Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Corporate Update (August 2013)
23 slides from Wartsila Oyj Abp's corporate update, Aug 20, 2013
Slide 1: Kampen Site Visit
KAMPEN SITE VISIT CHRISTOPH VITZTHUM, PRESIDENT, SERVICES & EVP, WÄRTSILÄ 20 AUGUST 2013 © Wärtsilä
Slide 2: This is Wärtsilä
This is Wärtsilä POWER PLANTS SHIP POWER SERVICES 2 © Wärtsilä
Slide 3: Order intake development
Order intake development MEUR 5500 5000 4500 4000 Second quarter development MEUR 3500 1400 3000 1 198 1200 -11% 1 071 2500 1000 1% Services 2000 800 Ship Power 1500 -15% 600 Power Plants 1000 400 500 -23% 200 0 0 2009 2010 2011 2012 1-6/2013 Q2/2012 Q2/2013 3 © Wärtsilä
Slide 4: Net sales developed in line with our expectations
Net Netsales developed sales according in line with to expectations our expectations MEUR 5500 5000 -13% 4500 12% 4000 Second quarter development -7.6% 3500 MEUR 1400 3000 1 152 1200 1 099 5% 2500 1000 Services 2000 800 4% Ship Power 1500 600 Power Plants 1000 6% 400 500 200 4% 0 0 2009 2010 2011 20
Slide 5: Net sales by business 1-6/2013
Net sales byNet business 1-6/2013 Ship Power 28% (25) Services 44% (45) Power Plants 28% (30) 5 © Wärtsilä
Slide 6: Profitability
Profitability MEUR 250 16% 14% 12.8% 200 11.5% 11.7% EBIT% 11.0% 12% 12.1% target: 10.3% 11.1% 10-14% 10.7% 10.9% 10% 150 9.6% 8% 100 6% 4% 50 2% 0 0% 2009 2010 2011 2012 2013 Q1 Q2 Q3 Q4 EBITA% (operating result before non-recurring items and intangible asset amortisation related to acquisitions) E
Slide 7: Services
Services Preventing the unexpected and optimising our customers operations is our shared passion. We serve you whenever, wherever. We provide the broadest portfolio and best services in the industry for both shipping and power generation. We offer expertise, proximity and responsiveness for all cust
Slide 8: Wide range of expertise and services
Wide range of expertise and services Engine services Propulsion services Electrical & Boiler services Seals & Bearings automation services services Environmental Service agreements Service projects Training services services 8 © Wärtsilä
Slide 9: 70 countries, 160 locations, 11,000 service professionals
70 countries, 160 locations, 11,000 service professionals Installed base Wärtsilä Services’ global network 181,200 MW Widest range of offering and expertise 9 © Wärtsilä
Slide 10: Key market drivers
Key market drivers • Development of installed base and fleet utilisation • Increased focus on total cost of ownership and lifecycle efficiency • Changes in environmental regulations • Growth of gas as a fuel in shipping and in power generation • Outsourcing of operations and maintenance in service m
Slide 11: Fleet utilisation
Fleet utilisation Fleet utilisation Anchored Vessels & Fleet Development* 35% 22000 Nr of Active Vessels Percent Anchored 30% 21500 25% 21000 20% 20500 15% 20000 Oct.11 Oct.12 Jan.11 Jan.12 Jan.13 Jul.11 Jul.12 Jul.13 Apr.11 Apr.12 Apr.13 Anchored Active Fleet Fleet Average Speed, knots** 10,5 10,0
Slide 12: Services net sales by quarter
Services net sales by quarter MEUR 600 500 400 300 200 100 0 2006 2007 2008 2009 2010 2011 2012 2013 Q1 Q2 Q3 Q4 12 © Wärtsilä
Slide 13: Services net sales distribution 1-6/2013
Services net sales distribution 1-6/2013 Field service 23%(24) Spare parts 53%(53) Contracts 16%(14) Projects 8%(9) Total EUR 899 million (942) 13 © Wärtsilä
Slide 14: Services distribution per business 2012
Services distribution per business 2012 Net sales distribution Installed base distribution Total EUR 1,908 million Total 181,200 MW Ship Power Ship Power Power Plants Power Plants In addition to Engine Services, Wärtsilä’s Services portfolio includes: Electrical & Automation Services, Propulsion Ser
Slide 15: Wärtsilä's service agreements around the world
Wärtsilä’s service agreements Wärtsilä’s around the around service agreements world the world North Europe 3,280 MW Middle East & Asia 5,830 MW Americas South 4,100 MW Europe & Africa 4,430 MW • Wärtsilä’s service agreement offering covers the operation and maintenance of power plants and service ag
Slide 16: Development of Power Plants service agreements
Development of Power Plants service agreements MW 4500 90% 4000 80% 3500 70% 57% 58% 57% 3000 60% 53% 48% 2500 50% 2000 40% 1500 30% 1000 20% 500 10% 0 0% 2009 2010 2011 2012 Q2/2013 12m rolling O&M and maintenance agreements Power Plants deliveries % of delivered MWs 16 © Wärtsilä
Slide 17: Five year maintenance agreement for Viking Grace
Five year maintenance agreement for Viking Grace • Agreement signed for maintaining and servicing ‘Viking Grace’, the world’s largest NEW LNG fuelled passenger ferry • The agreement covers four Wärtsilä 50DF PIC engines and the Wärtsilä LNGPac gas system's safety valves • Target to extend maintenanc
Slide 18: Good demand for service agreements in Africa
Good demand for service agreements in Africa • 3-year O&M agreement signed with Central Termica de Ressano Garcia for the company’s gas engine power plant in Mozambique – The power plant will help meet the country’s growing demand for electricity • 10-year O&M agreement signed with Ndola Energy Comp
Slide 19: Strategic goals
Strategic goals Services will: • Maximise market share with the present customer base • Constantly develop the offering proposition with value-enhancing solutions • Grow by providing more service agreements with new Ship Power and Power Plants deliveries • Become the industry’s market leader in envi
Slide 20: Parts transportation before centralisation
Parts transportation before centralisation Vaasa / Runsor includes Intraparts Suppliers Warehouses Consignees Figure size based on number of shipments • Roughly 70% of the parts shipments in Europe • > 3500 suppliers delivered parts to nine Wärtsilä warehouses; which dispatched to several delivery a
Slide 21: Centralisation impact to parts outbound transportation
Centralisation impact to parts outbound transportation • Existing warehouses consolidated to one Central Distribution Centre creates saving potential on parts transportation Kampen 21 © Wärtsilä
Slide 22: Seamless integration of warehouse and transportation
Seamless integration of warehouse and transportation A single logistics service provider for the transportation and warehouse operations enables a clear responsibility One SLA covering the entire chain Better visibility and track & trace over the entire logistics chain Warehouse optimisation b
Slide 23: IR Contact
IR Contact: Natalia Valtasaari Director, Investor Relations Tel. +358 (0) 40 187 7809 E-mail: natalia.valtasaari@wartsila.com