Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (2008)
29 slides from Wartsila Oyj Abp's investor day presentation, 2008
Slide 1: Services Strategy and Competitive Advantages
SERVICES STRATEGY AND COMPETITIVE ADVANTAGES TAGE BLOMBERG, GROUP VICE PRESIDENT 1 © Wärtsilä Wärtsilä Capital Markets Day
Slide 2: Why is Wärtsilä in the Service business?
Defensive or Offensive? Why is Wärtsilä in the Service business? CORE CORE BUSINESS BUSINESS Defensive ? Offensive ? A defensive strategy aims to An offensive strategy aims to protect a core product or develop a business as a stand enhance its features to alone platform, self-profitable make it more
Slide 3: What is the competitive advantage?
Competitive Advantage What is the competitive advantage? Skills? Scale? Differentiation? Low Cost? A skill-based competitive A scale-based competitive advantage focuses on advantage sees its source of expertise and customisation. margin in large volume, hence standardization. «The basis of the above
Slide 4: How to use Services
How to use Services P + S Bundle Service to the product. Defensive Overprice Services in “entry price” P + S market driven for core products. P + S Premium Services. Offensive Add performance guarantee P + S into Service Agreement to limit risks for customers. 4 © Wärtsilä Wärtsilä Capital Markets D
Slide 5: Several Solutions for different strategies
Several Solutions for different strategies Several strategies are implemented at the same time… Wärtsilä Services has a large portfolio… for all needs. Wärtsilä Reconditioning Services Competitive Advantage Low Cost Wärtsilä Spares OnLine Wärtsilä Land & Sea Differentiation Academy Wärtsilä Operatio
Slide 6: Vision and Mission: "Best services" - How?
Vision and Mission “Best services” - How? p ora te Vision Co r We provide a wide range of o st valued innovative solutions that e t h e m We will b er o f all our optimize the lifecycle efficiency a r tn business p of the serviced equipment. . customers Service M i ssion ONE vision for all. Wärtsilä
Slide 7: Our Strategy explained
Our Strategy explained Wide range Innovative solutions A lot of solutions and expertises from We go beyond standard products and one single source. We have grouped our always seek out the best technologies offering in order to help customers and customized solutions. In terms of identify our experti
Slide 8: "Solution" model for Wärtsilä business units
“Solution” model for Wärtsilä business units Ship Power Power Plant Most valued Most valued business partner business partner Product Solutions Product Solutions Ship Energy equipment e Solutions e alu alu v v Propulsion Turnkey er er om om packages Plant st st Cu Cu Engine Design & Engine System Sh
Slide 9: "Solution" model for Wärtsilä Services
“Solution” model for Wärtsilä Services Most valued As we expand our portfolio business partner Solutions of Products and Services, Products we create more solutions for customers. Projects er tom As we can apply it to us Products r C several equipment types, fo we stand for being a single l ue Parts
Slide 10: Focused areas of our expertise
Focused areas of our expertise Engine Services Reconditioning Services Propulsion Services Operations & Management Automation Services Training Services Boiler Services Ship Services 10 © Wärtsilä Wärtsilä Capital Markets Day
Slide 11: Best Services and Offering Model
Best Services and Offering Model Wärtsilä Services is the leader in the industry as we are UNIQUE in our offering of the largest scope of Services from a wholly owned organization. Scope of Products and Services Scope of Products and Services 3rd parties 3rd parties Core Expertise Core Expertise Age
Slide 12: New premises and expansions in 2007 & 2008
New premises and expansions in 2007 & 2008 Norway Denmark France Azerbaijan Turkey USA Korea China Vietnam Brazil Cameroun Chile Namibia Madagascar South Africa 12 © Wärtsilä Wärtsilä Capital Markets Day
Slide 13: Engine services – OEM brands
Engine services – OEM brands Wärtsilä OEM brands include: Wärtsilä Sulzer DEUTZ marine engines Nohab Diesel Wärtsilä Diesel GMT Wichmann SACM Ship Power Stork SW Diesel Werkspoor Power Plants Moteurs Duvant Crepelle Nordberg Poyaud Bolnes 13 © Wärtsilä Wärtsilä Capital Markets Day
Slide 14: Products & Solutions
Products & Solutions Performance Optimizers • Upgrades • Conversions • Safety Solutions • Monitoring Solutions 14 © Wärtsilä Wärtsilä Capital Markets Day
Slide 15: Fuel & Gas conversions
Fuel & Gas conversions GD SG DF Project Country Year Conversion type Tintrofa Portugal 2004 1 x 12V32 HFO 12V34SG Almeida Portugal 2004 1 x 12V32 HFO 12V32DFc Tearfil Portugal 2005 1 x 12V32 HFO 12V32DFc Century Power Pakistan 2005 3 x 12V32 HFO 12V32DFc Denizli Turkey 2006 1 x 16V46 HFO 16V50DF Cer
Slide 16: Environmental compliance
Environmental compliance MS FinnClipper MV Suula Birka Princess 16 © Wärtsilä Wärtsilä Capital Markets Day
Slide 17: Partnership & Contracts
Partnership & Contracts Inventory management Technical Condition-based maintenance Remote monitoring Support Regular technical visits Agreement Exclusive training plan Wärtsilä personnel for major OH Technical Support Agreement + Global Covers several vessels along their trade routes Customer Fixed
Slide 18: Offering adapted to Customers' needs
Offering adapted to Customers’ needs Partnerships Solution Complexity & Contracts Solutions 4 Packages Basic Products 3 and Services 2 1 18 © Wärtsilä Wärtsilä Capital Markets Day
Slide 19: What Services can do for Power Plants
What Services can do for Power Plants Engine Services Automation Services Boiler Services Reconditioning Services Operations & Management Training Services 19 © Wärtsilä Wärtsilä Capital Markets Day
Slide 20: What Services can do for Ship Power
What Services can do for Ship Power Reconditioning Services Operations & Management Training Services Ship Services Engine Services Automation Services Propulsion Services Boiler Services 20 © Wärtsilä Wärtsilä Capital Markets Day
Slide 21: Mighty Servant 3
Mighty Servant 3 ONE STOP SHOP After six months resting on the sea bottom the vessel Several centres was lifted and towed to Dormac shipyard in South Africa of expertise where the main engines were removed and transported around the to Wärtsilä South Africa for inspection and repair. globe Engine Se
Slide 22: Pride of Telemark
Pride of Telemark Engine Services €1.2m 5 Aux. + 2 Main Engines Ship Services €1.4m Refurbishment of 31 cabins Automation Services €7.0m Complete electrical system ONE STOP SHOP The project took 18 work weeks, and was completed in Several centres Frederikshavn yard in Denmark in the spring of 2008.
Slide 23: Wärtsilä Services net sales
Wärtsilä Services net sales Cruise & Offshore Passenger Merchant Shipping Tankers Ship Power Power Plants Cargo vessels The diversity of our business limits our exposure to market fluctuation. Container vessels 23 © Wärtsilä Wärtsilä Capital Markets Day
Slide 24: Shipping industry is cyclical…
Shipping industry is cyclical… Transportation Indexes A selection of transport and marine related equity indexes are plotted in combination with Eurostoxx 600, which in this case represents the overall performance of the stock market. By comparing the indexes from different regions and comparing to
Slide 25: … but Wärtsilä Services has grown steadily
… but Wärtsilä Services has grown steadily. 1600 Net Sales in M€ 1400 1200 1000 800 600 400 200 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 25 © Wärtsilä Wärtsilä Capital Markets Day
Slide 26: Acquisitions & Joint Ventures
Acquisitions & Joint Ventures 2008 2006 • International • Maritime Service AS • Stockholms Combustion Norway 2002 fartygreparationer AB Engineering A/S Sweden • Navelec SAS Denmark, Dubai • JMC Marine A/S 2004 Le Havre, France • INTEC Injectortechnic Denmark • Claus D. Christophel GmbH • Decam B.V.
Slide 27: Always One Step Ahead…
Always One Step Ahead… 27 © Wärtsilä Wärtsilä Capital Markets Day
Slide 28: Wärtsilä Services
Wärtsilä Services Offensive service development worldwide Portfolio development through acquisitions & innovations 24/7 Services 28 © Wärtsilä Wärtsilä Capital Markets Day
Slide 29: WARTSILA.COM
WARTSILA.COM © WARTSILA