Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — Investor Day (May 2005)

14 slides from Wartsila Oyj Abp's investor day presentation, May 31, 2005

  1. Slide 1: Wärtsilä Capital Markets Day

    Wärtsilä Capital Markets Day Streamlining for a less cyclical future Raimo Lind, Executive Vice President and CFO Trieste, Italy, May 31 2005 © Wärtsilä

  2. Slide 2: Reducing cyclicality

    Reducing cyclicality 1. Streamlined capacity and increased flexibility Restructuring Power Plant focus 2. Future efficiency and growth Future growth Product cost 1. Imatra (increased and stable earnings) © Wärtsilä 2

  3. Slide 3: Restructuring target – eliminate overcapacity in manufacturing

    Restructuring target – eliminate overcapacity in manufacturing MW 6 000 Old capacity level New capacity level Flexibility through subcontracting 5 000 China 4 000 3 000 2 000 Closure of the Turku factory 1 000 0 05 00 01 02 03 04 06 07 20 20 20 20 20 20 20 20 1/ Q Power Plants Ship Power Estimate 20

  4. Slide 4: Wärtsilä Power Plants – former and current scenario

    Wärtsilä Power Plants – former and current scenario Sales Previously Be selective in sales outsourced Current power Increase plants capacity Profit outsourcing on projects exceeding Current the breakeven point capacity Reduce Loss Profit capacity and breakeven point Loss 2005 Years © Wärtsilä 4

  5. Slide 5: Focused Power Plant operations

    Focused Power Plant operations Streamlined offering Outsourced customer engineering Slim organization closure of France sales of high speed products to Waukesha production facilities and 70 people to Mitsubishi Order intake 2004 > 1000 MEUR © Wärtsilä 5

  6. Slide 6: Service Sales vs Total Power Businesses

    Service Sales vs Total Power Businesses MEUR 1 000 (42,1%) (41,1%) (36,4%) (36,4%) (30,7%) 750 (31,1%) (25,2%) (25,4%) 500 250 1997 1998 1999 2000 2001 2002 2003 2004 Service sales Note: Service sales as a % of total Power Businesses sales in parenthesis above the bar © Wärtsilä 6

  7. Slide 7: Service Sales vs Total Power Businesses

    Service Sales vs Total Power Businesses MEUR 3 000 50,0% 2 000 40,0% 1 000 30,0% - 20,0% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Service sales Power Businesses sales Service (%) Note: Data for 2005-06 is only for indicative purposes and should not be considered as Wärtsilä guidance © Wärts

  8. Slide 8: Ciserv net sales and personnel development

    Ciserv net sales and personnel development 60000 700 600 50000 500 40000 400 Ne t sa le s 30000 Pe rsonne l 300 20000 200 10000 100 0 0 31.12.2001 31.12.2002 31.12.2003 31.12.2004 © Wärtsilä 8

  9. Slide 9: 46F Auxpac

    Product cost 1) Design 46F Auxpac © Wärtsilä 9

  10. Slide 10: Product cost: Initiatives on the Asian market

    Product cost 2) Initiatives on the Asian market Majority owned joint venture propeller manufacturing company in China with CME Zhenjiang Propeller Co Ltd. Transvere thrusters factory in China. Investment EUR 6.6 million Letter of intent with China Shipbuilding Industry Corporation (CSIC), 50/50 join

  11. Slide 11: Imatra Steel into new Ovako

    Imatra Steel intoImatra new Ovako Steel PRO FORMA 2004 MEUR Net sales 1.284 EBITDA 133 Operating income 86 Net Capital Employed 533 Total assets 836 Productivity in Imatra Steel improved through modernisation of the base metallurgical line In February Wärtsilä, Rautaruukki and the Swedish SKF signed

  12. Slide 12: Implications to Wärtsilä

    Implications to Wärtsilä Imatra Steel MEUR Q1/2005 2004 EBIT 17 24 PRO FORMA: Ovako MEUR EBIT 86 26.5% ~23 Supports Wärtsilä’s strategy to focus on core businesses, clarifies the group structure Upside on EPS through synergies (approx 40 million of synergies within 3 years) Annual net sales will dec

  13. Slide 13: Power Businesses order book

    Power Businesses order book MEUR 1600 1400 1200 1000 2004 2005 800 2006 600 2007 + 400 200 0 31.12.2003 31.12.2004 31.3.2005 © Wärtsilä 13

  14. Slide 14: Power Businesses operational EBIT and profitability

    Power Businesses operational EBIT and profitability 180 9 160 8 140 7 120 6 100 5 Ope ra tiona l EBIT % ne t sa le s 80 4 60 3 40 2 20 1 0 0 2001 2002 2003 2004 Q1/2005 Note: the dashed line indicates the margin outlook for 2005 2001-2004 according to FAS and 2005 according IFRS © Wärtsilä 14

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