Wartsila Oyj Abp · OMXHEX:WRT1V

Wartsila Oyj Abp — Wärtsilä — Investor Day (March 2012)

21 slides from Wartsila Oyj Abp's investor day presentation, Mar 29, 2012

  1. Slide 1: Back to Growth

    BACK TO GROWTH BJÖRN ROSENGREN President & CEO 1 © Wärtsilä 29 March 2012 BJÖRN ROSENGREN

  2. Slide 2: Sustainability drives our growth

    Sustainability drives our growth Environmental legislation and the need for energy efficiency are currently the main drivers for our customers’ actions toward developing their business in a more sustainable way 2 © Wärtsilä 29 March 2012 BJÖRN ROSENGREN

  3. Slide 3: Wärtsilä at the focal point of change

    Wärtsilä at the focal point of change • Fundamental changes in the way power is produced and consumed • Shipping industry seeking ways to comply with upcoming environmental regulation • Interest in gas increasing in both end markets 3 © Wärtsilä 29 March 2012 BJÖRN ROSENGREN

  4. Slide 4: Increasing environmental regulation

    Increasing environmental regulation NOx SOx PM GHG BALLAST WATER Acid rains Acid rains Impact on Global Damage to Ozone air quality warming local eco- depletion systems Under Global ballast Tier II (2011) 3.5% (2012) Along with SOx evaluation convention Tier III in ECA ECA 0.1% reduction (2016) (201

  5. Slide 5: Demand for gas and LNG is increasing

    Demand for gas and LNG is increasing • Demand for natural gas is • LNG will grow faster than expected to grow pipeline gas Global energy consumption of World inter-regional natural gas trade by natural gas type in the New Policies Scenario 5000 1500 50 50% Million tonnes of oil equivalent 4000 1200

  6. Slide 6: Growth in emerging markets

    Growth in emerging markets Forecasted GDP growth 2012 Forecasted GDP growth 2013 Global 2,4 Global 3,0 Euro A rea -­‐1,3 Euro A rea -­‐0,3 UK 0,2 UK 1,0 Emerging Europe 2,8 Emerging Europe 3,7 Latin A merica 3,7 Latin A merica 4,4 US 2,0 US 1,8 Emerging A sia 6,9 Emerging A sia 7,3 Japan 1,2 Japan 1

  7. Slide 7: Strong presence in emerging markets

    Strong presence in emerging markets Developed Emerging markets markets 46% 54% 7 © Wärtsilä 29 March 2012 BJÖRN ROSENGREN

  8. Slide 8: Global net sales Top countries

    Global net sales Top 10 countries Norway 5% Turkey China USA 4% Dominican Republic 9% 9% 5% The Netherlands 3% 5% 3% South Korea Bangladesh 3% 5% Singapore Brazil 8 © Wärtsilä 29 March 2012 BJÖRN ROSENGREN

  9. Slide 9: Strengthening global presence through JVs

    Strengthening global presence through JVs QMD (Qingdao, China) 2-stroke engines WHEC (Mokpo, WTEC (Penza, Russia ) South Korea) 4-stroke engines 4-stroke engines Wärtsilä CME (Zhenjiang, China) WCEC Propulsion (Nantong, China) 4-stroke engines WQDC (Lingang, China) 4-stroke engines Rio de Janeiro, B

  10. Slide 10: Three businesses with interesting opportunities

    Three businesses with interesting opportunities Ship Power 24% (26) Power Plants 32% (34) Services 43% (40) 10 © Wärtsilä 29 March 2012 BJÖRN ROSENGREN

  11. Slide 11: Focus on growth

    Focus on growth Profitable growth by focusing on Smart Power Generation Gas as a marine fuel Environmental solutions 11 © Wärtsilä 29 March 2012 BJÖRN ROSENGREN

  12. Slide 12: Power Plants market drivers

    Power Plants market drivers • Growth in electricity consumption • Renewable energy investments • Increasing use of gas as a fuel • Need for additional back up and balancing power 12 © Wärtsilä 28 March 2012 WÄRTSILÄ CORPORATION

  13. Slide 13: Power Plants strategy

    Power Plants strategy • Maintain market leader position in flexible baseload and industrial self-generation in the growing emerging markets • Grow in the utility gas power plant markets • Actively influence the regulatory environment to enable capacity investments Energy Efficiency Smart Power Gener

  14. Slide 14: Ship Power market drivers

    Ship Power market drivers • Global GDP development drives the demand for marine transportation • Fuel prices drive the demand in offshore • Environmental regulation drives the demand for new technologies 14 © Wärtsilä 29 March 2012 BJÖRN ROSENGREN

  15. Slide 15: Ship Power growth markets

    Ship Power growth markets Offshore market Marine gas applications Environmental solutions 15 © Wärtsilä 29 March 2012 BJÖRN ROSENGREN

  16. Slide 16: Hamworthy integral to our strategy

    Hamworthy integral to our strategy • Strengthens our position in the growing offshore, the marine gas applications and the environmental solutions markets • Potential for technology sharing and optimised R&D • Focus on capturing synergies and growth opportunities from Hamworthy 16 © Wärtsilä 29 Marc

  17. Slide 17: Services strategy

    Services strategy • Maximise market share with our present customer base • Developing our offering proposition with value-enhancing products • Grow by providing more service agreements • Environmental solutions 17 © Wärtsilä 29 March 2012 BJÖRN ROSENGREN

  18. Slide 18: Continued interest in service agreements

    Continued interest in service agreements MEUR MW 350 18000 16000 300 14000 250 12000 200 10000 150 8000 6000 100 4000 50 2000 0 0 2007 2008 2009 2010 2011 Net Sales Total MW (O&M and Maintenance) 18 © Wärtsilä 29 March 2012 BJÖRN ROSENGREN

  19. Slide 19: People strategy

    People strategy • Nearly 19,000 people in 170 locations in 70 countries • Securing the right competence and motivation among our personnel • Attract, develop and retain key personnel 19 © Wärtsilä 29 March 2012 BJÖRN ROSENGREN

  20. Slide 20: Long-term financial targets maintained

    Long-term financial targets maintained • Target to grow faster than global GDP • Operating profit margin (EBIT%) target: – 14% at the peak of the cycle – maintain above 10% at the trough • Gearing below 50% • Our target is to pay a dividend equivalent to 50% of earnings per share 20 © Wärtsilä 29 Ma

  21. Slide 21: © Wärtsilä 29 March 2012 BJÖRN ROSENGREN

    21 © Wärtsilä 29 March 2012 BJÖRN ROSENGREN

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