Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (2008)
32 slides from Wartsila Oyj Abp's investor day presentation, 2008
Slide 1: Road Ahead in Ship Power
ROAD AHEAD IN SHIP POWER JAAKKO ESKOLA, GROUP VICE PRESIDENT 1 © Wärtsilä Wärtsilä Capital Markets Day
Slide 2: Wärtsilä Ship Power
Wärtsilä Ship Power WE ARE THE LEADING PROVIDER OF SHIP POWER SOLUTIONS. WE COMMAND A STRONG POSITION IN ALL MAIN MARINE SEGMENTS AS THE SUPPLIER OF HIGHLY RATED SHIP MACHINERY AND SYSTEMS 2 © Wärtsilä Wärtsilä Capital Markets Day
Slide 3: Shipping - Looking ahead beyond 2010
Shipping - Looking ahead beyond 2010 Solutions to minimize operating and voyage costs • High fuel prices and shortage of skilled personnel are pushing up operating and voyage costs • Solutions that minimize fuel consumption are demanded and there is a huge opportunity for automation and remote contr
Slide 4: Shipping - Looking ahead beyond 2010
Shipping - Looking ahead beyond 2010 Environmentally sound solutions will be highly demanded: • Solutions to reduce emissions (SOx, NOx, CO2 and PM) • Alternatives to HFO: gas, biofuels, fuel cells • Flexibility in fuel usage: dual fuel • Solutions to maximize efficiency of products and components •
Slide 5: Ship Power strategy
Ship Power strategy • Be a trusted partner through the life-cycle from design to services for all types of marine and offshore applications, we command a strong position in all main marine segments • Create more value via increased understanding of customers’ businesses and needs • Broaden our exper
Slide 6: Customer segments have proved to be a success
Customer segments have proved to be a success From To “CUSTOMERS “PRODUCTS FOR PRODUCTS” FOR CUSTOMERS” • Attractive value proposition implies deep knowledge about both customer’s and customer’s customer businesses and ability to generate solutions which help them to achieve their business goals • T
Slide 7: Wärtsilä has the most extensive value proposition in the industry
Wärtsilä has the most extensive value proposition in the industry Engines Propulsion Seals & Automation Power Power Bearings Distribution Drives Merchant Wärtsilä Components Offshore Segment specific R&D • Concepts Cruise & Ferry • Applications Ship design • Project Execution Models Product • System
Slide 8: Design is key to early entry and full lifecycle presence
Design is key to early entry and full lifecycle presence Wärtsilä’s envisaged • Operator sees need(s) for lifecycle entry point vessel • Owner decides to invest in DESIGN vessel • Owner contacts ship designer to discuss requirements and Wärtsilä’s specifications to meet historical operator needs lif
Slide 9: Wärtsilä in Ship Design
Wärtsilä in Ship Design Among top three in Offshore Service • Tugs and Workboats • Special Vessels • Targeted sub-segment within Merchant 9 © Wärtsilä Wärtsilä Capital Markets Day
Slide 10: Ambitions in Ship Design
Ambitions in Ship Design Among top three in the world when it comes to global reach, presence, capabilities and offerings No 1. independent Ship Design company in the world Known for Energy, Environment and Economy #1 in Environmental Ships #1 in Efficient Ships #1 in Extreme Ships 10 © Wärtsilä Wär
Slide 11: Wärtsilä Ship Design can compete with a unique offering
Wärtsilä Ship Design can compete with a unique offering Wärtsilä offering Offer ship design optimized for Wärtsilä equipment Operators • ‘Non-commodity’ vessel categories – First offshore, special vessels – Later selected ‘mission-critical’ merchant segments (e.g., container vessels) Owners • Allow
Slide 12: Wärtsilä Ship Power's offering covers all key segments
Wärtsilä Ship Power’s offering covers all key segments Cruise Special Merchant Offshore Navy and Ferry Vessels 12 © Wärtsilä Wärtsilä Capital Markets Day
Slide 13: Ship Power orderbook
Ship Power orderbook Orderbook 30.9.2008 Offshore 36% Special vessels 7% Cruise & Ferry RoRo 7% 3% Navy LNG 2% 8% Cargo Bulkers 12% 8% Container Tankers 9% 9% Merchant 49% 13 © Wärtsilä
Slide 14: Ship Power market - vessel order development
Ship Power market - vessel order development Merchant Cruise&Ferry Offshore & Special Vessels 3 months moving average in DWT Million DWT # vessels Source data: Clarkson Research Services 14 © Wärtsilä
Slide 15: Ship Power market - merchant vessel order development
Ship Power market - merchant vessel order development Tankers Bulkers Containers LNG carriers LPG carriers Reefers Other dry cargo Source data: Clarkson Research Services 15 © Wärtsilä
Slide 16: The market is changing
The market is changing Orderbook and Contracting 350 700 Shipbuilding Million DWT Size of OB million DWT • Size of orderbook is on a record- 300 600 high level: • Current orderbook is over 4 times 250 500 bigger that average 1996-2007 200 400 • Contracting activity has slowed down during 2008, but i
Slide 17: The market is changing
The market is changing Dow Jones AIG Commodity Index Commodity markets • Commodity indexes have declined during the last months • Uncertainty about world economy and demand for commodities in the future 17 © Wärtsilä Wärtsilä Capital Markets Day
Slide 18: The market is changing
The market is changing Main competitors have been investing in increasing production capacity • MAN Diesel's plans to increase annual production by two fold to 500 units by 2011 and reduce production time. The target is to triple the capacity in the long run • Rolls Royce is expanding its premises f
Slide 19: The market is changing
The market is changing Commodity Competition Shipbuilding • Countercyclical ordering markets for specialized vessels • Commodity • Main competitors • Size of order- can be expected indexes have have invested in book is on record- expansion of high level • Market fundamentals for declined during Offs
Slide 20: Slide 20
Slide 21: Shipping business trends
Shipping business trends We have experienced a unique and The present and the future interesting period in shipping • Uncertainty about the global • The market has seen the biggest economy has increased boom ever • Uncertainty has clearly impacted • Expansion of the Chinese and other investments in
Slide 22: Cancellations, delays and financing risks…
Cancellations, delays and financing risks… • Financing of orderbook: difficulty in assessing what percentage of the orderbook has secured financing, different actors estimate that 50 to 75% of the current orderbook might need financing (Morgan Stanley, Clarkson) • Delays in deliveries seems to be a
Slide 23: …cancellations, delays and financing risks
…cancellations, delays and financing risks 140 7 • Identified cancellations in 2008 are No of Cancellations % of orderbook roughly 1% of the orderbook – same 120 6 level as in the previous years – could rise up to 5% in 2009/2010. 100 5 • Cancellations as a % of orderbook have been in historical low
Slide 24: Four major areas of uncertainty
Four major areas of uncertainty Global and Marine Environmental Energy Sources Regional Economic Technologies Issues and Fuels Development and Ship Design How will environment How will the world Which will be the fuels Which kind of related legislations economy and regional used to power ships propu
Slide 25: Recent successes for Ship Power
Recent successes for Ship Power 25 © Wärtsilä Wärtsilä Capital Markets Day
Slide 26: New concepts
New concepts Wärtsilä Ship Design unit has also completed designs for a new anchor handling vessel, a platform supply vessel, and a bulk carrier, all of which afford fuel consumption reductions of as much as 25 percent. 26 © Wärtsilä Wärtsilä Capital Markets Day
Slide 27: Major ship design orders from China
Major ship design orders from China A Deepwater Engineering Survey Vessel, a Multi- Purpose Support Vessel, a Diving Support Vessel, and an Emergency Towing Vessel will be designed. 27 © Wärtsilä Wärtsilä Capital Markets Day
Slide 28: Complete package x 3
Complete package x 3 Each of the three contracts is worth more than EUR 10.000.000,- British SeaLion Shipping Ltd is the owner of the ships. This contract is a complete Wärtsilä supply with a Vik-Sandvik design for a new customer and yard. Scope of supply: 4x 6L26 Generatingset 2x FS275 Steerable th
Slide 29: Wärtsilä Low Loss Concept to be supplied to ferry
Wärtsilä Low Loss Concept to be supplied to ferry The Low Loss Concept was developed by Wärtsilä to save both fuel and installation costs, as well as reducing emissions and the amount of space required for component installation. This innovation also delivers greater redundancy in the electrical pro
Slide 30: Wärtsilä propulsion packages
Wärtsilä propulsion packages Wärtsilä propulsion packages for Wilson bulk carriers, to reduce NOx emissions Shandong Baibuting Shipbuilding will also arrange space for the future installation of Wärtsilä Selective Catalytic Reactor (SCR) units. 30 © Wärtsilä Wärtsilä Capital Markets Day
Slide 31: Energy efficient systems
Energy efficient systems Wärtsilä to supply energy efficient systems to Aker Yards for five vessels: one LNG- fuelled Platform Supply Vessel, two Anchor Handling Tug Supply Vessels and two Platform Supply Vessels 31 © Wärtsilä Wärtsilä Capital Markets Day
Slide 32: Where is the world going?
Where is the world going? 32 © Wärtsilä Wärtsilä Capital Markets Day