Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Presentation (2002)
54 slides from Wartsila Oyj Abp's investor presentation, 2002
Slide 1: Wärtsilä Corporation
Wärtsilä Corporation Corporate Presentation 4/2002
Slide 2: Vision: Wärtsilä – Power on Land and at Sea
Vision Wärtsilä – Power on Land and at Sea We strive to lead the ship power and distributed power generation markets by providing the most competitive, reliable and environmentally sound solutions. Our world-wide network of professionals translates these solutions into maximum customer satisfaction
Slide 3: Group structure
Group structure Power Divisions Marine Marine Power PowerPlants Plants Service Service Corporate Presentation 4/2002 3
Slide 4: Product brands
Product brands WÄRTSILÄ® SULZER® LIPS® JMT DEEP SEA SEALS® IMATRA STEEL Corporate Presentation 4/2002 4
Slide 5: Key figures
Key figures MEUR 2001 2000 Change 2000* Net sales 2,358.7 2,706.8 -12.9% 2,482.3 Operational EBIT 95.8 111.4 -14.0% 111.4 Operational profit 523.9 367.1 42.7% 336.8 Profit before extraordinary items 508.7 336.1 51.4% 320.8 Earnings per share, EUR 5.53 4.20 * Proforma, excl. Sanitec Corporate Present
Slide 6: Net sales
Net sales MEUR 3 000 2 500 2 000 1 500 1 000 500 0 1997 1998 1999 2000 2001 Power Divisions Imatra Steel Sanitec, 3 months in 2000 Corporate Presentation 4/2002 6
Slide 7: Divisional profitability
Divisional profitability Operating profit/net sales by quarter 1999-2001 % 10 8 6 4 2 0 -2 -4 -6 Q1/99 Q4/01 Power Divisions % 12 10 8 6 4 2 0 -2 Q1/99 Imatra Steel Q4/01 Corporate Presentation 4/2002 7
Slide 8: EPS and dividend/share
EPS and dividend/share EUR 6 5 4 3 2 1 0 -1 1997 1998 1999 2000 2001 EPS operational EPS non-recurring Normal dividend Extra dividend Corporate Presentation 4/2002 8
Slide 9: Investments and depreciation
Investments and depreciation MEUR 300 250 200 150 100 50 0 1997 1998 1999 2000 2001 Production Shares Depreciation Corporate Presentation 4/2002 9
Slide 10: Wärtsilä Corporation personnel
Wärtsilä Corporation personnel End of period 2001 2000 Change Power Divisions 9,738 9,255 +483 Imatra Steel 1,384 1,280 +104 Others 29 - Total * 11,122 10,564 +558 * Sanitec not included. Corporate Presentation 4/2002 10
Slide 11: Outlook for 2002
Outlook for 2002 Power Divisions n In Marine strong order book and Wärtsilä Propulsion a good foundation n In Power Plants Latin America strong, growth potential in Europe n Net sales will increase, operational profitability as in 2001 n Benefits from restructurings in 2003 Imatra Steel n Uncertain
Slide 12: Wärtsilä Power Divisions: Power on Land and at Sea
Wärtsilä Power Divisions Power on Land and at Sea Corporate Presentation 4/2002 12
Slide 13: Strategy of Power Divisions
Strategy of Power Divisions Who we are Solution Provider System Contractor Engine Our Manufacturer product Engine Turnkey Power Solutions Corporate Presentation 4/2002 13
Slide 14: Financial targets 2003
Financial targets 2003 n Net sales EUR 3 billion n Operating profit 7-8% MEUR 3 000 2 500 2 000 1 500 2000 2001 2002 2003 Corporate Presentation 4/2002 14
Slide 15: Operational targets
Operational targets n The leading global ship power supplier n In Power Plants, to strengthen its global leadership position in large engine based power plants and to generate major growth in renewable energy solutions. Gas power plant deliveries will be half of Wärtsilä's total power plant business
Slide 16: Power Divisions in figures
Power Divisions in figures MEUR 2001 2000 Change Net sales 2,174.3 2,287.8 -5.0% Operating profit 87.8 86.2 1.9% % of sales 4% 3.8% Order intake 2,040.4 2,460.6 -17.1% Megawatts delivered 6,172 7,495 -17.7% Order book, end of period 1,516.5 1,624.2 -6.6% MEUR 1 600 Order book 1 400 1 200 1 000 800 6
Slide 17: Power Divisions net sales
Power Divisions net sales MEUR 2 000 1 500 1 000 500 0 1997 1998 1999 2000 2001 Pow er Plants Marine Service Corporate Presentation 4/2002 17
Slide 18: Power Divisions operating profit
Power Divisions operating profit MEUR 100 80 60 40 Operating profit 20 0 Operating -20 result after -40 restructuring provisions -60 -80 -100 -120 1997 1998 1999 2000 2001 Corporate Presentation 4/2002 18
Slide 19: Power Divisions net sales by market
Power Divisions net sales by market MEUR 2 000 1 600 1 200 800 400 0 1997 1998 1999 2000 2001 EU Other Europe Americas Asia Other countries Corporate Presentation 4/2002 19
Slide 20: Megawatts delivered
Megawatts delivered MW 8 000 7,497 7,495 7 000 6,896 6,278 6,172 6 000 5 000 4 000 3 000 2 000 1 000 0 1997 1998 1999 2000 2001 Power Plants Marine engines License built Corporate Presentation 4/2002 20
Slide 21: Sales and service worldwide
Sales and service worldwide Wärtsilä company Representative Corporate Presentation 4/2002 21
Slide 22: Wärtsilä engine portfolio
Wärtsilä engine portfolio Wärtsilä 220SG Wärtsilä 32DF Wärtsilä 32LNGD Medium and high-speed Wärtsilä 34SG gas and dual fuel engines Wärtsilä46GD Wärtsilä 50DF Wärtsilä 20 Wärtsilä 200 Wärtsilä 26 Medium and high-speed Wärtsilä 32/32LNGD diesel engines Wärtsilä 32 Wärtsilä 38 Sulzer ZA40S Wärtsilä 4
Slide 23: The Ship Power Supplier
The Ship Power Supplier Wärtsilä supplies ship machinery, propulsion and manoeuvring solutions and maintenance services for all types of marine vessels and offshore applications. Corporate Presentation 4/2002 23
Slide 24: Marine Division in figures
Marine Division in figures EUR mill. 2001 2000 Change % Net sales 595.1 719.7 -17.3% Order intake 476.8 878.9 -45.8% MW delivered by Wärtsilä 2,346 2,768 -15.3% by licensees 2,378 2,990 -20.5% Order book, end of period 769.6 888.1 -13.3% Power Divisions net sales 2001 MEUR 2,174.3 n Marine 27% Corpo
Slide 25: Order book of world's shipyards
Order book of world’s shipyards million DWT 125 100 75 50 25 0 12-96 12-97 12-98 12-99 12-00 12-01 Corporate Presentation 4/2002 25
Slide 26: Net sales breakdown of Wärtsilä marine engines
Net sales breakdown of Wärtsilä marine engines MEUR 800 600 400 200 0 1997PF 1998PF 1999 2000 2001 Other Bulk carriers Tankers General cargo & container vessels Offshore, special, fishing & navy vessels Ferries Note: 1997 & 1998 including Grandi Motori Trieste Cruise ships Corporate Presentation 4/2
Slide 27: Marine engine market share
Marine engine market share High-, medium- and low-speed marine engines Main & auxiliary engines 25 000 Wärtsilä Others 78% 20 000 Engine Power [ MW ] 72% 15 000 75% 71% 10 000 28% 22% 25% 29% 5 000 0 June 97 - May 98 June 98 - May 99 June 99 - May 00 June 00 - May 01 Source: Diesel & Gas Turbine Wor
Slide 28: Marine engine market share
Marine engine market share Medium- and low-speed main engines Orders June 00 - May 01 Medium-speed engines Low-speed engines Wärtsilä Wärtsilä 37% (38%)* 26% (25%)* Total market volume: 4,902 MW* Total market volume: 14,677 MW* * Estimate Source: Diesel & Gas Turbine Worldwide - Issue 11-01 Notes: D
Slide 29: Wärtsilä Propulsion: John Crane-Lips acquisition
Wärtsilä Propulsion John Crane-Lips acquisition strengthens Wärtsilä's leading market position 35% % 30 29% n Increases Marine Division´s annual net sales about EUR 235 million n Price EUR 350 million 20 n In the first year earnings neutral, and cash flow positive n The deal was closed 10 on 15 Apri
Slide 30: The Ship Power Supplier
The Ship Power Supplier Wärtsilä's goal is to become the leading provider of total marine propulsion systems in the world. Corporate Presentation 4/2002 30
Slide 31: Licensees worldwide
Licensees worldwide Hyundai, Korea Diesel United, Japan H. Cegielski-Poznan, Poland HSD Engine, Korea Mitsubishi, Japan Zgoda, Poland NKK, Japan 3.Maj, Croatia Hitachi Zosen, Japan CSIC: Dalian. China Isotta Fraschini Motori, Italy Yichang, China CSSC: Hudong, Cina Shangchuan, China Corporate Presen
Slide 32: Power for a Changing World
Power for a Changing World Wärtsilä delivers power plant solutions from 1 to 300 MW. These power plants are used for baseload, peak load, CHP, gas compression and pumping applications. The range covers gas- and oil fired plants as well as patented combustion technology for renewable energy. Deliveri
Slide 33: Power Plants
Power Plants MEUR 2001 2000 Change Net sales 760.6 834.6 -8.9% Order intake 658.6 851.0 -22.6% Order intake MW 1,430.5 1,929.2 -25.9% of which gas power plants 421.7 232.0 81.8% Order book 467.7 518.5 -9.8% Power Divisions net sales 2001 EUR 2,174.3 mill. n Power Plants 35% Corporate Presentation 4/
Slide 34: Power plant orders 2001
Power plant orders 2001 Europe gas 111 MW oil 244 MW Asia gas 9 MW oil 152 MW Americas gas 267 MW oil 460 MW Africa and the other regions gas 34 MW oil 152 MW Corporate Presentation 4/2002 34
Slide 35: Decentralized power generation
Decentralized power generation Cogeneration n in industrial countries gas and bio fuels n Sermet acquisition supports the strategy Base load n in the developing countries oil and advanced emulsified fuels n the delivery of 160 MW power plant to Guatemala Corporate Presentation 4/2002 35
Slide 36: Power plant deliveries
Power plant deliveries MW delivered 2 500 2 000 1 500 Gas Other 1 000 500 0 1997 1998 1999 2000 2001 Corporate Presentation 4/2002 36
Slide 37: Power Plants market share
Power Plants market share Reciprocating engine and gas turbine orders to power plants 1-60 MW Unit Size from June 00 to May 01. 5.3% Wärtsilä Gas turbines Other engine 44.7% makers 50.0% Total 32,548 MW Source: Diesel & Gas Turbine Worldwide, Wärtsilä Corporate Presentation 4/2002 37
Slide 38: Reciprocating engine and gas turbine orders to power plants
Reciprocating engine and gas turbine orders to power plants 1-60 MW unit size (from June 00 to May 01) MW 20 000 Gas turbines 17,264 MW 18 000 Other engine makers 16 000 Wärtsilä 13,058 MW 12,885 MW 14 000 526 12 000 9,395 MW 10 000 955 15584 8 000 11375 6 000 12323 4 000 2,169 MW 2,226 MW 8189 2 00
Slide 39: Energy from bio mass
Energy from bio mass Wärtsilä Bio Power n Strong growth potential n Acquisition of Sermet: - patented rotating BioGrate product - bio fuel expertise Decentralised bio boilers and power plants. Corporate Presentation 4/2002 39
Slide 40: Total Service Provider
Total Service Provider Wärtsilä’s service and operations business builds on the Group’s global base of installed engines and power plants. With this activity the Group supports its customers throughout the lifecycle of these products. Wärtsilä is close to its customers, through subsidiaries in some
Slide 41: Service
Service MEUR 2001 2000 Change Net sales 790.4 702.0 12.6% Personnel, end of 5,026 4,485 12.1% period O&M agreements, MW 1,698 1,262 34.5% Power Divisions net sales 2001 EUR 2,174.3 mill. n Service 36% Corporate Presentation 4/2002 41
Slide 42: Total Service Provider
Total Service Provider n OEM parts n Field service n Workshop & ship repair services n Upgrading & modernization n Technical support n Operation support n Training Corporate Presentation 4/2002 42
Slide 43: Total Service Provider: Operations & Maintenance
Total Service Provider Operations & Maintenance n More than 300 O&M service agreements n Specified scope of service products and additional benefits n Mutual commitment over a certain period in order to ensure and optimise the customer’s targets for operation & maintenance Corporate Presentation 4/2
Slide 44: Total Service Provider: Operations & Maintenance
Total Service Provider Operations & Maintenance n Wärtsilä currently operates over 85 plants, with a total output of some 1,700 MW. Power Plants n Project O&M mobilisation 24,729 M n Maintenance planning, plant Marine Sulzerperformance and efficiency 97638 MW 75,806monitoring MW n Integrated logisti
Slide 45: Total Service Provider: Acquisitions and growth strategy
Total Service Provider Acquisitions n strategic expansion of product portfolio n increase market share Growth strategy n objective 10-15% p.a. n acquisitions part of the strategy Corporate Presentation 4/2002 45
Slide 46: Total Service Provider: Engine base
Total Service Provider Engine base: 125,120 MW MW total MW per brand Power Wärtsilä 26,965 MW 48,234 MW Marine Sulzer 98,155 MW 76,886 MW Corporate Presentation 4/2002 46
Slide 47: Technological leadership
Technological leadership Wärtsilä designs and develops low-speed, medium-speed and high-speed diesel engines, medium-speed and high-speed gas engines, propulsion and manoeuvring equipment, related systems and technology, applying these to the needs of the market . Corporate Presentation 4/2002 47
Slide 48: Status of fuel versatility
Status of fuel versatility Wärtsilä engines 2001 Corporate Presentation 4/2002 48
Slide 49: NOx emission compliance of Wärtsilä engines
NOx emission compliance of Wärtsilä engines Corporate Presentation 4/2002 49
Slide 50: Imatra Steel: A Skilful Niche Player
Imatra Steel A Skilful Niche Player Imatra Steel is Wärtsilä’s special engineering steels company. Imatra Steel produces round, square and flat special steel bars, forged engine and front axle components, leaf springs and tubular stabilizer bars. The company’s customers are European automotive and m
Slide 51: Imatra Steel
Imatra Steel EUR mill. 2001 2000 Change Net sales 186.4 194.1 -4.0% Operating profit 6.4 17.4 -63.2% % of net sales 3.4% 9.0% Wärtsilä net sales 2001 n Demand began to decline, measures EUR 2,358.7 mill. to adjust capacity n Imatra Steel 8% n Truck production in Europe -8% n Renewal of the base meta
Slide 52: Imatra Steel's net sales and operating profit
Imatra Steel’s net sales and operating profit MEUR 200 14 12 150 10 8 100 6 4 50 2 0 0 1997 1998 1999 2000 2001 Net sales Operating profit, % Corporate Presentation 4/2002 52 A WÄRTSILÄ COMPANY
Slide 53: Holdings - Resources for developing core business
Holdings - Resources for developing core business Assa Abloy Wärtsilä owns 7.9% of Assa Abloy's shares and plays an active shareholder's role on the Board of Directors. This holding gives Wärtsilä the opportunity to strengthen the Group's financial structure and to develop the Power Divisions. Wärts
Slide 54: Wärtsilä Corporation
Wärtsilä Corporation Wärtsilä Corporation is the leading global ship power supplier and a major provider of solutions for decentralised power generation and of supporting services. In addition Wärtsilä operates a Nordic engineering steel company Imatra Steel and manages a substantial holding to supp