Slide 1: Wärtsilä Corporation Interim Report January-June 2007
WÄRTSILÄ CORPORATION INTERIM REPORT JANUARY-JUNE 2007 OLE JOHANSSON, PRESIDENT & CEO 3 AUGUST 2007 1 © Wärtsilä
Slide 2: Highlights
Highlights MEUR Q2/07 Q2/06 1-6/07 1-6/06 2006 Order intake 1 369 1 190 2 526 2 214 4 621 Order book 5 460 3 772 4 439 Net sales 797 845 1 558 1 437 3 190 Operating result 73 70 136 106 262 % of net sales 9.2 8.3 8.8 7.4 8.2 Profit before taxes 72 204¹ 132 244² 447³ Earnings/share, EUR 0.54 1.60¹ 0.
Slide 3: Market development - Ship Power: Vessel orders
Market development - Ship Power Vessel orders Tankers Bulk carriers Containers Others 3 months moving average dwt 450 25 400 350 20 Volume [million DWT] 300 15 # of vessels 250 200 10 150 100 5 50 0 0 01-03 04-03 07-03 10-03 01-04 04-04 07-04 10-04 01-05 04-05 07-05 10-05 01-06 04-06 07-06 10-06 01-
Slide 4: Market development - Ship Power: Vessel orders - other vessels
Market development - Ship Power Vessel orders - other vessels LNG carriers LPG carriers Reefers Other dry > 5,000 dwt Offshore & other Cruise vessels Ro-Ro ferries 3 months moving average dwt 2 125 Volume [million DWT] 100 # of vessels 75 1 50 25 0 0 01-03 04-03 07-03 10-03 01-04 04-04 07-04 10-04 0
Slide 5: Market development - Ship Power: Market position of marine engines
Market development - Ship Power Market position of Wärtsilä’s marine engines Q2/2007 Medium-speed main engines Low-speed main engines Auxiliary engines Others Comp. 3 Wärtsilä 11%(14) 3%(3) 5%(6) Wärtsilä 15%(14) Comp. 1 Wärtsilä 20%(15) 42%(46) Comp. 1 Others Comp. 2 82%(83) 95%(94) 27%(25) Total m
Slide 6: Market development - Power Plants
Market development - Power Plants • Markets continued to be globally active • The order intake for power plants running on renewable fuels continued actively • Demand for gas-fired power plants remained at a good level 6 © Wärtsilä
Slide 7: Market development - Power Plants: Order intake
Market development - Power Plants Order intake - Power Plants 1-6/07: 1,087 MW (853) Asia Europe 194 (158) 411 (159) 132 (84) 125 (54) 0 (84)* Americas 62 (74) 151 (221) 286 (21) 78 (0) 73 (221) Africa and Middle East 331 (315) 23 (145) 308 (170) Gas Oil * Renewable fuels 7 © Wärtsilä
Slide 8: Order intake continued strong
Order intake continued strong MEUR 5000 Second quarter development 4500 MEUR 1400 1 369 4000 15% 1 190 1200 3500 29% 1000 3000 800 2500 600 2% 2000 400 1500 200 34% 1000 0 Q2/2006 Q2/2007 500 0 2003 2004 2005 2006 1-6/2007 Total order intake 1-6 order intake Power Plants Ship Power Services 8 © Wärt
Slide 9: Order book - growth 45%
Order book - growth 45% MEUR 5500 5 460 5000 4500 45% 4000 3 772 10% 3500 3000 2500 47% 2000 1500 1000 53% 500 0 2003 2004 2005 2006 30.6.2006 30.6.2007 Total order book Power Plants Ship Power Services 9 © Wärtsilä
Slide 10: Order book distribution - good visibility 2008 and beyond
Order book distribution - good visibility 2008 and beyond MEUR 4000 3500 3000 2500 2000 1500 1000 500 0 30.6.2006 30.6.2007 Delivery current year Delivery next year + 10 © Wärtsilä
Slide 11: Net sales
Net sales MEUR 3500 3000 Second quarter development MEUR 1000 845 -6% 2500 797 800 23% 2000 600 400 24% 1500 200 -62% 1000 0 Q2/2006 Q2/2007 500 0 2003 2004 2005 2006 1-6/2007 Total net sales 1-6 net sales Power Plants Ship Power Services 11 © Wärtsilä
Slide 12: Net sales by business 1-6/2007
Net sales by business 1-6/2007 Ship Power Power Plants 36% (29) 17% (35) Services 47% (36) 12 © Wärtsilä
Slide 13: Net sales 1-6/2007 - Ship Power
Net sales 1-6/2007 - Ship Power MEUR Tankers Cruise 1000 14% & Ferry 900 15% Bulk carriers 800 2% General 700 cargo 600 7% Container 500 ships 400 15% LNG 11% 300 Special vessels 200 & other 100 9% Offshore 0 26% 2003 2004 2005 2006 1-6/2007 Others Tankers Bulk carriers Container ships 13 © Wärtsilä
Slide 14: Net sales 1-6/2007 - Power Plants
Net sales 1-6/2007 - Power Plants MEUR Others 5% 1000 900 800 Industrial Self- 700 Generation 36% 600 Flexible Baseload 500 Power Generation 400 59% 300 200 100 0 2003 2004 2005 2006 1-6/2007 14 © Wärtsilä
Slide 15: Net sales 1-6/2007 - Services
Net sales 1-6/2007 - Services MEUR 1400 1200 • Engine Services 1000 • Operation & Management Services • Automation Services 800 • Propulsion Services 600 • Ship Services • Reconditioning Services 400 • Training Services 200 0 2003 2004 2005 2006 1-6/2007 15 © Wärtsilä
Slide 16: Wärtsilä Services - accelerating growth
Wärtsilä Services - accelerating growth 30 60 % % 25 50 20 40 15 30 10 20 5 10 0 0 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Services growth per Q Services share of sales 16 © Wärtsilä
Slide 17: Delivered engine megawatts from own factories
Delivered engine megawatts from own factories MW 5500 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2001 2002 2003 2004 2005 2006 1-6/2007 Ship Power Power Plants Full-year estimate 17 © Wärtsilä
Slide 18: Cash flow
Cash flow MEUR 1-6/07 1-6/06 2006 Cash flow from operating activities 129 49 302 Cash flow from investing activities -99 55 148 Cash flow from financing activities -76 -82 -387 Liquid funds at the end of period 133 137 179 18 © Wärtsilä
Slide 19: Financial position
Financial position Solvency Gearing 50 0,6 % 45 0,5 40 35 0,4 30 25 0,3 20 0,2 15 10 0,1 5 0 0,0 2003 2004 2005 2006 1-6/2007 2003 2004 2005 2006 1-6/2007 NOTE: 2003 according to FAS, 2004- IFRS Convertible subordinated debentures treated as equity 19 © Wärtsilä
Slide 20: Wärtsilä's prospects for 2007
Wärtsilä’s prospects for 2007 • Demand in the ship power and energy markets looks likely to remain active for Wärtsilä for the next two quarters. • Based on the strong order book, Wärtsilä’s net sales are expected to grow this year by around 15%. • Profitability will exceed 9%. • Wärtsilä’s profitab
Slide 21: Presentation name / Author
Presentation name / Author