Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — Finnish Engineering Roadshow, Shanghai 2003

22 slides from Wartsila Oyj Abp's conference presentation, Dec 3, 2003

  1. Slide 1: New business opportunities in a growing market

    New business opportunities in a growing market Ole Johansson President & CEO Wärtsilä Corporation Finnish Engineering Roadshow, Shanghai, China 3 December 2003 © Wärtsilä

  2. Slide 2: Highlights from January-September 2003

    Highlights from January-September 2003 „ Order intake of the Power Divisions increased. „ Clear improvement in operating profit. „ Consultations on personnel reductions started in France. „ Streamlining of operations continues. © Wärtsilä 2

  3. Slide 3: Power Divisions – key figures

    Power Divisions – key figures MEUR Order intake Order book 0,2% -1,5% -13,3% 45,5% 30,7% -2,7% 1-11/02 E 1-11/03 31.12.02 30.9.03 E 30.11.03 Marine Power Plants Service © Wärtsilä 3

  4. Slide 4: Supply & demand for ships

    Supply & demand for ships „ During the 1990s million dwt fleet million tons cargo trade (line) grew 800 6000 faster than the fleet 700 5000 (bars). 600 4000 „ Surplus shipping 500 capacity was slowly 400 3000 soaked up. 300 2000 „ By the 1997 the 200 supply of ships was 1000 100 just enough to carry

  5. Slide 5: Laid up tonnage - falling

    Laid up tonnage - falling 12,0 „ Laid up tonnage Dry Cargo Tankers statistics show how 10,0 the balance has million dwt laid up been tightening in 8,0 the 1990s. 6,0 „ Laid up tonnage is still low – so expect 4,0 continued volatility. 2,0 0,0 Ja J J J J J J J J J J n '9 an '9 an '9 an '9 an '9 an '9

  6. Slide 6: Vessel order book by vessel type

    Vessel order book by vessel type Tankers Bulk carriers Containers Others 150 125 Volume [ million dwt ] 100 75 50 25 0 12-96 06-97 12-97 06-98 12-98 06-99 12-99 06-00 12-00 06-01 12-01 06-02 12-02 06-03 Source: Based on data from Clarkson Research Studies Note: Cargo vessels > 5000 dwt, Other vessel

  7. Slide 7: Vessel order book - cruiseships & ferries

    Vessel order book - cruiseships & ferries 7 2001 2002 2003 2004 2005 2006 (year of vessel delivery) 6 Vessel Orderbook [ million gt ] 5 4 3 2 1 0 12-96 06-97 12-97 06-98 12-98 06-99 12-99 06-00 12-00 06-01 12-01 06-02 12-02 06-03 Source: Clarkson Research Studies Note: Sea-going vessels © Wärtsilä 7

  8. Slide 8: Shipyard order book

    Shipyard order book Korea Japan China Others 150 125 Volume [ million dwt ] 100 75 50 25 0 12-96 06-97 12-97 06-98 12-98 06-99 12-99 06-00 12-00 06-01 12-01 06-02 12-02 06-03 Source: Based on data from Clarkson Research Studies Note: Cargo vessels > 5,000 dwt, Other vessels > 2000 grt © Wärtsilä 8

  9. Slide 9: CGT outputs by builder - country / region

    CGT outputs by builder - country / region 8 Japan Korea 7 China Europe Asia 6 Others 5 4 3 2 1 0 1996 1997 1998 1999 2000 2001 1995 2002 1993 2003 1994 CGT= Compensated gross tonnes, indicator of shipbuilding capacity. © Wärtsilä 9

  10. Slide 10: Vessel order book – shipyards in China

    Vessel order book – shipyards in China Vessel Orderbook [ million dwt ] 25 20 15 10 5 0 12-96 06-97 12-97 06-98 12-98 06-99 12-99 06-00 12-00 06-01 12-01 06-02 12-02 06-03 Source: Clarkson Research Studies Note: Cargo vessels > 5000 dwt © Wärtsilä 10

  11. Slide 11: Market share by yard country

    Market share by yard country Long term trends in market shares by yard country Percent of CGT „ Other world „ E. Europe „ W. Europe „ China „ South Korea „ Japan Sources: MSR-Consult, Clarkson Research Studies, Lloyd’s Register-Fairplay © Wärtsilä 11

  12. Slide 12: Wärtsilä in China – brief history

    Wärtsilä in China – brief history Setting Setting up up Waigaoqiao Waigaoqiao Integration Integration of of Establishing Establishing Shanghai Shanghai John Developing Developing agent agent Workshop Workshop inin John Crane- Crane- First First Wärtsilä Wärtsilä Representative Representative Office;

  13. Slide 13: Wärtsilä China Ltd.

    Wärtsilä China Ltd.瓦锡兰中国有限公司 120 100 80 60 40 20 WCN Dalian Sales Office 瓦锡兰大连代表处 0 1998 1999 2000 2001 2002 WCN Beijing Rep. Office Sales to China 瓦锡兰北京代表处 Personnel, end of November 2003 : 150 WCN Engine (Shanghai) Ltd 瓦锡兰发动机上海有限公司 瓦锡兰中国有限公司共拥有员工150人 Wärtsilä Panyu Service Station 瓦锡兰番禺服务站 Wärtsil

  14. Slide 14: Shipbuilding in China

    Shipbuilding in China China Shipbuilding Industry Corporation (CSIC) „ 10 shipyards „ 19 machinery works „ 28 design offices China State Shipbuilding Corporation (CSSC) „ 14 shipyards „ 7 machinery works „ 7 design offices © Wärtsilä 14

  15. Slide 15: Wärtsilä and CSSC/CME joining forces

    Wärtsilä and CSSC/CME joining forces ƒWärtsilä-CME Zhenjiang Propeller Co. Ltd. CSSC „ one of the leading propeller manufacturers in China CME Wärtsilä „ market share 35% in China 45% 55% „ Well-known propeller brands Lips and Kaida Wärtsilä-CME Zhenjiang Propeller Co., Ltd. CSSC „ The leading shipb

  16. Slide 16: Power plant order intake 1-11/2003: 1,331 MW

    Power plant order intake 1-11/2003: 1,331 MW (295) Europe 228 (113) Asia 112 376 (73) (0) 117 (113) 342 35 Americas (61) (12) 320 (109) 311 9 (56) (54) Africa and other regions 407 (0) 385 21 Gas (0) (0) Oil © Wärtsilä 16

  17. Slide 17: Reciprocating engine and gas turbine orders to power plants

    Reciprocating engine and gas turbine orders to power plants 1-60 MW Unit Size Total 17,096 MW ƒ (17,243 MW) 4.8% (8.3) 32.1% (28.8) 63.1% (62.9) Wärtsilä Gas Turbines Other Engine Makers From June 02 to May 03. Source: Diesel & Gas Turbine Worldwide, Wärtsilä © Wärtsilä 17

  18. Slide 18: Power plant sales 1-60 MW unit size

    Power plant sales 1-60 MW unit size MW Gas turbines and reciprocating engines * Wärtsilä’s share % 35000 LFO 30000 GAS HFO 25000 1,9 % 2,4 % 20000 15000 2,8 % 1,8 % 1,4 % 10000 4,4 % 1,9 % 2,2 % 5,3 % 13,6 % 5000 52,3 % 58,2 % 51,2 % 39,4 % 37,9 % 0 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003

  19. Slide 19: China's electricity sector

    China’s electricity sector Present situation „ China is World’s #2 electricity consumer “To start the trial operation of supplying „ fluctuations in power demand electricity directly to ¾ end 90’s overcapacity some big users by the power plant is an ¾ right now power shortages important step of the

  20. Slide 20: Wärtsilä Power Plants

    Wärtsilä Power Plants Wärtsilä power plant business in China ƒ „ actively in China since mid 80’s „ presently 3,500 MW installed base ¾ highest volumes between 1990-1996 „ business affected due to end 90’s overcapacity and change in policy „ steady annual volumes in ”traditional” business Wärtsilä’s

  21. Slide 21: Outlook for the rest of the year 2003

    Outlook for the rest of the year 2003 ƒ Power Divisions „ Net sales and operational profitability excluding restructuring costs at last year’s level. „ Streamlining measures continue - EUR 75- 150 million restructuring provision will be entered in fourth-quarter accounts. „ Sale of the Polar holding

  22. Slide 22: WARTSILA

    re, WARTSILA

Wärtsilä — Finnish Engineering Roadshow, Shanghai 2003 on 6ix