe Asia 6.480 13.860 402 439 302 290 100 150 Americas 5.250 347 Africa and Middle East 193 6.630 154 1.125 44 1.082 MW Gas Oil © Wärtsilä 10
Slide 11: Target in Markets Management Review Wärtsilä
TargetinMarkets Management Review Wärtsilä 6000 5000 4000 GAS 3.5-20 MW MW 3000 LFO 3.5-20 MW HFO 1-20 MW 2000 1000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 HFO 1-20 MW units (W20…W46) LFO 3.5-20 MW units (W32…W46). Below 3.5 MW = High speed engine market GAS 3.5-20 MW units (W3