Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — Q3 2006 Earnings Presentation

26 slides from Wartsila Oyj Abp's earnings presentation, Oct 31, 2006

  1. Slide 1: Interim Report January-September 2006

    Wärtsilä Corporation Interim Report January-September 2006 Ole Johansson, President & CEO 31 October 2006 © Wärtsilä

  2. Slide 2: Highlights Q3/2006

    Highlights Q3/2006 Strong order intake continued (+25%) Net sales +26% Operating income +29% Strong cash flow Strong balance sheet enables extraordinary dividend © Wärtsilä 2

  3. Slide 3: Key figures

    Key figures Net sales by business Q3/2006 Ship Power Power Plants 24.0% (26.0) 35.8% (29.0) MEUR Q3/06 Q3/05 2005 Net sales 766.8 607.8 2,520.3 Operating income 56.3 43.5 202.5 Income before taxes 61.4 36.9 212.4 Earnings/share, EUR 0.44 0.32 1.80 Services 40.7% (45.0) © Wärtsilä 3

  4. Slide 4: Key figures

    Key figures MEUR Net sales Order intake Order book 4,108.2 900 1200 4000 1,090.0 3.7% 800 766.8 3600 1000 3200 700 870.8 13.4% 2,905.7 607.8 2800 600 14.1% 800 2,544.7 2400 24.8% 500 600 22.2% 2000 400 55.4% 1600 300 400 93.9% 1200 35.5% 200 800 16.4% 200 100 400 0 0 0 Q3/05 Q3/06 Q3/05 Q3/06 31.12.

  5. Slide 5: Order book distribution

    Order book distribution MEUR 2000 1800 1600 1400 1200 Delivery current year 1000 Delivery next year Delivery next year + 800 600 400 200 0 30.9.2005 30.9.2006 © Wärtsilä 5

  6. Slide 6: Delivered engine megawatts from own factories

    Delivered engine megawatts from own factories MW 4 500 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 2001 2002 2003 2004 2005 1-9/2006 Power Plants Ship Power Full-year estimate © Wärtsilä 6

  7. Slide 7: Cash flow

    Cash flow MEUR 1-9/2006 1-9/2005 2005 Cash flow from operating activities 172.0 14.0 76.0 Cash flow from investing activities 29.0 -179.5 -178.3 Cash flow from financing activities -173.9 125.1 47.6 Cash and cash equivalents at end of period 142.6 133.2 119.6 © Wärtsilä 7

  8. Slide 8: Solvency and gearing

    Solvency and gearing % 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 02 03 04 05 1-9/06 02 03 04 05 1-9/06 NOTE: 2002-2003 according to FAS, 2004- IFRS Convertible subordinated debentures treated as equity © Wärtsilä 8

  9. Slide 9: Business review

    Business review © © wansis WARTSILA

  10. Slide 10: Vessel orders, # of vessels

    Vessel orders, # of vessels Tankers Bulk carriers Containers Others 3 months moving average dwt 300 16 14 250 12 200 Volume [million DWT] 10 # of vessels 150 8 6 100 4 50 2 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 Source: Based on data from Clarks

  11. Slide 11: Vessel orders - other vessels, # of vessels

    Vessel orders - other vessels, # of 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 01-05 04-05 07-05 1

  12. Slide 12: Net sales of Ship Power by vessel type

    Net sales of Ship Power by vessel type 800 Tankers 11% Cruise & Ferry Bulk carriers 15% 600 4% General cargo Container ships 10% 14% LNG 400 3% Special vessels & other Offshore 16% 200 27% 0 2002 2003 2004 2005 1-9/2006 Tankers Bulk carriers Container ships Others © Wärtsilä 12

  13. Slide 13: Wärtsilä Ship Power

    Wärtsilä Ship Power MEUR Q3/06 Q3/05 Change Ship Power net sales Net sales 183.8 158.0 16.4% Order intake 490.0 361.5 35.5% Order book* 2,800.7 1,444.5 93.9% 24.0% Strong order intake continued Offshore segment dominant LNG, cruise & tankers also active of total net sales * End of period © Wärtsilä

  14. Slide 14: The market position of Wärtsilä's marine engines Q3/2006

    The market position of Wärtsilä’s marine engines Q3/2006 Own production Production by licensees Own production Medium-speed main engines Low-speed main engines Medium-speed auxiliary engines Wärtsilä 50% (48) Wärtsilä 17% (21) Wärtsilä 7% (9) Comp. 3 4%(3) Others Comp. 2 13%(14) 23%(24) Comp. 1 Othe

  15. Slide 15: Wärtsilä Services

    Wärtsilä Services MEUR Q3/06 Q3/05 Change Services net sales Net sales 312.0 273.4 14.1% Personnel* 8 387 6 937 20.9% 8 new O&M agreements 40.7% signed in among others India and Brazil Growth 17.7% 1-9/2006, organic growth 11.8% of total net sales * End of period © Wärtsilä 15

  16. Slide 16: Services

    Services % Service s grow th pe r Q Se rvice s sha re of sa le s % 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 © Wärtsilä 16

  17. Slide 17: Target markets per fuel 2002-2006

    Target markets per fuel 2002-2006 MW 18000 15000 12000 Wärtsilä’s 9000 market share 8.1% (7.8) 6000 23.0% (8.7) 3000 33.8% (44.2) 0 2002 2003 2004 2005 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 since Wärtsilä stopped manufacturing and

  18. Slide 18: Gas power plant market

    Gas power plant market MW 18000 15000 Rec.engines 1,327 MW 12000 Wärtsilä 63.5% Wärtsilä Gas turbines 9000 8.1% (7.8) 9,044 MW Market potential 6000 for Wärtsilä 3000 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 since Wärtsilä stopped

  19. Slide 19: Power Plants order intake by segment

    Power Plants order intake by segment Order intake by segment, MEUR Order intake by segment, MW 1200 2500 1000 2000 800 1500 600 1000 400 500 200 0 0 2004 2005 1-9/2006 2004 2005 1-9/2006 Industrial self generation Grid base load Industrial self generation Grid base load Ancilliary services Ancilliar

  20. Slide 20: Power Plants - order intake 1-9/2006: 1511 MW (1223)

    Power Plants - order intake 1-9/2006: 1511 MW (1223) Europe Asia 239 249 (113) (574) 63 176 159 90 (104) (9) (395) (180) Americas 399 (295) 170 229 Africa and Middle East (9) (286) 624 (241) 315 309 (72) (169) Gas Oil © Wärtsilä 20

  21. Slide 21: Wärtsilä Power Plants

    Wärtsilä Power Plants MEUR Q3/06 Q3/05 Change Power Plants net sales Net sales 274.2 176.4 55.4% Order intake 335.0 274.0 22.2% Order book* 966.5 774.6 24.8% 35.8% High activity in both oil & gas power plants Gas power plants order intake was strong Largest orders from Tanzania, of total net sales U

  22. Slide 22: Wärtsilä's holdings

    Wärtsilä’s holdings Wärtsilä owns 2.0% (4.7) of Assa Abloy shares The holding’s market value EUR 106.7 million (30 September 2006) Wärtsilä’s holding in Oy Ovako Ab 26.5% during review period Balance sheet value of the holding EUR 126.6 million Wärtsilä has recorded EUR 18.1 million as associated co

  23. Slide 23: Wärtsilä's holdings

    Wärtsilä’s holdings In July Wärtsilä, SKF and Rautaruukki signed an agreement to sell the operating companies owned by Oy Ovako Ab. The transaction is subject to regulatory approvals and expected to close in Q4/06. Tax-free capital gain of approx. EUR 49 million at closing. Cash flow implications Ca

  24. Slide 24: Market outlook 2006

    Market outlook 2006 Ship Power High activity continues in all energy related segments Power Plants High ordering activity in both oil & gas fueled power plants expected to continue Demand distributed geographically evenly © Wärtsilä 24

  25. Slide 25: Wärtsilä's prospects in 2006 and 2007

    Wärtsilä’s prospects in 2006 and 2007 Forecast for 2006 Demand in the ship power and energy markets looks likely to remain favorable for Wärtsilä for at least the following six months. Based on the strong order book Wärtsilä’s net sales are expected to grow this year over 20%. The profitability leve

  26. Slide 26: Thank you!

    Thank you! © Wärtsilä 26

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