Slide 1: Wärtsilä Corporation Interim Report January-March 2007
WÄRTSILÄ CORPORATION INTERIM REPORT JANUARY-MARCH 2007 OLE JOHANSSON, PRESIDENT & CEO 4 MAY 2007 1 © Wärtsilä
Slide 2: First quarter highlights
First quarter highlights MEUR Q1/07 Q1/06 Change 2006 Net sales 761 592 29 % 3 190 Operating income 63 36 77 % 262 % of net sales 8.3 6.1 8.2 Income before taxes 60 40¹ 447² Earnings/share, EUR 0.44 0.55³ 3.72 Cash flow from operating activities 79 -2 302 Gross capital Expenditure 42 40 193 1 The Ja
Slide 3: Market development - Ship Power: Vessel orders
Market development - Ship Power Vessel orders Tankers Bulk carriers Containers Others 3 months moving average dwt 350 16 300 14 Volume [million DWT] 12 250 10 # of vessels 200 8 150 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 10-06 01-07
Slide 4: Market development - Ship Power: Vessel orders - other vessels
Market development - Ship Power Vessel orders - other 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 0
Slide 5: Market development - Ship Power: market position of marine engines
Market development - Ship Power Market position of Wärtsilä’s marine engines Q1/2007 Medium-speed main engines Low-speed main engines Auxiliary engines Others Comp. 3 Wärtsilä 14%(13) 3%(3) 6%(6) Wärtsilä 14%(16) Comp. 1 15%(13) Wärtsilä 46%(51) Comp. 2 Comp. 1 Others 25%(23) 83%(81) 94%(94) Total m
Slide 6: Market development - Power Plants
Market development - Power Plants • Demand in the market remained high • Gas power plants demand was strong • Renewable fuel power plants continued to offer opportunities • Demand evenly spread around the world 6 © Wärtsilä
Slide 7: Market development - Power Plants: order intake
Market development - Power Plants Demand evenly spread around the world Order intake - Power Plants Asia Europe Q1/07: 456 MW (420) 55 (99) 247 (226) 0 (89) 44 (0) Americas 203 (226) 95 (53) 55 (10) 78 (0) Africa and Middle East 17 (53) 59 (42) 0 (17) 59 (25) Gas Oil Renewable fuels 7 © Wärtsilä
Slide 8: Order intake
Order intake MEUR 5000 4500 1200 1 157 4000 13% 1 023 1000 3500 11% 800 3000 600 2500 4% 400 2000 200 1500 53% 0 1000 1-3/2006 1-3/2007 500 0 2003 2004 2005 2006 1-3/2007 Total order intake First-quarter order intake Power Plants Ship Power Services 8 © Wärtsilä
Slide 9: Order book
Order book MEUR 5000 4 860 4500 42% 4000 3500 3 415 12% 3000 2500 58% 2000 1500 1000 21% 500 0 2003 2004 2005 2006 31.3.2006 31.3.2007 Total order book Power Plants Ship Power Services 9 © Wärtsilä
Slide 10: Order book distribution
Order book distribution MEUR 3000 2500 2000 1500 1000 500 0 31.3.2006 31.3.2007 Delivery current year Delivery next year + 10 © Wärtsilä
Slide 11: Net sales
Net sales MEUR 3500 Net sales by business Q1/2007 3000 2500 Ship Power Power Plants 2000 34% (26) 20% (24) 1500 Services 46% (50) 1000 29% 761 592 500 17% 69% 7% 0 2003 2004 2005 2006 1-3/2006 1-3/2007 Total net sales Power Plants Ship Power Services 11 © Wärtsilä
Slide 12: Net sales - Ship Power
Net sales - Ship Power MEUR 1000 Cruise Tankers 16% & Ferry 900 14% 800 Bulk carriers 700 1% General 600 cargo Container 12% 500 ships 400 19% 300 Special vessels LNG 200 14% & other 100 7% Offshore 0 17% 2003 2004 2005 2006 31.3.2007 Others Tankers Bulk carriers Container ships 12 © Wärtsilä
Slide 13: Net sales - Power Plants
Net sales - Power Plants MEUR Others 5% 1000 900 800 Industrial Self- 700 Generation 32% 600 Flexible Baseload 500 Power Generation 63% 400 300 200 100 0 2003 2004 2005 2006 1-3/2007 13 © Wärtsilä
Slide 14: Wärtsilä Services
Wärtsilä Services 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 Q4/06 Q1/07 Services growth per Q Services share of sales 14 © Wärtsilä
Slide 15: Delivered engine megawatts from own factories
Delivered engine megawatts from own factories MW 5500 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2001 2002 2003 2004 2005 2006 Q1/2007 Ship Power Power Plants Full-year estimate 15 © Wärtsilä
Slide 16: Volume growth reflected in Capex
Volume growth reflected in Capex MEUR MEUR 450 4000 400 3500 350 3000 300 2500 250 2000 200 1500 150 1000 100 500 50 0 0 2002 2003 2004 2005 2006 2007E Maintenance Acquisitions Depreciation Comparable net sales 16 © Wärtsilä
Slide 17: Cash flow
Cash flow MEUR Q1/07 Q1/06 2006 Cash flow from operating activities 79 -2 302 Cash flow from investing activities -38 -29 148 Cash flow from financing activities -72 27 -387 Liquid funds at the end of period 148 115 179 17 © Wärtsilä
Slide 18: Financial position
Financial position 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 0,0 2003 2004 2005 2006 Q1/2007 2003 2004 2005 2006 Q1/2007 NOTE: 2003 according to FAS, 2004- IFRS Convertible subordinated debentures treated as equity 18 © Wärtsilä
Slide 19: Wärtsilä's prospects for 2007
Wärtsilä’s prospects for 2007 • Demand in the ship power and energy markets looks likely to remain active for Wärtsilä for the next two quarters. • Based on the strong order book, Wärtsilä’s net sales are expected to grow this year by around 15%. • Profitability will exceed 9%. • Wärtsilä’s profitab
Slide 20: Presentation name / Author
Presentation name / Author