Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (December 2002)
12 slides from Wartsila Oyj Abp's investor day presentation, Dec 3, 2002
Slide 1: Through restructuring to result improvement
Through restructuring to result improvement Raimo Lind, CFO Capital Markets Day, Oberwinterhur, Switzerland 3 December 2002 02SER078 1
Slide 2: Megawatts delivered
Megawatts delivered MW Wärtsilä Licensees 02SER078 2
Slide 3: Engine production
Engine production MW Marine Power Plants 02SER078 3
Slide 4: Production sites 1998-2002
Production sites Vaasa 1998 - 2002 Trollhättan Turku Rubbestadsn. Trieste Mt. Vernon Zwolle Ramsgate* Mulhouse Surgeres* Mantes n Sepänkylä steel factory n Outsourcing of the component factory in Trieste n Personnel reduction in machining and assembly activities in Trieste * as part of Wärtsilä-Cumm
Slide 5: Engine division, personnel
Engine division, personnel Production Technology ) 02SER078 5
Slide 6: Engine division, fixed assets
Engine division, fixed assets Production Technology 300 267 244 250 47 230 46 45% reduction 200 47 in fixed assets 150 100 220 198 183 50 0 1999 2000 2001 2002E 02SER078 6
Slide 7: Capacity costs
Capacity costs 120 (3368 MW) (4456 MW) 100 (4263 MW) 80 60 A1999 A2000 A2001 E2002 E2003 02SER078 7
Slide 8: Cost provision
Cost provision n Personnel cut in Holland (372 people) n Transfer of Wärtsilä 38 engine production to Italy n The warehousing activities and the logistics organisation in Switzerland will be moved to Holland n Fixed assets write down n pay back > 3 years 02SER078 8
Slide 9: Operating profit from 4 to 7 percent
Operating profit from 4 to 7 percent n Service division continues to grow n Restructuring programs n Non conformity cost reduction Ac 02SER078 9
Slide 10: Acquisition-enhanced Service growth
Acquisition-enhanced Service growth Target: 10-15% Acquisitions over cycle Acquisitions = Profit growth Organic growth •Accelerate growth •Improve Group EBIT •Earnings enhancing Existing business = Top line growth combined with productivity growth •Streamline network •Cost •Presence in growth areas
Slide 11: Restructuring programs initiated
Restructuring programs initiated n Restructuring and global move to flat, functional organisation initiated in Power Plants n Restructuring in Wärtsilä France initiated n Relocation of the service and technology activities of Sulzer Z40 engines from Switzerland to Italy initiated n Travelling cost s
Slide 12: Outlook
Outlook Power Divisions n Slight growth in shipyard orders. Wärtsilä’s order intake has picked up although less than expected. n Power plant markets remain unsettled. Projects in the pipeline - no impact this year. n Further growth by Service division although slower than expected due to market cond