Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (March 2015)
34 slides from Wartsila Oyj Abp's investor day presentation, Mar 25, 2015
Slide 1: Services: A Glance into the Future – Growth and Digitalisation
SERVICES: A GLANCE INTO THE FUTURE GROWTH AND DIGITALISATION Pierpaolo Barbone, President Services & Executive Vice President 1 © Wärtsilä 25 March, 2015 Pierpaolo Barbone
Slide 2: Services in a nutshell
Services in a nutshell In one year: 115,000 deliveries, 117,000 16,300,000 kg We serve constituting more than unique of parts, with a total 900,000 line items, packed materials volume of 46,700 m3 12,000 in 134,000 packages stored customers 66,700 Around 106,000 We maintain ...One promise to the exp
Slide 3: We operate in two strategic markets
We operate in two strategic markets Marine & Power Plants Oil & Gas Demand drivers: Demand drivers • Focus on efficiency of operations • Solid demand for energy • Strong demand for power generation in • Pressure to keep production up developing countries Growth through: Growth through: • Capturing f
Slide 4: Changing competitive landscape requires adapting the way we operate
Changing competitive landscape requires adapting the way we operate OEM • Increasing our market share through superior customer service, Total service Technology / providers spare improved quality and products that part manu- offer clear customer benefits facturers • Changes in customer behaviour an
Slide 5: Managing the lifecycle of our installations
Managing the lifecycle of our installations New products Mature products Maturity Maintain Decline Growth Phase-out Sales volume Introduction Development Introduce Focus Support Maintain Knowledge Implementation Responsive & Solutions & Lifetime Controlled transfer from of new technical preventive s
Slide 6: Managing the lifecycle: A closer look at our business
Managing the lifecycle: A closer look at our business 4-stroke sales distribution by age of installation 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0-4 5-9 10-14 15-19 20-24 25-30 Age of installation Spare parts Field service Contracts Projects We manage long relationships with our customers 6 © Wä
Slide 7: Understanding our 181 GW engine installed base
Understanding our 181 GW engine installed base Wärtsilä’s engine installed base Engine installed base: MW distribution by commissioning year 38% 36% 26% <85 85-87 88-90 91-93 94-96 97-99 00-02 03-05 06-08 09-11 12-15 4-st marine 4-st power 2-st* marine * 2-stroke now Winterthur Gas and Diesel Ltd. (
Slide 8: Business per industry segment and region
Business per industry segment and region Net sales split 2014 15% 23% 27% 38% 12% 20% 25% 25% 15% Power Offshore Merchant Cruise & Ferry Middle-East and Asia Americas Special Vessels & Navy Northern Europe Southern Europe and Africa 8 © Wärtsilä 25 March, 2015 Pierpaolo Barbone
Slide 9: We are where our customers need us to be
We are where our customers need us to be 11,000 service professionals in 70 countries, 160 locations… Marine installed base by operating country Power installed base by operating country Service locations 9 © Wärtsilä 25 March, 2015 Pierpaolo Barbone
Slide 10: A solid business in a challenging environment
A solid business in a challenging environment Net sales development MEUR 2500 2000 1500 1000 500 0 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 10 © Wärtsilä 25 March, 2015 Pierpaolo Barbone
Slide 11: The only way forward is growth
The only way forward is growth We will grow by • Doing more business with existing customers • Exploring opportunities within Customer first Go digital new customer segments by leveraging current competences • Acquiring businesses in Asset & lifecycle growing markets management New customer access 1
Slide 12: Customer focus is key
Customer focus is key Customer first We will nourish our partnerships with the existing customer base by focusing on improved: • Time to quote • Delivery accuracy • Quality of field service Access to new customers We will seek to grow our customer base organically and through acquisitions by leverag
Slide 13: Asset & lifecycle management
Asset & lifecycle management We will continue to develop and commercialise our portfolio of value-adding services: • Asset performance management agreements • Retrofits • Upgrading of installed base Focus areas for agreements: • Marine: LNG carriers, cruise • Oil and gas: offshore drilling and produ
Slide 14: Wärtsilä's service agreement types
Wärtsilä’s service agreement types Asset Management Maintenance Agreements Full responsibility for operations & maintenance • Responsibility for maintenance • Lifecycle cost guarantee • Financial predictability • Risk management • Ensured performance • Performance guarantee • World class technical e
Slide 15: Installed base under agreements
Installed base under agreements North Europe 2,956 MW 224 MW Americas Middle East & Asia 2,693 MW 3,435 MW 437 MW 5,093 MW South Europe & Africa 1,878 MW 4,282 MW Marine 7,964 MW Plants 13,035 MW Total 20,999 MW 15 © Wärtsilä 25 March, 2015 Pierpaolo Barbone
Slide 16: Digitalisation
Digitalisation 16 © Wärtsilä 25 March, 2015 Pierpaolo Barbone
Slide 17: The third industrial revolution
The third industrial revolution • The effects of digitalisation are expected to be so big that it is often referred to as the third industrial revolution. • Wärtsilä is part of this transformation, and invests in developing new solutions and services that create value for our customers and enable us
Slide 18: Megatrends that drive digitalisation
Megatrends that drive digitalisation Growing Universal amount connectivity of data Growing Globalisation focus on the of value chains environment Intelligent Exploratory solutions and analytics and services visualisation 18 © Wärtsilä 25 March, 2015 Pierpaolo Barbone
Slide 19: Digital transformation
Digital transformation Technology New business models Digitalisation is driven by Digitalisation is changing customer technological developments and the value creation, as new business changes they enable. models become available. User experience Human behaviour Growing user expectations create Ulti
Slide 20: Digitalisation in industrial services
Digitalisation in industrial services • Through partnerships with common business goals, digitalisation can help our customers’ business top line growth. • New opportunities emerge at all stages from design to operations support, creating new business models and making old ones more efficient. • Dig
Slide 21: Creating customer value through digitalised services
Creating customer value through digitalised services Productivity Availability Reliability Predictability Efficiency Safety Improving customers’ business top line with a co-growth approach Customer value creation is a partnership in which digital technology and analytical skills of human experts are
Slide 22: Wärtsilä's focus areas for digital value creation
Wärtsilä’s focus areas for digital value creation 1. 2. 3. 4. 5. Customer Intelligent Digital Virtual Asset engagement engines and maintenance concepts performance components services optimisation 22 © Wärtsilä 25 March, 2015 Pierpaolo Barbone
Slide 23: Customer engagement
Customer engagement • Digitalisation enables new forms of customer engagement. • Increasingly sophisticated digital services offer value and empowerment. • User experience is expected to be seamless and intuitive. 23 © Wärtsilä 25 March, 2015 Pierpaolo Barbone
Slide 24: Roadmap for customer engagement
Roadmap for customer engagement Today Future (2016-2018) • Wärtsilä Online Services with • Condition based maintenance results all customer asset information visible to create online dynamic maintenance the customer through the internet schedules for customers. platform. • Remote centres available f
Slide 25: Intelligent engines and components
Intelligent engines and components • Breakthrough innovations emerge from exploiting intelligent technologies. • Key components will be equipped with track and trace features enabling them to alert when issues arise. • In intelligent engines, components communicate with each other and self-optimise
Slide 26: Roadmap for intelligent engines and components
Roadmap for intelligent engines and components Today Future (2016-2018) • R&D projects ongoing to test ”black • New ecosystem with suppliers in place. box” data collection from engines. Smart or intelligent components • Testing of part identification tags. embedded, enabling remote identification of
Slide 27: Digital maintenance services
Digital maintenance services • Interactive and real-time data helps secure and optimise the operation of power plants and vessels. • Utilising this data can help predict maintenance and competence needs well in advance, enabling better planning. • Transparency of real-time data from order to invoici
Slide 28: Roadmap for digital maintenance services
Roadmap for digital maintenance services Today Future (2015-2017) • Reports available through • Digital and mobile concepts and tools, Wärtsilä Online Services. like virtual engineering, make • Global planning board available for interaction with customers transparent Wärtsilä’s use through global s
Slide 29: Virtual concepts
Virtual concepts Solutions based on 3D design can offer new ways to benefit from real-time information and knowledge to: • Enhance technical assistance • Support maintenance and servicing • Enable new types of virtual training concepts from video training to holograms and augmented reality. • Increa
Slide 30: Roadmap for virtual concepts
Roadmap for virtual concepts Today Future (2016-2017) • Augmented reality and holograms in • Holograms and augmented reality are test use. used for training and supporting • Deployment of remote training customers remotely. concepts. • Live direct or indirect view of physical • 3D design exists for
Slide 31: Asset performance optimisation
Asset performance optimisation • Focus shifting from maintenance and servicing to more comprehensive optimisation of customer business. • Wärtsilä’s asset performance optimisation concepts are designed to optimise e.g. an installation’s energy efficiency, or even the management of an entire fleet. •
Slide 32: Roadmap for asset performance optimisation
Roadmap for asset performance optimisation Today Future (2015-2016) • Condition monitoring and manual • Fleet management information dynamic maintenance planning available in Wärtsilä’s online services available for engines and propulsion. portal. • Predictive services • Asset performance optimisati
Slide 33: Executive summary
Executive summary • Changing competitive landscape and customer expectations creates a need to adapt our operating models • We will seek business growth within our installed base and explore opportunities in new markets where we can leverage our existing competences • Our focus is on strengthening o
Slide 34: Thank You
Thank You www.wartsila.com 34 © Wärtsilä 25 March, 2015 Pierpaolo Barbone