Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Non-Deal Roadshow (November 2011)
20 slides from Wartsila Oyj Abp's roadshow presentation, Nov 7, 2011
Slide 1: Wärtsilä in China
WÄRTSILÄ IN CHINA KEVA trip to Shanghai TIMO KOPONEN VICE PRESIDENT, FINANCE & CONTROL, SHIP POWER 7.11.2011 1 © Wärtsilä
Slide 2: Agenda
Agenda • What is Wärtsilä today? • Where is ship building today? • Why Wärtsilä is in China? • What is Wärtsilä in China? 2 © Wärtsilä
Slide 3: This is Wärtsilä
This is Wärtsilä SHIP POWER POWER PLANTS SERVICES 3 © Wärtsilä
Slide 4: Net Sales and Profitability
Net Sales and Profitability EUR 6 000 16% 14% 5 000 12.1% 11.4% 12% 10.1% 10.7% 4 000 10% 8.2% 3 000 8% 6% 2 000 4% 1 000 2% 0 0% 2006 2007 2008 2009 2010 Net sales Operating profit, % 4 © Wärtsilä
Slide 5: Wärtsilä Globally
Wärtsilä Globally # of employees 17 500 # of locations 160 # of countries 70 5 © Wärtsilä
Slide 6: Wärtsilä Ship Power - covers all key shipping segments
Wärtsilä Ship Power - covers all key shipping segments Cruise Special Merchant Offshore Navy and Ferry Vessels 6 © Wärtsilä
Slide 7: China has gained the top builder position for merchant vessels
China has gained the top builder position for merchant vessels Merchant vessels: contracting volumes (DWT), share by region 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 19
Slide 8: …but is also pushing in other vessel segments
…but is also pushing in other vessel segments Offshore vessels: contracting volumes Special* vessels: contracting volume (GT), share by region (GT), share by region 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 1991 1992 1993 1994 1995 1996 1997 1998 1999 20
Slide 9: Contracting activity by ship building region
Contracting activity by ship building region Number of vessels contracted 2011 (ytd) DWT contracted 2011 (ytd) 2% 4% 13% 4% 10% 41% 46% 6% 44% 30% China Korea Japan Europe Rest of World China Korea Japan Europe Rest of World Source: Clarkson Research Services 9 © Wärtsilä
Slide 10: Contracting activity - owners by region
Contracting activity - owners by region Contracting by country, No. of vessels Contracting by country, DWT 2011 ytd 2011 ytd 4% 4% 4% 4% 6% 5% 27% 5% 6% 38% 5% 6% 5% 6% 8% 7% 18% 12% 14% 16% Rest of world Greece China Rest of world China Greece Singapore Denmark Japan Singapore Norway United Kingdom
Slide 11: Customer behavior: ship yards
Customer behavior: ship yards • Building regions have a very different mix of ship types built • China is pushing to change this mix Order book mix by shipbuilding region 100% 90% 80% 70% 60% GT 50% 40% 30% 20% 10% 0% China Japan Korea Rest of Asia Europe Rest of the World Bulk Carriers Container Ve
Slide 12: Customers behavior: ship owners
Customers behavior: ship owners Who orders in China? • At a global level, ship owning is shifting, with Chinese owners growing their fleets and importance in the shipping landscape • Chinese owners prefer to order from Chinese yards Contracting activity in Chinese yards, by ship owner country 100% 9
Slide 13: Wärtsilä in China today
Wärtsilä in China today WCN Dalian Rep. Office WCN Shanhaiguan Services WCN Beijing Qingdao Qiyao Wärtsilä MHI Linshan Rep. Office Marine Diesel Co Ltd (QMD) Low-speed engines Wärtsilä Ventures 2-Stroke Engine Licensees Wärtsilä CME Zhenjiang Propeller Co., Ltd. Joint Ventures FPPs, shaft lines, bla
Slide 14: Wärtsilä Propulsion Co. Ltd (Wuxi) – Thrusters, Bearings
Wärtsilä Propulsion Co. Ltd (Wuxi) – Thrusters, Bearings Inauguration phase 2 November 2007 Employees: 179 (May 2010) 14 © Wärtsilä China Oct 2010
Slide 15: Wärtsilä CME Zhenjiang Propeller Co., Ltd.
Wärtsilä CME Zhenjiang Propeller Co., Ltd. (Zhenjiang )- FPP , CPP InaugurationPhase 2 June 2007 Joint Venture Wärtsilä 55% CSSC1 45% Employees: 477 (May 2010) Note: 1 CSSC = China State Shipbuilding Corporation 15© Wärtsilä China
Slide 16: Wärtsilä Qiyao Diesel Shanghai Co., Ltd.
Wärtsilä Qiyao Diesel Shanghai Co., Ltd. (Shanghai) - Auxpac 20 & 26 InaugurationJune 2006 Joint Venture Wärtsilä 50% CSIC1 50% Employees: 121 (May 2010) Note: 1 CSIC = China Shipbuilding Industry Corporation 16© Wärtsilä China
Slide 17: Qingdao Qiyao Wärtsilä MHI Linshan Marine Diesel Co Ltd
Qingdao Qiyao Wärtsilä MHI Linshan Marine Diesel Co Ltd (Qingdao) - 2-stroke engines Inauguration April 2009 Joint Venture Wärtsilä 27% CSIC1 50% MHI2 23% Employees: 435 (May 2010) Note: 1 CSIC = China Shipbuilding Industry Corporation, 2 Mitsubishi Heavy Industries 17© Wärtsilä China
Slide 18: Wärtsilä’s ambitions in China
Wärtsilä’s ambitions in China Defend our strong position in China and aggressively pursue further growth • Clear leadership for certain vessel types • Differentiated approach to customers • Maximized synergies with Ship Design • Improvements of competitiveness for auxiliary engines • Further strengt
Slide 19: Uncertainty ahead?
Uncertainty ahead? The fundamentals show risks and Highlights about the present opportunities • Earnings are at very low levels • Risks of downturn in global economy are • Overcapacity continues to cast shadows in tangible, also for Chinese economy main merchant segments • High oil prices represent
Slide 20: IR Contact: Pauliina Tennilä
IR Contact: Pauliina Tennilä Director, Investor Relations Tel. +358 (0) 40 570 5530 E-mail: pauliina.tennila@wartsila.com Presentation name / Author