Slide 1: Wärtsilä Corporation 2003
Wärtsilä Corporation 2003 Ole Johansson, President and CEO 5 February 2004 © Wärtsilä
Slide 2: Wärtsilä operates in two markets
Wärtsilä operates in two markets Ship Power Service Power Plants Wärtsilä is The Ship Power Supplier for builders, owners and operators of vessels and offshore installations. We are the only company with a global service network to take complete care of customers’ ship machinery at every lifecycle s
Slide 3: Highlights of the year 2003
Highlights of the year 2003 Ship power systems and service defined as Wärtsilä’s growth area. In power plants business, focus on fewer products Operational profitability improved significantly Manufacturing of propellers and ship engines to be started the growing shipbuilding market in China
Slide 4: Engine production capacity MW 1997 - 2004
Engine production capacity MW 1997 - 2004 6,000 5,000 Current capacity 4,000 Power Plants MW 3,000 Ship Power 2,000 1,000 0 1997 1998 1999 2000 2001 2002 2003 Indication 2004 Result 2003 / 04SER008 © Wärtsilä 4
Slide 5: Medium speed engine production
Medium speed engine production Trollhättan Vaasa Zwolle Mantes Turku Trieste Mulhouse Result 2003 / 04SER008 © Wärtsilä 5
Slide 6: Power divisions' personnel development 2000 - 2005
Power divisions’ personnel development 2000 - 2005 12,000 Service growth 10,000 8,000 Service Engine Division Power Plants 6,000 Propulsion Ship Power 4,000 2,000 * Wärtsilä Propulsion is part of the Ship Power 0 business. 2000 2001 2002 2003 Indication Indication 2004 2005 Result 2003 / 04SER008 ©
Slide 7: Wärtsilä operates in two markets: Ship Power
Wärtsilä operates in two markets Ship Power Service Power Plants Power Divisions net sales 2003 totally EUR 2,155.8 million. Ship Power 32% Result 2003 / 04SER008 © Wärtsilä 7
Slide 8: Global shipyard orders and deliveries
Global shipyard orders and deliveries Vessel deliveries Vessel orders Others Europe 10% Asia 5% Others 94% 1% Asia Europe 52% 38% Total deliveries: 75 million dwt Total orders: 76 million dwt July 2002 – June 2003 Source: Clarkson Research Studies and Lloyd´s Register-Fairplay Result 2003 / 04SER008
Slide 9: Vessel orders volume
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 Source: Based on data from Clarkson Research Studies Note: Cargo vessels > 5,000
Slide 10: Ship Power, net sales by vessel type
Ship Power, net sales by vessel type 800 600 400 200 0 1999 2000 2001 2002 2003 Tankers Bulk Carriers Container ships Other Wärtsilä Propulsion Result 2003 / 04SER008 © Wärtsilä 10
Slide 11: Wärtsilä's marine engine market position
Wärtsilä’s marine engine market position Medium speed Low speed Auxiliary engines main engines main engines Wärtsilä Wärtsilä Wärtsilä 38% (34%)* 33% (25%)* 8% (11%)* Total market volume: Total market volume: Total market volume: 3 182 MW * 13 521 MW * 3 431 MW * (2 774 MW) * (7 521 MW) * (2 842 MW)
Slide 12: Fixed Pitch Propellers (FPP)
Fixed Pitch Propellers (FPP) Ships using FPPs are mainly built in Asia. 80% Asia 20% Rest of the world Source: CSSC and Wärtsilä. Result 2003 / 04SER008 © Wärtsilä 12
Slide 13: Wärtsilä and CSSC/CME joining forces
Wärtsilä and CSSC/CME joining forces Wärtsilä-CME Zhenjiang Propeller Co., Ltd. CSSC one of the leading propeller manufacturers in China CME Wärtsilä market share 35% in China 45% 55% well-known propeller brands Lips and Kaida Wärtsilä-CME Zhenjiang Propeller Co., Ltd. CSSC The leading ship
Slide 14: Ship Power
Ship Power MEUR Q4/2003 Q4/2002 Change Net sales 176.5 268.2 -34.2% Order intake 138.7 184.8 -24.9% MEUR 2003 2002 Change Net sales 686.1 772.9 -11.2% Order intake 626.4 522.8 19.8% Order book at end of the year 606.8 662.6 -8.4% Result 2003 / 04SER008 © Wärtsilä 14
Slide 15: Wärtsilä operates in two markets: Power Plants
Wärtsilä operates in two markets Ship Power Service Power Plants Power Divisions net sales 2003 totally EUR 2,155.8 million. Power Plants 27% Result 2003 / 04SER008 © Wärtsilä 15
Slide 16: Wärtsilä's focus in Power Plants business
Wärtsilä’s focus in Power Plants business Operational Infrastructure perspective perspective Base load Centralised Focus markets Intermediate in Decentralised Power Plants business Peaking Directed Result 2003 / 04SER008 © Wärtsilä 16
Slide 17: Reciprocating engine and gas turbine orders to power plants
Reciprocating engine and gas turbine orders to power plants Total market: 17 096 MW (17 243 MW) 4.8% (8.3) 63.1% (62.9) 32.1% (28.8) Wärtsilä Gas turbines Other engine makers From June 02 to May 03. Source: Diesel & Gas Turbine Worldwide, Wärtsilä Figures between brackets indicate last year's result
Slide 18: Power Plants, order intake 2003: 1,468 MW
Power Plants, order intake 2003: 1,468 MW (832) Europe 228 (226) Asia 432 (195) 112 117 (57) (170) 72 360 (34) Americas (161) 331 (329) 322 9 (257) (73) Africa and other regions 476 (81) 455 21 gas (65) (16) diesel Result 2003 / 04SER008 © Wärtsilä 18
Slide 19: Power Plants
Power Plants MEUR Q4/2003 Q4/2002 Change Net sales 261.2 165.5 57.8% Order intake 134.7 95.7 40.8% Order intake (MW) 293 139 110.3% HFO 232 92 150.7% gas 61 47 30.4% Biopower, MWth 5 52 -90.4% MEUR 2003 2002 Change Net sales 577.5 666.0 -13.3% Order intake 639.3 427.9 49.4% Order intake (MW) 1,468 8
Slide 20: Wärtsilä operates in two markets: Service
Wärtsilä operates in two markets Ship Power Power Service Plants Power Divisions net sales 2003 totally EUR 2,155.8 million. Service 41% Result 2003 / 04SER008 © Wärtsilä 20
Slide 21: Service - The total service provider
Service - The total service provider Products & Services O&M agreements Field service Workshops and ship repair Technical service Training Software solutions OEM spare parts repair and reconditioning Ciserv Result 2003 / 04SER008 © Wärtsilä 21
Slide 22: Wärtsilä's engine base
Wärtsilä’s engine base Engine base 130 GW 1000 MW 140 120 100 80 Ship Power 60 Power Plants 40 20 0 1999 2000 2001 2002 2003 Result 2003 / 04SER008 © Wärtsilä 22
Slide 23: Service
Service Q4/2003 Q4/2002 Change Net sales, MEUR 232.2 231.0 0.5% 2003 2002 Change Net sales, MEUR 885.5 843.4 5.0% Personnel, end of year 5 993 5 644 6.2% Long-term service agreements, MW 9,629 9,756 -1.3% O&M (operations and maintenance) -agreements, MW 2,289 2,056 11.3% Result 2003 / 04SER008 © Wär
Slide 24: Imatra Steel key figures
Key figures, MEUR Q4/2003 Q4/2002 Change Imatra Steel’s net sales by market Net sales 51.6 52.5 -1.7% segment 2003 Operating profit 2.6 -0.5 % of net sales 5.1% -1.0% 2003 2002 Change Net sales 202.7 200.4 1.2% Operational EBIT 5.1 3.2 59.1% % of net sales 2.5% 1.6% Trucks 51% Operating profit 0.7 3
Slide 25: Assa Abloy
Assa Abloy Wärtsilä owns 7.6% of Assa Abloy shares. Holding’s market value EUR 261.9 million (31 Dec. 2003). Book value in group balance sheet EUR 67.4 million. Result 2003 / 04SER008 © Wärtsilä 25
Slide 26: Power Divisions
Power Divisions MEUR Q4/2003 Q4/2002 Change Net sales 671.0 674.1 -0.5% Operating result -84.2 1 24.5 % of net sales -12.6% 3.6% Order intake 490.6 529.0 -7.3% MEUR 2003 2002 Change Net sales 2,155.8 2,319.9 -7.1% Operational EBIT 95.0 74.6 % of net sales 4.4% 3.2% Operating result -35.0 1 74.6 % of
Slide 27: Power Divisions' profitability target 7-8%
Power Divisions’ profitability target 7-8% MEUR 175 150 Service growth 125 Power Plants division 100 restructuring 75 Production centralisation 50 3.2% 4.4% 25 0 2002 2003 2004 2005 2006 Result 2003 / 04SER008 © Wärtsilä 27
Slide 28: Wärtsilä Corporation, key figures
Wärtsilä Corporation, key figures MEUR 2003 2002 Change Net sales 2,357.5 2,519.0 -6.4% Operational EBITA1 127.0 100.6 26.2% Operational EBIT 100.0 77.8 28.5% EBIT -18.4 188.9 Result before extraordinary items -34.4 170.4 Earnings per share, EUR -0.66 2.05 1EBITA is the operating profit before amort
Slide 29: Cash flow
Cash flow MEUR 2003 2002 Change Cash flow from operating activities 192.1 55.4 246.8% Cash flow from investing activities -22.2 -286.5 Cash flow from financing activities -205.8 232.3 -188.6% Liquid funds at the end of period 150.0 185.8 -19.3% Result 2003 / 04SER008 © Wärtsilä 29
Slide 30: Earnings per share and dividend
Earnings per share and dividend EUR 6,0 5,0 4,0 3,0 2,0 1,0 0,0 -1,0 1999 2000 2001 2002 2003 * Operational EPS Non-operational EPS Normal dividend Extra dividend * Board’s proposal Result 2003 / 04SER008 © Wärtsilä 30
Slide 31: Prospects for 2004
Prospects for 2004 Power Divisions Demand in traditional passanger ship and RoPax markets picking up Record demand in low-speed engine market expected to slow down Signs of recovery in power plant market Service will grow at last year’s level. Unfavourable exchange rates will intensify pres
Slide 32: WARTSILA
re, WARTSILA