Slide 1: Wärtsilä Corporation Interim Report January-March 2004
Wärtsilä Corporation Interim Report January-March 2004 Ole Johansson, President & CEO 5 May 2004 © Wärtsilä
Slide 2: Wärtsilä's Strategy
Wärtsilä’s Strategy Ship Power Power Plants Service The leading global A significant supplier Interlinks these two ship power and of decentralized power businesses. Service service provider. plant solutions and supports Wärtsilä operation and customers throughout maintenance services. the lifecycle
Slide 3: Highlights of the reporting period
Highlights of the reporting period Net sales rose 6.9% to EUR 521.7 million Group’s operating income EUR 101.5 million includes capital gains totalling EUR 107.7 million Power Businesses result weakened Order intake and order book on good level Consultations with personnel completed, produ
Slide 4: Wärtsilä Group
Wärtsilä Group MEUR Q1/2004 Q1/2003 Change% 2003 Net sales 521.7 488.1 6.9% 2,357.5 Operational EBITA1 0.5 16.2 127.0 Operational EBIT -6.3 9.5 100.0 Operating income 101.5 5.0 -18.4 Profit before taxes 97.4 0.3 -34.4 EPS, EUR 1.18 -0.08 -0.66 1EBITA is the operating profit before amortization of go
Slide 5: Cash flow
Cash flow MEUR Q1/2004 Q1/2003 2003 Cash flow from operating activities 2.0 1.6 192.1 Cash flow from investing activities 126.7 -11.3 -22.2 Cash flow from financing activities -129.4 -47.6 -205.8 Liquid funds at the end of period 149.2 128.5 150.0 © Wärtsilä Q1/2004 presentation 5
Slide 6: Solvency and gearing
Solvency and gearing Solvency Gearing 50 1 45 0,8 40 35 0,6 30 25 0,4 20 15 0,2 10 5 0 99 00 01 02 03 Q1/04 0 99 00 01 02 03 Q1/04 -0,2 Solvency 1 Solvency 2 Gearing 1 Gearing 2 © Wärtsilä Q1/2004 presentation 6
Slide 7: Power Businesses
Power Businesses MEUR Q1/2004 Q1/2003 Change% 2003 Net sales 463.3 433.1 7.0% 2,155.8 EBIT -9.2 8.3 -35.01 % net sales -2.0% 1.9% -1.6% Order intake 888.7 590.4 50.5% 2,148.7 Order book end of period 1,656.2 1,368.5 21.0% 1,245.0 1Includes restructuring cost of EUR 130 million. © Wärtsilä Q1/2004 pr
Slide 8: Power Businesses – Key figures
Power Businesses – Key figures MEUR Net sales Order intake Order book 500 463.3 1000 1800 1,656.2 433.1 888.7 450 900 -2.0% 1600 1,368.5 400 +2.9% 800 1400 -6,0% 1,245.0 350 700 590.4 1200 300 600 1000 250 500 +105.1% +48.6% 800 200 400 +188.7% 600 150 300 100 -10.3% 200 400 -6.8% -1.8% 50 100 200 0
Slide 9: Delivered engine megawatts from Wärtsilä factories
Delivered engine megawatts from Wärtsilä factories MW 5 000 4 000 3 000 Ship Power 2 000 Power Plants 1 000 0 1999 2000 2001 2002 2003 1-3/2004 Note: Does not include BioPower or licensing. © Wärtsilä Q1/2004 presentation 9
Slide 10: Ship Power
Ship Power MEUR Q1/20041 Q1/20031 Change 20031 Net sales 119.0 132.7 -10.3% 686.1 Order intake 196.0 199.7 -1.8% 626.4 Order book, end of period 675.9 724.9 -6.8% 606.8 1Includes income from licensing Power Businesses net sales Q1/2004 EUR 463.3 million. Ship Power 26 % © Wärtsilä Q1/2004 presenta
Slide 11: Vessel orders
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 03-04 Source: Based on data from Clarkson Research Studies Note: Cargo vessels >
Slide 12: Net sales of Ship Power by vessel type
Net sales of Ship Power by vessel type 800 600 400 200 0 1999 2000 2001 2002 2003 Q1/2004 Tankers Bulk carriers Container ships Others Wärtsilä Propulsion © Wärtsilä Q1/2004 presentation 12
Slide 13: Service
Service Q1/2004 Q1/2003 Change 2003 Net sales, MEUR 223.2 216.9 2.9% 885.5 Personnel, end of period 6,135 5,822 5.4% 5,993 Long-term service agreements, MW 9,680 9,953 -2.7% 9,629 O&M (operation and maintenance agreements), MW 2,318 2,085 11.2% 2,289 Power Businesses net sales Q1/2004 EUR 463.3 mill
Slide 14: Long-term service and O&M agreements
Long-term service and O&M agreements Active engine base 130,000 MW. Long-term service and O&M agreements cover 12,000 MW. MW MW 2500 10000 2250 9500 2000 9000 Long-term service agreements 1750 8500 O&M agreements 1500 8000 1250 7500 1000 7000 2000 2001 2002 2003 Q1/2004 © Wärtsilä Q1/2004 presen
Slide 15: Power Plants
Power Plants MEUR Q1/2004 Q1/2003 Change 2003 Net sales 120.5 81.1 48.6% 577.5 Order intake 470.8 163.1 188.7% 639.3 Order intake, MW heavy fuel oil, MW 782 295 165.1% 1,249 gas, MW 208 33 539.1% 219 BioPower, MWth 43 83 -47.9% 133 Order book, end of period 692.8 337.8 105.1% 357.2 Power Businesses
Slide 16: Power plant order intake Q1/2004: 990 MW
Power plant order intake Q1/2004: 990 MW (328) Europe Asia 40.1 (26.4) 207.1 (61.7) 40.1 0.0 (26.4) (0.0) 137.2 69.9 (0.0) (61.7) Americas 22.4 (49.7) Africa and Middle East 11.9 10.5 720.6 (190.1) (6.0) (43.7) 18.6 702.0 (0.0) (190.1) (MW) Gas Oil © Wärtsilä Q1/2004 presentation 16
Slide 17: Imatra Steel
Imatra Steel Key figures MEUR Q1/2004 Q1/2003 Change 2003 Net sales 58.7 55.1 6.5% 202.7 Operating income 2.9 -3.4 0.7 % of net sales 4.9% -6.1% 0.3% Imatra Steel’s net sales by Demand for special engineering market segment 2003 steel showed modest recovery Delivery volumes of steels and forging
Slide 18: Outlook for the rest of the year 2004
Outlook for the rest of the year 2004 Power Businesses Full-year forecast unchanged i.e. net sales will grow and profitability will improve slightly. The uncertain political situation in Iraq is a risk factor. Imatra Steel Net sales increases and operational income improves. © Wärtsilä Q1/20
Slide 19: WARTSILA
re, WARTSILA