Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Metra Oyj Abp (Wärtsilä) — Q2 2000 Earnings Presentation
22 slides from Wartsila Oyj Abp's earnings presentation, 2000
Slide 1: Metra Q2/2000
Metra Q2/2000 Significantly improved profit New orders clearly up, orderbook +41 % Restructuring finished Wärtsilä to Group’s new name Metra is proposed to change its name into Wärtsilä 2000 1
Slide 2: Group structure
Group structure Holdings Marine Marine Power Power Service Service Metra is proposed to change its name into Wärtsilä 2000 2
Slide 3: From Metra to Wärtsilä
From Metra to Wärtsilä Wärtsilä an internationally recognized brand name The change supports the strategic focus on engineering New name describes the business Unified corporate identity Subject to decision of extraordinary shareholders’ meeting on 13 Sept. 2000 Metra is proposed to change its name
Slide 4: Brands
Brands Metra is proposed to change its name into Wärtsilä 2000 4
Slide 5: Corporate financial goals
Corporate financial goals Average organic growth of 7%, further growth through acquisitions Operating profit 7-8% of net sales Solvency ratio 40% Dividend 50% of operational earnings per share Metra is proposed to change its name into Wärtsilä 2000 5
Slide 6: Holdings
Holdings Sanitec and Assa Abloy holdings provide financial resources for developing core business Sanitec Metra’s holding 46,7% Metra’s share of market capitalisation EUR 305 mill. Assa Abloy Metra’s holding 19,3% Metra’s share of market capitalisation EUR 1.337 mill. Metra is proposed to change its
Slide 7: Key Figures
Key Figures EUR mill. 1-6/2000 1-6/1999 Change 1999 Net sales 1,352.1 1,327.2 +2% 2,700.0 EBIT from industrial operations, ex-Sanitec 44.7 2.5 -0.2 Operating profit 165.3 48.9 272.7 Profit before extraordinary items 150.4 30.4 237.0 Earnings per share, euro 1.70 0.35 2.43 Balance sheet total 2,566.7
Slide 8: Wärtsilä NSD
Wärtsilä NSD EUR mill. Q2/2000 Q2/1999 Change 1999 Net sales 544.4 456.9 +19.2% 1.896,6 Operating result 19.3 0.0 +19.3% -28,5 Personnel on average 9,002 8,690 8.472 Orders received 595.0 333.4 +78.5% 1.853,7 Orderbook by end of period 1,576.3 1,115.3 +41.3% 1.314,9 Orderbook 1600 EUR mill. 1400 Oth
Slide 9: Marine
Marine EUR mill. Q2/2000 Q2/1999 Change Net sales 181.9 129.3 +40.7% Orders received 224.0 115.4 +94.1% Orderbook by end of 810.0 618.9 +30.9% period n High market shares retained n The smokeless EnviroEngine launched in February contributed to the success n Marketing agreement signed with John Cran
Slide 10: Power
Power EUR mill. Q2/2000 Q2/1999 Change Net sales 183.9 177.5 +3.6% Orders received 198.1 66.1 +199.7% Orderbook by end of period 614.6 349.1 +76.1% n Cogeneration power plants Power 34 % based on gas and multifuel engines offer an economic and environmentally attractive alternative n The leading sup
Slide 11: Service
Service EUR mill. Q2/2000 Q2/1999 Change Net sales 169.4 148.1 +14.4% n Service and spare parts Wärtsilä NSD’s first application of e-business technology n New operating contracts totalled 166 MW Service 31 % n Total power base covered by operations contracts 1,079 MW Metra is proposed to change its
Slide 12: Imatra Steel
Imatra Steel EUR mill. Q2/2000 Q2/1999 Change Net sales 51.3 45.4 +13% Operating profit 5.8 2.5 +132% Operating profit, % 11.3% 5.5% •Demand continued favourable in special steel markets : • Production volumes in vehicle industry rose. • Deliveries to engineering companies and wholesalers increased.
Slide 13: Prospects to end of year
Prospects to end of year The order intake for the full year will exceed the previous year’s level Net sales will increase because of the healthy orderbook and steady growth by the Service business The operating profit during the second half of the year at least the same level as for the first six mo
Slide 14: Business Area targets
Business Area targets n To be the leading global “ship power supplier” n Half of power plant deliveries gas plants n Annual Service growth of 10-15%, over 1/3 of total net sales n Annual growth of 4% in Marine and Power Metra is proposed to change its name into Wärtsilä 14
Slide 15: Wärtsilä Corporation
Wärtsilä Corporation Wärtsilä Corporation is the leading global ship power supplier and a major provider of solutions for distributed power generation and of supporting services. In addition Wärtsilä operates a Nordic engineering steel company and manages substantial share holdings to support the de
Slide 16: Strategy to increase the value of Wärtsilä Corporation
Strategy to increase the value of Wärtsilä Corporation Shareholder value Business build Consolidate and grow • Service business internally • Ship Power Supplier • Acquisitions into current and • Expand power plant operations related businesses • Gas power plants • E-commerce in Service Atomize and r
Slide 17: Key forces shaping the industry - Marine
Key forces shaping the industry - Marine Industry changes Wärtsilä response -Good demand continues during next 2-3 years. -Increased demand for years 3-5 but variations in shipping segment demands The Ship Power -Overall industry consolidation Supplier -Increased role for system and functionality pr
Slide 18: Marine market development
1EVOIXHIZIPSTQIRX Marine market development Number Numberof ofvessels vessels Source: Sjöfartens Analys Institut (SAI) - 04-00 Flat Flatmarket market 1’000 demand, demand, with with trendline positive positivetrend trend 750 Number of vessels 500 250 0 2000 2001 2002 2003 2004 2005 Contracting year
Slide 19: The realm of marine power systems
The realm of marine power systems Wärtsilä NSD markets total systems Engines Modulized ancillaries Propellers Gensets Controls Diesel-electric systems Rudders Reduction gears Wärtsilä NSD delivers John Crane-Lips delivers Metra is proposed to change its name into Wärtsilä 19
Slide 20: Key forces shaping the industry - Power
Key forces shaping the industry - Power Industry changes Wärtsilä response -World energy consumption growing with 4% p.a. -Gas gaining market share Expand gas -Intensifying competition in small and medium power plants offering -Western Europe and North America growing Metra is proposed to change its
Slide 21: Key forces shaping the industry - Service operations
/I]JSVGIWWLETMRKXLIMRHYWXV]7IVZMGI STIVEXMSRW Industry changes Wärtsilä response -Utilities and IPPs outsourcing power plant service From spare parts to and operations -Shipping companies and Cruise Lines demand customer service “one stop shopping” and operations -Customer service and financing are
Slide 22: Propulsion Control System
Propulsion Control System MAMA2i RemoteExpert planning communication 6 \VWHPPD VW HU FAKS2i ,3 diagnostics (&8 MoniTrend 3&8 trending ELDOC2i :( & 6 documentation Metra is proposed to change its name into Wärtsilä 22
Metra Oyj Abp (Wärtsilä) — Q2 2000 Earnings Presentation on 6ix