Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Presentation (2003)
39 slides from Wartsila Oyj Abp's investor presentation, 2003
Slide 1: Wärtsilä Corporation Corporate presentation 2003
Wärtsilä Corporation Corporate presentation 2003 © Wärtsilä
Slide 2: Wärtsilä - Power on Land and at Sea
Wärtsilä - Power on Land and at Sea Wärtsilä is the leading global ship power supplier and a major provider of solutions for decentralized power generation and of supporting services. In addition Wärtsilä operates a Nordic engineering steel company Imatra Steel and manages a substantial shareholding
Slide 3: Group Structure
Group Structure Holding Assa Assa Power Divisions Abloy Abloy 7.6% 7.6% Marine Power Service Plants © Wärtsilä Corporate presentation 2003 3
Slide 4: Mission and Vision
Wärtsilä - Power on Land and at Sea Mission We contribute to solving the global needs of sea transportation and power generation by developing equipment and services that convert fuels into power efficiently and with the lowest possible environmental impact. Vision We strive to lead the ship power a
Slide 5: Values
Values EXCITEMENT EXCELLENCE Foster openness, Do things better respect and trust to than anyone else create excitement in our industry ENERGY Capture opportunities and make things happen © Wärtsilä Corporate presentation 2003 5
Slide 6: Targets
Targets n The leading global ship power supplier. n In Power Plants, Wärtsilä’s target is to strengthen its global leadership position in large engine based power plants and to grow in renewable energy solutions. Gas power plant deliveries will be half of Wärtsilä’s total engine based power plant bu
Slide 7: Wärtsilä’s key ratios
Wärtsilä’s key ratios Key ratios, MEUR 2002 2001 Net sales 2,519 2.358.7 Operational EBIT 77.8 95,8 Operational profit 188.9 523.9 Profit before extraordinary items 170.4 508.7 Personnel, end of year 12,459 11,122 Earnings per share, euro 2.05 5.53 Wärtsilä Group’s net sales Power Divisions, net sal
Slide 8: Environment
Environment n At the core of Wärtsilä’s products and operations is the principle of sustainable development. n Aim of our environmental policy is at guaranteeing uniform operating principles throughout our global organization. © Alstom Marine The first Wärtsilä 46 engines with common rail injection
Slide 9: Technology
Technology Our aim is to develop and offer our customers environmentally advanced solutions and services that fulfil all important requirements. We require that the environmental performance of our solutions and services meet the highest standards in the industry. Development focuses on achiev
Slide 10: Human Resources
Human Resources Personnel on average 2002 2001 Power Divisions 1) 11,024 9,562 Imatra Steel 1,393 1,284 Group 12,417 10,846 Personnel, end of year 12,459 11,122 1) Incl. Wärtsilä Real Estate and Corporate Management. Net sales per person EUR, 1,000 300 250 200 The number of employees in the Marine a
Slide 11: Power on Land and at Sea
Power on Land and at Sea Our worldwide network of professionals translates these solutions into maximum customer satisfaction and value. Wärtsilä is close to its customers through subsidiaries in roughly 60 countries Ciserv-logot tässä kohdassa pois! © Wärtsilä Corporate presentation 2003 11
Slide 12: Power Divisions
Power Divisions Wärtsilä’s core business is its Power Divisions; these are Marine, Power Plants and Service. Key ratios, MEUR 2002 2001 Net sales 2.319,9 2.174,3 Operating profit 74,6 87,8 Delivered MW 6.354 6.172 Order book, end of period 1.206,6 1.516,5 Order intake 1.882,8 2.040,4 Power Divisions
Slide 13: Engine factories
Engine factories Vaasa Turku Trieste Mulhouse © Wärtsilä Corporate presentation 2003 13
Slide 14: Engine portfolio
Engine portfolio © Wärtsilä Corporate presentation 2003 14
Slide 15: Marine
Marine 7KH6KLS3RZHU6XSSOLHU Wärtsilä is the leading supplier of ship machinery, propulsion and manoeuvring solutions for all types of marine vessels and offshore applications. Rhapsody of the Seas, Royal Caribbean Cruise Line, USA 4 x Wärtsilä 12V46C © Wärtsilä Corporate presentation 2003 15
Slide 16: Vessel orders
Vessel orders Tankers Bulk carriers Containers Others 3 months moving average 10 9 8 7 Volume [ million DWT ] 6 5 4 3 2 1 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 Source: Based on data from Clarkson Research Studies Note: • Cargo vessels > 5,000 dwt • Fro
Slide 17: Vessel orderbook
Vessel orderbook Tankers Bulk carriers Containers Others 125 100 Volume [ million DWT ] 75 50 25 0 12-96 06-97 12-97 06-98 12-98 06-99 12-99 06-00 12-00 06-01 12-01 06-02 12-02 Source: based on data from Clarkson Research Studies Note: • Cargo vessels > 5,000 dwt • From January 2003, “Tankers” inclu
Slide 18: Wärtsilä’s market share
Wärtsilä’s market share Market share of medium- and low-speed main engines Medium-speed engines Low-speed engines Wärtsilä 34% (37%) Wärtsilä 25% (26%) Orders 6/01 - 5/02 Source: Diesel & Gas Turbine Worldwide © Wärtsilä Corporate presentation 2003 18
Slide 19: Marine
Marine Wärtsilä enhances its customers’ business performance and profitability by offering reliable, cost-efficient total marine power solutions for all types of marine vessels while fully respecting environmental demands. Marine, MEUR 2002 2001 Net sales 763,4 595,1 Order intake 506,7 476,8 Order b
Slide 20: The Ship Power Supplier
The Ship Power Supplier Sterntube Lineshaft and CPP Seals sterntube bearings Couplings Controls Water jets FPP Steerable Podded Gears Engines Transverse thruster thruster propulsor © Wärtsilä Corporate presentation 2003 20
Slide 21: Wärtsilä Propulsion
Wärtsilä Propulsion n The acquisition of Wärtsilä Propulsion also makes Wärtsilä the world’s leading supplier of ship propeller seals and bearings JMT marine seals n These components form a vital link in the complete propulsion system comprising engines, reduction gearboxes, propellers and rudders,
Slide 22: Wärtsilä Propulsion
Wärtsilä Propulsion % 46% 30 23% 20 10 0 2001 2002 Deliveries containing propulsion systems as a proportion of main engine orders. Seals and bearings play a crucial role in ship safety and environmental protection. They perform a dual task; to prevent water from getting into the ship’s shaft bearing
Slide 23: Licensing business
Licensing business n For Wärtsilä, licensing brings the Biggest Sulzer 12RTA96C company close to its customers. length: 23,2 m width: 4,48 m n This is of critical importance hight: 13,52 m weight: 2,050 tons as the global hub of shipbuilding is gradually shifting to Asia. n We have granted a license
Slide 24: Wärtsilä’s licensees
Wärtsilä’s licensees © Wärtsilä Corporate presentation 2003 24
Slide 25: Power Plants
Power Plants 3RZHUIRUD&KDQJLQJ:RUOG Power solutions for decentralized power generation fast, flexibly and with respect for the environment. Operations and maintenance agreements offer customers improved profitability throughout the lifecycle of the power plant. The 111 MW Plains End gas power plant
Slide 26: Power Plants
Power Plants Power Plants, MEUR 2002 2001 Net sales 666.0 760.6 Order intake 427.9 658.6 Order book, end of year 255.2 467.7 MW delivered 1,387 1,449 HFO power plants 1,167 982 gas power plants 220 467 MW delivered, thermal energy 87 BioPower 87 Share of Power Divisions’ Wärtsilä’s power plants net
Slide 27: Reciprocating engine & gas turbine orders to power plants
Reciprocating engine & gas turbine orders to power plants Total output (MW) HFO LFO Gas 35000 30000 25000 20000 Wärtsilä’s share: 15000 Gas 5.3% (2.3) 10000 LFO 2.0% (1.6) 5000 HFO 45.6% (50.0) 0 1999-2000 2000-2001 2001-2002 6/2001-5/2002 Unit size: 1-60 MW, gas engines incl. dual-fuel engines Figu
Slide 28: Power plant orders
Power plant orders Total market 2002 832 MW (1,431) Europe 226,4 (355,0) Asia 195,1 (161,5) 56,6 170 (244,0) (111,0) 161 33,8 America (152,3) (9,2) 329,2 (729,7) 257 72,6 (462,4) (267,3) Africa and other regions 81,2 (186,3) (MW) 64,8 16,4 Gas (152,1) (34,2) Oil © Wärtsilä Corporate presentation 200
Slide 29: Standard solution of a Wärtsilä power plant
Standard solution of a Wärtsilä power plant 1. Roof monitor 2. 3. Building lights Cable ladders ¯ 4. Engine hall ventilation unit ° 5. Maintenance platform 6. Neutral point cubicle 7. EG-set ± 8. W32 module ³ µ £ 9. Intake air silencer ² 10. Intake air filter ´ ¸ ¢ ± © Wärtsilä Corporate presentatio
Slide 30: Wärtsilä BioPower
Wärtsilä BioPower Bio-energy solutions from Wärtsilä n Demand is rising sharply for biopower plants designed to run on renewable energy sources. n The European Union’s target is to increase energy production based on biofuels tenfold by 2010. Tammisaaren Energia Oy, Finland, 15 MWth. BioEnergy plant
Slide 31: BioGrate combustion technology
BioGrate combustion technology Wärtsilä BioEnergy and BioPower plants utilize patented Biograte combustion technology. This can squeeze out all the biomass fuel’s energy even from very wet fuels with a moisture content as high as 65%. BioGrate combustion BioGrate rotating grate technology is especia
Slide 32: Service
Service Wärtsilä supports its customers throughout the lifecycle of its products by ensuring lifetime efficiency. 7KH7RWDO6HUYLFH3URYLGHU Our local multi- skilled service personnel is available 24 h a day worldwide. © Wärtsilä Corporate presentation 2003 32
Slide 33: Service
Service Service, MEUR 2002 2001 Net sales 843.4 790.4 Long-term service agreements MW 9,756 8,262 O&M agreements MW 2,056 1,698 Personnel end of period 5,644 5,026 Share of Power Divisions’ Wärtsilä’s engine base MW net sales 2002 1,000 MW 140 120 Low-speed 100 80 Medium-speed 60 Power Plants 40 Ser
Slide 34: The Total Service Provider
The Total Service Provider We support our customer throughout the lifecycle of its products by ensuring lifetime efficiency. We focuse on long-term service agreements and full operations agreements in addition to the comprehensive everyday service support. Under an O&M agreement Wärtsilä takes on fu
Slide 35: Ciserv - a wide range of reconditioning services
Ciserv - a wide range of reconditioning services n Wärtsilä offers services to include not only engine and propulsion system service but also the service of other ship systems and machinery. n At the present the Ciserv group comprises five companies, each specialized in its own areas of technical co
Slide 36: The Total Service Provider
The Total Service Provider Wärtsilä Land and Sea Academy n training program for seafarers and power plant operators to add their level of skills and competences CBM Centre n from a CBM centre Wärtsilä can monitor marine and power plant engines n CBM (condition based maintenance) and remote monitorin
Slide 37: Imatra Steel
Imatra Steel Key figures, MEUR 2002 2001 Net sales 200.4 186.4 of which outside Finland 86.1% 84.6% Operating profit 3.2 3.2 ROI 3% 6% Personnel, end of year 1,391 1,384 Imatra Steel net sales by market area 2002 A Skilful Niche Player Special engineering Finland 14% (15%) Other Nordic countries
Slide 38: Assa Abloy holding
Assa Abloy holding n Wärtsilä sold 10 million Assa Abloy shares in May 2002 n Capital gain of approximately EUR 111 million n After the sale and Assa Abloy’s new share issue Wärtsilä holds 27.8 million shares or 7.6% n Holding’s market value EUR 217,5 million (31March 2003) © Wärtsilä Corporate pres
Slide 39: Outlook for year 2003
Outlook for year 2003 Power Divisions n signs of growth in the marine engine market n uncertainty in power plant demand, demand for biopower energy increases n growth in net sales, slight improvement in profitability n reaching the profitability target of 7-8% will require recovery in the global eco