Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Q3 2004 Earnings Presentation
18 slides from Wartsila Oyj Abp's earnings presentation, Oct 28, 2004
Slide 1: Wärtsilä Corporation Interim Report January-September 2004
Wärtsilä Corporation Interim Report January-September 2004 Ole Johansson, President & CEO 28 October 2004 © Wärtsilä
Slide 2: Highlights of the third quarter
Highlights of the third quarter Order intake grew 7,7 %, order book on good level Power Businesses result improved clearly during Q3, the operating margin was 6,1% New engine Wärtsilä 46F was introduced to the market Restucturing of engine manufacturing proceeds as planned © Wärtsilä Q3/2004 present
Slide 3: Extraordinary General Meeting 1 December 2004
Extraordinary General Meeting 1 December 2004 Proposals of The Board of Directors: Extra dividend 1 euro/share Bonus issue: Two A-shares entitles one new A-share Two B-shares entitles one new B-share © Wärtsilä Q3/2004 presentation 3
Slide 4: Wärtsilä Group
Wärtsilä Group MEUR Q3/2004 Q3/2003 Net sales 559.0 608.7 Operational EBITA¹ 40.0 32.8 Operating income 33.4 26.1 Profit before taxes 31.7 19.3 EPS, EUR 0.29 0.27 ¹EBITA is the operating profit before amortization of goodwill on consolidation. MEUR 1-9/2004 1-9/2003 2003 Net sales 1,662.0 1,635.4 2,
Slide 5: Cash flow
Cash flow MEUR 1-9/2004 1-9/2003 2003 Cash flow from operating activities 89.6 62.6 192.1 Cash flow from investing activities 106.9 -13.0 -22.2 Cash flow from financing activities -202.5 -126.3 -205.8 Liquid funds at the end of period 144.0 109.1 150.0 © Wärtsilä Q3/2004 presentation 5
Slide 6: Solvency and gearing
Solvency and gearing Solvency Gearing 50 1 45 0,9 40 0,8 35 0,7 30 0,6 25 0,5 20 0,4 15 0,3 10 0,2 5 0,1 0 0 99 00 01 02 03 Q3/04 99 00 01 02 03 Q3/04 Solvency 1 Gearing 1 Convertible subordinated debentures treated as equity © Wärtsilä Q3/2004 presentation 6
Slide 7: Power Businesses
Power Businesses MEUR Q3/2004 Q3/2003 Change% Net sales 505.1 568.4 -11.1% EBIT 30.9 26.9 14.7% % net sales 6.1% 4.7% Order intake 598.4 555.8 7.7% MEUR 1-9/2004 1-9/2003 Change% 2003 Net sales 1,485.4 1,484.9 0.0% 2,155.8 EBIT 43.3 49.2 -12.0% -35.01 % net sales 2.9% 3.3% 4.4% Order intake 2,075.4
Slide 8: Power Businesses – Key figures
Power Businesses – Key figures MEUR Net sales Order intake Order book 600 568.4 700 2000 1,870.3 505.1 598.4 1800 500 600 555.8 1600 1,405.1 +4.4% 500 1400 1,245.0 +7.9% 400 +14.8% 1200 400 300 1000 +74.7% -6.3% 300 -13.8% 800 200 200 600 -32.6% 400 +14.9% 100 +29.4% 100 200 0 0 0 Q3/03 Q3/04 Q3/03
Slide 9: Delivered engine megawatts from Wärtsilä factories
Delivered engine megawatts from Wärtsilä factories MW 5 000 4 000 3 000 2 000 1 000 0 1999 2000 2001 2002 2003 1-9/2004 Power Plants Ship Power © Wärtsilä Q3/2004 presentation 9
Slide 10: Ship Power
Ship Power MEUR Q3/2004 Q3/2003 Change 2003 Net sales 131.0 194.4 -32.6% 686.1 Order intake 165.0 127.5 29.4% 626.4 Order book, end of period 736.0 640.5 14.9% 606.8 Power Businesses net sales Q3/2004 EUR 505.1 million. Ship Power 25.9 % © Wärtsilä Q3/2004 presentation 10
Slide 11: Vessel orders
Vessel orders Tankers Bulk carriers Containers Others 3 months moving average 12 10 8 Volume [ million DWT ] 6 4 2 0 12-99 03-00 06-00 09-00 12-00 03-01 06-01 09-01 12-01 03-02 06-02 09-02 12-02 03-03 06-03 09-03 12-03 03-04 06-04 09-04 Source: Based on data from Clarkson Research Studies Note: Carg
Slide 12: Net sales of Ship Power by vessel type
Net sales of Ship Power by vessel type 800 600 400 200 0 1999 2000 2001 2002 2003 1-9 2004 Tankers Bulk carriers Container ships Others W ärtsilä Propulsion © Wärtsilä Q3/2004 presentation 12
Slide 13: Service
Service Q3/2004 Q3/2003 Change% 2003 Net sales, MEUR 228.3 218.7 4.4% 885.5 Personnel, end of period 6,303 5,938 6.1% 5,993 Long-term service agreements, MW 9,611 9,780 -1.7% 9,629 O&M (operation and maintenance agreements), MW 2,596 2,215 17.2% 2,289 Power Businesses net sales Q3/2004 EUR 505.1 mil
Slide 14: Long-term service and O&M agreements
Long-term service and O&M agreements Active engine base 130,000 MW. Long-term service and O&M agreements cover 12,000 MW. MW MW 2500 10000 2250 9500 2000 9000 Long-term service agreements 1750 8500 O&M agreements 1500 8000 1250 7500 1000 7000 2000 2001 2002 2003 1-9/2004 © Wärtsilä Q3/2004 presentat
Slide 15: Power Plants
Power Plants MEUR Q3/2004 Q3/2003 Change 2003 Net sales 144.0 153.7 -6.3% 577.5 Order intake 175.6 203.7 -13.8% 639.3 Order intake, MW heavy fuel oil, MW 337 484 -30.2% 1,249 gas, MW 157 75 109.2% 219 BioPower, MWth 31 0 133 Order book, end of period 808.7 462.9 74.7% 357.2 Power Businesses net sale
Slide 16: Power plant order intake 1-9/2004: 1,854 MW
Power plant order intake 1-9/2004: 1,854 MW (1,175)* Europe Asia 273 403 (187) (262) 248 25 137 (93) (94) (35) 266 Americas (227) 144 (320) 112 Africa and Middle East (311) 1034 32 (407) (9) 25 1009 (MW) (21) (385) Gas Oil *In brackets order intake for 1-9/2003 © Wärtsilä Q3/2004 presentation 16
Slide 17: Imatra Steel
Imatra Steel MEUR Q3/2004 Q3/2003 Change Net sales 54.2 40.6 33.5% Operating income 2.5 -0.8 % of net sales 4.7% -2.1% MEUR 1-9/2004 1-9/2003 Change 2003 Net sales 177.3 151.1 17.3% 202.7 Operating income 11.0 -1.9 0.7 % net sales 6.2% -1.3% 0.3% Imatra Steel’s net sales by market Net sales grew due
Slide 18: Outlook for the rest of the year 2004
Outlook for the rest of the year 2004 Power Businesses Full-year forecast unchanged i.e. net sales will grow and profitability will improve slightly. The uncertain political situation in Iraq is a risk factor. The EUR 130 million restructuring provision is confirmed sufficient. Imatra Steel Net sale