Slide 1: Wärtsilä Corporation 2008 Result Presentation
WÄRTSILÄ CORPORATION 2008 RESULT PRESENTATION OLE JOHANSSON, PRESIDENT & CEO 30 JANUARY 2009 1 © Wärtsilä
Slide 2: 2008 - a record year
2008 - a record year • Net sales +23%, EUR 4,612 million • Profitability improved clearly, EUR 525 million, 11.4% of net sales • EPS EUR 3.88 (2.74) • Order intake EUR 5,573 million (5,633) 2 © Wärtsilä
Slide 3: Full year order intake at last year's level
Full year order intake at last year’s level MEUR 6000 Fourth quarter development 5500 5000 1600 1 594 -48% 4500 1400 4000 1200 -16% 1000 3500 823 800 3000 -76% 600 2500 400 2000 -43% 200 1500 0 1000 Q4/2007 Q4/2008 500 0 2004 2005 2006 2007 2008 Order intake Power Plants Ship Power Services 3 © Wärt
Slide 4: Order book grew 9%
Order book grew 9% MEUR 8000 9% 6 883 7000 6 308 6000 10% 5000 5% 4000 3000 2000 21% 1000 0 2004 2005 2006 31.12.2007 31.12.2008 *) Order book Power Plants Ship Power Services *) Cancellations amounting to EUR 333 million and the order book of Bio Power amounting to EUR 116 million have been deducte
Slide 5: Net sales grew according to plan
Net sales grew according to plan MEUR 5000 4500 Fourth quarter development 23% 4000 MEUR 1600 1 530 18% 1400 20% 3500 1 272 1200 15% 3000 27% 1000 800 2500 13% 29% 600 2000 400 19% 200 1500 0 Q4/2007 Q4/2008 1000 500 0 2004 2005 2006 2007 2008 Net sales Power Plants Ship Power Services 5 © Wärtsilä
Slide 6: Order book distribution
Order book distribution MEUR Strong basis for 2009 7000 6000 5000 4000 3000 2000 1000 0 31.12.2007 31.12.2008 Delivery next year Delivery next year + 6 © Wärtsilä
Slide 7: Net sales by business 2008
Net sales by business 2008 Ship Power Power Plants 33% (35) 27% (24) Services 40% (41) 7 © Wärtsilä
Slide 8: Net sales by market area
Net sales by market area MEUR 5000 Continued growth in Asia 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2004 2005 2006 2007 2008 Asia Europe Americas Other 8 © Wärtsilä
Slide 9: Operating profit all time high
Operating profit all time high MEUR 200 180 160 140 120 100 80 60 40 20 0 Q1 Q2 Q3 Q4 2005 2006 2007 2008 9 © Wärtsilä
Slide 10: Ship Power - market development
Ship Power - market development Ship owner earnings have fallen dramatically ClarkSea index covers tankers, bulkers, containers and gas carriers. Source: Clarkson Research Services Limited. 10 © Wärtsilä
Slide 11: Ship Power market - vessel order development
Ship Power market - vessel order development Merchant Cruise&Ferry Offshore & Special Vessels 3 months moving average in DWT Million DWT # vessels Source data: Clarkson Research Services 11 © Wärtsilä
Slide 12: Ship Power market - merchant vessel order development
Ship Power market - merchant vessel order development # vessels Tankers Bulkers Containers LNG carriers LPG carriers Reefers Other dry cargo Source data: Clarkson Research Services 12 © Wärtsilä
Slide 13: Ship Power - market development
Ship Power - market development Market position of Wärtsilä’s marine engines 2008 Medium-speed main engines Low-speed main engines Auxiliary engines Others Mitsubishi Wärtsilä 18%(15) 4%(2) 8%(9) Wärtsilä 15%(13) Wärtsilä 37%(34) MAN Diesel 24%(27) MAN Diesel Others Caterpillar 81%(85) 92%(91) (MAK)
Slide 14: Ship Power order intake 2008
Ship Power order intake 2008 MEUR 2800 Merchant Offshore 2400 15% 47% 27% -30% 2000 47% 1600 1200 85% 800 Cruise 400 & Ferry Special 10% Navy 0 vessels 5% 2004 2005 2006 2007 2008 11% 14 © Wärtsilä
Slide 15: Ship Power order book distribution
Ship Power order book distribution Even spread between ship types RoRo LNG 4% 8% Bulkers Merchant 10% Offshore 49% 32% Container 9% Tankers Special vessels 9% 8% Cargo Cruise & Ferry 9% Ship Design 6% 1% Navy 4% 15 © Wärtsilä
Slide 16: Power Plants order intake by application 2008
Power Plants order intake by application 2008 Industrial MEUR self-generation 18% 2000 1800 1600 1400 Grid stability 1200 & peaking Flexible 33% baseload 1000 47% 800 600 Oil & gas Renewable 2% 400 2% 200 Gas 37% 0 Oil 61% 2004 2005 2006 2007 2008 16 © Wärtsilä
Slide 17: Power Plants order intake
Power Plants order intake Americas very strong region Order intake 2008: 3,349 MW (2,775) Asia 207 (433) Europe 483 (929) 153 388 Americas 1,693 (434) 43 54 52 1,072 Africa and Middle East 965 (979) 17 66 578 539 50 Flexible baseload Industrial self-generation 338 Oil & gas Grid stability & peaking
Slide 18: Power Plants order book distribution
Power Plants order book distribution Oil & gas 3% Grid stability Industrial self- & peaking generation 28% 19% Flexible baseload 51% 18 © Wärtsilä
Slide 19: Services net sales 2008
Services net sales 2008 MEUR 2000 Fourth quarter development 1800 MEUR 495 18% 500 1600 431 15% 1400 22% 400 1200 300 16% 1000 17% 200 800 100 600 0 Q4/2007 Q4/2008 400 200 0 2004 2005 2006 2007 2008 19 © Wärtsilä
Slide 20: Services net sales distribution
Services net sales distribution Field service 29% Spare parts 54% Contracts 11% Projects 6% 20 © Wärtsilä
Slide 21: Services installed engine base 2008
Services installed engine base 2008 Total installed base 162,100 MW Ship Power Power Plants 130,008 MW 32,092 MW 21 © Wärtsilä
Slide 22: Strong cash flow
Strong cash flow MEUR 2008 2007 Cash flow from operating activities 278 431 Cash flow from investing activities -329 -214 Cash flow from financing activities -26 -95 Liquid funds at the end of period 197 296 22 © Wärtsilä
Slide 23: Personnel development
Personnel development 11,000 people in Services 20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 2004 2005 2006 2007 2008 Services Ship Power Power Plants Industrial Operations 23 © Wärtsilä
Slide 24: Financial position
Financial position Solvency Gearing 50 0,50 % 45 0,40 40 35 0,30 30 25 0,20 20 15 0,10 10 5 0,00 2004 2005 2006 2007 2008 0 2004 2005 2006 2007 2008 -0,10 24 © Wärtsilä
Slide 25: EPS and dividend/share
EPS and dividend/share EUR 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 2004² 2005 2006² 2007 2008¹ EPS Dividend Extra dividend 1 Dividend 2008 - Proposal of the Board 2 Includes one-off capital gains; Assa Abloy & Ovako 25 © Wärtsilä
Slide 26: Market outlook
Market outlook • Ship Power: Market uncertainties prevail • Power Plants: Ordering activity estimated to be on a good level during the next two quarters • Services: Stable development continues 26 © Wärtsilä
Slide 27: Prospects for 2009
Prospects for 2009 • Despite the risk of cancellations, the substantial order book at the end of the year should support a 10-20 percent growth in net sales for 2009, which would maintain the profitability at last year’s good level. 27 © Wärtsilä
Slide 28: Presentation name / Author
Presentation name / Author