Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Day (March 2010)
21 slides from Wartsila Oyj Abp's investor day presentation, Mar 24, 2010
Slide 1: At the Threshold of a New Era in Shipping
“AT THE THRESHOLD OF A NEW ERA IN SHIPPING” JAAKKO ESKOLA GROUP VICE PRESIDENT, SHIP POWER 1 © Wärtsilä 24 March 2010 JAAKKO ESKOLA
Slide 2: Wärtsilä Ship Power
Wärtsilä Ship Power We are the leading provider of ship power solutions. We command a strong position in all main marine segments as the supplier of highly rated ship machinery and systems 2 © Wärtsilä 24 March 2010 JAAKKO ESKOLA
Slide 3: We will
We will • Maintain our leading position and generate profitable growth in all business segments • Broaden and develop the range of system integration and design, installation and engineering services • Strengthen competences, capabilities and presence in key markets • Continuously explore possibilit
Slide 4: The one certainty our world needs: shipping
THE ONE CERTAINTY OUR WORLD NEEDS SHIPPING Shipping is the enabler of globalisation Shipping is the most efficient way of transporting goods and is working to become more efficient 4 © Wärtsilä 24 March 2010 JAAKKO ESKOLA
Slide 5: Our offering covers all key shipping segments
Our offering covers all key shipping segments Cruise Special Merchant Offshore Navy and Ferry Vessels 5 © Wärtsilä 24 March 2010 JAAKKO ESKOLA
Slide 6: Ship Power market - vessel order development
Ship Power market - vessel order development All vessels Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in DWT # of vessels DWT # of vessels Millions Source data: Clarkson Research Services 6 © Wärtsilä 24 March 2010 JAAKKO ESKOLA
Slide 7: The market has already changed
The market has already changed Orderbook and Contracting DWT DWT Shipbuilding Millions Millions • Contracting activity has peaked and is currently on very low levels: – Contracting during 2009 was the lowest registered since 1998 – Contracting activity is expected to start improving during 2010 but
Slide 8: Supply/demand imbalances are evident
Supply/demand imbalances are evident Contracting and Delivers CGT Millions • New contracting has stalled after September 2008 • Shipbuilding capacity –as demonstrated by deliveries- has grown, 2009 could prove to be the peak year on deliveries • Overcapacity is felt, correction will be painful and w
Slide 9: Customer drivers
Customer drivers Wärtsilä “Design, build and support innovative high quality lifecycle solutions” • Innovativeness (energy, efficiency, economy) • Price • Lifecycle support 24/7 • Quality • Design support • Availability • Asset optimisation • Design Shipowner/Operator Shipbuilder “uninterrupted oper
Slide 10: Change in bargaining power
Change in bargaining power • Raw materials ruled the • End customers getting market regarding price, stronger control of their availability and quality purchases regarding price, • Demand was higher quality and availability than supply • Supply is higher than Bargaining demand Power Stronger emphasi
Slide 11: Why do our customers choose us?
Why do our customers choose us? Customer needs: Wärtsilä: • Customer management • Continuously responsive - Easy to work with to customer needs, - Competent personnel competent and reliable - Response time • Integrated system • Trustworthy partner supplier, total solution - Has good references provi
Slide 12: Why customers choose Wärtsilä in the marine market
Why customers choose Wärtsilä in the marine market: Strategy Competitive edge: New opportunities now and tomorrow • Be a trusted partner • A highly diversified customer • Shipping is already the most throughout the life-cycle base efficient way of transporting • Focus on seamless • Strong, wide and
Slide 13: Well positioned for long term growth
Why customers choose Wärtsilä in the marine market: = Well positioned for long term growth 13 © Wärtsilä 24 March 2010 JAAKKO ESKOLA
Slide 14: Legislation changes
Legislation changes Air emission limitation 2006 2008 2010 2012 2014 2016 2018 2020 EU SOX regulation / 1.5 % sulphur in fuel/ passenger ships in EU + all ships in SECA Differentiated tonnage tax / NOX/ Norway Differentiated fairway & harbour fee / NOX, SOX/ Sweden / Finland EU SOX regulation/ 0.1 %
Slide 15: Energy, Economy, Environment - Wärtsilä's environmental technology
Energy, Economy, Environment - Wärtsilä’s environmental technology Energy Economy (efficiency) Environment • Dual-Fuel engines • Ship design • Exhaust gas • Fuel Cells • Engine technology scrubbers • Hybrid machinery • Propulsion • Exhaust gas systems technology catalysts • Electric propulsion • Aut
Slide 16: Customer scenarios
CUSTOMER SCENARIOS 16 © Wärtsilä 24 March 2010 JAAKKO ESKOLA
Slide 17: Customer scenario one: LNG fuelled cruise ship
Customer scenario one LNG fuelled cruise ship • Passenger select cruising because of low total CO2 footprint compared to other holidays • Ship is allowed to berth down town – attractive itineraries • No operating costs from emission reduction equipment • Lower maintenance costs for LNG operation 17
Slide 18: Customer scenario two: Ultra large container vessel
Customer scenario two Ultra large container vessel with Wärtsilä environmental technology • The vessels operate on low cost HFO, that has become significantly cheaper than distillate fuel • Ships have low port fees, as they do not need shore connection but still offer very low emissions, owing to th
Slide 19: Customer scenario three: Offshore support vessel
Customer scenario three Offshore support vessel with Wärtsilä design and technology • Vessels have high availability and are designed to highest DP and redundancy class • Vessels get selected for the best paying charters 19 © Wärtsilä 24 March 2010 JAAKKO ESKOLA
Slide 20: The future is in our hands
The future is in our hands: • The world needs shipping - we have the solutions. • Customer needs are changing from optimised ships to optimising the fleet - we have the solutions. • Focus on increased total efficiency and environmental friendliness of shipping – we have the solutions • As the market
Slide 21: © Wärtsilä 16 March 2010 Ole Johansson CMD 2010
21 © Wärtsilä 16 March 2010 Ole Johansson CMD 2010