Slide 1: Annual General Meeting 2007
ANNUAL GENERAL MEETING 2007 Ole Johansson 1 © Wärtsilä
Slide 2: Ship Power solutions Power Plant solutions
Ship Power solutions Power Plant solutions Growth through new Stronger position in products and increasing decentralized presence in Asia energy 2 © Wärtsilä
Slide 3: Key figures 2006
Key figures 2006 Net sales by business 2006 Change MEUR 2006 2005* (%) Services Net sales 3,189.6 2,520.3 26.6 Ship Power 39.7% (43.4) 30.9% (28.2) Operating income 261.6 202.5 29.2 % of net sales 8.2 8.0 Income before taxes 446.82 212.41 Earnings/share, EUR 3.72 1.80 Power Plants 29.3% (28.2) 1) Th
Slide 4: Key figures
Key figures Net sales Order intake Order book 3500 5000 5000 MEUR 3,189.6 MEUR 4,621.1 MEUR 4,438.9 4500 4500 3000 26.6% 4000 32.4% 4000 52.8% 2,520.3 3,491.1 2500 3500 3500 15.9% 3000 22.8% 3000 2,905.7 17.6% 2000 2500 2500 12.4% 18.7% 1500 31.5% 2000 2000 1500 46.9% 1500 82.1% 1000 38.6% 1000 1000
Slide 5: Global growth rates have accelerated
Global growth rates have accelerated World Real per Capita GDP World trade volume 6 16 14 5 12 4 10 8 3 6 2 4 1 2 0 0 -2 -1 -4 1970 75 80 85 90 2000 05 10 1970 75 80 85 90 2000 05 10 Note! Aggregates computed on the basis of purchasing power parity (PPP) weights Source: IMF: World Economic Outlook,
Slide 6: The oil industry needs to produce and discover more
The oil industry needs to produce and discover more Oil production capacity and demand Global oil discovery 90 30% 60 Billion barrels / day Billion barrels 85 25% 50 80 75 20% 40 70 65 15% 30 60 10% 20 55 50 5% 10 45 40 0% 0 70 74 78 82 86 90 94 98 01 03 1930 1950 1970 1990 2010 Excess oil productio
Slide 7: Ship Power - net sales by vessel type
Ship Power - net sales by vessel type 1000 Meur Tankers Cruise & 12% 900 Ferry Bulk 18% 800 carriers 3% 700 General 600 cargo Container- 10% 500 ships 14% 400 LNG 300 3% Special 200 vessels & other 100 11% Offshore 0 29% 2002 2003 2004 2005 2006 7 © Wärtsilä
Slide 8: Market position of Wärtsilä's marine engines
Market position of Wärtsilä’s marine engines Medium-speed main engines Low-speed main engines Auxiliary engines (Own production) (Production by licensees) (Own production) Others Comp. 3 Wärtsilä 13%(13) 3%(4) 6%(7) Wärtsilä 16%(17) Comp. 1 13%(14) Wärtsilä 51%(50) Comp. 2 Comp. 1 Others 23%(23) 81%
Slide 9: Shipbuilding growing in China
Shipbuilding growing in China Vessel orders 2000 Vessel orders 2004 Vessel orders 2006 Others Others Others Europe 3% 5% Europe 5% 9% Europe 3% 8% China 6% Korea 32% Korea China Korea China 38% 17% 48% 35% Japan 34% Japan Japan 38% 19% 67.595.039 dwt 104.940.490 dwt 141.589.105 dwt Market share of d
Slide 10: Markets in Asia - production growing in China
Markets in Asia - production growing in China Qingdao Qiyao Wärtsilä MHI Linshan Marine Diesel Co Ltd (QMD) -Manufacturing of low-speed engines (Starting operations in 2008) Wärtsilä CME Zhenjiang Propeller Co., Ltd -Manufacturing of fixed pitch propellers (Investments in additional capacity) Wärtsi
Slide 11: Energy demand is growing
Energy demand is growing World energy demand 8 % 7 2002 1973 Enron, 9/11,.com 6 1st Oil Crisis Crisis 5 1997 4 Asia Crisis 3 2 1979 2nd Oil Crisis 1991 1 Financial Crisis 0 -1 -2 -3 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 Source: Clark
Slide 12: Leading power supplier on selected markets
Leading power supplier on selected markets Flexible baseload power generation • Installed base 21,1 GW, 1,529 power plants Grid stability and peaking • Installed base 4,2 GW, 446 power plants Industrial self-generation • Installed base 11,0 GW, 1,412 power plants Bio-energy • Installed base 20 MWe &
Slide 13: Power plants order intake 2006: 2.158 MW (2.075)
Power plants order intake 2006: 2.158 MW (2.075) Europe Asia 408 (308) 633 (889) 163 (104) 526 (705) America 245 (204) 407 (325) 108 (184) 170 (9) Africa and Middle East 710 (552) 237 (317) 373 (106) 337 (446) Wärtsilä has delivered a total of 4,200 power plants in 25 years 13 © Wärtsilä
Slide 14: High market shares on selected markets
High market shares on selected markets Rec. engines 16000 1,327 MW MW Wärtsilä 63.5% 14000 12000 10000 8% 8000 6000 Gas turbines 9,044 MW Market potential for 4000 Wärtsilä 23% 2000 34% 0 2006 HFO 1-60 MW LFO 3,5-60 MW GAS 3,5-60 MW Note I: Wärtsilä’s gas power plant target markets have changed sinc
Slide 15: Wärtsilä Services
Wärtsilä Services 15 © Wärtsilä
Slide 16: Global service network
Global service network 1000 3000 500 500 1500 1000 1000 Services – net sales ~40% Our service network consists of over 8,000 proffessionals in over 70 countries of total net sales 16 © Wärtsilä
Slide 17: Wärtsilä Services
Wärtsilä Services Engine Reconditioning Services Services Propeller Operation & Services Management Automation Training Services Services Ship Services 17 © Wärtsilä
Slide 18: Growth continued in the beginning of 2007
Growth continued in the beginning of 2007 Order intake 800 768.7 MEUR 700 645.6 19.1% 600 500 400 300 200 100 0 1-2/2006 1-2/2007 18 © Wärtsilä
Slide 19: Wärtsilä's prospects in 2007
Wärtsiläs prospects in 2007 • Demand in the ship power and energy markets will remain active for Wärtsilä for at least the first half of 2007. • 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
Slide 20: © Wärtsilä
20 © Wärtsilä
Slide 21: Proposal for Board of Directors
Proposal for Board of Directors Maarit Aarni-Sirviö, Born 1953. • M.Sc. (Tech), MBA. Vice President, Fenoli - Business unit, Borealis Group. Member of the Boards of Borealis Polymers Oy, Vattenfall AB and Rautaruukki Oyj. Heikki Allonen, Born 1954. • MSc (Eng.). President & CEO of Fiskars Corporatio
Slide 22: Proposal for Board of Directors
Proposal for Board of Directors Göran J. Ehrnrooth, Born 1934. • MSc (Econ). Member of the Board of Wärtsilä Corporation since 1992. Antti Lagerroos, Born 1945. • LL.Lic. President & CEO and Member of the Board of Finnlines Plc. Member of the Board of Wärtsilä Corporation since 2002. Member of the S
Slide 23: Proposal for Board of Directors
Proposal for Board of Directors Bertel Langenskiöld, Born 1950. • MSc (Eng.). President of Metso Paper, Inc. as of 4/2007. Member of the Board of Wärtsilä Corporation since 2002. Member of the Board of Luvata International Oy. Matti Vuoria, Born 1951. • BA, Master of Laws. President & CEO of Varma M
Slide 24: © Wärtsilä
24 © Wärtsilä
Slide 25: Voting
Voting The voting slips will be collected in the following order:
Slide 26: Voting slip
Voting slip 4 3 2 1 26 © Wärtsilä
Slide 27: © Wärtsilä
27 © Wärtsilä