Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Q2 2006 Earnings Presentation
25 slides from Wartsila Oyj Abp's earnings presentation, Aug 4, 2006
Slide 1: Interim Report January-June 2006
Wärtsilä Corporation Interim Report January-June 2006 Ole Johansson, President & CEO 4 August 2006 © Wärtsilä
Slide 2: Highlights
Highlights Second-quarter Order intake EUR 1,190.1 million (841.8), growth 41.4%. Net sales from comparative operations EUR 845.0 million (655.2), growth 29%. Operating income from comparative operations EUR 70.2 million (43.6), growth 61%. Second-quarter profitability 8.3% (6.7). Agreement to sell
Slide 3: Key figures
Key figures Net sales by business Q2/2006 Ship Power Power Plants MEUR Q2/06 Q2/05 2005 29.0% (23.4) 34.6% (35.2) Net sales 845.0 655.2 2,520.3 Operating income 70.2 43.6 202.5 Income before taxes 204.1** 50.2* 212.4 Earnings/share, EUR 1.60 0.40 1.80 Services 36.0% (40.7) *The figure in the compari
Slide 4: Key figures
Key figures MEUR Net sales Order intake Order book 1,190.1 3,772.1 900 1200 4000 845.0 800 3600 1.6% 1000 -7.0% 3200 700 655.2 841.8 2,905.7 2800 600 14.1% 800 33.3% 2400 2,267.9 500 96.0% 600 2000 400 26.7% 1600 300 400 103.5% 1200 60.9% 200 800 60.1% 200 100 400 0 0 0 Q2/05 Q2/06 Q2/05 Q2/06 31.12
Slide 5: Order book distribution
Order book distribution MEUR 1600 1400 1200 1000 Delivery current year 800 Delivery next year Delivery next year + 600 400 200 0 30.6.2005 30.6.2006 © Wärtsilä 5
Slide 6: Delivered engine megawatts from own factories
Delivered engine megawatts from own factories MW 4 500 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 2001 2002 2003 2004 2005 1-6/2006 Power Plants Ship Power Full-year estimate © Wärtsilä 6
Slide 7: Cash flow
Cash flow MEUR 1-6/2006 1-6/2005 2005 Cash flow from operating activities 48.6 -92.1 76.0 Cash flow from investing activities 54.6 -165.6 -178.3 Cash flow from financing activities -81.7 203.9 47.6 Cash and cash equivalents at end of period 137.2 119.6 119.6 © Wärtsilä 7
Slide 8: Solvency and gearing
Solvency and gearing % 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 02 03 04 05 1-6/06 02 03 04 05 1-6/06 NOTE: 2002-2003 according to FAS, 2004- IFRS Convertible subordinated debentures treated as equity © Wärtsilä 8
Slide 9: Business review
Business review © © wansis WARTSILA
Slide 10: Vessel orders, # of vessels
Vessel orders, # of vessels Tankers Bulk carriers Containers Others 3 months moving average dwt 300 16 14 250 12 200 Volume [million DWT] 10 # of vessels 150 8 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 Source: Based on data from Clarkson Res
Slide 11: Vessel orders - other vessels, # of vessels
Vessel orders - other vessels, # of 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 01-05 04-05 07-05 1
Slide 12: Net sales of Ship Power by vessel type
Net sales of Ship Power by vessel type 800 Tank e rs 9% Cruis e & Fe rry Bulk carrie rs 16% 3% Containe r s hips 600 11% Ge ne ral cargo 10% LNG 5% Spe cial ve s s e ls 400 & othe r 20% Offs hore 26% 200 0 2002 2003 2004 2005 1-6/2006 Tankers Bulk carriers Container ships Others © Wärtsilä 12
Slide 13: Wärtsilä Ship Power
Wärtsilä Ship Power MEUR Q2/06 Q2/05 Change Ship Power net sales Net sales 244.9 153.0 60.1% Order intake 659.5 409.9 60.9% Order book* 2,504.6 1,230.8 103.5% 29.0% Demand remained strong. Wärtsilä particularly successful in offshore and LNG. of total net sales * End of period © Wärtsilä 13
Slide 14: High demand from LNG and offshore markets during Q2
High demand from LNG and offshore markets during Q2 Wärtsilä received orders to supply 24 Wärtsilä 32 diesel generating sets for drill ships. Orders for 26 LNG carriers. Value of orders; appr. EUR 300 million. January-June LNG-order intake; appr. 1,050 MW. To date, Wärtsilä engines for totally 49 du
Slide 15: The market position of Wärtsilä's marine engines Q2/2006
The market position of Wärtsilä’s marine engines Q2/2006 Own production Production by licensees Own production Medium-speed main engines Low-speed main engines Medium-speed auxiliary engines Wärtsilä 48% (46) Wärtsilä 21% (27) Wärtsilä 9% (10) Comp. 2 3%(2) Others Comp. 1 14%(13) 24%(25) Comp. 1 Oth
Slide 16: Wärtsilä Services
Wärtsilä Services MEUR Q2/06 Q2/05 Change Services net sales Net sales 304.4 266.8 14.1% Personnel* 7 537 6 839 10.2% Organic growth 11.8%. 36.0% Services for low-speed engines continued to increase. Increase in demand of project and automation services. Acquisitions; Total Automation, of total net
Slide 17: Total Automation
Total Automation Total Automation - acquisition closed in June 2006 Leading engineering, control and instrumentation specialist serving marine, offshore, oil & petrochemical and power industry. Complements earlier automation acquisitions in Europe and North America. Net sales in 2005 EUR 42.8 millio
Slide 18: Services
Services % Service s grow th pe r Q Se rvice s sha re of sa le s % 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 © Wärtsilä 18
Slide 19: Power Plants - order intake 1-6/2006
Power Plants - order intake 1-6/2006: 853 MW (627) Europe Asia 159 158 (107) (297) 54 105 84 74 (98) (9) (155) (142) Americas 221 (44) 0 221 Africa and Middle East (9) (35) 315 (179) 145 170 (27) (152) Gas Oil © Wärtsilä 19
Slide 20: Wärtsilä Power Plants
Wärtsilä Power Plants MEUR Q2/06 Q2/05 Change Power Plants net sales Net sales 292.4 230.9 26.7% Order intake 242.9 123.9 96.0% Order book* 887.4 665.9 33.3% 34.6% Good demand in all segments; baseload, industrial self-generation and grid stability. Majority of new orders oil-driven power plants. of
Slide 21: Wärtsilä's holdings
Wärtsilä’s holdings Sale of Assa Abloy shares, 12 May 2006 10,000,000 shares sold for EUR 148.1 million. Capital gain EUR 123.9 million. Net profit after taxes EUR 91.7 million. Holding after sales Wärtsilä owns 2.0% (4.7) of Assa Abloy shares. The holding’s market value EUR 95.2 million (30 June 20
Slide 22: Wärtsilä's holdings
Wärtsilä’s holdings In July Wärtsilä, SKF and Rautaruukki signed an agreement to sell the operating companies owned by Oy Ovako Ab. The transaction is subject to regulatory approvals and expected to close in September 2006. Tax-free capital gain of approx. EUR 52 million registered in Q3. Cash flow
Slide 23: Market outlook 2006
Market outlook 2006 Ship Power Ordering activity continuing on good level in the near future. Decreasing vessel order volumes are expected in the long run, as earlier predicted. Power Plants Market situation remains good also rest of the year. Geographically demand distributed evenly. © Wärtsilä 23
Slide 24: Wärtsilä Outlook 2006 and 2007
Wärtsilä Outlook 2006 and 2007 Forecast for 2006 unchanged Demand in the ship power and energy markets looks likely to remain favorable for Wärtsilä for at least the following six months. Based on the strong order book Wärtsilä’s net sales are expected to grow this year by as much as 20%. The profit
Slide 25: Thank you!
Thank you! © Wärtsilä 25