Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — JP Morgan European Capital Goods CEO Conference 2014

26 slides from Wartsila Oyj Abp's conference presentation, Jun 13, 2014

  1. Slide 1: Wärtsilä Corporation – JP Morgan European Capital Goods CEO Conference

    WÄRTSILÄ CORPORATION JP MORGAN EUROPEAN CAPITAL GOODS CEO CONFERENCE 13 JUNE 2014 Björn Rosengren, President & CEO 1 © Wärtsilä

  2. Slide 2: Net sales by business 1-3/2014

    Net sales by business 1-3/2014 Ship Power 38% Services 43% Power Plants 19% 2 © Wärtsilä

  3. Slide 3: Net sales and profitability

    Net sales and profitability MEUR 6000 14% 12.1% 12% Review period development 5000 11.1% 10.9% 11.2% 10.7% 10% 1200 14% 4000 1000 12% 8% 3000 8.9% 10% 800 8.0% 6% 8% 600 2000 4% 6% 400 4% 1000 2% 200 2% 0 0% 0 0% 2009 2010 2011 2012 2013 1-3/2013 1-3/2014 Net sales EBIT % Figures shown before nonrec

  4. Slide 4: Order intake

    Order intake MEUR 6000 Review period development 5000 MEUR 1600 4000 1400 1200 3000 1000 800 2000 600 1000 400 200 0 0 2009 2010 2011 2012 2013 1-3/2013 1-3/2014 Power Plants Ship Power Services 4 © Wärtsilä

  5. Slide 5: Order book distribution

    Order book distribution MEUR 3500 3000 2500 2000 1500 1000 500 0 31.03.2013 31.03.2014 Delivery current year Delivery next year or later 5 © Wärtsilä

  6. Slide 6: Vessel contracting continues active

    Vessel contracting continues active Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT * 250 5 200 4 150 3* # of vessels Million CGT 100 2 50 1 0 0 Source: Clarkson Research Services * CGT= gross tonnage compensated with workload 6 © Wärtsilä

  7. Slide 7: Growth in Ship Power order intake

    Growth in Ship Power order intake MEUR 2000 1800 4% 2% 1600 1400 1200 33% 1000 800 600 62% 400 200 0 1-3/2014 2011 2009 2010 2012 2013 Merchant Offshore Other Special vessels 7 © Wärtsilä

  8. Slide 8: The most complete marine offering

    The most complete marine offering v 8 © Wärtsilä

  9. Slide 9: Ship Power focus areas

    Ship Power focus areas Efficiency Gas and dual-fuel solutions Offshore market Environmental solutions 9 © Wärtsilä

  10. Slide 10: Clear leadership in gas applications

    Clear leadership in gas applications Power Plants Merchant Offshore Cruise & Ferry Navy Others Dual-fuel LNGC OSV’s LNG cruise ferry Coastal patrol Tug power plants • 145 vessels • 31 vessels • 1 vessel • DF propulsion • 2 vessels • 83 installations • 585 engines • 96 engines • 4 engines • DF main a

  11. Slide 11: Power generation markets challenging

    Power generation markets challenging Electricity consumption growth vs. GDP growth 7,00 25 000 000 6,00 Electricity consumption GWh 20 000 000 5,00 4,00 15 000 000 Growth % 3,00 2,00 10 000 000 1,00 0,00 5 000 000 -1,00 -2,00 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 GDP yearly g

  12. Slide 12: Power Plants order intake by customer segment

    Power Plants order intake by customer segment MEUR Review period development 2000 Total EUR 165 million (406) 1800 Utilities 25% 1600 Industrials 51% 1400 IPP’s* 24% 1200 1000 800 Review period order intake by fuel in MW 600 400 Oil Gas 200 41% 59% 0 2009 2010 2011 2012 2013 1-3/2014 *IPP = Independ

  13. Slide 13: Power Plants installed base

    Power Plants installed base Europe: Output: 12.5 GW Asia: Output: 19.8 GW Americas: Output: 11.7 GW Total: 56.2 GW Countries: 169 Plants: 4,700 Africa & Middle East: Output: 12.5 GW Utilities IPPs Industrials Others * December 2013 13 © Wärtsilä

  14. Slide 14: Power Plants' strategic focus

    Power Plants’ strategic focus • Maintain leading position HFO & dual-fuel power plants • Grow in the large utility gas Energy power plants by capturing Efficiency market share from gas turbines Smart • Grow in biofuel power plants by Power enabling a wide fuel range Generation • Grow in special appl

  15. Slide 15: Developing medium-scale LNG infrastructure

    Developing medium-scale LNG infrastructure v 15 © Wärtsilä

  16. Slide 16: The global vessel fleet operates in all corners of the world

    The global vessel fleet operates in all corners of the world Source: Vesselsvalue Ltd. 16 © Wärtsilä

  17. Slide 17: Wärtsilä Services' global network

    Wärtsilä Services’ global network Installed base 70 countries, 160 locations, 11,000 service professionals 182,000 MW Widest range of offering and expertise 17 © Wärtsilä

  18. Slide 18: Marine customers remain focused on cost savings

    Marine customers remain focused on cost savings Breakdown of shipyard revenues from a typical dry docking USD thousand per vessel (on average) 500 450 400 350 300 250 200 150 100 50 0 2007 2008 2009 2010 2011 2012 2013 Painting and sand blasting Mechanical and E&A Steelwork Overhead and margin 18 ©

  19. Slide 19: Stable development in Services

    Stable development in Services MEUR 2000 1800 1600 24% 1400 1200 1000 53% 800 600 17% 400 200 6% 0 2009 2010 2011 2012 2013 1-3/2014 Spare parts Contracts Field service Projects 19 © Wärtsilä

  20. Slide 20: Development of installed engine base

    Development of installed engine base MW 200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 2008 2009 2010 2011 2012 2013 Power Plants Ship Power 20 © Wärtsilä

  21. Slide 21: Wärtsilä's service agreements around the world

    Wärtsilä’s service agreements around the world North Europe 2,900 MW Middle East & Asia Americas 5,390 MW 5,140 MW South Europe & Africa 4,930 MW Marine Power 21 © Wärtsilä

  22. Slide 22: Differentiated service offering through modularisation

    Differentiated service offering through modularisation Culture and Customer organisation needs Growth and profitability through superior customer Customer experience understanding Customer focus Offering v 22 © Wärtsilä

  23. Slide 23: An organisation based on divisions with end-to-end responsibility

    An organisation based on divisions with end-to-end responsibility R&D Production Sales & Product Customer marketing delivery TRANSPARENCY ACCOUNTABILITY SPEED 23 © Wärtsilä

  24. Slide 24: Prospects for 2014

    Prospects for 2014 Wärtsilä expects its net sales for 2014 to grow by 0-10% and its operational profitability (EBIT% before non-recurring items) to be around 11%. v 24 © Wärtsilä

  25. Slide 25: Positioned for growth even in challenging markets

    Positioned for growth even in challenging markets Smart Power Gas as Environmental Generation a fuel solutions 25 © Wärtsilä

  26. Slide 26: WARTSILA.COM

    WARTSILA.COM IR Contact: Natalia Valtasaari Director, Investor Relations Tel. +358 (0) 40 187 7809 E-mail: natalia.valtasaari@wartsila.com 26 © Wärtsilä

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