Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Presentation (May 2008)
28 slides from Wartsila Oyj Abp's investor presentation, May 28, 2008
Slide 1: Wärtsilä Corporation Corporate Presentation 2008
WÄRTSILÄ CORPORATION CORPORATE PRESENTATION 2008 1 © Wärtsilä 28 May 2008 WÄRTSILÄ CORPORATION
Slide 2: This is Wärtsilä
This is Wärtsilä SHIP POWER POWER PLANTS SERVICES 2 © Wärtsilä 28 May 2008 WÄRTSILÄ CORPORATION
Slide 3: Our Mission and Vision
Our Mission and Vision Mission We provide lifecycle power solutions to enhance the business of our customers, whilst creating better technologies that benefit both the customer and the environment. Vision We will be the most valued business partner of all our customers. 3 © Wärtsilä 28 May 2008 WÄRT
Slide 4: Our offering
Our offering … we are seeking growth beyond the organic growth NON-ENGINE RELATED SERVICES Ship services OEM Power services Plants Engines Propulsors ADDITIONAL Ship Power systems PRODUCTS O&M Competitors’ engines ADDITIONAL ENGINE BRANDS 4 © Wärtsilä 28 May 2008 WÄRTSILÄ CORPORATION
Slide 5: 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 5 © Wärtsilä 28 May 2008 WÄRTSILÄ CORPORATION
Slide 6: We intend to
We intend to • maintain our leading position and generate profitable growth in all business segments • broaden and develop the range of system integration and design, installation and engineering services • strengthen competences, capabilities and presence in key markets • continuously explore possi
Slide 7: Our offering covers all key shipping segments
Our offering covers all key shipping segments Cruise Special Merchant Offshore Navy and Ferry Vessels 7 © Wärtsilä 28 May 2008 WÄRTSILÄ CORPORATION
Slide 8: We have the most extensive product portfolio in the industry
We have the most extensive product portfolio 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 Inte
Slide 9: Wärtsilä Ship Power competitive landscape
Wärtsilä Ship Power competitive landscape Automation Propulsors Bearings Turbines Power & Gensets 2-stroke 4-stroke engines engines Seals & Design Cells Product technologies Ship Fuel Companies Wärtsilä MAN Mitsubishi Heavy Industries Caterpillar Rolls Royce Tognum / MTU Niigata Hyundai / Himsen Sch
Slide 10: Wärtsilä Power Plants
Wärtsilä Power Plants WE ARE A LEADING SUPPLIER OF FLEXIBLE POWER PLANTS FOR THE DECENTRALIZED POWER GENERATION MARKET 10 © Wärtsilä 28 May 2008 WÄRTSILÄ CORPORATION
Slide 11: Our promise
Our promise • We provide superior value to our customers with our decentralized, flexible, efficient and environmentally advanced energy solutions • Our technology will enable a global transition to a more sustainable and modern energy infrastructure 11 © Wärtsilä 28 May 2008 WÄRTSILÄ CORPORATION
Slide 12: Our target: World leader in selected niches
Our target: World leader in selected niches • Flexible Baseload Power Generation for the developing world, islands, remote areas • Grid Stability and Peaking for strong grids, enabling increase of renewables • Industrial Self-Generation for large industries • For the Oil and Gas Industry mechanical
Slide 13: We are poised for growth
We are poised for growth • Business fundamentals • Services packages a strong clear differentiator • Product matching – Local presence globally market needs – Now – Planning of optimal and in the future power solutions in – Fuel flexibility consultation with the – High efficiency customer – Low envi
Slide 14: Wärtsilä Services
Wärtsilä Services WE SUPPORT OUR CUSTOMERS THROUGHOUT THE LIFECYCLE OF THEIR INSTALLATIONS BY OPTIMIZING EFFICIENCY AND PERFORMANCE 14 © Wärtsilä 28 May 2008 WÄRTSILÄ CORPORATION
Slide 15: Market drivers
Market drivers • Environmental technologies and solutions Wärtsilä Services offers environmentally sound primary and secondary technologies as retrofit to all installations • Management services Wärtsilä Services offers a wide range of agreements, customized training packages and competence manageme
Slide 16: Customers
Added capabilities Wärtsilä Services’ value support to the growth customer’s business Wärtsilä Services becomes the most valued business partner… Engine Services Automation Services Customer Relationship Customers Propulsion Services Management Operations & Management Reconditioning Services Trainin
Slide 17: We are continuously developing our network
We are continuously developing our network 70 countries > 160 locations > 17’000 people 17 © Wärtsilä 28 May 2008 WÄRTSILÄ CORPORATION
Slide 18: Meeting market demands with flexible capacity
Meeting market demands with flexible capacity Vaasa, Finland Rubbestadneset, W20 Norway W32/32DF/34SG Zhenjiang, China Havant, UK CPP R&D J/V: Wärtsilä CME Zhenjiang Face Seals, Gears Bryansk, Russia FPP, Shaft lines, Blades and Hubs Drunen, The Netherlands Synthetic Bearings 2-stroke engines CPP, F
Slide 19: Wärtsilä Corporation - Organization
Wärtsilä Corporation - Organization Ship Power Customers Supply MGMT Operations Industrial Suppliers Services Power Plants 19 © Wärtsilä 28 May 2008 WÄRTSILÄ CORPORATION
Slide 20: R&D philosophy
R&D philosophy Wärtsilä products shall be • Market leading in technologies that benefit both the customer and the environment integrated as part of a total solution package • First-time-right and reliable • Cost efficient over the total lifecycle • Suitable for the full range of fuels • Leading in e
Slide 21: Sustainability plays a central role in our business
Sustainability plays a central role in our business Wärtsilä’s Stakeholders Continuous improvement and reporting Economic Environmental Social responsibility responsibility responsibility Profitable, Sustainable Responsible Values Principles competitive and use of natural corporate efficient busines
Slide 22: Financial highlights
Financial highlights MEUR 2007 2006 2005 2004 Order intake 5 633 4 621 3 491 2 791 Order book 6 308 4 439 2 906 1 855 Net sales 3 763 3 190 2 639 2 478 Operating result 379 262 224 112 % of net sales 10.1 8.2 8.5 4.5 Profit before taxes 372 255 212 217 Earnings/share, EUR 2.74 2.03 1.80 1.42 Cash fl
Slide 23: Net sales by market area
Net sales by market area MEUR 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2003 2004 2005 2006 2007 Asia Europe Americas Other 23 © Wärtsilä 28 May 2008 WÄRTSILÄ CORPORATION
Slide 24: Personnel development
Personnel development 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2003 2004 2005 2006 2007 Services Ship Power Power Plants Industrial Operations 24 © Wärtsilä 28 May 2008 WÄRTSILÄ CORPORATION
Slide 25: Improved profitability
Improved profitability MEUR 600 20% % 500 15% 400 300 10% 200 5% 100 0 0% 2005 2006 2007 2008E EBIT EBIT % 25 © Wärtsilä 28 May 2008 WÄRTSILÄ CORPORATION
Slide 26: Delivered engine megawatts from own factories
Delivered engine megawatts from own factories MW 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2001 2002 2003 2004 2005 2006 2007 2008E Power Plants Ship Power Full-year estimate 26 © Wärtsilä 28 May 2008 WÄRTSILÄ CORPORATION
Slide 27: Wärtsilä's prospects 2008
Wärtsilä’s prospects 2008 • Based on the strong order book, Wärtsilä’s net sales are expected to grow by about 25% in 2008 • Wärtsilä’s profitability varies considerably from one quarter to another • Profitability will exceed 11% 27 © Wärtsilä 28 May 2008 WÄRTSILÄ CORPORATION
Slide 28: WARTSILA.COM
WARTSILA.COM