Slide 1: Wärtsilä Corporation Interim Report January-June 2004
Wärtsilä Corporation Interim Report January-June 2004 Ole Johansson, President & CEO 6 August 2004 © Wärtsilä
Slide 2: Wärtsilä's Strategy
Wärtsilä’s Strategy Ship Power Power Plants Service The leading global A significant supplier Interlinks these two ship power and of decentralized power businesses. Service service provider. plant solutions and supports Wärtsilä operation and customers throughout maintenance services. the lifecycle
Slide 3: Highlights of the reporting period
Highlights of the reporting period Net sales rose 7.4% to EUR 1,103.0 million Power Businesses’ result improved during Q2 Order intake and order book on good level Propeller production in China started The Ciserv-group expanded Restucturing of engine manufacturing proceeds as planned © W
Slide 4: Wärtsilä Group
Wärtsilä Group MEUR Q2/2004 Q2/2003 Net sales 581.3 538.5 Operational EBITA¹ 33.9 22.9 Operating income 27.2 16.2 Profit before taxes 32.2 15.4 EPS, EUR 0.36 0.22 ¹EBITA is the operating profit before amortization of goodwill on consolidation. MEUR 1-6/2004 1-6/2003 2003 Net sales 1,103.0 1,026.6 2,
Slide 5: Cash flow
Cash flow MEUR 1-6/2004 1-6/2003 2003 Cash flow from operating activities -5.6 3.9 192.1 Cash flow from investing activities 117.2 -9.3 -22.2 Cash flow from financing activities -110.8 -44.0 -205.8 Liquid funds at the end of period 150.7 136.5 150.0 © Wärtsilä Q2/2004 presentation 5
Slide 6: Solvency and gearing
Solvency and gearing Solvency Gearing 50 1 45 0,9 40 0,8 35 0,7 30 0,6 25 0,5 20 0,4 15 0,3 10 0,2 5 0,1 0 0 99 00 01 02 03 Q2/04 99 00 01 02 03 Q2/04 Solvency 1 Gearing 1 Convertible subordinated debentures treated as equity © Wärtsilä Q2/2004 presentation 6
Slide 7: Power Businesses
Power Businesses MEUR Q2/2004 Q2/2003 Change% Net sales 517.0 483.2 7.0% EBIT 21.5 14.0 54.4% % net sales 4.2% 2.9% Order intake 588.3 511.9 14.9% MEUR 1-6/2004 1-6/2003 Change% 2003 Net sales 980.3 916.3 7.0% 2,155.8 EBIT 12.4 22.3 -44.3% -35.01 % net sales 1.3% 2.4% -1.6% Order intake 1,477.0 1,10
Slide 8: Power Businesses – Key figures
Power Businesses – Key figures MEUR Net sales Order intake Order book 517.0 700 2000 1,779.2 600 483.2 588.3 1800 1,392.8 600 500 511.9 1600 +0,9% 1,245.0 +6.6% 500 1400 400 +6.6% 1200 400 +99.2% 300 1000 +28.1% 300 +17.1% 800 200 200 600 -1.8% 400 -0.6% 100 +24.2% 100 200 0 0 0 Q2/03 Q2/04 Q2/03 Q2
Slide 9: Delivered engine megawatts from Wärtsilä factories
Delivered engine megawatts from Wärtsilä factories MW 5 000 4 000 3 000 Ship Power 2 000 Power Plants 1 000 0 1999 2000 2001 2002 2003 1-6/2004 © Wärtsilä Q2/2004 presentation 9
Slide 10: Ship Power
Ship Power MEUR Q2/2004 Q2/2003 Change 2003 Net sales 179.1 182.5 -1.8% 686.1 Order intake 199.3 160.4 24.2% 626.4 Order book, end of period 702.0 706.0 -0.6% 606.8 Power Businesses net sales Q2/2004 EUR 517.0 million. Ship Power 34.6 % © Wärtsilä Q2/2004 presentation 10
Slide 11: Vessel orders
Vessel orders Tankers Bulk carriers Containers Others 3 months moving average 12 10 8 Volume [ million DWT ] 6 4 2 0 12-99 03-00 06-00 09-00 12-00 03-01 06-01 09-01 12-01 03-02 06-02 09-02 12-02 03-03 06-03 09-03 12-03 03-04 06-04 Source: Based on data from Clarkson Research Studies Note: Cargo vess
Slide 12: Net sales of Ship Power by vessel type
Net sales of Ship Power by vessel type 800 600 400 200 0 1999 2000 2001 2002 2003 1-6 2004 Tankers Bulk carriers Container ships Others Wärtsilä Propulsion © Wärtsilä Q2/2004 presentation 12
Slide 13: Service
Service Q2/2004 Q2/2003 Change% 2003 Net sales, MEUR 232.0 217.6 6.6% 885.5 Personnel, end of period 6,193 5,839 6.1% 5,993 Long-term service agreements, MW 9,668 9,867 -2.0% 9,629 O&M (operation and maintenance agreements), MW 2,572 2,182 17.9% 2,289 Power Businesses net sales Q2/2004 EUR 517.0 mil
Slide 14: Long-term service and O&M agreements
Long-term service and O&M agreements Active engine base 130,000 MW. Long-term service and O&M agreements cover 12,240 MW. MW MW 2500 10000 2250 9500 2000 9000 Long-term service agreements 1750 8500 O&M agreements 1500 8000 1250 7500 1000 7000 2000 2001 2002 2003 1-6/2004 © Wärtsilä Q2/2004 prese
Slide 15: Power Plants
Power Plants MEUR Q2/2004 Q2/2003 Change 2003 Net sales 104.5 81.5 28.1% 577.5 Order intake 161.4 137.8 17.1% 639.3 Order intake, MW heavy fuel oil, MW 292 238 22.7% 1,249 gas, MW 77 50 54.0% 219 BioPower, MWth 0 46 133 Order book, end of period 778.7 391.0 99.2% 357.2 Power Businesses net sales Q2/
Slide 16: Power plant order intake 1-6/2004: 1,359 MW
Power plant order intake 1-6/2004: 1,359 MW (616)* Europe Asia 91 345 (115) (110) 91 0 137 (41) (74) (30) 208 Americas (80) 121 (39) 89 Africa and Middle East (30) 803 32 (352) (9) 25 778 (MW) (2) (350) Gas Oil *In brackets order intake for 1-6/2003 © Wärtsilä Q2/2004 presentation 16
Slide 17: Imatra Steel
Imatra Steel Key figures MEUR Q2/2004 Q2/2003 Change 2003 Net sales 64.5 55.5 16.2% 202.7 Operating income 5.6 2.2 150.5% 0.7 % of net sales 8.7% 4.0% 0.3% Imatra Steel’s net sales by Improved result due to the market segment 2003 investment in the base metallurgical line, streamlining measures an
Slide 18: Outlook for the rest of the year 2004
Outlook for the rest of the year 2004 Power Businesses Full-year forecast unchanged i.e. net sales will grow and profitability will improve slightly. The uncertain political situation in Iraq is a risk factor. Imatra Steel Net sales increases and operational income improves. © Wärtsilä Q2/20
Slide 19: WARTSILA
re, WARTSILA