Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — FY2000 Earnings Presentation
24 slides from Wartsila Oyj Abp's earnings presentation, 2001
Slide 1: Highlights
Highlights n Metra became Wärtsilä, a group focusing on engineering, Sanitec became an associated company n Power Divisions show clear result improvement n Good growth in Power Plants and Service n Wärtsilä’s position in the marine market strong n Imatra Steel improved its result 1
Slide 2: Current Marine Market Position
Current Marine Market Position Marine Propulsion & Auxiliary Engines Engine Orders June '99 - May '00 Wärtsilä 28% (29%) Source: Diesel & Gas Turbine Worldwide - Issue 11-'00 Notes: Diesel engines and gas turbines > 0.5 MW Market shares based on engine power Market shares between brackets indicate l
Slide 3: Current Marine Market Position: Marine Propulsion Market Development
Current Marine Market Position Marine Propulsion Market Development Orderintake (kW) June 1999 - May 2000 (June 98 - May 99) • low-speed + 74% (Sulzer increase + 47%) • medium-speed 0% (Wärtsilä increase + 25%) Wärtsilä market shares * • low-speed 25% (35%) • medium-speed 38% (36%) * Wärtsilä’s esti
Slide 4: Ship Order Development: All market segments
Ship Order Development All market segments Source: Sjöfartens Analys Institut (SAI) 70 Tankers Bulkers Containers Others Market Forecast Deadweight tonnage [ million deadweight tons ] 60 • record high order book at shipyards • the order intake will flatten out and 50 be on a medium level for the com
Slide 5: Ship Order Development: Typical medium-speed segments
Ship Order Development Typical medium-speed segments Source: Sjöfartens Analys Institut (SAI) 5 Tankers Gen. Cargo / Cont. RoRo Market Forecast Deadweight tonnage [ million deadweight tons ] Ferries Cruise Others • the market outlook for the coming 4 years is good • increased order intake especially
Slide 6: Ship Order Development: RoRo vessels, Ferries and Cruise ships
Ship Order Development RoRo vessels, Ferries and Cruise ships Source: Sjöfartens Analys Institut (SAI) 0.5 RoRo Ferries Cruise Deadweight tonnage [ million deadweight tons ] Market Forecast • extremely high order intake in the 0.4 cruise segment will flatten out • RoRo vessel demand will grow 8 % in
Slide 7: Reciprocating engine and gas turbine orders to power plants
Reciprocating engine and gas turbine orders to power plants 1-60 MW Unit Size (from June 1999 to May 2000) MW 14000 12,885 MW Gas Turbines Other Engine Makers 12000 Wärtsilä 9,395 MW 10000 955 7,709 MW 8000 6,653 MW 11375 656 6000 5793 8189 4000 2,169 MW 1,778 MW 5835 2000 407 75 511 1429 1229 721 9
Slide 8: Power plant orders, estimate 2000-2020
Power plant orders, estimate 2000-2020 GWe 200 180 160 140 120 100 80 60 40 20 0 2000 2010 2020 Large plants (>60 MW) Small plants (1-60 MW) Micro plants (<1 MW) Source: Wärtsilä’s estimate 8
Slide 9: Small power plant orders, estimate 2000-2020
Small power plant orders, estimate 2000-2020 1-60 MW GWe 50 45 40 35 30 25 20 15 10 5 0 2000 2010 2020 Gas and diesel engines Small gas turbines Renewables Source: Wärtsilä’s estimate 9
Slide 10: Heavy Truck Assembly in Europe (GVW > 15t)
Heavy Truck Assembly in Europe (GVW > 15t) 1,000 units 350 300 250 200 150 100 1997 1998 1999 2000 2001 2002 2003 2004 2005 Source: J.D. Power-LMC, Automotive Forecasting Services Global Commercial Vehicle Forecast 4Q 2000 10
Slide 11: Wärtsilä Corporation net sales
Wärtsilä Corporation net sales EUR mill. 2500 Growth 12 % 2000 1500 1000 Growth 21% 500 0 1996 1997 1998 1999 2000 Power Divisions Imatra Steel Sanitec, 3 months 11
Slide 12: Power Divisions net sales
Power Divisions net sales EUR mill. 2200 2000 1800 Growth 19% 1600 1400 1200 Growth 10% 1000 800 600 400 Growth 31% 200 0 1996 1997 1998 1999 2000 Power Plants Marine & Licensing Service 12
Slide 13: Power Divisions orderbook
Power Divisions orderbook EUR mill. 1600 Growth 25 % 1400 1200 1000 Growth 31 % 800 600 400 200 Growth 13 % 0 1996 1997 1998 1999 2000 Power Plants Marine & Licensing Service 13
Slide 14: Power Divisions order intake and sales per quarter
Power Divisions order intake and sales per quarter 1999 and 2000 EUR mill. 800 700 600 500 Order intake 1999 400 Order intake 2000 300 200 100 0 Q1 Q2 Q3 Q4 14
Slide 15: Imatra Steel Net Sales
Imatra Steel Net Sales EUR mill. 250 200 150 100 50 0 1996 1997 1998 1999 2000 15
Slide 16: The Ship Power Supplier
The Ship Power Supplier Orderintake and the share of main engine orders including total power system 1000 100 % EUR mill. 900 90 800 80 Order intake 700 70 600 60 Order intake of main engines incl. 500 50 propulsion % 400 40 300 30 200 20 100 10 0 0 1-12/1999 1-12/2000 16
Slide 17: Power Plant deliveries
Power Plant deliveries MW’s delivered 2500 2000 1500 Gas Other 1000 500 0 1996 1997 1998 1999 2000 17
Slide 18: Divisional Profitability
Divisional Profitability Operating Profit/Net Sales by Quarter 1999-2000 6 % 4 2 0 -2 -4 -6 Q1/99 Power Divisions Q4/00 12 % 10 8 6 4 2 0 Imatra Steel Q1/99 Q4/00 18
Slide 19: EPS and Dividend/Share
EPS and Dividend/Share Euro 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 -0,5 * 1996 1997 1998 1999 2000 EPS Operational EPS non-recurring Normal Dividend Extra Dividend * Board’s proposal 19
Slide 20: Investments and depreciation
Investments and depreciation 300 250 200 150 100 50 0 1995 1996 1997 1998 1999 2000 Fixed assets Shares Depreciation 20
Slide 21: Wärtsilä Corporation Personnel
Wärtsilä Corporation Personnel End of period 2000 1999 Change Power Divisions 9 255 8 742 +513 Imatra Steel 1 280 1 235 +45 Others 29 46 -17 Total 10 564 10 023 +541 21
Slide 22: Wärtsilä Corporation Personnel
Wärtsilä Corporation Personnel End of period 20000 15000 10000 5000 0 1996 1997 1998 1999 2000 Other Group companies Imatra Steel Wärtsilä Power Divisions Operations companies Grandi Motori Trieste Cummins Wärtsilä Sanitec 22
Slide 23: Outlook for 2001
Outlook for 2001 Power Divisions n Good demand in marine engine markets will continue n Markets favour small scale power plants n Demand for gas power plants will grow in Europe and USA n Net sales will grow and result will improve n In order to achieve the long-term profit target systematic work to
Slide 24: Board’s proposals to the AGM
Board’s proposals to the AGM n Normal dividend EUR 0,65 n Extra dividend EUR 2,00 n Changes of conversion rate of convertible subordinated debentures and share subscribtion price of the bond with warrants n New share options programme for key employees n Authorization to repurchase company’s own sha