Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Danske Bank Aftermarket Services Seminar, Helsinki 2015
24 slides from Wartsila Oyj Abp's conference presentation, Aug 26, 2015
Slide 1: Wärtsilä Services: Focusing on Growth and Digitalisation
WÄRTSILÄ SERVICES: FOCUSING ON GROWTH AND DIGITALISATION Pierpaolo Barbone, President Services & Executive Vice President 1 © Wärtsilä 25 August 2015 Pierpaolo Barbone
Slide 2: Services in a nutshell
Services in a nutshell In one year: 115,000 deliveries, 117,000 16,300,000 kg We serve constituting more than unique of parts, with a total 900,000 line items, packed materials volume of 46,700 m3 12,000 in 134,000 packages stored customers 66,700 Around 106,000 We maintain ...One promise to the exp
Slide 3: We operate in two strategic markets
We operate in two strategic markets Marine & Power Plants Oil & Gas Demand drivers: Demand drivers • Focus on efficiency of operations • Solid demand for energy • Strong demand for power generation in • Pressure to keep production up developing countries Growth through: Growth through: • Capturing f
Slide 4: Changing competitive landscape requires adapting the way we operate
Changing competitive landscape requires adapting the way we operate OEM • Increasing our market share through superior customer service, Total service Technology / providers spare improved quality and products that part manu- offer clear customer benefits facturers • Changes in customer behaviour an
Slide 5: Managing the lifecycle of our installations
Managing the lifecycle of our installations New products Mature products Maturity Maintain Decline Growth Phase-out Sales volume Introduction Development Introduce Focus Support Maintain Knowledge Implementation Responsive & Solutions & Lifetime Controlled transfer from of new technical preventive s
Slide 6: Managing the lifecycle: A closer look at our business
Managing the lifecycle: A closer look at our business 4-stroke sales distribution by age of installation 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0-4 5-9 10-14 15-19 20-24 25-30 Age of installation Spare parts Field service Contracts Projects We manage long relationships with our customers 6 © Wä
Slide 7: Understanding our 181 GW engine installed base
Understanding our 181 GW engine installed base Wärtsilä’s engine installed base Engine installed base: MW distribution by commissioning year 38% 36% 26% <85 12-15 85-87 88-90 91-93 94-96 97-99 00-02 03-05 06-08 09-11 4-st marine 4-st power 2-st* marine * 2-stroke now Winterthur Gas and Diesel Ltd. (
Slide 8: We are where our customers need us to be
We are where our customers need us to be 11,000 service professionals in 70 countries, 160 locations… Marine installed base by operating country Power installed base by operating country Service locations 8 © Wärtsilä 25 August 2015 Pierpaolo Barbone
Slide 9: Business per industry segment and region
Business per industry segment and region Net sales split – H1 2015 9% 23% 25% 13% 40% 24% 26% 26% 14% Power Offshore Merchant Cruise & Ferry Middle-East and Asia Americas Special Vessels & Navy Northern Europe Southern Europe and Africa 9 © Wärtsilä 25 August 2015 Pierpaolo Barbone
Slide 10: A solid business in a challenging environment
A solid business in a challenging environment Net sales development MEUR 2500 2000 1500 1000 500 0 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 H1 10 © Wärtsilä 25 August 2015 Pierpaolo Barbone
Slide 11: The only way forward is growth
The only way forward is growth We will grow by • Doing more business with existing customers • Exploring opportunities within Customer first Go digital new customer segments by leveraging current competences • Acquiring businesses in Asset & lifecycle growing markets management New customer access 1
Slide 12: Customer focus is key
Customer focus is key Customer first We will nourish our partnerships with the existing customer base by focusing on improved: • Time to quote • Delivery accuracy • Quality of field service Access to new customers We will seek to grow our customer base organically and through acquisitions by leverag
Slide 13: Asset & lifecycle management
Asset & lifecycle management We will continue to develop and commercialise our portfolio of value-adding services: • Asset performance management agreements • Retrofits • Upgrading of installed base Focus areas for agreements: • Marine: LNG carriers, cruise • Oil and gas: offshore drilling and produ
Slide 14: Installed base under agreements
Installed base under agreements North Europe 2,956 MW 224 MW Americas Middle East & Asia 2,693 MW 3,435 MW 437 MW 5,093 MW South Europe & Africa 1,878 MW 4,282 MW Marine 7,964 MW Plants 13,035 MW Total 20,999 MW 14 © Wärtsilä 25 August 2015 Pierpaolo Barbone
Slide 15: Digitalisation: leading the industry in the digital fields
Digitalisation: leading the industry in the digital fields 15 © Wärtsilä 25 August 2015 Pierpaolo Barbone
Slide 16: Megatrends that drive digitalisation
Megatrends that drive digitalisation Growing Universal amount connectivity of data Growing Globalisation focus on the of value chains environment Intelligent Exploratory solutions and analytics and services visualisation 16 © Wärtsilä 25 August 2015 Pierpaolo Barbone
Slide 17: Digitalisation in industrial services
Digitalisation in industrial services • Through partnerships with common business goals, digitalisation can help our customers’ business top line growth. • New opportunities emerge at all stages from design to operations support, creating new business models and making old ones more efficient. • Dig
Slide 18: Creating customer value through digitalised services
Creating customer value through digitalised services Productivity Availability Reliability Predictability Efficiency Safety Improving customers’ business top line with a co-growth approach Customer value creation is a partnership in which digital technology and analytical skills of human experts are
Slide 19: Wärtsilä's focus areas for digital value creation
Wärtsilä’s focus areas for digital value creation 1. 2. 3. 4. 5. Customer Intelligent Digital Virtual Asset engagement engines and maintenance concepts performance components services optimisation 19 © Wärtsilä 25 August 2015 Pierpaolo Barbone
Slide 20: Wärtsilä's focus areas for digital value creation
Wärtsilä’s focus areas for digital value creation 1. 2. Customer engagement Intelligent engines and components • Digitalisation enables new forms • Breakthrough innovations of customer engagement. emerge from exploiting intelligent • Increasingly sophisticated digital technologies. services offer va
Slide 21: Wärtsilä's focus areas for digital value creation
Wärtsilä’s focus areas for digital value creation 3. 4. Digital maintenance services Virtual concepts • Interactive and real-time data Solutions based on 3D design can helps secure and optimise offer new ways to benefit from real- the operation of power plants and time information and knowledge to:
Slide 22: Wärtsilä's focus areas for digital value creation
Wärtsilä’s focus areas for digital value creation 5. Asset Performance Optimization • Focus shifting from maintenance and servicing to more comprehensive optimisation of customer business. • Wärtsilä’s asset performance optimisation concepts are designed to optimise e.g. an installation’s energy eff
Slide 23: Summary
Summary • We will seek business growth within our installed base and explore opportunities in new markets where we can leverage our existing competences • Our focus is on strengthening our leadership in lifecycle services • We will continue investing in the development of new digital solutions and s
Slide 24: Thank You
Thank You www.wartsila.com 24 © Wärtsilä 25 August 2015 Pierpaolo Barbone
Wärtsilä — Danske Bank Aftermarket Services Seminar, Helsinki 2015 on 6ix