Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Presentation (2007)
24 slides from Wartsila Oyj Abp's investor presentation, Oct 22, 2007
Slide 1: Wärtsilä in China
Wartsila in China re WARTSIL
Slide 2: Strategy
Strategy Ship Power solutions Power Plant solutions Growth through new Stronger position in products and increasing decentralized presence in Asia energy
Slide 3: Offering: We are in business to power your business
Offering We are in business to power your business Ship OEM services Power services Plants Engines Propulsors Ship Power systems O&M Competitors’ engines
Slide 4: Offering: seeking growth beyond the organic growth
Offering …and we are seeking growth beyond the organic growth Non-engine related services Ship OEM services Power services Plants Additional Engines products Propulsors Ship Power systems O&M Competitors’ engines Additional engine brands
Slide 5: Wärtsilä's worldwide network
Wärtsilä’s worldwide network Wärtsilä is close to its customers through subsidiaries in close to 70 countries.
Slide 6: The Chinese markets
The Chinese markets re WARTSIL
Slide 7: Key Points in China's Trade Development
What “Stages” Four happened?in Development Key Points in China's Trade 2006 China GDP up 10.7%, total 20.94 trillion (CNY). 650 Mt Sea Exports GDP increased: 600 4. Investment overheating? 2000 – 8.4% Sea Imports 2001 – 8.3% 550 2002 – 9.1% 500 2003 – 10% 2004 – 10.1% 450 3. Asia Crisis setback 2005
Slide 8: Highly Focused Imports & Exports
Highly Focused Imports & Exports in 2006, 60% of China’s imports in 2006 China’s exports were 441 Mt was in two commodities: – 18% increase compared to 2005 iron ore (40%) big increase was in steel (up 84%) oil (21%) and cement (up 63%) coal exports declined Source: Clarkson Research Studies
Slide 9: Chinese Energy Consumption
Chinese Energy Consumption China mainly relies on coal – 1.4 billion tons consumed in 2006 40% in power stations 14% in steel industry 46% cement, chemicals etc. oil consumption growing at about 7% per annum Source: Clarkson Research Studies
Slide 10: World Steel Production
World Steel Production China produced 36 m tons of steel in December 2006 with an output of 421.9 Mt in 2006 the rate of growth will most likely slow in 2007 as the government’s attempts to slow investment seem to be working Source: Clarkson Research Studies
Slide 11: The Chinese shipbuilding market is growing fast
The chinese shipbuildingmarket is growing fast Vessel orders 2000 Vessel orders 2004 Vessel orders 2006 67,595,039 dwt 104,940,490 dwt 141,589,105 dwt Others 3% Others 5% Others 5% Europe 9% Europe 8% Europe 3% China 6% Korea 48% China 17% Korea 32% China 35% Korea 38% Japan 34% Japan 38% Japan 19%
Slide 12: The Main Shipyards in China
The Main Shipyards in China Shipyards of CSIC Shipyards of CSSC Others Bohai Shipyard Dalian New Shipyard Shanhaiguan Shipyard Dalian Shipyard Jiangdu Shipyard Beihai Shipyard Jiangyang Shipyard Yangzijiang Shipyard Jiangnan Shipyard New Century Shipyard Chengxi Shipyard Zhenjiang Shipyard Nantong S
Slide 13: China Shipyards
China Shipyards China Shipyards China North Region Green = JV (13) Beijing 6 Red = CSIC (9) 32 Purple = CSSC (10) 39 Tianjin Blue = Local (86) 81Dalian 16 38 1 59 28 45 24 Yellow River Qingdao 27 79 Over 100 “export” yards. 20 yards for 25 48 29 vessels > 100,000 dwt. We have contact details for a f
Slide 14: China Shipbuilding expanding
China Shipbuilding expanding China Orders & Deliveries 19 In 1982 China shipbuilding 18 output was only 0.36 million 17 Forecast DWT 16 Deliveries 15 In 1997 exceeded 2 million 14 Orders DWT 13 Million CGT Deliveries 12 In 2001 China produced 1.1 11 million CGT, about the same 10 as total of previou
Slide 15: Expansion Plans
Shipbuilding expansion plan Expansion Plans Bohai Rim 2003: 1.8m dwt 7m dwt + in 2013 The State Council approved Mid-Long Term Shipbuilding Plan on 16.08.2006 Beijing Dalian Target up to 2010: Yellow River Shipbuilding bases CSSC: Waigaoqiao, Chang Xing, Long Xue Qingdao CSIC: Haixingwan, Dalian, Bo
Slide 16: Main Ship Owners in China
Main Ship Owners in China COSCO CNOOC COSCO Dalian CCM CSSC Dalian Marine Transport CSIC Sinotrans Holding COSCO Bulk Carrier Co, Tianjin Tianjin Waterway Bureau Yantai Salvage Bureau CSG COSCO Qingdao COSCO Container Lines Shanghai Salvage Bureau Shanghai Waterway Bureau Chinese Polish COSCO Xiamen
Slide 17: Wärtsilä China Strategy
Wärtsilä China Strategy •Move with markets – Joint venture: Propeller manufacturing company in Zhenjiang – Transverse thrusters factory in Wuxi – Joint venture: Auxiliary generating set production Shanghai – Joint venture: Cosco-Shipyard Total Automation Co Ltd., Nantong (part of Total automation ac
Slide 18: Wärtsilä in China
Wärtsilä in China Wärtsilä sites Sulzer 2-Stroke Engines Licensees WCN Dalian Rep. Office Dalian Marine Diesel (DMD) WCN Beijing Rep. Office Wärtsilä CME Zhenjiang Propeller Co., Ltd. Wärtsilä China Ltd. (Shanghai) Yichang Marine Diesel (YMD) Wärtsilä Qiyao Diesel Shanghai Co., Ltd. Wärtsilä Propuls
Slide 19: Wärtsilä in China - growing presence
Wärtsilä in China - growing presence 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) Wärtsilä Propulsi
Slide 20: Wärtsilä Qiyao Diesel Company Ltd. (Shanghai)
WARTSILA QIYAO DIESEL COMPANY LTD. (SHANGHAI) • Inaugurated June 2006 • 50/50 Joint Venture with Shanghai Marine Diesel Engine Research Institute • Number of employees 52 • Products: Auxpac W20 Gensets (450-1740 kW)
Slide 21: Wärtsilä-CME Zhenjiang Propeller Co., Ltd.
Wärtsilä-CME Zhenjiang Propeller Co., Ltd. • Established Q2 2004 • 55/45 Joint Venture with CME (subsidiary of CSSC) • Number of employees 358 • Products: Fixed Pitch Propellers • New factory, extending the capacity up to 4000 tons
Slide 22: Wärtsilä Propulsion (Wuxi) Co. Ltd.
Wärtsilä Propulsion (Wuxi) Co. Ltd. • Inaugurated 30.06.2005 • 100% owned by Wärtsilä Propulsion United B.V. • Number of employees 73 • Products: TT, LCT, S&B • Major investments currently ongoing (capitalization 2007) – New factory hall for LCT production – New factory hall for Seals & Bearings pro
Slide 23: 2-stroke manufacturing in China
2-stroke manufacturing in China Qingdao Qiyao Wärtsilä MHI Linshan Marine Diesel Co Ltd (QMD) Low-speed engines Ownership 50% CSIC Wärtsilä 15% 27% Wärtsilä 23% Mitsubishi Scope of activities R&D Manufacture, assembly, Others testing 90% Sales & Service Others 85% Products Full range of large marine
Slide 24: Wärtsilä Services in China
Wärtsilä Services in China Shanghai Hong Kong Panyu Established date: Jan 15 2007 Established date: July 2004. Established date: 1994 Location: Tangzhen Shanghai Location: HUD Location: Panyu Guangdong Field service personnel to provide Keep good access to the Port and to Field service covering sout